Thyrocare Technologies Ltd. FY25 Results: Strong Growth, Higher Profits, Bigger Network

Thyrocare Technologies Ltd. Reports Strong Growth in Q4 and FY25

Thyrocare Technologies Ltd. has shared its Q4 and full-year FY25 results. The company showed good growth in revenue, profits, and network expansion. It also made progress in new tests, technology, and quality standards. Here’s a detailed look at the key updates.

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Key Highlights from Management

The earnings call was led by:

• Rahul Guha, Managing Director & CEO
• Alok Kumar Jagnani, Chief Financial Officer
• Nitin Chugh, Chief Commercial Officer
• Kapil Gupta, Strategy & Investor Relations

They shared business updates, financial performance, and plans for the future.

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Business Model Changes and Strategic Focus

Shift to Slab-Based Pricing

In May 2023, Thyrocare Technologies Ltd. moved away from a flat discount model. It now uses a slab-based pricing system, where better performance gets better rates. This approach rewards high-volume partners and makes pricing more flexible.

Focus on B2B Partnerships

The company is focused on becoming the best partner for other diagnostic providers. It’s building strong B2B relationships and wants to be the go-to lab service for hospitals, clinics, and health tech platforms.

Expansion in India

Thyrocare is growing in two ways:

• Organically: by adding new franchisees
• Inorganically: by buying labs in areas where it had less presence (called “white spaces”)

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Commitment to Quality

National Accreditation

• 100% NABL Accredited: It’s the only lab chain in India with full NABL certification for every lab.
• CAP Certified: Also got recognition from the College of American Pathologists.
• Doctor Trust: 9 out of 10 doctors rely on Thyrocare’s test results.
• Fast Reports: On average, test results are ready in just 3.43 hours.

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Research and Studies

Thyrocare is also investing in health research through its R&D unit, Thyrocare Anusandhan.

• Did India’s biggest HbA1c (diabetes) study with 20 lakh results.
• Carried out a dengue study covering 1 lakh cases.
• Studied over 15,000 samples for early detection of cervical cancer.

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Franchise and Network Growth

Bigger Network, More Tests

• The company now has 11,000+ active franchisees, up from 9,400 last year.
• Plans to add 1,500+ more franchisees in FY26.
• Total tests done: 167.9 million (up 14%)
• Total patients served: 16.7 million (up 11%)

New Acquisitions

Thyrocare made smart acquisitions to grow faster:

• Polo Labs (July 2024): Added presence in Punjab, Haryana, Himachal Pradesh.
• Vimta Clinical Diagnostics (October 2024): Strengthened reach in Telangana and Andhra Pradesh.
• Think Health: Added ECG-at-home service, helping in insurance checks.

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Segment-Wise Performance

Pathology

• Pathology business grew 21% YoY in FY25
• Q4 growth was 23% YoY

Radiology

• Radiology segment (Nueclear & Pulse Hitech) grew 14% YoY
• In Q4 alone, it grew 17% YoY

Franchise Revenue

• Revenue from the franchise network rose 18% YoY for the full year
• Q4 growth was 22% YoY

Partnership Business

• Partnership revenue rose 27% YoY, with 24% YoY growth in Q4

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Financial Performance of Thyrocare Technologies Ltd.

Metric	FY25	YoY Growth
Standalone Revenue	₹633 Cr	+20%
Consolidated Revenue	₹687 Cr	+20%
EBITDA (Normalized)	₹210 Cr	+37%
Profit After Tax (excl. tax reversal)	₹101 Cr	+45%
Gross Margin (Q4)	73% Standalone / 74% Consolidated	+426 bps
EBITDA Margin (Q4)	36% Standalone / 35% Consolidated	+1,026 bps
Final Dividend	₹21/share	–

The company also announced a ₹21/share final dividend for FY25.

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Margin Improvement

Margins got better because of:

• Lower costs from better vendor deals
• Better use of labs (operating leverage)
• Less provisioning in accounts

EBITDA margins are expected to stay at around 31% in FY26.

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Product Expansion

Bigger Test Menu

• The number of tests offered has grown from 300 to nearly 1,000.
• More investments are planned in allergy testing and genomics.

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Global Expansion

Entry into Africa

In March 2024, Thyrocare Technologies Ltd. entered the African market by launching services in Dar es Salaam, Tanzania.

• Partnered with 150+ healthcare facilities.
• The business in Tanzania is small for now but growing fast.

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Operational Updates

Better Customer Service

• Live report tracking is now available.
• Reminder services were added to help patients remember test schedules.

More Franchisees and Tests

• The company is quickly adding new labs and tests.
• It’s also doing more work in insurance health checks—both before policies and during renewals.

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Employee Stock and Capital Use

• ESOPs (employee stock options) were issued by parent company API Holdings.
• Acquisitions are part of a “string of pearls” strategy—small but smart buys.
• Annual capital spending (capex) is around ₹40–50 Cr.

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Industry View and Competition

• The pathology industry in India is growing in early-to-mid teens percentages.
• Thyrocare is growing even faster at mid-to-high teens.
• Management says competition is there but not a threat right now.
• No plans to merge with PharmEasy despite media talk.

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What to Expect in FY26

• Expected revenue growth: mid-teens
• Margins expected to remain steady
• Plan to add 1,500+ new franchisees
• More focus on technology-driven tests
• Radiology margins are improving due to better pricing

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Risks and Things to Watch

• A one-time tax reversal of ₹11.2 Cr happened in Q4
• Receivables increased by ₹30 Cr, mainly due to new business deals
• Africa business is still small but showing promise
• Focus remains on organic growth first, with selective acquisitions
• Dividend payout remains strong
• Tax rate expected to be 28–29%

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What Analysts Asked

Franchisee Performance

• New franchisees usually grow 2.5x by year 2 and 3.5x by year 3.

Revenue Mix

• Aarogyam packages make up 35% of total revenue
• Other individual tests are growing faster than Aarogyam

International Business

• Tanzania lab business is doubling every quarter, but still not a large part of revenue

Receivables

• These increased due to more partnerships and changed credit terms

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Thyrocare Technologies Ltd. had a strong FY25. Revenue went up, margins improved, and its lab network got bigger. The company is sticking to its B2B model, adding new tests, entering new regions, and focusing on quality and speed.

For FY26, growth is expected to continue in the mid-teens. Management plans to maintain good margins, expand further, and keep up high standards. Despite some small risks, the company looks stable and focused.

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FAQs About Thyrocare Technologies Ltd.

What does Thyrocare Technologies Ltd. do?

Thyrocare provides diagnostic tests like blood tests, health checkups, and radiology services. It works mostly with other businesses like hospitals and clinics.

How many franchisees does Thyrocare have?

As of FY25, Thyrocare has over 11,000 active franchisees, and plans to add 1,500+ more in FY26.

Is Thyrocare expanding globally?

Yes. In 2024, it started services in Tanzania, Africa, and is working with over 150 health facilities there.

What is the company’s growth plan?

It wants to grow by adding more franchisees, launching new tests, using better technology, and entering new markets.

Is Thyrocare Technologies Ltd. profitable?

Yes. In FY25, it made a profit of ₹101 Cr, up 45% from last year.

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