Thyrocare Technologies has reported stronger-than-expected quarterly earnings, driven by robust growth in diagnostic test volumes and improved operating efficiency. Revenue for the quarter surpassed analyst estimates by 3.7%, while EBITDA exceeded expectations by 15%, helped by better vendor negotiations and rising demand across its network.
The diagnostics company posted an EBITDA margin of 35.1%, outperforming forecasts despite continued investments in specialty diagnostics, geographic expansion, and workforce additions. Analysts say Thyrocare’s strategy of volume-based pricing is helping it secure a larger share of business from major institutional clients that previously distributed testing work among several providers.
Growth remained particularly strong in the company’s franchise and partnership channels. Franchise revenue rose 21% year-on-year, while partnership revenue increased 23%, supported by insurance and health-tech collaborations. Thyrocare processed more than 8 million tests during the quarter, with management forecasting mid-to-high-teen revenue growth for FY27.
The company is also expanding beyond conventional pathology services. It has entered the genomics and precision diagnostics segment, beginning operations in May 2026, and expects specialty testing to become a significant contributor over the coming years. Its insurance business recorded 45% growth, while international operations also continued to improve.
Despite ongoing investments, management expects EBITDA margins to remain stable at around 32–33% in FY27, supported by operating leverage and higher utilization levels.
Following the results, analysts raised their FY27 and FY28 earnings-per-share estimates by 9% each and introduced FY29 forecasts. The brokerage retained its “BUY” rating on the stock with an unchanged target price of INR 592.
However, analysts cautioned that increasing competition from online diagnostic platforms and new entrants in the healthcare testing market could pose risks to future growth and profitability.
