Indian Economic Overview
Indian economy witnessed a steady growth of 6.5% during FY2025, navigating strong headwinds from global economic and geopolitical upheavals. This expansion was bolstered by a robust services sector and steady investment activity. Indias digital and financial infrastructure growth facilitated greater financial inclusion which enhanced credit accessibility for businesses and individuals. Headline CPI inflation is forecasted at 4.8% for the year, remaining within the RBIs acceptable range of 2-6% for the majority of months.
While urban consumption showed signs of stagnation, rural demand stayed resilient, driven by strong agricultural performance. As a result, Private Final Consumption
Expenditure (PFCE) is expected to grow at 7.6% during FY2025 as compared to 5.6% growth observed during FY2024.[1]
The services sector continued to be a vital growth engine driven by a large pool of skilled workers serving a growing domestic demand. Rapid urbanisation across India and increasing digitisation of key services have attributed to the domestic demand growth. Exports in the services sector also continued to demonstrate resilient growth.
The Reserve Bank of India maintained a vigilant stance on inflation while supporting growth. Headline inflation eased to 3.34%, primarily due to a moderation in food inflation. Monetary policy measures played a crucial role in maintaining liquidity and supporting economic activity. Meanwhile, infrastructure investments created opportunities across industries and the manufacturing sector experienced steady growth due to policy support and increasing interest in the regions supply chain capabilities. Overall, the interplay of proactive policy-making, resilient industrial performance and expanding global trade connections formed the backbone of a stable and flourishing economy.
Outlook for the Indian Economy
The outlook for the Indian economy remains positive. Indias growth trajectory is expected to continue its upward trend, fueled by rising consumer demand, improved investment activity, and sustained policy support.
The implementation of key policies highlighted in the Union Budget are expected to act as significant tailwinds, catalyzing overall consumption. Furthermore, the increased allocation of funds to the Pradhan Mantri Jan Arogya Yojana (PMJAY) is set to augment health insurance coverage for a broader population, thereby bolstering demand and widening the customer base for healthcare service providers.
However, global headwinds continue to pose potential downside risks, including geopolitical instability and supply chain disruptions, which could drive inflationary pressures into the economy. Domestically, rising mobility in Tier III and Tier IV cities is anticipated to bolster demand, while
positive business sentiment is likely to encourage higher private investment. There is a visible upturn in the private capital expenditure (CapEx) cycle, gradually improving business sentiments, healthy balance sheets of banks and corporates, and the governments continued thrust on capital expenditure.
Easing inflationary pressures and accommodative monetary policies are expected to boost credit flow, providing
crucial support to both businesses and individuals.
With macroeconomic stability firmly in place, the
economy is strategically positioned to sustain its robust
growth momentum.
Indias real GDP growth in (%)
Source: RBI Bulletin February 2025, National Statistics Office (NSO)
Industry Overview
As Indias population continues to witness rapid growth, the number of individuals aged 60 years or above is expected to almost double from 8.4% of the total population in 2011 to 14.9% in 2036. [2] This ageing population expands the market of the healthcare services. The Governments expenditure on healthcare grew by a Compound Annual
Growth Rate (CAGR) of 15.8% in FY2024 to 1.9% of the GDP.[3] The overall Indian healthcare market estimated at ~$180 billion in FY2023, is projected to reach $320 billion by FY2028 at an approximate 12% CAGR.[4] According to the World Bank, India has only 0.7 physicians per 1000 people, which is half of the global average at 1.5 physicians per 1000 people.[5] Poor infrastructure coupled with a lack of well-trained medical staff continues to pose a significant challenge for rural healthcare delivery.
Through initiatives like the United Health Interface (UHI), digital registries, Electronic Health Records (EHR) and the Ayushman Bharat Digital Mission (ABDM), the government is facilitating the digitisation of healthcare.
IVD market in India
The In-Vitro Diagnostics (IVD) industry in India is currently experiencing overcapacity due to a surge of new entrants during the pandemic, outpacing the industrys growth rate. However, the market is poised for significant expansion, projected to reach approximately US$ 25 billion by FY28, growing at a Compound Annual Growth Rate (CAGR) of ~14% over the next five years, from a market size of ~US$ 13 billion in FY23.
This growth is driven by several factors:
Infrastructure development: Especially in Tier II and III cities, which are witnessing increasing demand for preventive care testing, contrasting with stagnation in Tier I cities.
Increasing health awareness and insurance penetration: Schemes like PMJAY are making diagnostics more accessible.
Rising prevalence of chronic and infectious diseases:
Driving the need for more frequent and accurate testing.
Technological advancements: Innovations in generative AI are enhancing diagnostic accuracy and efficiency, while genome testing and molecular diagnostics are paving the way for personalized medicine and early disease detection.
Emergence of new business models: Such as point-of-care (POC) testing and strategic collaborations.
Despite the fragmentation of the industry, with standalone centers holding a significant market share, the overall outlook remains positive due to these underlying growth drivers and continuous technological evolution.
(Reference: Praxis Global Alliance, "Defining the Future of Diagnostics" report, available at: https://www.praxisga. com/PraxisgaImages/ReportImg/defining-the-future-of-diagnostics-Report-3.pdf)
Opportunities and Threats
Modern consumers increasingly prioritise convenience and integrated care, thereby accelerating the demand for digital healthcare solutions.
Growth in tier II and tier III markets, resulting in an increase in equitable access of health services.
Increasing collaboration and alliances within the industry can simplify the healthcare experience for consumers while securing greater profit margins.
Heightened awareness on disease intervention will augment the growing health-tech and med-tech industry in India.
Investors tend to exercise caution and hesitate to enter the market due to its prolonged R&D and monetisation cycles and the technical expertise required to assess the industry. The emergence of a new companies leveraging AI/ ML technology to deliver solutions pose threat to the incumbents.
Regulatory compliance and data privacy continue to pose challenges.
Company Overview
We are a leading clinical diagnostic service provider in India, operating a network of 39 state-of-the-art laboratories across the nation. Our unwavering commitment to quality is underscored by the fact that 99% of our vials are processed in NABL-accredited labs. This includes the 100% NABL accreditation of our 29 Thyrocare-owned labs across India1. Our dedication to excellence has also been consistently recognized by the College of American Pathologists (CAP) for over 15 years, acknowledging our provision of high-quality laboratory care. According to the International Journal of Advance Research, Ideas, and Innovations in Technology,
9 out of 10 doctors trust and confidently recommend our services to their patients2 .
Beyond our extensive laboratory network, we also offer
Electrocardiogram (ECG) at Home services across 1,150 pin codes, supported by a dedicated fleet of 170 ECG
Phlebotomists, bringing essential diagnostics directly to patients doorsteps.
Our operational prowess is further highlighted by:
11,000+ active franchisees, extending our reach nationwide.
167.9 million tests conducted, marking a significant 14% year-on-year growth.
16.7 million patients served, reflecting an 11% year-on-year increase in our patient base.
Quality
Our commitment to delivering superior quality diagnostics is paramount. We have made substantial investments in robust quality management systems and leverage cutting-edge technology and equipment across all our facilities. Our staff undergoes rigorous training programmes to ensure adherence to the highest standards, and we maintain consistent quality through regular proficiency testing. Furthermore, we proactively seek insights and guidance through regular meetings with a panel of esteemed medical professionals, ensuring our practices remain aligned with the latest advancements and clinical requirements.
Efficiency
Our laboratories operate with remarkable efficiency, a testament to our robust operational processes, cutting-edge automated systems, and streamlined workflows. This dedication to operational excellence is evident in our impressive turnaround time (TAT) of just 3.43 hours. This
TAT represents the swift duration between the arrival of samples at our labs and the release of comprehensive reports, enabling faster diagnoses and timely patient care.
Acquisitions
The Company acquired diagnostics business of Polo Labs through Business Transfer Agreement in July 2024. With presence in Punjab, Haryana, and Himachal Pradesh, this acquisition will significantly widen the footprint and augment market reach of Thyrocare in the Northern parts of the Country.
Polo Labs is now fully integrated and delivering expected regional scale benefits In addition, Thyrocare acquired the clinical diagnostic business of Vimta Labs through Business Transfer Agreement in October 2024. Vimtas Clinical Diagnostics division has an established presence in Telangana and Andhra Pradesh further bolstering the Companys presence in South India.
Vimta integration is in progress and expected to complete by Q1 FY26.
To guide future M&A activities, the Company has introduced a recommendation framework that assesses acquisitions based on strategic fit, integration feasibility, and bandwidth alignment. Further, the 15-20 crore acquisition cap will now be aligned to 12-month post-deal ROIC projections.
Segment-wise Performance/Business Segments/Product Wise performance
The Company has identified business segments as its primary segment. Revenue and expenses directly attributable to segments are reported under each reportable primary segment. The following table presents a summary of revenue by industry segments.
| Segment | FY 2025 (INR Cr) | FY 2024 (INR Cr) | FY 2025 (% of revenue) | FY 2024 (% of revenue) | % Growth |
| Pathology1 | 613.22 | 508.01 | 89.22% | 88.83% | 20.71% |
| Radiology2 | 54.29 | 47.61 | 7.90% | 8.33% | 14.03% |
| Materials & Others | 19.84 | 16.26 | 2.89% | 2.84% | 22.02% |
| Total | 687.35 | 571.88 | 100.00% | 100.00% | 20.19% |
1
Pathology business excluding materials & others 2Radiology includes pulse hitech1
100% NABL accreditation pertains to the accreditation of 29 Thyrocare owned labs in India. It excludes Polo, Vimta Clinical Diagnostic labs, partner labs and newly opened owned lab in Mar25.2As per a survey on doctors perception of laboratory diagnostics (IJARIIT, 2023)
In FY2025, revenue from diagnostic testing services contributed the largest share to revenue (89.22%) at a growth rate of 20.71%.
Pathology and Radiology services continue to grow steadily. Pathology margins remained higher due to higher asset utilization and scale, while Radiology—being in a nascent and capex-intensive phase—delivers modest margins but strategic long-term growth potential.
Diagnostic and Testing Services
Pathology diagnosis contributes to 89% share of the business. The Company has recently introduced two new brands and a new product under this segment.
Aarogyam
Aarogyam is the Companys flagship brand in preventive healthcare segment. It continues to track steady growth at 16%. It forms 36% of the total pathology sales. The
Company expanded its portfolio under the brand with the introduction of ‘Plus and ‘Pro series. 24x7 non-fasting packages were launched to facilitate a seamless experience for the customers. Thyrocare is one of the few companies providing home-based ECG checks in India.
Jaanch
Jaanch, offers specialised packages curated by doctors, covering a broad spectrum of health concerns from hair loss to cancer screening. The segment has witnessed a twofold increase in sales over the past year.
Her-check
Under the ‘Her-check brand, the Company offers comprehensive solutions for women reproductive health issues.
Overseas
The Company processed its first sample in Tanzania in April 2024 and has since established partnerships with over
150 healthcare facilities in Dar es Salaam. The operation remains in investment phase; FY26 targets include reaching
2 crore in quarterly revenue and achieving break-even by Q4. Risks include FX volatility, regulatory changes, and local compliance; mitigation involves localization of sample collection and robust partner due diligence.
Imaging Services
Radiology comprises of tests such as CT scans, MRI, nuclear imaging and ultrasound scans. The Company, under its entirely-owned subsidiary Nueclear Healthcare, operates a network of molecular imaging centres aimed at early and effective cancer monitoring. Across the network, it performed more than 28,500 PET-CT scans over the course of the last year . Nueclear also produces radiopharmaceutical agent FDG used for PET-CT scanning.
Financial Overview
Financial Performance
The standalone and consolidated financial statements have been prepared in accordance with the Indian Accounting Standards as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (the Act) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 (hereinafter referred to as the ‘Ind AS) and other relevant provisions of the Act.
I. Standalone Financial Performance
Summary
Revenue from operations of Thyrocare aggregated to
Rs. 633.10 crore in FY2025 as compared to Rs. 524.02 crore in FY2024, registering a growth of 21%.
Earnings before interest, tax, depreciation, and amortization (EBITDA) (unadjusted) of Thyrocare aggregated to Rs. 187.02 crore in FY2025 as compared to Rs. 133.88 crore in FY2024. The normalized EBITDA after adjusting for provision for bad and doubtful debts and ESOPs costs was Rs. 211.57 crore in FY 2024 as compared to Rs. 159.11 crore in FY2024.
Profit after tax and after exceptional items (PAT) (unadjusted) of Thyrocare aggregated to Rs. 95.78 crore in FY2025 as compared to Rs. 71.14 crore in
FY2024.
Dividend
Thyrocare has determined that as a matter of policy, the net cash surplus after providing for tax, capital expenditure expected to be incurred during the next financial year, and any other anticipated requirement of funds, may be distributed among the shareholders as dividend for the financial year concerned. The Board of Directors on 23rd April 2025 recommended and approved the payment of final dividend of Rs. 21/- (Rupees Twenty-one only) per equity share of the face value of Rs. 10/- each subject to shareholders approval in an Annual General Meeting.
II. Consolidated Financial Performance
The Consolidated Financial Statements relate to
Thyrocare Technologies Limited (‘the Company), its subsidiary companies, Nueclear Healthcare Limited
(wholly owned subsidiary), in which the Company has 100% equity holding as on 31 March 2025 (100% : 31 March 2024), Pulse Hitech Health Services (Ghatkopar) LLP (‘Subsidiary), in which the company has 51% stake as on 31 March 2025 (51% : 31 March 2024), Thyrocare Laboratories (Tanzania) Limited (‘Joint venture), in which the company has 50% stake as on 31 March 2025 (50% : 31 March 2024) & Think Health Diagnostics Private Limited (‘wholly owned subsidiary), in which the company has 100% stake as on 31 March
2025 (100% : 31 March 2024) (hereinafter referred to as the "Group").
Summary
Revenue from operations of the Company aggregated to
Rs. 687.35 crore in FY2025 as compared to Rs. 571.88 crore in FY2024, registering a growth of 20.19%.
Earnings before interest, tax, depreciation, and amortization (EBITDA) of Company aggregated to Rs. 190.36 crore in FY2025 as compared to Rs. 137.43 crore in FY 2024, registering a growth of 38.51%. The normalized EBITDA after adjusting for provision for bad and doubtful debts and ESOPs costs was Rs. 216.13 crore as compared to Rs. 162.93 crore in FY2024. Profit after tax and after exceptional items (PAT) of the Company aggregated to Rs. 90.75 crore in FY2025 as compared to Rs. 69.49 crore in FY2024.
Key financial ratios
| Consolidated | Standalone | Consolidated | Standalone | |
| Key financial Parameter | ||||
| FY 2025 | FY 2025 | FY 2024 | FY 2024 | |
| Revenue growth (%) | 20.19% | 20.82% | 8.58% | 7.72% |
| EBIDTA margin (%) | 27.69% | 29.54% | 24.03% | 25.55% |
| Net profit margin (%) | 13.20% | 15.13% | 12.15% | 13.58% |
| Basic EPS (Rs.) | 17.28 | 18.08 | 13.42 | 13.44 |
| Liquid cash as a % of revenue from operations | 7.93% | 8.21% | 6.98% | 6.51% |
| Return on net worth (%)& | 16.59% | 17.83% | 13.17% | 13.85% |
| Return on capital employed (ROCE)% | 25.97% | 27.46% | 17.58% | 18.45% |
| Debtors Turnover | 11.80% | 11.60% | 8.89% | 8.49% |
| Inventory Turnover | 4.03% | 3.9% | 4.43% | 4.33% |
| Interest Coverage Ratio** | 43.82% | 53.42% | 21.62% | 25.41% |
| Current Ratio | 2.77% | 2.69% | 3.08% | 3.23% |
| Debt to equity ratio | 0.05% | 0.04% | 0.08% | 0.08% |
| Operating Profit margin (%) | 19.45% | 22.19% | 15.88% | 18.09% |
Footnotes:
$ ROCE = Earnings before interest and tax / Capital Employed x 100
*Capital Employed = Total Assets Current Liabilities
• &The Return on Net Worth increased on account of higher profitability during the year, driven by improved operating margins and enhanced cost efficiency.
• **The Interest Coverage Ratio improved significantly during the year, primarily due to full repayment of the term loan obtained in financial year
2023-24 resulting in reduction in interest expenses. This improvement reflects stronger operational performance and lower finance costs.
Outlook
Thyrocare is on a fantastic growth trajectory with both revenue and profit growing much above the industry growth rate despite tough competition and undersupply of healthcare workers. The Company will continue to invest in quality and efficiency improvements to achieve best-in-class service while remaining affordable.
Indias healthcare workforce remains understaffed and rising automation and digitisation in the med-tech industry can bridge the gap by enhancing the efficiency of the available workforce. With an aging population, widespread chronic diseases, growing rural and sub-urban demand and increasing preventive healthcare awareness, the outlook remains positive for the Company.
Risks and concerns
This section lists forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those suggested by the forward-looking statements due to risks or uncertainties associated with respect to, but not limited to, regulatory changes pertaining to the industry in India in which our Company operates and our ability to respond to them, our ability to successfully implement our strategy, our growth and expansion, technological changes, our Companys exposure to market risks, general economic its business activities or investments, the monetary and fiscal policies of India, inflation or deflation, unanticipated turbulence in any or all of interest rates or foreign exchange rates or both, equity prices and other rates or prices, the performance of the financial markets in India and globally, changes in domestic laws, regulations and taxes and changes in the competitive environment.
Certain important factors that could cause actual results to differ materially from our Companys expectations include, but are not limited to, the following – operating highly competitive and fragmented industry and our business, financial condition and results of operations may be adversely affected if we are not able to compete effectively.
negative publicity or other harm to our reputation, brand or customer perception of our brand.
disruption in the operations of any of our laboratories or offerings of particular tests.
delay or interruption in transportation of samples to the laboratory and regional processing laboratories and our dependence on hub-and-spoke business model complemented by the regional processing laboratories.
failure to attract and retain authorized service providers. failure of our equipment, information technology and other technological systems; and changes in technologies and/or the introduction of new technology could reduce demand for our pathology testing services.
operational risk associated with molecular imaging business may have an effect on results of operations and financial conditions.
Changing laws, rules, regulations and government policies with reference to our businesses.
Partner/Franchisee Risk: Franchisees and B2B partners—including aggregators, insurance companies, and hospital networks—contribute over a significant share of Thyrocares consolidated revenues. While this diversified go-to-market strategy supports cost-effective expansion, it introduces risks related to customer concentration, partner tenure, and operational dependencies.
To mitigate these risks, Thyrocare:
Maintains a diversified partner portfolio across geographies and channels.
Implements standardized onboarding, training, and SLA monitoring.
Reviews high-volume contracts periodically to evaluate pricing, performance, and renewal risks.
Internal Control Systems and their Adequacy
Section 134(5)(e) of the Companies Act, 2013 requires a Company to lay down internal financial controls system
(IFC) and to ensure that these are adequate and operating effectively. Internal financial controls, here, means the policy and procedure adopted by the Company for ensuring the orderly and efficient conduct of its business including adherence to Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.
Our Internal Financial Controls (IFC) system has been established with policies and procedures that incorporate all the five elements:
Orderly and efficient conduct of business
Safeguarding of its assets
Adherence to Companys policies
Prevention and detection of frauds and errors
Accuracy and completeness of the accounting records and timely preparation of reliable financial information
In addition, we have a transparent framework for periodic evaluation of the IFC through periodic internal audits. This reinforces the Companys commitment to adopt the best corporate governance practices The CEO and CFO certification provided in the CEO and CFO certification section of the Annual Report discusses the adequacy of our internal control systems and procedures.
Human Resource
At Thyrocare, our people are our greatest strength, and we foster a culture where contributions matter more than titles. We believe that impactful work can come from anyone, regardless of their position in the organization. Ideas are the currency of progress, and when someone brings a promising concept to the table, we make it a point to listen, support, and act. We understand that mistakes are an inevitable part of growth; rather than discouraging them, we see them as valuable lessons that help us evolve. While our environment is fast-paced and performance-driven, it is equally rewarding—offering recognition and growth opportunities to those who rise to the challenge. Our commitment to continuous development ensures that every individual has the tools and encouragement to enhance their skills, take on new responsibilities, and advance their career. This blend of empowerment, learning, and recognition shapes a dynamic and resilient talent pool that drives our success forward
Workforce Development
Thyrocare focuses on the long-term sustainability and growth of its business which hinges on the Companys ability to attract, develop and retain skilled professionals.
It has a robust training and Rewards and Recognition (R&R) programmes which augments employee- retention, and attracts top talent seeking opportunities in the Company.
As of March 31, 2025, our total permanent headcount stood at 1822.
Cautionary Statement
The Management Discussion and Analysis (MDA) section may include forward-looking statements regarding prospects. These statements entail various known and unknown risks and uncertainties, which could result in material differences between actual results and the forward-looking statements. The estimates and figures presented in the report are based on certain assumptions made by the Company, considering both internal and external information currently available.
However, these assumptions are subject to change over time due to shifting underlying factors, potentially leading to adjustments in the estimates. It is important to note that forward-looking statements reflect the Companys current intentions, beliefs, or expectations only as of the date of their issuance. The Company is not obligated to revise or update any forward-looking statements in response to new information, future events, or other factors.
[1] https://pib.gov.in/PressReleasePage.aspx?PRID=2106921
[2] https://mohfw.gov.in/sites/default/files/Population%20Projection%20Report%202011-2036%20-%20upload_compressed_0.pdf [3] https://pib.gov.in/PressReleasePage.aspx?PRID=2034937 [4] https://www.bain.com/insights/healthcare-innovation-in-india/ [5] https://www.indembassybern.gov.in/docs/Medtech-Report-India.pdf
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2026, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund & Specialized Investment Fund Distributor), PFRDA Reg. No. PoP 20092018
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
