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FY26 revenue landed at ₹142 Cr, up 47% YoY, but the headline masks three inconvenient truths.
One: the diagnostic core (3B India) grew just 10% domestically, slowed by a flu-and-dengue windfall in FY25 that won’t repeat. Two: Coris, the Belgian antimicrobial-resistance firm acquired mid-year, contributed 7 months of sales weighted toward one large HAT order—no baseline yet for “normal.” Three: a 25.5% ROCE looks strong, but it’s supported by ₹101 Cr in cash and investments. Strip that and the operating business turns thinner.
The stock trades at 18.4x FY26 earnings, a tenth the median diagnostics peer, yet management is guiding 15–20% growth in a market they already own 15% of. The tension: high margin, low growth, high cash, one-off accounting. Something’s got to give.
2. Introduction
3B Blackbio DX, incorporated in 2011, was born as a molecular diagnostics venture and spent a decade building test kits and PCR reagents for a fragmented Indian lab market. In late 2023, it merged with Kilpest India (its parent, an agrochemical player), rebranded, and bought a UK distributor in 2024. Then in August 2025—three months into the reporting year—it swallowed Coris Holding, a loss-making Belgian outfit that makes rapid diagnostics for antimicrobial resistance (AMR).
The result: a three-legged stool. Leg one is 3B India’s molecular diagnostics, which prints 40–55% EBITDA margins on ₹86 Cr revenue. Leg two is TRUPCR Europe, the UK distributor selling the same tests across 40 countries—a ₹21 Cr business growing 40% annually. Leg three is Coris, sitting in the red, chasing FDA approval for its flagship Carba5 assay while burning cash on a one-time Ebola contract in Congo.
Management didn’t acquire a profit engine. It bought a regulatory foothold in Europe and a second shot at the US diagnostics market, where 3B has no scale. The price tag: up to ₹31 Cr in cash and debt assumption. The bet: that Coris becomes accretive by FY28.
3. Business Model: WTF Do They Even Do?
The diagnostics leg is molecular: customers (labs, hospitals) send samples; 3B’s kits extract DNA/RNA, run them through PCR machines, and produce results in 2–4 hours. The revenue comes from selling the kits themselves—multiplex panels (testing 20+ markers at once), plus reagents and enzymes. Margin math is savage: if a kit costs ₹20 to make and sells for ₹400, a customer buys one every week per machine.
The Indian market is niche. Management puts it at ₹500–600 Cr nationwide; 3B claims 15% share—a fortress in a closet. Competitors exist but cluster in low-priced single-marker assays (tuberculosis, HIV, Hepatitis B); 3B’s defensibility comes from multiplex panels and oncology, where pricing power holds. So far, no price erosion.
The business acquired a distributor arm (TRUPCR Europe) that mirrors the kit model: buy the kits from India, mark them up 2–3x, sell via partners in Europe. The distributor’s 40% growth comes from brand building and channel expansion—not from innovation. It’s a high-margin carry trade on equity.
Coris is a different animal: it makes rapid lateral-flow assays (the COVID swab kind) and is losing money. The company pivoted toward AMR in the US, where resistance diagnostics is under-penetrated and reimbursement is improving. But getting there requires FDA approval, clinical trials, and competitive deals—none of which happen in quarters. The large HAT (sleeping sickness) contract in Congo is strategic (it shows scale and cash generation) and tactical (it masks the losses).
The agrochemical division (19% of revenue) is micro: ₹27 Cr of biologicals and chemicals, mostly sold to the Indian government via e-tender. It was inherited with the Kilpest merger and keeps humming at low margin. Nobody’s excited about it.
4. Financials Overview
Figures are consolidated, in ₹ crore.
Metric
FY25
FY26
YoY Change
Revenue
96.47
141.92
+47.1%
EBITDA
49.40
62.59
+26.7%
PAT
47.69
58.59
+22.9%
EPS (₹)
55.57
68.27
+22.8%
The top-line surge is three parts: 3B India +10%, TRUPCR Europe +48%, and Coris +7 months of sales (₹36 Cr). If you annualize Coris at the run-rate, the group implied revenue is ₹160+ Cr. But annualization is a trap—Coris is seasonal, the HAT order was front-loaded, and FY27 management expects “slight EBITDA loss” in Q1 and Q2.
PAT grew slower than revenue (23% vs 47%) because of two things: Coris’ loss-making quarters diluted the mix, and depreciation jumped from ₹1.09 Cr to ₹5.13 Cr (Coris owns capitalized R&D assets and amortizes them yearly; 3B India capitalized facilities in FY26). Tax also crept up as the Coris loss-carryforward shield (EUR 2–3 Cr) hasn’t yet offset Indian taxes.
From the June 2026 concall:
Management said FY26 growth moderated vs expectations due to two headwinds: a 4.2 Cr flu/dengue seasonal spike in FY25 (unusually large) and Middle East geopolitical disruptions that crimped exports in Q4. Strip those, and 3B India’s core growth was in the low teens. Domestic MDx (call it ₹75 Cr) grew roughly 15% on a seasonally normal year—not bad for 15% market share, but also the ceiling without new assay launches or government penetration wins.
5. Market Expectations & Historical Multiples
This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.
