Krsnaa Diagnostics Ltd: ₹2,813 Cr Market Cap, 1,800+ Centres – Scanning Profits (and Debt Days) in 29% OPM

1. At a Glance

Krsnaa Diagnostics (KDL) is the PPP kingpin of India’s diagnostics world — serving MRIs, CT scans, and lab tests in corners of the country where even Google Maps blinks. It’s built its empire through government hospital tie-ups, winning large-scale contracts like the recent Rajasthan PPP pathology project. But with 152 debtor days, cash collection is slower than an MRI machine on backup power.

2. Introduction

Founded with the goal of democratising diagnostics in India’s non-metros, KDL has grown into one of the country’s largest differentiated diagnostic players. The “differentiated” part? A razor focus on public-private partnerships (PPP) with hospitals and medical colleges — a market where margins are tight, payments delayed, but scale is massive.

Its model is a cocktail: Government tie-ups (volume), private contracts (margin), and teleradiology services (reach). Throw in a sprinkling of pathology labs, and you have a network that spans 1,800+ centres across 25 states.

3. Business Model (WTF Do They Even Do?)

Three service lines keep the machines humming:

1. Radiology Services – CT, MRI, X-ray, ultrasound; typically placed inside government hospitals under long-term contracts.
2. Pathology & Laboratory – Blood and biochemistry tests, now scaling faster via PPP wins like Rajasthan.
3. Teleradiology – Remote reading of scans for small hospitals without in-house radiologists.

The catch? In a PPP-heavy model, receivables balloon and