Thyrocare Technologies Ltd — Q4 FY26

Thyrocare Technologies Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=4VxcU5WYOHU Published: 1 day ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to the Tyroare Q4 FI26 earnings conference call hosted by Tyroare Technologies Limited. 0:14 14 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation completes. 0:25 25 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:32 32 seconds your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. 0:40 40 seconds Pri Joosi from Tyroare. Thank you and over to you sir. 0:45 45 seconds Thank you Suknali. Good morning everyone and thank you for joining us today. I'm Pri Josie from strategy team at Tyroare. 0:51 51 seconds It is a pleasure to welcome you all to the Q4 FI26 learning call for thyroid. Joining me on the call today are Mr. 0:57 57 seconds Rahul Gua our MD and CEO, Mr. Rajep Panar, our chief commercial officer, Dr. 1:02 1 minute, 2 seconds Romesh Kina, our chief operating officer and Mr. Vikram Gupta our chief financial officer. I hope you have gone through the results release, the quarterly 1:10 1 minute, 10 seconds earnings presentation and the press release which has been update uploaded on the stock exchange website. The transcript of this call will be available in a week's time on the 1:19 1 minute, 19 seconds company's website. Please note that today's discussion may be forward-looking in nature and must be viewed in relation to the risk 1:26 1 minute, 26 seconds pertaining to our business. After the end of this call, in case you have any further questions, please feel free to reach out to the investor relations team. I now hand over the call to Mr. 1:35 1 minute, 35 seconds Rahul Gua to make the opening remarks. Over to you Rahul. 1:42 1 minute, 42 seconds Thank you. Good morning and welcome to the call. Thank you for taking out time from your busy schedules to join us this evening. 1:52 1 minute, 52 seconds As in all my calls, I will start with a quote from Nelson Mandela in recognition of our foray into Africa. 2:01 2 minutes, 1 second It is in your hands to make a better world for all who live in it. 2:06 2 minutes, 6 seconds We believe Thyroare can take its business model to Africa and make affordable highquality diagnostics 2:14 2 minutes, 14 seconds accessible to all. Before I get into specifics, I want to take a step back and talk about how we see the 2:22 2 minutes, 22 seconds diagnostics industry evolving in today's healthcare landscape. 2:28 2 minutes, 28 seconds Diagnosis diagnostics is no longer a back-end support function. It is central to clinical decision making and 2:37 2 minutes, 37 seconds increasingly to preventive health management. Patients today expect convenience, speed and reliability as a 2:47 2 minutes, 47 seconds baseline and are actively looking for trusted partners who can deliver end to end diagnostic solutions seamlessly. 2:57 2 minutes, 57 seconds This shift aligns closely with our own mission at Thyroare to make preventive health care easy to deploy, consistent in quality and accessible to all. 3:10 3 minutes, 10 seconds Against this backdrop, FY26 has been a year of meaningful progress for us, not 3:17 3 minutes, 17 seconds just in terms of growth, but in stren terms of strengthening the foundation of the business. 3:23 3 minutes, 23 seconds We are very proud of some of the key milestones that we achieved in FY26. 3:29 3 minutes, 29 seconds Parroare was certified as a great place to work. A recognition by the global authority on workplace culture 3:39 3 minutes, 39 seconds reflecting our commitment to fostering a positive, inclusive and in empowering 3:46 3 minutes, 46 seconds environment for our people. We were recognized at the fourth national diagnostic forum and awards by voice of healthcare with two prestigious awards. 3:58 3 minutes, 58 seconds Best diagnostic lab chain of the year national and more importantly patient centric diagnostic company of the year national. 4:09 4 minutes, 9 seconds During the year we onboarded Maduri Digshit as the brand ambassador for parroare which is an important step in 4:18 4 minutes, 18 seconds strengthening brand recall and consumer trust at a national level. 4:24 4 minutes, 24 seconds Our diagnostic portal continues to do well. 4:28 4 minutes, 28 seconds Arobium uh growing in line with the company growth rate. But the highlight 4:34 4 minutes, 34 seconds was Jan which grew at 66% this quarter year on year showing the move towards 4:41 4 minutes, 41 seconds more specialized disease specific testing even in the annual health checkup space. We expanded our 4:48 4 minutes, 48 seconds diagnostics portfolio significantly into the specialty space. One key addition was allergy testing which was introduced 4:57 4 minutes, 57 seconds using the plardia platform and currently has over 250 SKUs. 5:04 5 minutes, 4 seconds We started our foray into genomic testing on May 1st. A segment that is nent but directionally significant for Indian diagnostics. 5:14 5 minutes, 14 seconds The global genomics market is pro considered to exceed 100 billion by 2030 and India with one of the highest 5:23 5 minutes, 23 seconds burdens of genetic disorders including calisthemia, cickle cell disease and hereditary cancers represents a 5:32 5 minutes, 32 seconds structurally underpenetrated opportunity. 5:36 5 minutes, 36 seconds Carrier screening, pharmaccogenomics and cancer predisposition panels are seeing early but accelerating demand 5:45 5 minutes, 45 seconds particularly amongst urban healthare consumers. With a franchise network of 5:51 5 minutes, 51 seconds almost 11,000 collection points and a deep brand trust in preventive testing, 5:59 5 minutes, 59 seconds Pharaohare is well positioned to bring genomic testing to a broader patient base at accessible price points, 6:07 6 minutes, 7 seconds democratizing a category that has largely remained confined to metro hospitals and specialty clinics. We are 6:16 6 minutes, 16 seconds approaching this methodically starting with defined panel offerings particularly non-invasive prenatal 6:24 6 minutes, 24 seconds testing building clinical validation and layering physical education before scaling aggressively. 6:33 6 minutes, 33 seconds We now have more than 10,800 franchises. 6:37 6 minutes, 37 seconds As a result, we processed 210 million tests in FI26, which grew by 23% yearonear. 6:47 6 minutes, 47 seconds It's important to contextualize that this volume is higher than some of our biggest competitors combined. 6:54 6 minutes, 54 seconds We serve 19.2 million patients in FI26, which increased by 15% yearonear. 7:02 7 minutes, 2 seconds As we continue to scale, our focus remains anchored on delivering high quality diagnostics with consistently faster turnaround time. 7:14 7 minutes, 14 seconds In Q4 FY26, 97% of our samples are processed in NABL 7:22 7 minutes, 22 seconds accredited own laboratories with every report being reviewed by qualified MD pathologists. 7:30 7 minutes, 30 seconds We have also made significant progress on our quality metrics with complaints reducing to 3.06 7:39 7 minutes, 39 seconds per million tests thus sustaining a six sigma level of performance. 7:45 7 minutes, 45 seconds Also during the quarter we delivered an average turnaround time of 3.43 43 hours 7:53 7 minutes, 53 seconds from sample receipt supported by a laboratory operations and a strong well integrated logistics background. 8:02 8 minutes, 2 seconds This allows us to ensure timely access to critical diagnostic information across the country. 8:11 8 minutes, 11 seconds Thus, overall FI26 has been about building scale with consistently while continuing to invest in 8:20 8 minutes, 20 seconds capabilities that will drive the next phase of growth. With that, I will now hand it over to Rajep to take you 8:28 8 minutes, 28 seconds through the business and commercial updates. Thank you, Rahul. 8:33 8 minutes, 33 seconds Thank you, Rahul. And good morning to everyone joining us today. I'll take a few minutes to walk you through how the 8:41 8 minutes, 41 seconds business performed during the year and the key drivers behind this performance. 8:46 8 minutes, 46 seconds At an overall level, we delivered strong growth this year with consolidated revenue delivering 21% year-on-year 8:54 8 minutes, 54 seconds growth in FY26 and 20% year-on-year growth in Q4 FY26. 9:01 9 minutes, 1 second Primarily driven by our core pathology business. the year our flagship brand arugium continues to lead preventive 9:08 9 minutes, 8 seconds healthcare segment growing at 20% yearonear this quarter complemented by JC which caters to creative and chronic 9:18 9 minutes, 18 seconds health needs though just being 2% of revenue janch has also grown at 66% 9:26 9 minutes, 26 seconds yearonear this quarter and is becoming a strong pillar of our lifestyle offering let me now break this down across our key business segments in FY26. 9:39 9 minutes, 39 seconds In FY26, franchisee business delivered 18% YI growth 9:44 9 minutes, 44 seconds and in Q4 FY26, 21% Yi growth. It has now been almost 3 years since we 9:51 9 minutes, 51 seconds implemented the pay for performance structure which has led to renewed energy and motivation within our 9:59 9 minutes, 59 seconds franchising network to move up volumes and enter higher slabs. Supported by this renewed energy along with strong 10:08 10 minutes, 8 seconds brand equity and market demand, our franchisee base has reached its highest ever level of 10,800 active franchises in Q4 FY26. 10:20 10 minutes, 20 seconds To further accelerate growth, we have expanded both our field and central teams, enabling us to penetrate deeper 10:27 10 minutes, 27 seconds into India and open high transacting stores more quickly. 10:33 10 minutes, 33 seconds The activation of our specialtity division will complement our broader growth strategy by strengthening our 10:40 10 minutes, 40 seconds omni channel presence, enabling us to become a one-stop solution for our partners and drive higher wallet share 10:47 10 minutes, 47 seconds within our existing network. To further strengthen engagement and relationship with our franchises, we regularly conduct structured interactions. 10:58 10 minutes, 58 seconds This year to further drive franchise engagement, he hosted 13 franchising meetings across different locations in 11:04 11 minutes, 4 seconds India. With the healthy participation from our franchisee partners where 774 partners attended, insights and feedback 11:14 11 minutes, 14 seconds from these interactions directly inform how we strengthen process, service delivery, and quality outcomes. Moving to our partnership business. 11:25 11 minutes, 25 seconds As we know this continues to be a strong growth in for us. In FY26 partnership 11:33 11 minutes, 33 seconds business grew at 32 year and in Q4 FY26 the growth was 23%. 11:41 11 minutes, 41 seconds This growth has been led by strong momentum in insurance and health tech segments. Along with continued scaling 11:49 11 minutes, 49 seconds of existing accounts, our API based integration are also enabling partners to expand diagnostics offering across 11:57 11 minutes, 57 seconds multiple cities seamlessly, which is strengthening our positioning as a preferred B2B partner. 12:04 12 minutes, 4 seconds In Q4 FY26, growth at 23% in our partnership has been lower than expected versus previous quarter in this 12:13 12 minutes, 13 seconds financial year. But it is important to note that this is a oneoff dip. This dip 12:20 12 minutes, 20 seconds is primarily because last year we had a one-off boost in our partnership business primarily due to an aggressive 12:28 12 minutes, 28 seconds push on camps especially during the mahakum period and the initial investment to build traction in the 12:36 12 minutes, 36 seconds insurance segment as well. This year we have normalized our pricing into the insurance segment and therefore the 12:44 12 minutes, 44 seconds growth has been slower in this segment and of course the scale of camps this year has been much lower. The extent of 12:52 12 minutes, 52 seconds the one was approximately 4 cr in Q4 FY25 and normalizing for that the partnership 13:00 13 minutes segment still grew at 32%. which is in line with the historical growth across the previous three quarters in the year. 13:09 13 minutes, 9 seconds Thus, our overall focus has been on building depth across channels, improving partner productivity, and 13:17 13 minutes, 17 seconds expanding the value we deliver through a wider test portfolio and stronger service capabilities. With that, I will 13:24 13 minutes, 24 seconds hand it over to Dr. Kina to walk you through operations and lab initiatives. 13:31 13 minutes, 31 seconds Thank you, Rajiv. Good morning and a warm welcome to everyone joining us today. I'll focus on three areas today. 13:38 13 minutes, 38 seconds First, our lab network expansion. 13:41 13 minutes, 41 seconds Second, operational capabilities and research. And third, on how we are improving patient experience. So, let me 13:49 13 minutes, 49 seconds start with our first area of the lab network. Our lab network now stands at 40 labs in India and one in Tanzania. 13:58 13 minutes, 58 seconds This year we expanded our geographic footprint further across India and opened seven new labs each at Bhagalpur, 14:06 14 minutes, 6 seconds Mandi, Rurki, Kashmir, Dewangiri, Vijayara and Guala. This helped us 14:14 14 minutes, 14 seconds expand our reach in significant geographies and add capacity there where nearby labs capacity was about to get exhausted and meet better T commitments. 14:25 14 minutes, 25 seconds But beyond capacity, lab expansion plays a much larger role. It builds patient trust at the first point of contact 14:32 14 minutes, 32 seconds especially in tier two and tier three markets driving repeat usage and referrals. It also strengthens our B2B 14:40 14 minutes, 40 seconds proposition making us a more compelling pan India partner for corporates, insurers and hospital networks. And 14:48 14 minutes, 48 seconds finally, our hub and spoke model ensures strong economics allowing incremental volumes to flow into existing infrastructure driving better 14:57 14 minutes, 57 seconds utilization and operating leverage as a network scale. Now let's move on to the second area of operational capabilities 15:04 15 minutes, 4 seconds and research. During the year, we continue to strengthen our test portfolio and operational capabilities, 15:11 15 minutes, 11 seconds including the addition of PAIA based energy testing platform and other 20 plus specialized tests including 15:18 15 minutes, 18 seconds hystopathology, a new HPC platform, specialized coion test, next generation sequencing and the bioire PCR platform 15:26 15 minutes, 26 seconds to the portfolio. Our genomic expansion is underway with a strong focus on building a comprehensive specialty test 15:34 15 minutes, 34 seconds portfolio. Starting with NIPT, we are adding tests in a structured phase manner to enhance clinical depth and 15:42 15 minutes, 42 seconds drive growth in position diagnostics. We also continue to translate real world diagnostic data into actionable clinical 15:50 15 minutes, 50 seconds insights. For example, uh our fever study based on approximately 3 years of data from our J fever panels revealed 15:59 15 minutes, 59 seconds that one in three fevers are linked to more complex infections such as deni, typhoid, malaria and influenza. This 16:07 16 minutes, 7 seconds reinforces the need for timely and comprehensive testing which we address through our J fever profiles. One more 16:15 16 minutes, 15 seconds example is our bhat arugam score study which is based on the data collected between 2023 and 2025 from over one lakh 16:24 16 minutes, 24 seconds patients over the country reveals 96% of individuals exhibit risk for at least one health condition indicating that 16:32 16 minutes, 32 seconds very few very few people have completely optimal health parameters. 16:37 16 minutes, 37 seconds Now coming to the third focus area of patient experience uh which is something I care deeply about. Diagnostics is fundamentally a 16:46 16 minutes, 46 seconds trust business. Every improvement we made this year was driven by a simple question. Does this make the patient 16:54 16 minutes, 54 seconds feel more confident on us? To maintain credibility. We continually reinforce the four foundational pillars that underpin trust in medical diagnostics. 17:05 17 minutes, 5 seconds First is accuracy and quality. This continues to be non-negotiable for us supported by any or any recorded labs 17:13 17 minutes, 13 seconds and ongoing equipment upgrades whereas our 90% samples are processed at any related labs. Second is faster 17:21 17 minutes, 21 seconds resolution when things go wrong. I agree no service is perfect every time but what sets a trusted brand apart is how 17:29 17 minutes, 29 seconds quickly and transparently it resolves the issues. We strengthened our complaint management channels, reduced 17:36 17 minutes, 36 seconds resolution timelines and improved proactive communication with the patients. This year we achieved six sigma levels in complaint management 17:45 17 minutes, 45 seconds with the state metric standing at 3.06 complaints per million tests for Q4 FY26. 17:52 17 minutes, 52 seconds Third is faster reports. We have worked extensively on improving logistics and lab processes bringing on our turnaround 17:59 17 minutes, 59 seconds time to 3.43 hours in the quarter. and fourth strengthening trust with the doctors who are often the first point of 18:07 18 minutes, 7 seconds contact for patients. We continue to deepen our engagement to multiple forums, meetings and on ground interactions. During the year, we 18:16 18 minutes, 16 seconds conducted nine doctor meets with participations of approximately 300 doctors. Additionally, we recently 18:23 18 minutes, 23 seconds started inviting doctors to visit our labs where 256 doctors had visited our labs across India where we showcased our 18:32 18 minutes, 32 seconds quality systems, advanced equipment and strengthened quality control processes while also addressing awareness gaps 18:39 18 minutes, 39 seconds around our capabilities. Thus, overall our focus has been on building an operations backbone that can support 18:47 18 minutes, 47 seconds scale without compromising on quality or experience. With that, I'll now hand it over to Vikram for financial performance. 18:56 18 minutes, 56 seconds Good morning everyone and a warm welcome. Thank you for joining us today. 19:01 19 minutes, 1 second I am pleased to report that we have delivered another strong quarter along with our soyear performance for 26 19:08 19 minutes, 8 seconds driven by distant revenue growth. We continue to deliver growth in the early 20s with all our key strategic drivers 19:17 19 minutes, 17 seconds performing well. Our standown business remains strong and continues to grow higher than industry average. Both our 19:25 19 minutes, 25 seconds franchisee and partnership business continues to execute regular. On the international front, our Panjami operations though small in base but has 19:34 19 minutes, 34 seconds also gone by 75% year one year. In radiology as covered in the year course also he undertook some strategic 19:42 19 minutes, 42 seconds consolidation of centers during the year. While this has temporary impact on the growth, the overall financial performance has improved with a stronger 19:51 19 minutes, 51 seconds bottom line. Overall, overstudy performance reflects discent execution and we remain focused on delivering 19:59 19 minutes, 59 seconds consistent growth going forward. Now, let me take you through the key financial highlights for the current quarter. Starting with revenue, our 20:08 20 minutes, 8 seconds standalone revenue came in at rupees 21104 crores which is up 21% year one year driven by a strong growth across 20:16 20 minutes, 16 seconds franchisee and partnership business. On a consolidated basis, revenue stood at rupees 224 crores reflecting a healthy 20% year one-year growth. 20:27 20 minutes, 27 seconds Moving to margins and profitability, our consolidated gross margin has improved to 74.7%. 20:34 20 minutes, 34 seconds an increase of over 113 basis point year one year. This was largely driven by better negotiations and a strong growth 20:41 20 minutes, 41 seconds in test volumes which has helped improving operating efficiency and boy and other overex has increased 20:48 20 minutes, 48 seconds year on year primarily due to annual inflation higher volume growth and continued investment in the new growth areas like speciality. 20:57 20 minutes, 57 seconds Over a margin for the quarter was 24% with AITA growing 31% yearon year supported by strong revenue growth and 21:06 21 minutes, 6 seconds improved gross margins. Profit after tax stood at rupees 48.7 cr with a pack margin of 21.7%. 21:15 21 minutes, 15 seconds This represents about 128% yearon-year growth. 21:19 21 minutes, 19 seconds Now moving to our fullear performance for FY 26 standard revenue released Rupes 774 CS while consolidated revenue 21:28 21 minutes, 28 seconds stood at rupees 829 ports reflecting a strong 21% yearon year growth ethology 21:34 21 minutes, 34 seconds revenue grew by 22% in 26 while radio revenues sin of 6% during the year on 21:42 21 minutes, 42 seconds profitability in absolute terms AITA for the year stood at rupes 262 crores and profit after tax of rupes 163 crores 21:50 21 minutes, 50 seconds reflecting strong growth of 38% and 81% year one year. Earning per share adjusted for last year bonus issue came 21:59 21 minutes, 59 seconds in at rupes 2.99 which is up by 64% from rupees 1.82 last year. Our balance sheet 22:07 22 minutes, 7 seconds remains strong with the net cash and investment of rupes 230 cr and zero debt as 30 plus 26. on the cash force we 22:16 22 minutes, 16 seconds generated 2003 cr from operating activities after tax given by before I hand over I would also like to share 22:24 22 minutes, 24 seconds that board of directors have recommended a final dividend of rupees 7 equity share for the year ended March 31st 2026 22:32 22 minutes, 32 seconds with that I now hand over to Rahul for the strategic updates thank you 22:39 22 minutes, 39 seconds ladies and gentlemen the line the line for Mr. Rahul Goa has been disconnected. 22:44 22 minutes, 44 seconds Please stay connected while we join him back. 23:05 23 minutes, 5 seconds Baby. 23:35 23 minutes, 35 seconds 7. 23:54 23 minutes, 54 seconds Down. 24:11 24 minutes, 11 seconds Ladies and gentlemen, the line for Mr. Rahul Goa has been connected. Thank you. Over to you, sir. 24:19 24 minutes, 19 seconds Now, you can take up the strategic update. Are you proceed? 24:47 24 minutes, 47 seconds In the meantime, if Rahul is unable to connect, can we ask Raz to update the strategic piece on behalf of Rahul? Raz, are you on call? 25:04 25 minutes, 4 seconds Raj, your line is unmuted please. 25:07 25 minutes, 7 seconds Yeah, I'll take it from here. So, thank you and thank you Vikrami. 25:14 25 minutes, 14 seconds I would like something yeah briefly I would like to take a few minute to recap to uh to the strategic 25:22 25 minutes, 22 seconds direction and then I we'll open it up for Q&A. First I will reiterate our value proposition to customer. We will 25:29 25 minutes, 29 seconds continue to remain an affordable option to all patients with good quality and one-time reports. All our efforts on our 25:37 25 minutes, 37 seconds value proposition is towards ensuring low cost to the patient, assurance on quality of testing through our 25:44 25 minutes, 44 seconds certifications and engagement with doctors. We have made substantial progress on this which I updated in my 25:52 25 minutes, 52 seconds initial comments and is reflected in the presentation as well. This will remain at our core and will continue to guide 26:00 26 minutes all that we will do. Second, our strategy. We continue to maintain our strategy of being the B2B partner of 26:08 26 minutes, 8 seconds choice to all front-end diagnostic service companies in India. Whether it is a small diagnostic center in a 26:15 26 minutes, 15 seconds semi-urban area, a pharmacy in a metro, a small nursing home, an individual doctor or a leading online diagnostics platform and health tech marketplaces. 26:27 26 minutes, 27 seconds We are happy to work with them. 26:31 26 minutes, 31 seconds to our genomics uh expansion underway with a strong focus on building a comprehensive uh specialtity 26:41 26 minutes, 41 seconds and we are ensuring to provide a low cost robust testing solution so that they can serve their patients in the 26:49 26 minutes, 49 seconds most effective manner. If they require flabbotomy, we are happy to mobilize our flabbotomy network of over 2,000 26:57 26 minutes, 57 seconds flabbotoies, including our network partners to serve them better. This strategy has been working well for us 27:05 27 minutes, 5 seconds with both our franchisee and partnership business posting strong growth. As a natural extension of this strategy and 27:13 27 minutes, 13 seconds in line with our vision to make quality diagnostics affordable and accessible, we are expanding our specialtity segment 27:22 27 minutes, 22 seconds that is allergy and genomics by deploying an on ground technical CST to drive deeper doctor engagement. 27:31 27 minutes, 31 seconds Thus also making our strong entry into the c the curative segment where we are extending the same quality standards we 27:40 27 minutes, 40 seconds have already established in preventive diagnostics while maintaining affordable pricing for patients further 27:48 27 minutes, 48 seconds strengthening our position as a comprehensive partner to our network that in brief is our mandate as 27:55 27 minutes, 55 seconds management back I'll cover the last yeah please please Rah Yeah, thank you everyone for giving us a 28:04 28 minutes, 4 seconds patient hearing. I will once again end with a quote from the Mahatma. Find purpose, the means will follow and our 28:12 28 minutes, 12 seconds purpose remains to provide affordable highquality testing to the masses. With that, we will open up for Q&A. 28:22 28 minutes, 22 seconds Thank you very much. We will now begin with a question and answer session. 28:26 28 minutes, 26 seconds Anyone who wishes to ask a question may be press star and then one on the touchstone telephone. 28:33 28 minutes, 33 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants, you are requested to use handset while asking your question. 28:44 28 minutes, 44 seconds Ladies and gentlemen, we will wait for a moment while the question keys. 28:53 28 minutes, 53 seconds A reminder to all. You may press star and one to ask a question. 29:02 29 minutes, 2 seconds We will take the first question from the line of Sukrit Dart from Isite Centric Private Limited. Please go ahead. 29:10 29 minutes, 10 seconds Good morning. I have two questions. The first question to Mr. uh Duha is um a forwardl looking one. How do you see 29:17 29 minutes, 17 seconds thyroid care going going over the next few quarters in di in diagnostic and preventive uh space? What are the main 29:26 29 minutes, 26 seconds priorities uh on your table uh like adding new new test or you know using 29:32 29 minutes, 32 seconds digital uh plat digital platforms and improving customer trust. you know out of these what do you feel will help the 29:41 29 minutes, 41 seconds company stay ahead of the uh competition and build a stronger position in the market it's the first question I'll ask the second thank you 29:50 29 minutes, 50 seconds sure uh our strategy u remains more or less the same uh so you know the key 29:57 29 minutes, 57 seconds drivers of growth for us are franchise expansion if you see over the last four years we've been able to maintain a 25% 30:05 30 minutes, 5 seconds keer on our franchise expansion culminating in almost 11,000 franchises uh by the end of this franch financial 30:14 30 minutes, 14 seconds year. And if you go through the disclosures, we've also shown how you know an FI22 franchisee matures, a FI23 franchisee matures 24 and so on, right? 30:26 30 minutes, 26 seconds So actually if you look at the next four quarters you know it's actually work that has been done almost two years ago because those are the franchises that 30:35 30 minutes, 35 seconds were added 2 years ago that will start contributing to the growth in this financial year FI 27 to speak. uh the 30:43 30 minutes, 43 seconds franchises that we are adding now will contribute in FI28 and 29 right so 30:50 30 minutes, 50 seconds franchise expansion remains at the core of our our uh you know execution the other is our partnerships right we as I 30:59 30 minutes, 59 seconds had mentioned earlier if you look at every major health tech player we work with them if you look at every major uh 31:06 31 minutes, 6 seconds what we call wellness provider we work with them but we have just started to scratch the surface on insurance and you know other allied segments. So I believe 31:15 31 minutes, 15 seconds there's a lot of work to be done to capture the opportunity in that business because there are many players now who 31:22 31 minutes, 22 seconds are in the health tech or health care space that also want to offer their patients diagnostics right and thyroidare being a B2B partner is 31:32 31 minutes, 32 seconds actually the only partner who offers them that uh ability to expand their portfolio of offerings in healthcare to 31:39 31 minutes, 39 seconds their patients. So I think those two have been our traditional drivers of growth and will continue to remain the traditional drivers of growth. The only 31:48 31 minutes, 48 seconds new element that we have added for FI27 is specialty. Right? As I as Rajep had covered and I had covered, we have made 31:56 31 minutes, 56 seconds quite a few investments in genomics, allergy, hystopathology and other areas uh more towards moving 32:04 32 minutes, 4 seconds the mix of thyroidare into the specialty space. Of course, FYI27 will be our first year of the for into into 32:12 32 minutes, 12 seconds specialty. So, it will be on a very small base. Uh but definitely if you look a three-year out horizon, uh 32:20 32 minutes, 20 seconds specialty will be a very large component of our growth going forward. 32:26 32 minutes, 26 seconds Thank you. My second question to Mr. the side. Looking forward, how will you balance spending on technology, new lag 32:35 32 minutes, 35 seconds and shareholder return under control? What long-term and short-term measures uh maybe such as uh 32:43 32 minutes, 43 seconds automation, supply chain improvements or vendor partners will be put into place uh to make sure margins stay strong even 32:52 32 minutes, 52 seconds if the cost rise or then there's any compliance changes that happen. Thank you. 32:58 32 minutes, 58 seconds And maybe before I hand over to Vikram, I'll just give you a little bit of our operating philosophy, right? which is 33:05 33 minutes, 5 seconds more like uh you know a Warren Buffett kind of operating philosophy which is you know first savings then expenditure 33:14 33 minutes, 14 seconds right so we've or in our case first margin protection then expenditure right and so what I have always been guiding 33:23 33 minutes, 23 seconds is that any operating leverage that comes out of the growth you know obviously we're growing at 20% plus and 33:30 33 minutes, 30 seconds uh you know your cost doesn't increase that much any operating leverage that comes out of the business is what we invest in 33:38 33 minutes, 38 seconds growth. Uh but we try our best to preserve the base margin. So very much a philosophy of you know first margin 33:46 33 minutes, 46 seconds preservation and then surplus goes towards investment towards capex growth new initiatives and so on. So that's at 33:54 33 minutes, 54 seconds a philosophy level but I'll let Vikram take it at a more detailed level. Yes. Uh I think you have covered it all. 34:01 34 minutes, 1 second uh so basically we are though we are investing into new things but as I said we are very calibrated into the investments uh what we are doing into 34:09 34 minutes, 9 seconds the new things uh let's say for the demobics we are starting with the top 10 cities north of India over India so we are calibrated in the investments which 34:17 34 minutes, 17 seconds we are doing and plus on the supply chain also as you covered let's say you have seen that our gross margin has improved by 113 basis point over the 34:26 34 minutes, 26 seconds last year so the benefit of scarce continues to come and We continue to invest that thing into the growth. So we 34:34 34 minutes, 34 seconds will protect our margin whatever operating that will come that is going to be a guiding factor for the investments which we will do into the new page. 34:43 34 minutes, 43 seconds Thank you and best wishes. 34:48 34 minutes, 48 seconds Thank you. We will take the next question from the line of Raman Ki from Sequent Investments. Please go ahead. 34:57 34 minutes, 57 seconds Uh hello sir. Thank you for the opportunity and congratulation on good set of projects. I have just two questions. One with respect to the 35:04 35 minutes, 4 seconds margins. We have seen during the quarter there is a uh strong uptick in the gross margin. Uh can you just uh help us 35:12 35 minutes, 12 seconds understand uh where the gross mar the reasons for the gross margin expansion and is it is this the new normal and can 35:21 35 minutes, 21 seconds you also help us understand that whether the dania business has break even which led to the contribution towards the 35:29 35 minutes, 29 seconds higher gross margin as well as the diagnostic diagnostic business has rebounded with sharp margins during the quarter. So can you also throw some 35:38 35 minutes, 38 seconds light on that aspect on this? 35:42 35 minutes, 42 seconds See on the margin front uh you know a large part if you look at quarter on quarter I think margins are more or less stable uh right so I think uh if you 35:52 35 minutes, 52 seconds look at it going forward I think margins will be in that you know 73 to 74 35:58 35 minutes, 58 seconds uh uh range. It's a mixture of uh basically u you know good negotiation with the vendors to be able to realize 36:07 36 minutes, 7 seconds volume benefits uh from the volume that we are able to purchase as well as u last quarter there would have been some 36:15 36 minutes, 15 seconds uh how do you say uh catchup effect of the roou but you know that is now fully baked into Q424 so I think you can 36:24 36 minutes, 24 seconds expect you know the steadystate margins for the business to be around 73 to 74 before barring any you know abnormal 36:32 36 minutes, 32 seconds price hike in reagents that may come out as a consequence of the war or you know the supply chain site but otherwise it 36:40 36 minutes, 40 seconds should be in that range. Um I forgot your second question actually. 36:48 36 minutes, 48 seconds So the follow up on that was uh whether the Tanzania business has break even which contributed to the higher margin 36:56 36 minutes, 56 seconds and also from the PPT I can see that your even though your diagnostic business revenue declined by uh 9 to 10% 37:04 37 minutes, 4 seconds your margin has increased in the diagnostic business. So with the latest acquisition which you announced of pink 37:12 37 minutes, 12 seconds diagnostic are you planning to expand your diagnostic business as well? 37:17 37 minutes, 17 seconds Yeah, see we still haven't uh broken even in Tanzania, right? So, uh it's uh 37:24 37 minutes, 24 seconds I would say we've been in Tanzania now about 18 months odd and uh you know we still haven't uh uh broken even. So that 37:33 37 minutes, 33 seconds is not the reason though the Tanzania losses are minimal. I think it's uh less than 1 cr is the you know the overall uh 37:41 37 minutes, 41 seconds Tanzania quarterly losses. Uh so to that extent we have come down quite a bit uh 37:47 37 minutes, 47 seconds on the Tanzania front. Um and uh if you look at it overall uh I think our gross 37:54 37 minutes, 54 seconds margins as I said have sustained because this year has been a fantastic year in terms of test volume growth and we were 38:01 38 minutes, 1 second able to get a significant amount of uh volume discount from our vendors. 38:11 38 minutes, 11 seconds Understood sir. And so my last question is uh there has been a huge uptake in the test volumes during the quarter. So 38:19 38 minutes, 19 seconds is it because uh there has uh have you been seeing any GLP1 traction starting from this quarter and uh going forward 38:28 38 minutes, 28 seconds can we expect the same uh uh like 15% test volume growth in the coming year for the coming year? 38:37 38 minutes, 37 seconds Yeah, I think look this uh this quarter the uh test volume growth was a bit of a 38:44 38 minutes, 44 seconds uh strategic investment. Uh so we uh for the quarter I think we delivered uh 38:50 38 minutes, 50 seconds almost 29% uh test volume growth. uh and that comes largely from uh you know we 38:57 38 minutes, 57 seconds we received uh actually some good deals on the biochemistry side uh and we were 39:03 39 minutes, 3 seconds able to as a result uh you know reduce our prices a little bit on the biochemistry side and uh we became very 39:11 39 minutes, 11 seconds competitive in biochemistry just for background thyroare was always known for thyroid uh which is a particular 39:18 39 minutes, 18 seconds technology called immuninoassay and we've been very very strong in that case. Uh but this quarter because we were given some good offers in 39:27 39 minutes, 27 seconds biochemistry, we launched a a set of biochemistry parameters at an attractive price and actually we were very 39:35 39 minutes, 35 seconds pleasantly surprised by the test volume uptake that we saw. 39:43 39 minutes, 43 seconds And the second part of the question whether this will be the new normal like 15% test volume growth in FI27 can we expect that? 39:53 39 minutes, 53 seconds Uh see we always uh try to u you know overall guide uh to a mid- teens kind of number and mostly from volume and mix. 40:04 40 minutes, 4 seconds Uh I think this year we are now reasonably confident to you know revise it marginally upwards. I'm of 40:12 40 minutes, 12 seconds course very cautious. So I would say a mid to high teens is a is a good grow growth expectation for next year. Uh of 40:20 40 minutes, 20 seconds which I expect volume growth to be the maximum driver. U right I would say 40:27 40 minutes, 27 seconds almost 75% of the revenue will come from volume and maybe about 25% from mix. Uh 40:35 40 minutes, 35 seconds we have no intention at this point in time to increase prices. Okay. Thank you sir. 40:44 40 minutes, 44 seconds Thank you. 40:46 40 minutes, 46 seconds We will take the next question from the line of Yash Toshi from Unifi Capital Private Limited. Please go ahead. 40:53 40 minutes, 53 seconds Yeah. Um congratulations for a good set of numbers. uh actually uh while going to your procedure I found that uh you 41:01 41 minutes, 1 second had mentioned that uh you'll be uh venturing into allied business of consumables and uh diagnostics. 41:11 41 minutes, 11 seconds So maybe can you just clarify on that which type of segment we are planning to enter in near future? 41:19 41 minutes, 19 seconds uh I would like to keep it internal to the company for the you know next one or two quarters uh because we are just 41:27 41 minutes, 27 seconds working on the uh the uh the the overall launch plan. So I think it will become 41:34 41 minutes, 34 seconds clear to you by June or July of what segments we are entering into right. Uh but I will tell you the strategy is we 41:42 41 minutes, 42 seconds have realized in many many segments we are a large consumer of uh you know 41:49 41 minutes, 49 seconds allied diagnostic uh tests right and sufficient that we can also launch our own brand and so we are planning to 41:57 41 minutes, 57 seconds launch in that space. I can't share too many details because it's just in the launch phase. Uh if I could request if 42:04 42 minutes, 4 seconds you can be patient till June July it'll become very clear where which areas we are entering by. 42:10 42 minutes, 10 seconds Okay. And so basically it's kind of if I infer it's kind of some backward integration as we are the consumers of 42:17 42 minutes, 17 seconds those consumers that is you could say to some extent that uh just think of it as in the allied services space. 42:26 42 minutes, 26 seconds Understood. And uh another part I wanted to know is uh during the uh quarter samples I think in the presentation it 42:35 42 minutes, 35 seconds was not mentioned. How many samples have you processed? 42:40 42 minutes, 40 seconds During the quarter we would have processed I have it's there in one of the disclosures. Uh we processed 80.3 lakh samples in Q4 of FY26. 42:54 42 minutes, 54 seconds Okay. And uh another part was uh a speciality segment. Uh can you throw a light on the investments made uh the 43:03 43 minutes, 3 seconds field post how many people have employed and what is the strategy uh around uh basically communicating to the franchises doctors. 43:14 43 minutes, 14 seconds So just a uh light on speciality segment just see the capex investments would not be 43:22 43 minutes, 22 seconds much. they would be in the tune of about 5 to 8 crores right the real investments are on the opex side uh we've put a team 43:31 43 minutes, 31 seconds of I think about 40 people on the specialty side uh you know that will their effective job is to go out and 43:39 43 minutes, 39 seconds explain to doctors that the is the specialty space this is our test menu and of course we always approach it with 43:46 43 minutes, 46 seconds our philosophy of good quality testing made affordable to all right so I think that's the extent of investments that we have made. The large investment of 43:55 43 minutes, 55 seconds course is you know on the pricing side uh we always come in with a disruptive pricing. Uh so uh to that extent you 44:05 44 minutes, 5 seconds know the the percentage gross margin in specialty will be lower but of course given you know our realization per test 44:13 44 minutes, 13 seconds is only 30 to 40 rupees. A specialty test can be in the thousands right? The absolute gross margin per test is of 44:21 44 minutes, 21 seconds course much much higher and the overhead costs are not to that extent. Uh so we should get a decent amount of operating leverage but we will be very aggressive on price. 44:32 44 minutes, 32 seconds Okay. Uh thank you sorry to interrupt the prem. I would request you to kindly rejoin the queue for more questions. 44:40 44 minutes, 40 seconds Sure. Yeah. Thank you. 44:45 44 minutes, 45 seconds We will take the next question from the line of Chinten Shik from Git Capital. Please go ahead. 44:51 44 minutes, 51 seconds Hi, thank you for the opportunity and congrats on a good set of numbers. Um so my question pertains to you know uh we are trying to expand test menu getting 45:00 45 minutes into the specialty uh um um increasing the uh you know share of 45:09 45 minutes, 9 seconds allied test which you you you guys will be working on over the course of uh next year. uh how do you see uh the wild per 45:19 45 minutes, 19 seconds franchisee uh move uh because when I look at uh uh our past few quarters we have been in the range of uh 450 to 550 45:28 45 minutes, 28 seconds kind of number uh while per day right with this test menu does that entail you know that that number to inch up uh 45:36 45 minutes, 36 seconds linearly uh upwards going forward given that uh uh we have expanded our test menu over there and um uh and uh if You 45:45 45 minutes, 45 seconds can spell out you know how this scale up happens uh between the mature from the new franchisee to mature franchisee. How 45:53 45 minutes, 53 seconds that uh uh you know while per franchisee number moves uh and uh if you can spell out you know what is the current 46:01 46 minutes, 1 second maturity doing and is there any seasonality to it as well. That will be my first. 46:11 46 minutes, 11 seconds Sure. uh see franchisee addition I expect to remain at the 500 per quarter uh uh run rate right some quarters will 46:21 46 minutes, 21 seconds be good some quarters will be bad uh seasonality wise during the festive uh season Q3 typically people do not open 46:30 46 minutes, 30 seconds franchises uh whereas in Q1 and Q4 is when you know people open up franchises 46:36 46 minutes, 36 seconds and so therefore we see a good boost uh typically you know Q4 to Q2 two uh and then of course it slows down in Q3 and 46:45 46 minutes, 45 seconds then picks up again in Q4. But I expect about 500 per quarter is because we are resourced that way right the constraint 46:54 46 minutes, 54 seconds is not the demand side the constraint is our ability to onboard and scale up the franchises to make them successful. So I 47:03 47 minutes, 3 seconds believe you know we are resourced for 500 a quarter. I think that's a a good run rate you know to be able to maintain. Uh 47:12 47 minutes, 12 seconds now coming to your second question which is you know it's the new test menu expansion right uh I expect our average 47:20 47 minutes, 20 seconds revenue per franchisee to go up but I don't expect a huge increase in the franchisee count right if you have if 47:29 47 minutes, 29 seconds you look at it thyroidare has always been a routine and semis specialized company right and so many of our franchises they will 47:38 47 minutes, 38 seconds not turn away a customer because thyroare doesn't has the particular test in the menu they will give it to someone else. 47:45 47 minutes, 45 seconds Okay. So it is a hope that by launching these tests in our network right that these franchises now will not give it to 47:53 47 minutes, 53 seconds someone else but actually now move it to Thyroare and so therefore the benefit will be in the average revenue per franchisee not 48:00 48 minutes in virgin franchises who have never worked with theare company. Right. Uh to your last question on the scale up uh 48:09 48 minutes, 9 seconds actually in the presentation we have shown exactly how the scale up works right if a franchisee gives us x year 1 48:18 48 minutes, 18 seconds it gives us 2 and 1/2 in year 2 3 and 1/2 in year 3 four in year 4 and 5x in 48:27 48 minutes, 27 seconds year five. So 1 2 and 1/2 3 and 1/2 4 5 and that number has stayed pretty stable 48:35 48 minutes, 35 seconds over the last four years right and that goes to my opening comments where I said look the work that we are doing in terare and franchise edition is not for 48:43 48 minutes, 43 seconds this year it's for next year and the year after right the benefit we are getting in FI27 is the work that was 48:50 48 minutes, 50 seconds done in FI25 and FI 26 u and so that momentum continues we haven't seen a decline in that uh and 48:59 48 minutes, 59 seconds I'm hopeful that you know as the franchise addition quality increases that number will only get better. 49:07 49 minutes, 7 seconds Got it. And this 500 uh seems to be a little uh higher than what what we we earlier guided around 1200 annually 1500 49:16 49 minutes, 16 seconds annually. Uh now we are targeting uh 2,000 uh means we are kind of uh aggressively uh on trying to onboard and 49:25 49 minutes, 25 seconds penetrate the market. And that could be the right reading. 49:29 49 minutes, 29 seconds No, see you should take 500 into three which is about 1,500 because three addition. So you know to that extent. 49:40 49 minutes, 40 seconds Yeah. So against 1200 I think we are now comfortably achieving 1500 what we 49:47 49 minutes, 47 seconds got. Got it. And uh this quarter I I'm seeing tests per while uh to inch up uh 49:53 49 minutes, 53 seconds to 7 and a half uh versus uh 7 6.77 uh historically. Is uh is this the new 50:02 50 minutes, 2 seconds normal? There is uh some uh you mentioned some uh uh you know um uh some uh scheme you you you guys have run in 50:11 50 minutes, 11 seconds the uh uh in the test menu which which led to higher test this quarter. So uh it will it will normalize to seven per 50:19 50 minutes, 19 seconds while uh that would be the uh that should be it going ahead member. 50:26 50 minutes, 26 seconds Uh yeah just to clarify at least it is my impression that it is closer to 10 uh in this quarter uh can you can clarify 50:35 50 minutes, 35 seconds I'm just I'm just dividing the test uh by uh vials number of vials 50:43 50 minutes, 43 seconds coming to v okay then that is on the higher side um because see the test per patient is 50:50 50 minutes, 50 seconds about 11 right right right and typically it's about two and a half miles per patient. So I I don't know that calculation uh where it comes from. 51:03 51 minutes, 3 seconds I I I'll check with Yeah, it should be closer. See, if you take 80 million vials and 209 tests, 51:12 51 minutes, 12 seconds it's roughly three tests uh per vial, which is kind of where I thought the figure would be. Okay. Okay. I I I'll check and confirm. 51:21 51 minutes, 21 seconds I'll turn back in. Thank you. 51:23 51 minutes, 23 seconds Thank you. Next question is from the line of Surya Patra from Philip Capital. Please go ahead. 51:30 51 minutes, 30 seconds Yeah, thanks for the opportunity and congratulations for the great set of numbers. Uh my first question uh is on 51:38 51 minutes, 38 seconds the uh investment priorities. If I see for FI26 the capex number looks really low. uh while we have already invested 51:47 51 minutes, 47 seconds into genomics the way that we have been talking about and also talking about the new specialty areas. So hence what is 51:56 51 minutes, 56 seconds the capex likely to be for FI27 and what investment priorities that we would be having for the next year. 52:05 52 minutes, 5 seconds All right on capex I think there is uh you know some up and down because of the roou. So I'll ask Vikram to explain it 52:13 52 minutes, 13 seconds fully. Right. Uh Vikram you can just take that. Yeah. So so uh that code is 52:21 52 minutes, 21 seconds the capex payout number which is you're looking into the cash. So right there there are some opening capital advance and the opening credit number 52:28 52 minutes, 28 seconds approximately the total capitalization during the year is 35 crores besides the machines which we have taken on enter. 52:37 52 minutes, 37 seconds So to answer you, we have invested into the capex for the capacity also and we have opened new seven wraps also. 52:44 52 minutes, 44 seconds Uh so there is no uh conservatism or there's no investment in the capex. Uh we will continue to invest into the capex as per the requirement. 52:53 52 minutes, 53 seconds Okay. 52:56 52 minutes, 56 seconds 35 crores across new capacity which include genomics and also 53:05 53 minutes, 5 seconds okay. So in fact that is also relatively low looking at the kind of operating cash flow that we are generating sir. Uh 53:12 53 minutes, 12 seconds because we know this is a business where uh cash requirement is limited rather it is a cash throwing business. So uh hence 53:21 53 minutes, 21 seconds also it indicates that okay the kind of investment that we will be making that will be indicating the kind quantum of growth that we can see. So from those 53:30 53 minutes, 30 seconds angle uh any investment uh plans and priorities if that we'll be having and the quantum if you can share for next year. 53:39 53 minutes, 39 seconds So yeah besides also let me let me take that just to explain see the the 53:46 53 minutes, 46 seconds growth of this business is actually not determined by capex. Right. Correct. 53:51 53 minutes, 51 seconds We have sufficient lab capacity. We are present all over India with 40 labs. Our average lab utilization is roughly about 54:00 54 minutes 65%. And you drop a pin everywhere anywhere in India you will find a chyroare lab within 150 kilometers. 54:06 54 minutes, 6 seconds Right? So from that point of view our growth driver is not lab count and uh you know capex our grow driver is 54:15 54 minutes, 15 seconds actually franchise edition franchise right and and that is very asset light as as you know because we don't have any 54:23 54 minutes, 23 seconds company owned stores. It's all franchise owned, franchise operated, right? Uh so to this business, it has always been 54:30 54 minutes, 30 seconds asset light. Maintenance capex is roughly about 40 crores uh with new expansion and all of that. We expect the capex to be in that range and as a 54:39 54 minutes, 39 seconds result the cash flows uh to be you know available uh x the capex as well. Our major focus is franchise addition. 54:49 54 minutes, 49 seconds So uh yeah. So second question is on uh the uh on the kind of uh specialty area 54:57 54 minutes, 57 seconds that you have mentioned uh particularly the genomic investments and genomic opportunity that you have highlighted in your opening remark. So uh sir is it 55:06 55 minutes, 6 seconds possible to kind of give a sense that what is a quantum or the what is the kind of a business mix that or test mix 55:14 55 minutes, 14 seconds that we can anticipate let's say three year down the line in the area for genomics or uh specialty as a whole because you 55:24 55 minutes, 24 seconds have also mentioned in your presentation about nest the imuninoap bioire panels and all those kind of things. So what is 55:33 55 minutes, 33 seconds the share of test mix from the specialty side? Let's say in the next 3 year time considering FI26 is a base year. 55:42 55 minutes, 42 seconds Yeah. Uh see our competitor specialty mix is roughly about 15 to 20%. Right. I 55:49 55 minutes, 49 seconds I anticipate in 3 years reaching that levels within thyroid as well. 55:55 55 minutes, 55 seconds Okay. And uh uh regards the genomic uh the kind of a sense in terms of the revenue potential that you have 56:02 56 minutes, 2 seconds mentioned. So it is significantly underpenetrated as of now it looks like mainly because of the price point. Is that understanding right sir? 56:12 56 minutes, 12 seconds That's correct. 56:13 56 minutes, 13 seconds And just one question booking bookkeeping question about the financial year end. Uh see what is a kind of a uh lab number that we are currently having. 56:23 56 minutes, 23 seconds what is a wellness mix and uh also if you can share what is a mix of your franchisee in terms of the urban and non-urban uh region. 56:34 56 minutes, 34 seconds Understood. Uh I missed the middle question. Uh uh we have 39 labs plus one in Tanzania. Uh I missed the second 56:43 56 minutes, 43 seconds question. A wellness mixer uh wellness preventing arrog 56:52 56 minutes, 52 seconds u will be about 33% of our overall mix right uh and year on yearon-year growth 57:00 57 minutes it would have grown at about 19 20%. Uh so that is the our wellness mix. J is 57:07 57 minutes, 7 seconds also in my opinion considered wellness that is only 2% of our uh revenue today but grew at 66% year on year. So I think 57:16 57 minutes, 16 seconds these are our two major wellness brands and then on the mix of franchises I would say we are roughly about 20% uh 57:26 57 minutes, 26 seconds urban metro tier one and I would say 80% tier 2 India and whether the was requested to join 57:34 57 minutes, 34 seconds back the queue please as we participants waiting for their turn. Thank you. Yeah sure. 57:40 57 minutes, 40 seconds Participants are requested to restrict to two questions at a time please. Next question is from the line of Lokesh Manik from Valum Capital. Please go ahead. 57:50 57 minutes, 50 seconds Yes. Hi, good morning Rahul and team. Uh am I audible? 57:54 57 minutes, 54 seconds Yes. Yes. Great. Great. Great. Uh Rahul just a qu just a clarification on uh you know capacity and lab expansion just to 58:03 58 minutes, 3 seconds understand it better. Uh so for a given capacity at a lab as you are seeing your test per patient increasing from you 58:11 58 minutes, 11 seconds know 8 9 10 11 touching this year uh you know the number of patients served then reduces for a given capacity. Uh either 58:20 58 minutes, 20 seconds that happens uh then you need to open a new lab or you have the technology present in the current lab to 58:27 58 minutes, 27 seconds accommodate even more patients at an even higher test per patient rate. So if you can just clarify on that because you mentioned 65% capacity utilization but 58:36 58 minutes, 36 seconds I'm just uh seeking a clarification from you on this. 58:40 58 minutes, 40 seconds Sure. See the driver of capacity in a lab is the tube not the number of tests in the tube. 58:48 58 minutes, 48 seconds Because once you load a tube in the machine, whether the machine has to process one test or 10 tests, right, 58:55 58 minutes, 55 seconds the capacity doesn't vary that much, right? My capacity is largely linked to how much time it takes to load a tube into a machine and unload 59:04 59 minutes, 4 seconds a tube from a machine and take it to another machine, right? If you see actually our revenue or our tests per patient has increased. 59:14 59 minutes, 14 seconds So correct in a in a way test for patient actually doesn't consume any additional capacity or very marginal 59:23 59 minutes, 23 seconds right so to that extent we are good on the capacity front. 59:26 59 minutes, 26 seconds Understood. Understood. Uh R my second question was uh you know since you are foring into speciality now uh do you 59:34 59 minutes, 34 seconds foresee an increase in uh you know test uh revenue per test because uh the specialtity will be at a much higher 59:41 59 minutes, 41 seconds pricing. You won't take price hikes but they'll be at a price higher. So your blended revenue per test will increase. Would that be a better understanding? 59:49 59 minutes, 49 seconds Yes. And that is something we are all tracking uh to see how that mix moves. 59:55 59 minutes, 55 seconds But yeah, one would expect a material movement in revenue per test over the next couple of years. 1:00:02 1 hour, 2 seconds So how much can any ballpark rough figure how much and a percentage term increase that we can expect? Difficult at this point to speculate. 1:00:10 1 hour, 10 seconds Give me one or two quarters then I will come with a concrete. Sure. Sure. That's it from my side. Thank you so much. 1:00:18 1 hour, 18 seconds Thank you. Next question is from the line of Binu Patiparil from Capital. Please go ahead. 1:00:26 1 hour, 26 seconds Hi. Uh good morning uh gentlemen. 1:00:28 1 hour, 28 seconds Congrats on a great set of numbers. Um just a follow up on uh the Middle East situation and the impact on reagents. In 1:00:37 1 hour, 37 seconds earlier comments you highlighted that as a risk. Um as of now what's the situation? Are are you seeing any availability issues or price uh significant pricing increases? 1:00:49 1 hour, 49 seconds No availability has not been a concern uh as of now because you know the supply chain actually doesn't route via the 1:00:56 1 hour, 56 seconds Middle East. It routes mostly from Europe uh this size. So to that extent yes it has taken a little longer but we 1:01:04 1 hour, 1 minute, 4 seconds always carry two to three months of inventories. Uh so we haven't faced any disruption uh on availability front. Of 1:01:12 1 hour, 1 minute, 12 seconds course with the dollar being where it is right many of our vendors have uh has come back uh requesting for price 1:01:19 1 hour, 1 minute, 19 seconds increases. Uh but given our volume growth you know we have been able to mitigate a large part of that. Uh but 1:01:28 1 hour, 1 minute, 28 seconds you know should the situation continue I I think you know definitely raw material prices will increase. uh and then we will have to evaluate how we pass it on. 1:01:41 1 hour, 1 minute, 41 seconds Thank you. Participants are requested to restrict to one question at a time. 1:01:45 1 hour, 1 minute, 45 seconds Please. Next question is from the line of Yeshi from Unifi Capital. Please go ahead. 1:01:52 1 hour, 1 minute, 52 seconds Yes sir. So uh just on the one bookkeeping question uh so currently as you see your tax rate has been around 23 1:02:00 1 hour, 2 minutes 24,000. So I get to know that it's based on default tax benefit. So can you just 1:02:06 1 hour, 2 minutes, 6 seconds uh uh enlighten me on what are components of default tax and another is going forward tax rate will be close to 27 28%. 1:02:18 1 hour, 2 minutes, 18 seconds I'll let Vikram take this question. 1:02:20 1 hour, 2 minutes, 20 seconds Vikram yes uh that is because of the defer taxing difference. Uh and going forward we expect a tax rate of uh 28 to 29%. 1:02:34 1 hour, 2 minutes, 34 seconds Thank you. 1:02:35 1 hour, 2 minutes, 35 seconds Uh yes, I requested to join back the queue please. Thank you. Next question is from the line of Ibrahim from an individual investor. Please go ahead. 1:02:44 1 hour, 2 minutes, 44 seconds Hi, I just want to know uh the uh market opportunity for the specialist testing and alert services uh which we are going 1:02:52 1 hour, 2 minutes, 52 seconds to announce in. So what will be the market opportunity in next two to three years? 1:02:57 1 hour, 2 minutes, 57 seconds How big will the opportunity specialty testing overall pathology market is estimated to be between 50,000 1:03:05 1 hour, 3 minutes, 5 seconds and 60,000 crores right and of that uh uh roughly 15 to 20% is estimated to be 1:03:12 1 hour, 3 minutes, 12 seconds the specialty space right so if you do that we are talking about a 7,000 to 10,000 cr market right uh that's a top- 1:03:22 1 hour, 3 minutes, 22 seconds down estimate of the overall industry thank And what about the allied Ibrahim? Only one question please. Thank 1:03:30 1 hour, 3 minutes, 30 seconds you. Next question is from the line of Shubam Harne from Punata Investment Advisor. Please go ahead. 1:03:37 1 hour, 3 minutes, 37 seconds Hello. So my question is on insurance business. How insurance business has done in past year and what are your growth expectation for next year? 1:03:48 1 hour, 3 minutes, 48 seconds Yeah, our uh our insurance business overall uh uh you know has done very 1:03:55 1 hour, 3 minutes, 55 seconds well. uh if I look at the year-on-year growth uh uh for the uh you know the insurance business uh we started very 1:04:04 1 hour, 4 minutes, 4 seconds aggressively last year but year on year we've grown at almost 45%. Right in the insurance space uh insurance is of two 1:04:12 1 hour, 4 minutes, 12 seconds parts. There is three policy medical checkup and annual health checkup. 1:04:17 1 hour, 4 minutes, 17 seconds Typically a lot of insurance companies offer a free annual health checkup with their policy right and thyroare serves 1:04:23 1 hour, 4 minutes, 23 seconds both these uh business lines. It's of course on a uh on a very nent uh size of 1:04:31 1 hour, 4 minutes, 31 seconds business as I said we are just scratching the surface and as you know insurance policies itself has grown by 1:04:38 1 hour, 4 minutes, 38 seconds about 25%. Uh that being said, we still managed to grow this segment by about 45%. And this continues to remain a focus area for us. 1:04:48 1 hour, 4 minutes, 48 seconds And what your plan for next year expectation? I don't comment on individual segments. 1:04:54 1 hour, 4 minutes, 54 seconds As I said, I have given an overall uh revenue guidance right uh at an individual segment there will always be 1:05:01 1 hour, 5 minutes, 1 second plus minus you know depending on execution. Thank you. 1:05:07 1 hour, 5 minutes, 7 seconds We'll take a last question from the line of Yeshi from Unifi Capital. Please go ahead. 1:05:13 1 hour, 5 minutes, 13 seconds Yes sir. uh what will be the init margins going for or really close to 33 34%. or due to speciality segments we 1:05:21 1 hour, 5 minutes, 21 seconds expect a margin expansion see specialty segment will be uh you know at a nent stage right so I don't 1:05:30 1 hour, 5 minutes, 30 seconds expect and I will not build any major upside from the aida margin side on the 1:05:36 1 hour, 5 minutes, 36 seconds facility say in fi 27 we can discuss in fi 28 and onwards but then uh till then 1:05:44 1 hour, 5 minutes, 44 seconds I think uh you know it will be difficult uh for the full here uh I think we delivered roughly about 32% uh reported 1:05:53 1 hour, 5 minutes, 53 seconds EITA and a normalized EIDA at around 34%. Uh I expect that to be stable into the next year. Uh as I mentioned any 1:06:01 1 hour, 6 minutes, 1 second further operating leverage that we get we will continue to invest in growth right so I would expect if you take full year FI26 1:06:10 1 hour, 6 minutes, 10 seconds as a base uh we anticipate to maintain that at the bottom. 1:06:15 1 hour, 6 minutes, 15 seconds Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Rahul Gua for closing comments. Over to you. 1:06:24 1 hour, 6 minutes, 24 seconds Uh thank you everyone for joining us and spending time with us this uh uh this day. Uh my apologies for having had to 1:06:33 1 hour, 6 minutes, 33 seconds cancel the uh conference call at the last minute on Thursday. uh that was because the board meeting took longer 1:06:40 1 hour, 6 minutes, 40 seconds than expected and and therefore we did not have enough time to to upload the presentation and the and the results. So 1:06:48 1 hour, 6 minutes, 48 seconds we had to reschedule but thank you for being patient with us and joining us this morning. As always we continue to remain focused on our strategy which is 1:06:57 1 hour, 6 minutes, 57 seconds to be the most affordable good quality diagnostic testing partner for anyone in the healthcare business and we continue 1:07:05 1 hour, 7 minutes, 5 seconds to execute on that strategy. We have been investing in improving our quality, improving our reach and ensuring our 1:07:13 1 hour, 7 minutes, 13 seconds turnaround time is as close to best-in-class and we've made substantial progress on all of this and that is what 1:07:20 1 hour, 7 minutes, 20 seconds is driving the results that you see. I'm also very happy to see Raji Panvar our 1:07:26 1 hour, 7 minutes, 26 seconds new chief commercial officer, Dr. Romesh Kina our new chief operating officer and 1:07:32 1 hour, 7 minutes, 32 seconds Vikram Gupta our CFO leading the call and driving the strategic direction for the company and I'm sure we with this 1:07:41 1 hour, 7 minutes, 41 seconds core team fully in place we will continue to drive the exceptional execution that you have seen in the last 1:07:48 1 hour, 7 minutes, 48 seconds two years. Thank you for all your support in this journey and I wish you all a good evening. Thank you. Thank you 1:07:56 1 hour, 7 minutes, 56 seconds on behalf of Tyroare Technologies Limited. That concludes this conference. 1:08:00 1 hour, 8 minutes Thank you for joining us. Anime disconnect your lines.