Krsnaa Diagnostics Q2 FY27: PAT growth stalls to 3% YoY as margins compress

Krsnaa Diagnostics' consolidated PAT for Q2 FY27 grew just 2.7% YoY to ₹24.59 Cr (from ₹23.95 Cr in Q2 FY26), even as consolidated revenue from operations rose a much stronger 31.6% YoY to ₹270.97 Cr (from ₹205.99 Cr) — a sharp divergence between topline momentum and bottom-line growth. A web search turned up no analyst consensus estimates for this specific quarter, so vs-street positioning is unknown. Sequentially, PAT rebounded 48.6% QoQ from ₹16.55 Cr in Q1 FY27 (revenue +15.0% QoQ from ₹235.53 Cr), but per our framework this QoQ strength does not anchor the verdict when YoY profit growth trails YoY revenue growth this sharply, which is the case here. The gap sits squarely in margins: consolidated net profit margin compressed to roughly 9.1% of revenue from about 11.4-11.6% a year ago, and EBITDA margin (OPM, computed as PBT + finance cost + depreciation − other income, over revenue) slipped to roughly 26.3% from 28.7% YoY — a decline of about 2.4 percentage points. This runs counter to management's own prior guidance that it would aim to maintain consolidated EBITDA margins through FY27 even though it had flagged only Q1 FY27 for short-term margin fluctuation tied to the Rajasthan PPP ramp-up; the compression still visible in Q2 suggests the Rajasthan scale-up margin drag extended beyond the single quarter management flagged, so guidance reads as missed on the margin front — even though PAT itself did grow, consistent with management's separate expectation of 'potential for PAT growth' in FY27 as Rajasthan scales. Standalone (ex-subsidiary) PAT came in at ₹25.32 Cr on revenue of ₹239.88 Cr, about 3% above the consolidated PAT figure, so standalone and consolidated tell a broadly consistent story this quarter. Separately, the auditors' review report flags a ₹62.69 Cr income-tax demand (AY2017-18 to AY2023-24) arising from search-assessment proceedings; the company has filed appeals with the ITAT and deposited ₹10.28 Cr under protest, and both management and the auditors view the matter as not material to this quarter's financial position — it remains a disclosed contingency, not a P&L provision. The quarter also saw ₹22.94 Cr received against a preferential allotment of promoter warrants (15.46 lakh warrants) and an AI-radiology partnership with AZmed announced in October; neither moves this quarter's P&L materially, but both sit alongside the Rajasthan and retail build-out management has identified as the FY27 margin swing factor. No separate earnings press release was available in our records to cross-check management's own framing of this specific print.