Target: ₹1,400
Current Market Price (CMP): ₹1,241.90
Thyrocare Technologies (Thyrocare) reported its Q2-FY26 results, aligning closely with forecasts and exceeding margin expectations by 180 basis points. The company recorded a robust revenue growth of over 20% (22% actual versus a projected 20%), marking the fifth consecutive quarter of such growth, attributed to a 21% year-over-year increase in test volumes. Despite a significant decline in fever-related testing volume, which fell 26% year-over-year, overall volume growth remained strong.
The radiology segment experienced flat revenue year-over-year due to disruptions affecting a few centers; however, growth is anticipated to resume in the near future. Notably, the radiology division’s margin improved substantially by around 800 basis points quarter-over-quarter, reaching 19.7%. The enhanced EBITDA margin of 180 basis points quarter-over-quarter was driven by operational leverage benefits.
Thyrocare’s subsidiary, Nuclear Healthcare (NHL), also demonstrated progress, with a gross margin increase of 270 basis points quarter-over-quarter. The company predicts that the H2-FY26F margins will mirror those of H1-FY26, approximately 34%, resulting in a revised margin estimate for FY26F, now increased by 80 basis points to 32.6%.
Furthermore, Thyrocare has lifted its FY26F and FY27F earnings per share (EPS) estimates by 8% and 7%, respectively. The company maintains an “Add” rating for its stock, with an unchanged target price of ₹1,400. However, it cautions that any slowdown in volume or franchise expansion presents a potential risk to this outlook.
Published on October 15, 2025
