Thyrocare Q2 Profit Slips 68% YoY To ₹15 Cr Due To ₹45 Cr Exceptional Expense

Thyrocare, a company backed by PharmEasy, experienced a significant 68.2% drop in net profit for the September quarter (Q2 FY27) to ₹15.2 Cr, compared to ₹47.8 Cr in the same period last year. The decline was even more pronounced, with a 70% drop from ₹51.3 Cr in the previous quarter. The main reason for this financial setback was an exceptional impairment loss of approximately ₹45 Cr on its investment in the radiology and diagnostic-imaging subsidiary, Nueclear Healthcare Limited (NHL).

The company's board approved the sale of its entire stake in the subsidiary to Trovera Healthcare on September 21, generating about ₹141.4 Cr. This sale was aimed at allowing Thyrocare to concentrate on its Pathology business, which has a stronger growth potential, higher margins, and better return on capital employed (ROCE).

Despite the sharp decline in profit, Thyrocare's operating revenue rose by 25% year-over-year (YoY) and 13% quarter-over-quarter (QoQ) to ₹270.8 Cr. Diagnostic testing services revenue grew by 26% YoY to ₹256.7 Cr, while revenue from imaging services fell by 5% to ₹13.6 Cr. Including other income of ₹3.6 Cr, the total income for the quarter amounted to ₹274.4 Cr.

Expenses for the quarter were ₹196.6 Cr, and the tax expense was ₹18.4 Cr. Excluding the impairment charge, the company's profit before tax increased by around 25% YoY to ₹77.8 Cr. Thyrocare's EBITDA for the quarter also grew by 25% YoY to ₹89.3 Cr.

On the operational side, the company processed 61.6 Mn tests in the quarter, a 27% YoY increase. Customer complaints declined by 24% YoY to 2.9 per Mn tests. Looking ahead, Thyrocare is venturing into specialty diagnostics, starting with allergy testing and genomics, with plans to expand its specialty test portfolio.