Suraksha Diagnostic (NSE:SURAKSHA) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Q1 FY 'twenty seven Earnings Conference Call of Suraksha Diagnostics Limited hosted by MUFG Intel. 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 concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Sumit Khetan from MUFG Incline. Thank you, and over to you, sir. Good morning, everyone. I welcome you all to the earnings conference call to discuss Q1 FY 'twenty seven results of Suraksha Diagnostic Limited.

0:49 To discuss the results, we have from the management, doctor Soma Chatterjee, chairman and joint managing director, mister, joint managing director and CEO. Sorry to interrupt, mister Sumit, sir. Your voice is breaking. Yeah. Now it's audible? Yeah. Now it's better. Yeah. So they will take you through the results and the business performance, post which we'll proceed for q and a q and a session. Before we proceed with the call, a small disclaimer. This conference may contain certain forward looking statements about the company, which are based on the beliefs, opinions and expectations as of the date of this call. The actual results may differ materially.

1:39 These statements are not guarantee of the future performance and involve risks and uncertainties that are difficult to predict. A detailed safe harbor statement is also been given in the company's investor presentation. With this, I would now like to hand over the call to the management for their opening remarks. Thank you, and over to you, sir. Good morning. I, Doctor. Sumna Chatterjee, welcome you all to the quarter one FY 'twenty seven earnings conference call of Suraksha Diagnostics. We are indeed pleased to report a very strong start to FY 'twenty seven with continued progress across financial performance, clinical capabilities and our strategic initiatives.

2:28 For quarter one FY 'twenty seven, SURAKSHA a year on year revenue growth of 21% with an EBITDA growth of 28% and a remarkably bad growth of 40%. We believe this performance reflects the strength of our underlying business and the continued excellent execution of our long term strategy. SURAKSHA continues to strengthen its position as an integrated diagnostic service provider in Eastern India. Our focus remains on building deeper clinical capabilities and staying ahead of the curve in technology, while continuing to improve our accessibility and patient experience.

3:23 During the quarter, Surukha Genomics continued to demonstrate encouraging traction. The vertical recorded a revenue of INR 13,700,000, registering a 136% year on year growth with five consecutive quarters of sequential growth. While this remains a small base today, we believe it has the potential to become a meaningful pillar of the business as we scale the platform. We continue to build capabilities across prenatal diagnostics, inherited diseases, pharmacogenomics and oncology focused molecular panels, while also working towards areas such as whole genome testing, metagenomics and AI integration.

4:18 Here, we would like to mention that we have just introduced a blood test for Alzheimer's test with excellent feedback from the doctors. Also, we have started a project on early detection of Alzheimer disease from plain brain MRI with the help of artificial intelligence. This is done by a team of neurologists and neuroradiologists from Suraksha with the help of CSIR. We our technology initiatives and strategic partnerships are also progressing well, helping us strengthen our clinical capabilities and explore new opportunities in advanced diagnostics, research and technology led healthcare solutions.

5:09 We believe these collaborations will continue to complement our in house capabilities and create meaningful opportunities over the long term. We remain focused on combining clinical expertise, technology and strategic collaboration to build a differentiated diagnostic platform for Eastern India and adjacent geographies. With this, I would like to invite our CEO, Mrs. Ritu Mitthsal, to provide the financial and operational update for quarter one FY twenty twenty seven. A very good day to you all and thank you. Thank you, Doctor. Kaji.

5:55 Good afternoon, everyone, and thank you for joining us today. I am pleased to report that Suraksha has begun FY 2027 on a very strong footing. The quarter reflects healthy business momentum and continued execution of our expansion strategy. During Q1, we commissioned one hub and three spoke centers, consistent with our strategy of anchoring clusters and then building density around them. We have carried this momentum into the current quarter as well, adding two hubs and three spoke centers in July and August. Importantly, we have also extended our footprint beyond West Bengal with the commissioning of a hub center in the neighboring state of Jharkhand, while a hub in Tripura will follow shortly.

6:44 This marks an important step in our journey of building a broader regional presence across Eastern And Northeastern India. As we continue to expand our network, our focus remains on ensuring that the newer centers ramp up efficiently. We remain acutely focused on improving throughput and capacity utilization across recently launched centers, while maintaining disciplined execution of our expansion plans. At the same time, we continue to pursue cost efficiencies by leveraging our centralized procurement and existing infra. This will remain important as we scale the network and progressively improve operating leverage. I will now take you through the brief overview of our financial performance for the quarter ended 06/30/2026.

7:36 For Q1, the company reported total income of INR $887,000,000 compared to INR $735,000,000 in Q1 FY twenty twenty six, registering a year on year growth of 21%. EBITDA stood at INR $315,000,000 compared to INR $247,000,000 in Q1 FY twenty twenty six, with EBITDA margin at 36% compared to 34% in the corresponding quarter. PAT stood at INR 128,000,000 compared to INR 92,000,000 in Q1 FY twenty twenty six, registering a year on year growth of 40%. PAT margin for the quarter stood at 14.7%.

8:23 On the operating side, patients served stood at INR 380,000, while test performed stood at INR 2,100,000. Test per patient stood at INR 5,560,000, revenue per patient is INR 2,321 and EBITDA per patient stood at INR $8.35. Our network stood at 72 centers at the end of the quarter, following the addition of one hub and three spoke centers during Q1 FY 'twenty seven. On center level profitability, our mature centers delivered a 40.9% EBITDA margin in Q1 FY 'twenty seven. Centers under two years old turned profitable for the first time at 6.5% EBITDA margin from negative 5.5% last quarter.

9:14 This is the ramp up we have been building towards, and we expect it to continue. We expect the contribution to strengthen as they scale. Overall, Q1 FY 'twenty seven has been a strong quarter with healthy revenue growth, strong operating profitability and continued network expansion. We remain focused on improving throughput, driving operating leverage and progressively enhancing profitability as our new centers mature. With that, I would like to thank everyone for joining the call, and I would like now like to open the forum for questions. Thank you very much. We will now begin the question and answer session. You may press star and two.

10:10 Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Om from Philip Capital. You may proceed. Yeah. Am I audible? Hello? Yeah. Am I audible? Yes. Yeah. First of all, congratulations on the good set of numbers. I have a couple of questions. First, can you throw some light on the margin expansion of 400 bps? And can we reach around 33, 34% by the year FY 2020 financial year 2029?

10:56 And are the margins sustainable of lecture and launch lecture centers? Can you come one at a time, please? Sure. First of all, can you throw some light on the margin expansion of 400 bps? So the margin expansion is, of course, because of the volume expansion. As the revenue scale up and our major fixed costs remain the same, there is operating leverage and the margin expands. Okay. So can we expect 33%, 34% margins by the year end 2029? We expect more by the year 2029.

11:42 Okay. And on sustainable basis, can we consider the margins of mature and non mature centers to be sustainable going forward? Yes. We do. Because as we add more centers and once again, as the fixed cost gets divided amongst larger number of centers, the mature centers profitability will definitely keep on increasing or be maintained here. Got it. Second, I wanted to ask on the Genomics business. If you can give us some light on its growth trajectory going forward. So we are quite positive about the incremental growth that is coming from the Genomic business. The adoption has been really good in the medical fraternity.

12:34 And people are becoming more and more about our products and services that we are offering as of now in the market. So yes, we look at a strong continued growth in the genomic segment. Sir, any guidance on lower base? Any guidance on? On the business going forward. So we are expected to grow in the same around 20 odd percent quarter growth, quarterly growth for this financial year, is what we feel will happen. Sure, sir. And then just the last question.

13:21 Can you provide the CapEx outlook for the financial year? And are we on the track to open 100 centers by FY 'twenty? We are on track to open 100 centers by FY '28, and the CapEx will again be something around INR 70 crores to 80 crores this year. Okay. Thank you so much. All the best. Thank you. You. We take the next question from the line of from. Please proceed. Hello, ma'am. Am I audible to you?

14:07 Yes, you are. Yes. So basically, my first question was on this margin expansion in our venture center. So can you just let me know what were these key the structural drivers for the thing? So even our centers, which are more than two years old, have shown a revenue growth of around 12.5% quarter on quarter. And as we are scaling up, obviously, the economies of scale is setting in, and therefore, the margins for these centers are going up. Okay. Sure, ma'am. And also, my second question was, do we have kind of this new guidance for our on these margins for FY 'twenty seven, 'twenty eight?

15:03 So FY 'twenty seven, we see quarter two, again, will be a strong quarter because that is the trend of the industry. Quarter three is a little muted because of the festivities that come in and the winter season. Again, quarter four is strong. So we believe that the EBITDA overall EBITDA will not go below 34%. Sure, ma'am. Sure. All the best. That's it from my side. Thanks. Thank you. Before we proceed, a reminder to the participants, in order to ask a question, you may press star and one on your touch tone telephone.

15:51 We take the next question from the line of Siddharth K from Tusk Investments. Please proceed. Yeah. Good morning, everyone. Ma'am, I I have one question. The genomics revenue of 1.37 CR, what was the split between b two b and b two c? So for us, right now, it is 80% is b two c and 20% is b two b. Okay. But going forward, we are expecting b two b to be a larger share in genomics? Yes. We would expect that. Okay. Thank you, ma'am. I'll get back to the line. Thank you. Thank you. Before we proceed, a reminder to the participants, in order to ask a question, you may press We take the next question from the line of Rajat Paltev from Kizuna Wealth. Please proceed.

16:51 Yes. Hi, ma'am. Thanks for the opportunity and congratulation on a good set of numbers. My question on the genomics hello, am I audible? Yes, you are. Yes. My question on the genomics business. So can you please throw some color on the demand side and what was our strategy or outlook for let's say three to four years? You see the demand for genomics is going to keep on growing because as we basically accept the fact that oncology treatment is getting personalized. So almost all oncology specimens will need genomic study.

17:40 And in this aspect, I would definitely like to throw some light because SURAKSHA has been very progressive. It has actually acquired a GeneXus equipment, which is the latest in the world for fast genome sequencing. It is in the final stages of validation. So being the only equipment in the whole of Eastern India, we expect a phenomenal success for this equipment and the results coming out. You see previously, an oncologist had to wait fourteen to seventeen days to find this study, which now has been brought down to forty eight hours.

18:30 So we think going ahead, genomics will play an important role in this. And regarding the strategy of how we are going to do it, I will ask Mr. Nirenkol, our CSO to tell in detail. So, genomics has been an underpenetrated market in the East. So, what happens is the as being the most renowned and most trusted brand in East Of India, Suraksha is supposed to build in more visibility, build in more awareness of the type of test available amongst the extended doctors who are practicing around the East Of India.

19:15 So once that happens, I think as a leader, we should be able to communicate and propagate the and educate the existing medical fraternity about these tests. And that is what shall give us a robust growth in the coming future. Okay. And sir, second question on the margin side. So what gives us confidence to achieve 34% EBITDA margins, given that in this quarter, the centers, which are more than two years, achieved 40% margin. So is this a sustainable margin? And what are the strategies which Suraksha has to be followed to achieve 34% EBITDA margin this financial year?

20:00 Just thought what is on the margin? Yes. So the mature centers margins are definitely sustainable. And as we have become positive in the centers that are more less than two years old, we see a positive trend going forward because they have come to some scale, and therefore, the profitability has come. So we expect a minimum of 34% actually for the year. Okay. And just one last question. What was the monthly run rate of the mature centers, which are more than two years and less than two years?

20:49 So my overall sales is INR 88 crores and my less than two year center contributed around INR 8.5 crores, whereas the rest was from mature centers. Okay, ma'am. And in the last quarter you mentioned that our repeat rate is just 40%. So I just want some color that why our repeat rate has been going down from let's say 52% in FY 2020 to FY 2023 to 40%. So basically as we are expanding our reach, new patients numbers are increasing and therefore the repeat patient looks to be smaller, but not if I look at the absolute numbers, they are not growing.

21:43 What was our... Patient volume patient volume growth has been 12.4% quarter on quarter. Yes, right. And what's the margin we are on genomics business? Genomic margins right now would be somewhere around 15% to 20%. Okay. Okay, ma'am. Yes. Thank you very much. Best wishes for SR twenty seven. Thank you. The next question is from the line of from Maximal Capital. You may proceed. Yeah. Hi,. I hope I'm audible. Yes. You are. Yeah. Yeah. My first question is on the growth.

22:29 I mean, on our 42 mature centers, what was the like for like growth for this cohort? I mean, the overall revenue growth was 22%, and you called out... Yes. So the mature centers showed a growth of 12.3% quarter on quarter. On year on year, ma'am? Yes. Year on year. 12% year on year, you're saying? Yes, yes. For the same quarter when we are comparing. Okay. Got it. Got it. And then on the on the... You know, I see that the test volume has increased by 11%. Mhmm. And so so, like, that means, like, you know, the revenue per test also kind of contributes somewhere around high single digit or more than that. So is it due to some mix change, or I mean, in order to increase some prices in some areas? Or No. It is it is due to the mix change. We've not increased any prices.

23:37 Okay. Okay. Okay. It's the test mix change. Right? I mean Yes. Yes. Okay. Okay. And the third question is, ma'am, I mean, the... On the... There is a slide that you've given out, slide number 44. I mean, you have highlighted, like, how your chambers and the doctors, the polyclinic model, you know, that is one of the key differentiating factors. So I was just wondering if you can, you know, give us some color on what is our... You know, how this is a, you know, differentiating factor here. I mean, are we relying more on just b two c brand based workings, you know, or, you know, this polyclinic and doctor based model kind of helps us, you know, attract more patients to our, like, you know, centers. You can give us more color on, you know, how this is Yeah. The only thing I would like to highlight here is that today patients are looking for convenience, okay? And when we give them a place where they can consult a doctor, do the investigation and show the doctor again, it becomes very convenient to them. And therefore, this model is what we are working on.

24:57 And we are seeing traction in the model. Like if I compare the patient footfall for consultation, Q1 Y on Y in June 'twenty five to June 'twenty six, there's a growth of around 11%. So because today, everyone is looking for convenience. And, of course, it's a trusted brand in East India, so they also trust the doctors that we would get attached to. Got it. Got it. Okay. Okay. And the final question, ma'am, on the mature cohort, I mean, I think it is 12% of the sort of the growth. I mean, as we identify and, you know, more... We open more centers, you think that, you know, there could be impact of cannibalization or some sort of volume impact on medical It cannibalization when we set up scope centers.

25:58 But overall, the business does not take a beating, and it caters to a wider area. Therefore, the patient reach becomes more for us, and we have not seen this trend going down. Okay. Thank you, ma'am, and all the best. Thank you. Before we proceed with the next question, participants who wish to ask a question may press star and one on their touchtone telephone. We take the next question from the line of from Alpha Capital. Please proceed. Hello. Hello, ma'am. Thank you for taking the question. Ma'am, I wanted to ask, even in in the mature mature market, mature centers, this time, we have 40.9% EBITDA. So would you ascribe that to just a volume growth or is it like something else also contributing to that?

26:59 So there is, of course, there is volume growth and also genomics is also contributing to that growth because a lot of genomic tests are also being written by these mature centers. And we have shifted our main track or the main biochemistry business from Siemens to Roche, there also we have negotiated a better deal and therefore the margins are also expanding a little where cost of goods is concerned. Got it. And on this this new center, we have seen continuous improvement in terms of margins. Now it has come down to positive 6.5.

27:45 So we expect this trend to continue or how should we look at going forward? Absolutely. When we talk about these centers in particular, the ones that have shown a trend of 6.5%, definitely, this will continue going forward. But again, new centers will be added in the quarter. So overall, there might be a little bit of a dilution. But as far as these centers is concerned, they will definitely keep showing a growing trend. And how many more centers do we plan to open this year? We plan to add six cokes and three hubs.

28:34 For for the full year? Yeah. Apart from the ones we've already opened. Got it. And, ma'am, on on terms of... In terms of ROCE, ROE for the business, if we look at our numbers versus other national players, our numbers are on the lower side. So would you ascribe that to just this new center, which are... Which we open, or is it, like, something extra also which is there and we can bridge that gap? No. It is only about the new centers. Today, we have 45 mature centers, and 27 are less than two years old. Some of them are only three months, six months old. And therefore, the ROCE is a little lower as compared to others in the industry, which is also not only compared to three, four players we are lower. So that is only because of the new centers and the mix is so skewed, therefore.

29:39 Got it. And on in terms of industry cyclicality, you said Q2 is like the best quarter because this is like the disease season, rainy season. So how are the trends we are seeing in terms of July and August so far? The trends are looking pretty good and robust. We are happy. Sure, ma'am. Thank you, all the best. Thank you. Thank you. Before we proceed, a reminder to the participants, in order to ask a question, you may press star and one on your touch tone telephone. We take the next question from the line of Rajiv Jain from Investment. Please proceed. Hello. Am I audible? Yes.

30:24 Yes. Thank you for the opportunity. So I just have a couple of questions. So firstly, b to b continues to be an important part of the diagnostic business. But as we see, the realizations can be relatively competitive in this segment. So how are you balancing B2B volume growth with maintaining healthy realizations and margin, if you could throw some light on that? B2C does not have a margin challenge until and unless you go for a very deep discounting in collection centers. So we don't play that game. We have patients walking into our centers, paying the full price and getting test done. So B2C does not have a margin challenge for us. And is it similar for B2B as well?

31:13 You look at B2C that definitely will have a margin challenge, but then the volume makes up for it. Understood. Understood. And on a different trend, what are the current key pick requirement for setting up a hub versus a spoke center? If you could throw some light on that. Typically, for us, for a hub center, it takes around 10 to 10.5 crores, and a spoke center takes 1.5 to 2 crores. Understood. Understood. And how long does a newly opened spoke typically take to reach breakeven? So a spoke, the center level breakeven happens in three to four months, whereas the HO level breakeven takes eight to nine months.

32:06 Understood. Understood. Alright, ma'am. Alright. That's all from my side. Thank you for answering my question, and all the best for the future quarter. Thank you. Thank you. We take the next question from the line of from SAF Capital. Please proceed. Hello. Am I audible? Yes. You are. Yeah. So I have a question. Like, do do you expect the radiology's contribution to revenue to increase or decrease over the next few years? No. We expect it to remain similar because we are adding a lot of esoteric imaging tests, but at the same time we are adding a lot of genomic tests, which fall under the past category.

32:57 So we think the ratio will remain unchanged. Okay, okay. Understood, understood. How scalable is the Genomics business without substantial incremental CapEx? So the CapEx that we have already incurred on the genomics aspect is done. So we do not see any additional major CapEx investment in next two to three years. So I'm sure there is enough to leverage from the existing CapEx that we have. We take the next question from the line of from Securities Investment Management. Please proceed.

33:51 Yeah. Hi. Thanks for the opportunity. So firstly, on these collection centers, two one two hundred fourteen collection centers which we have, so are these majorly? Yeah. These are... All of these are franchises. Okay. And, ma'am, then how do we decide whether we have even want to go for a collection center or we want to open a scope? So how does the management, you know, decide between both these two formats? So normally, we go in a concentric approach. So we open a hub center and around it, open scope centers. Beyond that, we open collection centers. And when we see that one collection center location is doing very well, then we add a scope there.

34:42 Because collection center does not hardly has any CapEx. Right. Therefore, that's But but then then you are opening a scope, the business of the franchise would get affected then. Right? Yes. It would. So it is franchise owned center. It's mostly a blood collection center only. So they do not possess the capability of doing radiology test. So when we see there is a significant amount of blood collections that are going from that particular territory, we come up in that territory with a spoke center with some set of ultrasounds and x rays and echo. So, that's how we take the next step. And we shift the existing franchisee to a further location. Further location, yes.

35:31 Understood. Got it. And now if I have to understand the Kolkata market, how many hubs and schools currently we have in Kolkata? And what amount of hubs and schools can be opened to, you know, fully penetrate that market? Okay. Give me one minute. Hello?

36:28 Ma'am, are you on the line? Yes. Just give me a minute. Okay. Sure. No problem. So in or we actually consider greater... Okay. Only Kolkata, have have five hub centers in Kolkata, and we have six coke centers in Kolkata in proper Kolkata. And we believe we can add another three hubs and at least six folks in Golgotha itself.

37:25 Got it. And what would be our indicative market share in Kolkata? Kolkata has a population of around two CR approximately, if we'll just estimate that. So when we say Kolkata, Kolkata is not just the district or the town Kolkata. Kolkata is a greater Kolkata area as well, which covers parts of North 24 Parthenas and some corner of Harahuli as well. So that is a bigger territory. So the numbers that we shared right now are proper Kolkata District, okay? So if we say broadly in the current scheme of things, what we feel there is a good number of hub locations that we think will cover in next two years.

38:14 And it could be much higher because these three and six folks three hubs and six folks in Kolkata is just in the district the town Kolkata, right? But in Greater Kolkata, we have nine hubs. We currently have nine hubs, and there is a scope of at least if I'm not being too optimistic, it is there is a scope of double the number of these counts. So as per the current visibility, the market is determining where we put a hub or a spoke. So at the current stage, we are sure that there is enough and more potential in Greater Kolkata area. And the existing number of hubs can be doubled.

39:06 Got it. Understood, sir. And what would be an indicative market share in Greater Kolkata? And in India, if we look at diagnostic industry, the organized players have a market share of around 15 to 20%. But for our geography, would you say it is similar or the organized share is a little lower? Organized share would be a little lower in East India. East being East, it is still underpenetrated for an organized player. It is mostly mom and pop store and small diagnostics centers who are catering to larger volumes, blood collection volumes. And that's... So among the organized peers, are we the largest?

39:55 Yes. Yes. Of course. Got it. Got it. And now, sir, now for the next three to four years, would it be fair to say that majority of our new centers would be in Kolkata and rest of West Bengal, and we would be opening just a single or two centers in the newer territories, like in Harkhand or Northeast? Would that be a fair assessment? So Jharkhand, like we have already opened one hub, we plan to open another one this year, and then we will fill it up with at least five spokes. So Jharkhand will give us some meaningful business. Assam, we already have a hub. We have commissioned one spoke this quarter. We are in the process of building another spoke in Assam, and we are adding Agartala in Northeast.

40:49 Understood. Got it. Lastly, we still have some districts in West Bengal, which are still uncovered by Suraksha. So we plan to move there as well. Got it. Got it. And lastly, on wellness, so what will be our contribution from wellness based? Our wellness piece right now must be around four to 5%. You know, we... With the change in the political scenario here, we believe a lot of industries will come, and therefore, our corporate sales or wellness piece should also pick up over the years. Got it. Got it. Sure, ma'am. Thanks for answering my question.

41:34 Thank you. Thank you. Before we proceed, a reminder to the participants, in order to ask a question, We take the next question from the line of Neelay Parekh from Parappasitri Ventures. Thank you, ma'am, for taking my this follow-up question. So just wanted to know, if this 12.5 of this revenue growth would be sustainable ahead for this major center? Yes, because they are also contributing meaningfully to our Genomic business.

42:24 Okay. Okay. Sure. Okay. Okay. Thanks, ma'am. Thank you. We take the next question from the line of Siddharth K. From Tusk Investment. Please proceed. Yes. I just have a clarification. So we are opening four hubs and seven spokes this year. Like we have already opened three hubs and six spokes, am I right? Yes. We've already opened three and six, and we plan to open three hubs and six spokes more. In the PPT, it is showing four hubs and seven spokes. Yes.

43:12 So in the upcoming is three hubs and seven spokes. Sorry. Four hubs and seven spokes. Seven spokes. Right. And ma'am, my second question is regarding the genomics. What is the market size in India? And like like, with the current CapEx which we have done in genomics, what kind of revenue can we see from genomics in, like, two, three years' time? Well, it is quite subjective as of now because it has a huge potential. So the thing that we have entered into, we have entered into it with a lot of CapEx commitment and our own resolve that we'll be able to educate the market and build it as a strong pillar of our organization. Okay. Any ballpark number in terms of the market size in India? What is the market size in India in terms of revenue for genomics?

44:06 So, I mean, is difficult to say this because what you have around is global data. But specifically in India, it should be reaching a figure of around $450,000,000 by the year 2030. The good point about what Mr. Paul was saying is his lab is totally equipped to handle all technology that is prevalent globally as of today. So that puts Suraksha in a very enviable position that the infrastructure there are six or seven page, the scientists in the lab, There is a bioinformatics team in the lab. So, the lab is very well equipped to handle any kind of genomic test.

45:09 So, that's how the future has been mapped at Shulukha. That was very helpful. Thank you for that. My last question is regarding any inorganic acquisition. Are we looking at any inorganic acquisition this year or maybe in the future? We keep on exploring opportunities. If we get something which is good quality and good price, we will definitely explore it. Okay. Thank you, ma'am. That will be it from my side. Thank you. Thank you. Before we proceed, a reminder to the participants, in order to ask a question, you may press star and one on your touchtone telephone.

45:59 We take the next question from the line of Mohammed Patel from Edelweiss Public Alternatives. Am I audible? Yes, you are. So what is the kind of investments that we have done in the genomic capacity? How much investment we have done in bicycle? Over three years, we have spent around INR22 crores. Okay. And can we assume an asset turnover on this just to understand what's the peak revenue potential? So, what we can tell you is the mature genomic labs in the country today only dealing in genomics have turnovers between INR 102 crores to 150 crores.

47:03 And that is the number one starting from the number one lab to number two, number three. And we are the only genomic lab based out of East India. Okay. What is the kind of investments I think they would have done? So their investments would have been much more because they established ten, twelve years, fifteen years back. So, they had to the genomics has gone into a very high space of technology augmentation over this period. So, their investment would have been much, much higher. Okay. Okay. Understood. My next question is, so approximately whatever centers we add on a per annum basis, how much of that should be in the new territories, any approximate percentage in the next three to four years?

47:59 Could you please repeat the question? Whatever number of centers we add per annum in the next three to four years, how much should be the new territories apart from our existing core territories? It should be mostly. So I think it should be around fifty-fifty because we have to we are expanding into newer geographies and we will be deepening our penetration. And also in the existing geography, we still see enough room for growth. Okay. Last question is that in the last con call, you had mentioned 15% revenue guidance. And if you look at our peers who I think this is much larger in scale, so they also guide for much higher revenue guidance. So why do we guide for 15% revenue guidance?

48:55 So we have been a bit conservative over it. We have a very new organization. We are just coming to terms at our pace and everything. So that is the reason. Otherwise, there is no dearth of effort in the organization. We put in our best effort and the results would speak for themselves. Okay, sir. Thank you. All the best. Thank you. Thank you. We take the next question from the line of Bhavya Sangvi from Philip Capital. First of all, I have this question regarding, did we see any fee benefits of Fluent for us during the quarter or the realizations look quite strong in Q1 FY 'twenty seven?

49:55 Yes, there has been a CGHSS rate increase in the mid of October twenty five. So which has incremental benefit to it. Our corporate public sector corporate contribution mostly is around 15% that has seen a good decent increase in due to the rate correction. Could you quantify your benefit, which is on the top line from the CAGR price revision in the quarter? 1.5 or some in that kind of listing. Okay. Okay. Understood. My second question was regarding our test volume growth. So we have done around 10% to 11% growth in this quarter.

50:45 Right? So if I look at the previous two quarters and compare it year on year, we had been doing around 20% plus sort of volume growth. So any particular reason for a decline in the test volume growth this quarter? Nothing very specific. So test volume growth Test volume or patient volume growth are you talking about? Test volume, sir. Test? Test volume has increased. Yeah. I understand. But the pace of growth has reduced. That is the question. So we have some 10% growth from realizations and 10% from volume. Right? That's how it tells when it's one to FY '27. But over the last two quarters, it's been around 20 growth sort of for our test volume over the last two quarters.

51:33 So we'll evaluate that. Understood. And sir, in terms of our lab additions, so we have been talking about adding close to 20 labs in FY '27. Right? So in FY '26, we had around 14. And plus, you are talking about having 50% of your lab beyond your core regions of Kolkata and West Bengal. So do you foresee any sort of margin pressure in FY '28? Since FY '27, we had we had a strong start, so we have been around 34% in Q1 itself. So do you foresee any margin pressure from '28 onwards? No. We expect the margins to increase. Yeah. Despite we focusing on newer geographies? Yes. Yes. Okay.

52:19 Understood. And could you just help me out with the realization... Average realization for a genomic test, a ballpark number would be good enough? So this is a tough question to answer because some genomic test would go to INR $0.05 lakh of INR and even more and few would be roundabout 4,005 thousand. So it is tough to give you a ballpark average number. And it does not give a clear picture on anything actually looking at this number. We were also wondering what to how to average out the genomic, but it generally... I think once we track three, four and we've added a lot more tests that we are planning to add, then maybe this average price would play out.

53:12 Yeah. Okay. And just one last question. So if I look at the industry growth as a whole, it's sort of accelerated in Q1 FY 'twenty seven, right? So generally, Q1 is supposed to be an unseasonal quarter. You see around a normalized sort of growth. But this time around, the industry has seen some strong growth. So any particular reason which has which has led to such strong growth, if you could just comment on it would be quite helpful. Thank you. Not really. I think there's been expansion of new centers and them panning out. Okay. That has been Okay, ma'am. Thank you. Thank you for patiently answering the call. Thanks. Thank you. Thank you. As there are no further questions from participants, I would now like to hand the conference over to the management for their closing comments.

54:01 Over to you, sir. We would like to thank everyone for joining the call. And from our side, the management side of Suraksha, we remain committed to give excellent service to bring newer tests and also to perform excellently in the business sphere of things. We wish you all a very good rest of the day as it goes. Thank you very much for being here with us. Thank you. On behalf of Suraksha Diagnostic Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.