Thyrocare Technologies reported 25% revenue growth in Q2 FY27 and increased its annual revenue guidance to over 20%. The company is also set to divest its imaging subsidiary, Nueclear Healthcare, by November 2026. While ICICI Securities slightly adjusted earnings estimates, they maintained a positive outlook on the stock, citing the company's aggressive network expansion.
Thyrocare Technologies has updated its growth outlook for the current fiscal year. After reporting a 25% rise in revenue, EBITDA, and net profit for the second quarter of fiscal year 2027, the company increased its annual revenue growth guidance to over 20%, up from its earlier projection of 15-17%. This update suggests management remains confident in the demand for its diagnostic services despite competition in the pathology sector.
A key driver of this performance has been the rapid expansion of the company’s network. In the second quarter alone, Thyrocare added 1,181 new franchisees, bringing its total partner footprint to 12,911. In the highly competitive diagnostics market, building a large network is often crucial for maintaining market share and ensuring service reach. The company is now focusing on increasing the contribution of high-margin specialized tests to its overall revenue, which is expected to support future stability.
Strategic Divestment of Nueclear Healthcare
The company is moving to streamline its business model by selling its imaging subsidiary, Nueclear Healthcare, to Trovera. This transaction is expected to be completed by the end of November 2026 for a consideration of ₹1,414 million. This move is part of a strategy to focus more on the core pathology business. While this restructuring prompted brokerage firm ICICI Securities to adjust its earnings per share estimates downward by 1-6% for the next two years, the firm maintained a Buy rating on the stock with a target price of ₹620.
Analysts note that while the divestment has a minor impact on immediate earnings estimates, the company's core outlook remains firm. Operating profit margins are expected to settle between 31% and 31.5% in the near term. The company's future performance will depend on how effectively it balances this rapid network expansion with the goal of increasing its high-margin specialized testing segment. Investors may track the successful completion of the Nueclear Healthcare divestment by the November deadline and monitor whether the company can sustain the recent revenue growth momentum through the second half of the fiscal year.