Krsnaa Diagnostics cuts Rajasthan revenue guidance by 50%
The company slashed its FY27 revenue target for the Rajasthan project to ₹100-150 crore, citing delays in the rollout of labs and collection centers.
— 6 earlier stories on Krsnaa Diagnostics Ltd. →What's new
- Rajasthan project revenue target dropped from ₹200-250 cr to ₹100-150 cr for FY27.
- Rollout of 27 mother labs and 800 collection centers delayed to Q2 FY27.
- Days sales outstanding reached 139 days, missing the 120-day target.
Why this matters
Execution delays in a flagship project combined with a persistent working capital drag are a difficult mix. While management points to long-term revenue potential, the immediate reality is a significant guidance cut and a failure to hit internal efficiency targets.
What we're watching
- Progress on the Q2 rollout timeline for the Rajasthan project.
- Any improvement in the 139-day DSO figure in upcoming quarters.
- The path to break-even for the retail diagnostics segment.
The full read
Krsnaa Diagnostics is resetting expectations for its flagship Rajasthan PPP project. The company cut its FY27 revenue guidance for the project to ₹100-150 crore, down from the previous ₹200-250 crore target. This follows a delay in the rollout of 27 mother labs and 800 collection centers, which are now slated for the second quarter of FY27. Beyond the project delays, the company is struggling with working capital efficiency. Its days sales outstanding sits at 139 days, missing the 120-day goal. On the brighter side, retail diagnostics revenue grew sixfold to ₹60 crore, now accounting for 8% of the total mix. Management intends to deploy ₹500 crore in capex to reach break-even in this segment by FY27. Despite long-term projections of ₹6,000-7,000 crore over the next five to seven years, the immediate focus remains on the execution gap in Rajasthan and the persistent working capital pressure.
Questions answered
- Why did Krsnaa lower its Rajasthan revenue guidance?
- The company delayed the rollout of 27 mother labs and 800 collection centers to the second quarter of FY27. This pushed back the expected revenue contribution for the full year.
- How does the current DSO compare to the company's target?
- The company reported days sales outstanding of 139 days, which is above its internal target of 120 days.
- What is the status of the retail diagnostics segment?
- Retail revenue grew sixfold to ₹60 crore, representing 8% of the total mix. Management targets double-digit contribution and break-even in FY27.
- What is the total capex planned for the retail push?
- The company has outlined a ₹500 crore capex plan to support its retail diagnostics expansion.
Story so far
All notes on KRSNAA →- 26 May 2026 · 1:53 PM IST Krsnaa Diagnostics cuts Rajasthan revenue guidance by 50%
- 1d ago Krsnaa cuts Rajasthan PPP target by half, to ₹100-150 cr for FY27
- 5d ago Krsnaa Diagnostics releases Q4 and FY26 management commentary
- 5d ago Krsnaa Diagnostics reports FY26 results with no new surprises
- 5d ago Krsnaa Diagnostics reports FY26 profit of ₹101.4 crore