Krsnaa's profit is up 24% but it's hiding a ₹63 crore tax demand.
Standalone net profit rose to ₹102.7 crore, but ₹25.9 crore of that was a one-off investment revaluation. Auditors also flagged a ₹62.7 crore tax claim.
— 5 earlier stories on Krsnaa Diagnostics Ltd. →What's new
- Standalone profit rose 24% to ₹102.7 crore, but ₹25.9 crore was a one-time gain.
- Auditors disclosed a ₹62.7 crore tax demand from a search assessment spanning seven years.
- Borrowings surged from ₹16.6 crore to ₹490.5 crore after a ₹417.4 crore NCD issuance.
Why this matters
The headline profit number is misleading. Strip out the one-off gain, and operating performance was flat, with revenue stuck at ₹690.9 crore. The ₹62.7 crore tax claim is nearly 60% of reported profit, creating a real financial overhang despite management's appeal.
What we're watching
- Outcome of the tax appeal — the demand equals 61% of FY26 profit.
- How the ₹490.5 crore debt pile impacts future interest costs.
- Revenue growth in core diagnostics business after a flat year.
The full read
Krsnaa Diagnostics' 24% profit growth looks solid until you see what's inside. The ₹102.7 crore standalone net profit included a ₹25.9 crore one-time gain from revaluing an associate. Revenue was flat at ₹690.9 crore. The real number to watch isn't profit but the ₹62.7 crore tax demand from search assessments spanning seven years. That's 61% of reported profit, now under appeal. Meanwhile, the balance sheet has fundamentally changed. Total debt jumped from ₹16.6 crore to ₹490.5 crore after a ₹417.4 crore NCD issuance for expansion. The company is putting significant capital to work while fighting a tax claim that could wipe out two years of profit.
Questions answered
- How much of Krsnaa's reported profit was one-off?
- ₹25.9 crore of the ₹102.7 crore standalone profit came from a one-time gain on revaluing an associate investment. That's 25% of the total.
- Why did the company's borrowings jump so sharply?
- Krsnaa issued ₹417.4 crore in non-convertible debentures to fund expansion. This took total borrowings from ₹16.6 crore to ₹490.5 crore.
- What is the tax demand and how serious is it?
- The demand is ₹62.7 crore from income-tax search assessments covering seven years. Management has appealed and expects no material impact, but the claim equals 61% of reported profit.
- How did consolidated results compare to standalone?
- Consolidated PAT rose 31% to ₹101.4 crore, slightly below the standalone figure. The difference suggests minority interest or subsidiary performance effects.
Krsnaa Diagnostics Ltd.
Latest quarter · Dec 2025
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All notes on KRSNAA →- 25 May 2026 · 8:13 PM IST Krsnaa's profit is up 24% but it's hiding a ₹63 crore tax demand.
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