Star Imaging cuts FY27 growth guidance after licensing delays
Revenue growth is now targeted at 25-30%, down from an earlier 30-35% goal. Two new centres are live, with a third in New Delhi due within two months.
— 4 earlier stories on Star Imaging and Path Lab Ltd. →What's new
- FY27 revenue growth target cut to 25-30% from an earlier 30-35% due to licensing delays.
- Regulatory hurdles with PDNT and AERB have been resolved; two new centres are operational.
- FY26 revenue was ₹88.5 cr (+6% YoY), with EBITDA margin up 330 bps to 37.5%.
Why this matters
Star Imaging's entire growth thesis rests on rapid centre expansion, so a licensing hold-up that forces a guidance cut is material, even if the company calls the issue resolved. The profitability improvement in FY26 suggests the core business is healthy, but the stock's fate now hinges on whether the new centres ramp on schedule.
What we're watching
- Whether the FY27 revenue lands at the ₹110-120 cr level implied by the FY28 guidance.
- Capex execution: ₹20-25 cr planned for FY27 across new centres and equipment.
- Timeline for achieving a debt-free balance sheet, a two-year target.
The full read
Star Imaging missed its own 30-35% FY27 growth target. The new guide is 25-30%. The reason: licensing delays under the Pre-natal Diagnostic Techniques Act and with the Atomic Energy Regulatory Board held up expansion. The company says both are cleared. Two new centres are running; a third in Dwarka, New Delhi, opens in two months. The business itself posted ₹88.5 crore in FY26 revenue, up just 6% year-on-year, but the profitability story is stronger: EBITDA margin gained 330 bps to 37.5%. The plan now is ₹20-25 crore in FY27 capex for more centres and equipment, with a two-year path to a debt-free balance sheet. For a company with a market cap of ₹127 crore, the gap between the old guidance and the new one matters, because the valuation assumes execution.
Questions answered
- Why was the FY27 growth target reduced?
- The company cited licensing delays under the Pre-natal Diagnostic Techniques Act and from the Atomic Energy Regulatory Board. It says both issues are now resolved and that operations have begun at two new centres.
- What was the actual performance in FY26?
- Revenue was ₹88.5 crore, a 6% increase year-on-year. EBITDA margin improved by 330 basis points to 37.5%, indicating profitability strengthened even as top-line growth was modest.
- How much is the company planning to spend on expansion?
- Star Imaging plans ₹20-25 crore in capex for FY27. The spending is earmarked for new centres and medical equipment, with a third centre in Dwarka, New Delhi, opening within two months.
- What is the medium-term financial target?
- Management guided for ₹110-120 crore in revenue for FY28. It also reiterated a target to become debt-free within two years.
Story so far
All notes on STARIMAGIN →- 25 May 2026 · 3:43 PM IST Star Imaging cuts FY27 growth guidance after licensing delays
- today Star Imaging installs North India's first 1184-slice CT scanner in Delhi
- 12d ago Star Imaging targets 25-30% revenue growth in FY27
- 14d ago Star Imaging's FY26 revenue is flat at ₹50 cr. Profit barely moved.
- 17d ago Star Imaging reports stagnant FY26 revenue of ₹5,002 lakhs