Molbio Diagnostics IPO

Strengths · 6

• 01Truenat is its own patented platform. It is portable, runs on battery and gives PCR results in about an hour, which makes molecular testing possible in small towns and villages where full labs are not available.
• 02The product range is deep. It covers more than 30 diseases through 43 tests, including TB, HIV, Hepatitis B and C, and HPV.
• 03Reach is global. The company sells in more than 90 countries and runs six manufacturing plants in India.
• 04Growth has been strong. Total income went up from Rs 840.66 crore in FY2024 to Rs 1,455.17 crore in FY2026, and profit after tax almost doubled from Rs 83.54 crore to Rs 164.14 crore.
• 05Return ratios are healthy. RoCE was 20.98% and RoNW was 15.23%. EBITDA for FY2026 was Rs 328.24 crore.
• 06The fresh money goes into building the business. Rs 125.12 crore is for an R&D facility and a Centre of Excellence, and Rs 80.81 crore is for plant and machinery at Goa Unit I, Goa Unit II and the Visakhapatnam unit.

Risks · 8

• 01Most of the issue is an offer for sale. Out of Rs 939.70 crore, about Rs 739.70 crore is OFS. The company will get only around Rs 200 crore for its own growth.
• 02The issue is priced high. At the upper band of Rs 807, the P/E is about 56.67 times on an EPS of Rs 14.24.
• 03Borrowings have gone up sharply. Total borrowing rose from Rs 123.16 crore in FY2025 to Rs 412.64 crore in FY2026, more than three times in one year. None of the fresh issue money is set aside to repay this.
• 04Promoter holding is low. It was 44.89% before the issue and will fall further to 41.29% after listing.
• 05The company depends a lot on government health programmes, especially TB testing. A change in government tender policy, pricing or order size can hit revenue.
• 06Profit is growing slower than sales. Revenue went up 42% but profit after tax rose 18% between FY2025 and FY2026.
• 07Diagnostics is a heavily regulated business. The company needs approvals and certifications in every country it sells in, and any delay or loss of approval will affect sales.
• 08The company competes with large global diagnostics players who have deeper pockets for research and marketing.

Molbio Diagnostics Limited was started in October 2000. It is a global point-of-care molecular diagnostics company. It does research, development, manufacturing and selling of quick diagnostic solutions for infectious diseases as well as non-communicable diseases.

Its main product is the Truenat platform. This is a portable, battery-operated PCR based molecular testing system. It is made for places where lab facilities are limited, and it gives accurate results within an hour.

The company offers testing for more than 30 diseases through 43 diagnostic tests. These include tuberculosis, COVID-19, HIV, Hepatitis B and C, and HPV. Through its subsidiaries and tie-ups, it also provides radiology, digital pathology and breast health screening solutions. It keeps adding new products through its own R&D.

The company runs six manufacturing plants in India and serves customers in over 90 countries. Its customers include government health programmes, diagnostic labs, hospitals and international healthcare bodies.

It holds a good number of patents and global certifications, and has grown through some strategic acquisitions. As on 31 March 2026, the company had 1,225 permanent employees across R&D, manufacturing, quality, sales, finance and corporate functions.

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