According to the latest stock exchange filing, Krsnaa Diagnostics Ltd announced that its board has approved the sale of identified diagnostic equipment for an aggregate consideration of up to ₹120 crore to identified purchasers, including purchasers that may be identified in the future. The company stated that the proposed transaction is part of its ongoing strategic initiative to optimise its asset portfolio and enhance capital efficiency, as reported by Business Standard. The board-sanctioned sale is directed at improving asset management within the organisation, with the decision reflecting the company's focus on optimising its asset base through the structured sale of assets to identified purchasers.
The asset monetisation strategy comes alongside Krsnaa Diagnostics' robust financial performance in Q1 FY27, with the company reporting revenue from operations of ₹235.53 crore, representing a 22.05% YoY increase from the previous year. However, the company experienced a 19.35% decline in consolidated net profit to ₹16.55 crore despite the revenue growth, as reported by Business Standard. EBITDA margins moderated to 25% in Q1 FY27 from 27% in the previous year due to upfront rollout expenses for new diagnostic centers. The company has also proposed a capital expenditure of ₹68.81 crore specifically for purchasing and installing CT scanners, MRI machines, and PET-CT systems in August 2026.
The assets proposed for sale comprise identified freehold assets that are not subject to any security interest in favour of the company's lenders, as confirmed by Krsnaa Diagnostics. The company has built an asset base over the years to support the expansion of its diagnostic operations and has identified certain assets for monetisation without affecting its core operating capabilities. Since the assets are not part of the security package provided to lenders, the proposed transaction will not affect the assets forming part of that security package. The board clarified that this exercise is one of active portfolio and capital optimisation and is not driven by any impairment or diminution in the value of the underlying assets.
The proposed sale is intended to unlock value from these assets and recycle capital towards the company's core diagnostic business and identified growth opportunities. According to the company, the initiative is expected to support improved asset utilisation, enhance return on capital employed (ROCE), and strengthen the balance sheet. The sale represents a major step toward enhancing asset turnover and improving capital efficiency, allowing the company to monetize underutilized assets while continuing to deploy fresh capital for new radiology and pathology setups. This move follows the company's shift from a pure infrastructure-and-hold model to an active asset management strategy, with capital freed up from legacy equipment supporting the recent entry into the high-margin PET-CT diagnostics segment.
The company stated that the transaction is not expected to materially affect its profit and loss account or ongoing business operations. As reported by Business Standard, Krsnaa Diagnostics has authorised the Operations Committee to finalise the terms and conditions of the transaction and complete the necessary formalities within the approved aggregate limit of ₹120 crore. The transaction does not constitute the sale, lease or disposal of an undertaking or substantially the whole of an undertaking under Section 180(1)(a) of the Companies Act, 2013. The company's shares shed 0.07% to currently trade at ₹535.20 on the BSE following the announcement.
