Krsnaa Diagnostics shares surged over 11% on Thursday, 17 September, reaching a day's high of ₹598 per share on BSE following the company's entry into the specialized PET-CT diagnostic services segment. According to The Economic Times, the stock gained as much as 11.48% during intraday trading as investors responded positively to the company's strategic expansion into this high-growth healthcare segment. Despite the recent surge, the diagnostic stock remains 33% away from its 52-week high of ₹894.40 hit in September 2025, while touching its 52-week low of ₹502.20 in March 2026. The stock is currently trading at a market capitalisation of around ₹1,829 crore.
Krsnaa Diagnostics Ltd has executed a 15-year concession agreement with the Punjab Health Systems Corporation (PHSC) for developing, operating and maintaining PET-CT diagnostic facilities at four government hospitals in Punjab. According to reports from CNBC TV18, the agreement was executed on September 16, 2026, following a Letter of Award dated August 14, 2026, issued by the Department of Health & Family Welfare, Government of Punjab. The project will be implemented under the Public-Private Partnership model in the Design, Build, Finance, Operate, Maintain and Transfer (DBFOT) format. As per The Economic Times, the concession is valid for 15 years and the awarding entity is a domestic government authority with no promoter interest involved. The company has completed all requisite formalities under the tender requirements, leading to the execution of the concession agreement.
The contract is structured on a cash-based model with revenues dependent on the actual number of PET-CT scans undertaken and applicable user charges. As reported by CNBC TV18, the company stated that the consideration or size of the contract cannot be determined upfront due to this revenue structure. However, Krsnaa emphasized that the project will provide long-term cash revenue visibility over the 15-year concession period and create a new revenue stream for the company. The project marks the company's entry into the PET-CT diagnostics segment, opening up a new avenue of growth for advanced oncology diagnostics amid rising demand for cancer diagnostics. Unlike a conventional fixed-value contract, revenue will be generated based on the number of PET-CT scans performed and applicable user charges.
According to The Economic Times, Krsnaa has now decided to enter the PET-CT segment through the Punjab government PPP opportunity, considering the growing requirement for advanced cancer diagnostics and the opportunity to leverage its established capabilities in government healthcare partnerships. The project represents an expansion of Krsnaa's diagnostic services portfolio into a specialized and growing area of healthcare delivery, while building on its experience of partnering with state governments. As per the company's exchange filing, the long-term concession framework, cash-based revenue model and access to established government hospital locations provide the foundation for its entry into PET-CT services. The project is expected to diversify revenue opportunities and strengthen the company's growing portfolio of government PPP partnerships across India, while securing a long-duration operating opportunity through the Punjab government partnership.
On the valuation front, Krsnaa Diagnostics trades at a P/E ratio of 17.85 and a P/B ratio of 1.77. According to The Economic Times, the stock is currently trading above six of its eight key simple moving averages (SMAs), while remaining below its 150-day and 200-day moving averages, indicating mixed momentum. The recent surge following the PET-CT announcement suggests renewed investor interest in the company's diversification strategy. The stock's performance reflects broader market dynamics in the diagnostic services sector, with investors responding positively to the company's strategic expansion into specialized healthcare services through the Punjab government partnership.
