Rewrite this headline to be engaging and SEO-friendly: Broker’s call: Thyrocare Tech (Add)

Target: ₹1,400

CMP: ₹1,241.90

The Q2-FY26 performance of Thyrocare Technologies (Thyrocare) was in line with our estimate, with a beat on the margin front by 180bp. Revenue growth of 20 per cent+ (22 per cent vs. our estimate of 20 per cent), for the fifth consecutive quarter, was driven by volume (tests growth of 21 per cent y-o-y). Despite lower fever-related volume (down 26 per cent y-o-y), volume growth was strong during the quarter. Realisation growth (revenue/test) was 2 per cent y-o-y.

The radiology business reported flat revenue y-o-y as a couple of centres got impacted, which, going ahead, is expected to resume growth. On the positive news front, radiology business margin improved significantly by about 800 bps q-o-q to 19.7 per cent. The EBITDA margin improvement of 180 bps q-o-q was due to operating leverage benefit.

Nueclear Healthcare (NHL), its subsidiary, showed improvement on the gross margin front by 270 bps q-o-q. Thyrocare expects H2-FY26F margin to be in the similar range of H1-FY26 (about 34 per cent) and hence, we revise upwards our margin estimate for FY26F by 80 bps to 32.6 per cent.

We have revised upwards our FY26F/27F EPS by 8 per cent/7 per cent, respectively. We maintain our Add rating on Thyrocare with an unchanged target price of ₹1,400. Any slowdown in volume and franchise addition is a downside risk

Published on October 15, 2025