Diagnostics industry’s revenue poised for 10-11 percent growth in fiscal 2025 : CRISIL

Diagnostics industry’s revenue poised for 10-11 percent growth in fiscal 2025: CRISIL

The revenues of diagnostic companies are set for a 10-11% growth in fiscal 2025, the CRISIL Ratings revealed. According to the report, the growth will be driven by a mix of a higher number of patients and improving revenue per patient. It is noteworthy that this comes on the back of an estimated 8 percent growth last fiscal.

While geographic expansion by established players into Tier 2/3/4 cities will drive higher patient volumes, growing demand for comprehensive preventive health packages, will lead to higher realization per patient, it stated.

With internal accruals sustaining at healthy levels and capex spend remaining modest, reliance on external debt will be low. This shall ensure balance sheets remain strong, supporting credit profiles of diagnostic players.

A study of 10 diagnostics companies (including five pan-India players), with aggregate estimated revenue of ~Rs 6,700 crore previous fiscal, indicates as much.