Molbio Diagnostics Eyes ₹940 Crore Through IPO to Fuel Expansion

Molbio Diagnostics, a prominent player in the molecular diagnostics sector, has announced plans to raise a total of ₹940 crore through its upcoming initial public offering (IPO). The company aims to secure ₹200 crore from the fresh issuance of shares dedicated to capital expenditures and an additional ₹740 crore through an offer for sale, which will reduce the promoter group's stake from 46.6% to 43%.

Global Reach and Revenue Growth

With six manufacturing facilities in India, Molbio Diagnostics serves a diversified international clientele spanning over 90 countries. The company’s revenue has seen significant growth, largely driven by its tuberculosis diagnostic test kits, which account for 70% of its test kit sales. In the fiscal years between 2024 and 2026, the company reported a 31.5% increase in revenue from operations, reaching ₹1,445.7 crore. Net profit rose by 40.2% to ₹164.1 crore during the same period.

Innovative Diagnostics Solutions

Founded in 2000, Molbio Diagnostics specializes in the development of diagnostic solutions for both infectious and non-communicable diseases. A key component of its product portfolio is the 'Truenat' platform, a portable diagnostics system designed for use in resource-limited settings. The platform can deliver accurate test results in under an hour and supports molecular testing for more than 30 diseases through 43 diagnostic assays.

The company’s strategic collaborations and subsidiaries further enhance its offerings in radiology, digital pathology, and breast health screening. Government and international aid agencies contribute over four-fifths of its revenue, highlighting the company’s strong foothold in the public health sector.

Financial Performance and Valuation

During the fiscal year 2026, Molbio Diagnostics achieved a 41.7% year-on-year increase in revenue, with the EBITDA rising by 27.9% and net profit growing by 18.4%. The EBITDA margin improved slightly to 22.6% from 22% in fiscal year 2024. The IPO is expected to demand a price-earnings (P/E) multiple of up to 57, positioning it among other healthcare diagnostics and medical device companies in India, such as Poly Medicure and Dr. Lal PathLabs, which trade at multiples between 54 and 81.

As Molbio Diagnostics prepares for its IPO, investors with a high-risk appetite may find the company's growth trajectory and innovative product offerings appealing for long-term investment. The funds raised will support the company's expansion plans and further development of its diagnostic technologies.