Molbio Diagnostics IPO Seeks ₹940 Crore Amidst Growth in Tuberculosis Tests

Molbio Diagnostics, a prominent player in the molecular diagnostics sector, is gearing up to launch an initial public offering (IPO) aimed at raising a total of ₹940 crore. The company intends to generate ₹200 crore through a fresh issue of shares to bolster its capital expenditures. Concurrently, an offer for sale is expected to bring in ₹740 crore, reducing the promoter group's stake from 46.6% to 43%.

Expanding Global Reach

With six manufacturing facilities located across India, Molbio Diagnostics has successfully extended its reach to over 90 countries. Its client base includes government health programs, diagnostic laboratories, hospitals, and international healthcare organizations. A significant portion of Molbio's revenue is attributed to its tuberculosis (TB) diagnostic test kits, reflecting a robust demand in this segment.

The company, founded in 2000, has developed the 'Truenat' platform, a portable diagnostic system that delivers accurate test results within an hour. This innovation is particularly beneficial for resource-limited settings and has been instrumental in addressing infectious and non-communicable diseases. Over 70% of its diagnostic test kit sales are for TB, highlighting the importance of this product line to the company's overall financial performance.

Financial Performance

Molbio Diagnostics has reported impressive financial growth. Between FY24 and FY26, the company's revenue from operations surged by 31.5% annually, reaching ₹1,445.7 crore, while net profit increased by 40.2% to ₹164.1 crore. Its operating profit, measured as earnings before interest, tax, depreciation, and amortization (EBITDA), rose by 33.2% to ₹328.2 crore during the same period. The EBITDA margin improved to 22.6% in FY26 from 22% in FY24.

In the fiscal year 2026 alone, Molbio experienced a revenue increase of 41.7%, an EBITDA rise of 27.9%, and net profit growth of 18.4% on a year-on-year basis. These metrics underscore the company's strong financial trajectory, driven largely by the success of its TB diagnostics.

Valuation and Market Position

The upcoming IPO positions Molbio Diagnostics with a price-earnings (P/E) multiple of up to 57, based on its projected post-IPO equity and net profit for FY26. Although there are no directly comparable listed peers in India, other companies in the healthcare diagnostics and medical device sector, such as Poly Medicure, Dr. Lal PathLabs, Metropolis Healthcare, and Vijaya Diagnostic Centre, trade at P/E multiples ranging from 54 to 81.

Molbio's strategic focus on its Truenat platform and diverse diagnostic solutions, combined with its strong financial performance, makes it an attractive consideration for investors with a high-risk appetite looking for long-term growth potential. The increased capital from the IPO will likely enable further expansion and technological advancements, potentially enhancing its market position globally.