PNN
Lucknow (Uttar Pradesh) [India], August 8: Chandan Healthcare Limited (NSE - CHANDAN), One of the leading diagnostic and healthcare services providers, has announced the strategic divestment of its entire shareholding in Chandan Pharmacy Limited ("CPL"), reinforcing its focus on scaling its core, higher-margin diagnostics business.
The divestment aligns with Chandan Healthcare's strategy to sharpen its focus on the higher-margin diagnostics business. The transaction will simplify the business structure and enable greater management and capital allocation towards expanding the Company's core diagnostics operations.
Key Strategic Benefits
- Improved Margin Profile: Deconsolidation of the lower-margin pharmacy business is expected to improve the overall business mix and enable the stronger profitability of diagnostics to reflect more clearly in the Company's consolidated financial performance.
- Sharper Focus on Core Diagnostics: Greater management bandwidth and resources can be directed towards expanding the diagnostics network, increasing capacity utilisation and scaling the Company's core operations.
- Capital Redeployment Towards Higher-Return Assets: Proceeds from the divestment are proposed to be deployed towards the development of new diagnostic centres and capacity expansion. This will enable the Company to reallocate capital from a lower-margin business towards higher-EBITDA opportunities.
- Simplified Business Structure: A more focused diagnostics-led structure is expected to provide greater visibility into the scale, growth and profitability of the core business while enabling more relevant benchmarking with diagnostics-focused peers.
Transaction Details
The Board has approved the divestment of Chandan Healthcare's entire 53.56% stake in Chandan Pharmacy Limited to Chandan Hospital Limited for a consideration of approximately ₹16.77 crore. The consideration is based on CPL's independently determined total valuation of approximately ₹31.31 crore, following which CPL will cease to be a subsidiary of the Company.
Building a Focused Diagnostics Platform
Going forward, Chandan Healthcare intends to deploy greater financial and managerial resources towards expanding its diagnostics footprint, adding new centres, strengthening capacity and driving higher utilisation across its network.
The strategic realignment is expected to result in a simpler and more focused business structure, with a stronger margin profile and future growth increasingly driven by the scale-up of the Company's core diagnostics operations.
About Chandan Healthcare Limited
Chandan Healthcare Limited, established in 2003, is one of India's leading providers of diagnostic and pharmacy services and a key entity of the Chandan Group. The Company delivers a comprehensive range of pathology and radiology services through its expanding network across India.
As on June 30, 2026, the Company operates 327 diagnostic centres including 264 operational franchise centres, strengthening its presence across urban, semi-urban and emerging markets. Its diagnostic portfolio comprises more than 3,000 pathology tests and 500+ radiology tests, including blood tests, X-ray, ECG, Ultrasound, CT scan, MRI and several other specialized diagnostic investigations. The Company's network includes NABL and NABH accredited pathology laboratories and radiology centres, reflecting its commitment to delivering reliable, high-quality diagnostic services.
Chandan Healthcare operates through a diversified business model comprising B2C (Retail Customers), B2B (Institutional & Corporate Clients) and B2G (Government PPP Contracts), providing a balanced and scalable revenue profile while catering to a wide spectrum of healthcare needs.
The Company was listed on the NSE Emerge platform on February 17, 2025.
During FY26, the Company reported Total Income of ₹280.67 Cr, EBITDA of ₹56.84 Cr and Profit After Tax (PAT) of ₹27.06 Cr, reflecting its continued operational growth and financial strength.
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