Modern Diagnostic & Research Centre
- Modern Diagnostic & Research Centre is coming out with an initial public offering (IPO) of 40,99,200 shares in a price band of Rs 85-90 per equity share.
- The issue will open on December 31, 2025 and will close on January 02, 2026.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 8.50 of its face value on the lower side and 9.00 times on the higher side.
- Book running lead manager to the issue is Beeline Capital Advisors.
- Compliance Officer for the issue is Priyanshu Yadav.
Profile of the company
Modern Diagnostic & Research Centre is a services provider in diagnostic and related healthcare tests services in India. It offers a one-stop solution for pathology and radiology testing services such as imaging (including radiology), pathology/clinical laboratory. Through its integrated, nationwide network, it offers a complete range of diagnostic facilities in radiology and pathology. It provides healthcare tests and services for use in core testing, patients’ diagnosis and prevention, monitoring of disease and other health conditions. The company’s customers include individual patients, hospitals and other healthcare providers and corporate customers.
It is focused on providing reliable diagnostic and related healthcare tests and value-added services such as home collection of specimens and online access to test reports. It also offers customized test packages to its institutional customers/patients as per their requirement. Its patient centric approach is a critical differentiator which results in several individuals and healthcare providers choosing it as their diagnostic healthcare services provider. Presently, it has 21 centres which includes 18 laboratories and 3 diagnostics centres in 8 states. It offers wide range of diagnostic facilities in Radiology and High-end Pathology. The company’s healthcare tests and services include Ultrasound and colour doppler, CT scan, MRI, Digital X-ray, Mammography, Heart lab, Neuro lab and laboratory, ECG, CBCT, OPG, PFT etc.
The company’s diagnostic testing portfolio includes (i) “Pathology” which includes Anatomical Pathology, Clinical Pathology, Forensic Pathology and Molecular Pathology; (ii) “Radiology” which includes Diagnostic Radiology and Interventional Radiology such as X-ray, Computed Tomography (CT scan), Magnetic Resonance Imaging (MRI), Ultrasound etc. It performs these tests and services in its clinical laboratories using sophisticated and computerized instruments. It focuses on providing quality diagnostic and related healthcare tests and services to patients. The company’s focus on the patient as a customer is a critical differentiator in the diagnostic and healthcare industry and, together with what is its brand’s recognition for quality diagnostic services, results in individuals and healthcare providers choosing it as their diagnostic healthcare service provider. This is because in India, patients generally choose their diagnostic healthcare service provider based on quality and affordability. Patients and healthcare providers seek good and reliable healthcare service providers.
Proceed is being used for:
- Funding capital expenditure for purchase of medical Equipments for diagnostic centre and laboratories
- Funding working capital requirement
- Repayment of certain outstanding borrowings availed by the company
- General corporate purpose
Industry Overview
Healthcare industry comprises of a diverse range of players offering products and service meant to meet the healthcare needs of a patient. These include Healthcare Delivery (Hospitals), Pharmaceuticals, Diagnostics, Medical Equipment & Supplies, Health Insurance, Telemedicine, and Medical Tourism. Diagnostic process is crucial for identifying and managing various health conditions and ensuring effective medical treatment and patient care, thus facilitating faster recovery of patient. Diagnostic companies provide service to clients in both B2B which includes hospitals, nursing homes, clinics, and other healthcare establishments, and B2C which includes direct customers. The market revenue of diagnostic sector in India reached Rs 981 billion in 2023 from Rs 710 billion in 2020 and further estimated to grow to Rs 1,055 billion in 2024, clocking a CAGR of 10.4% between 2020-2024. In terms of market segmentation, Pathology holds the larger share of about 62% of the total market due to the high demand for routine and specialized blood tests, which are essential for diagnosing a wide range of medical conditions. Pathology tests are the initial tests recommended by healthcare professional whenever a disease or illness is suspected.
Meanwhile, the soft radiology commands higher market share of about 55% compared to advanced radiology. Soft radiology consists of 63% X-rays and 37% ultrasounds, characterized by its non-invasive nature, relatively low cost, and accessibility, plays a crucial role in routine screenings, initial assessments, and detecting common medical conditions like fractures and infections, thus improving patient outcomes. Advanced radiology made up 45% of the market and included 37% CT scans, 38% MRIs, 12% nuclear imaging, and 13% interventional procedures are vital for diagnosing complex conditions, monitoring treatment response, and guiding minimally invasive interventions. Growing disease complexity, increasing healthcare awareness, coupled with rising affordability, the use of advanced imaging techniques and expanding services to the tier-2 and tier-3 are key factors contributing to the growth of radiology sector.
The Indian Diagnostic service sector is fragmented comprising of large hospitals, regional players, small diagnostic labs, and diagnostic chains with presence across multiple regions. The organized segment comprises of large players such as Dr. Lal Path Labs, Metropolis Healthcare, SRL Diagnostics, and Thyrocare Technologies Limited while the unorganized segment comprises of plethora of standalone centres. Organized players accounted for roughly 17%-20% of the market in FY 2023. Going forward, the industry lacks availability of skilled professionals, especially in tier 2 and tier 3 cities and in rural area, who can effectively collect and perform different types of diagnostic tests. Additionally, many standalone centers, especially in smaller towns and cities also lack professionals who could accurately read and analyze the diagnostic test results. This shortage in skilled manpower availability presents a serious constraint on overall market growth. However, the government recent initiatives are expected to improve the overall healthcare and diagnostics sector of the country in the coming years.
Pros and strengths
Comprehensive diagnostics provider delivering all-in-one solution at cost-effective prices: The company’s strength lies in providing a comprehensive, one-stop solution for diagnostic services at affordable prices. By offering a wide range of tests and imaging modalities under one roof, it eliminates the need for patients to visit multiple facilities, saving them time and effort. This integrated approach enhances convenience while fostering better coordination among healthcare professionals, leading to more efficient and effective diagnosis and treatment planning. Equipped with advanced technologies such as 3Tesla MRI, 128 slice Dual Energy CT scans, sonography, X-rays, Mammography, CBCT, DEXA scan for BMD and high end pathology services such as NGS (Next Generation Sequencing) for diagnosis of genetic disorders, DNA mutations that cause cancer and their treatment planning, NIPT, Microarray for in depth analysis of genetic abnormalities and other disorders, LCMS/MS for New born screening, TDM etc. It ensures patients have seamless access to cutting-edge diagnostic tools.
Focus on quality and customer service: Patients and healthcare providers choosing the company as their diagnostic healthcare service provider, as it is focused on quality services. The company has established its image by delivering quality and reliable diagnostic services since 1985. It has received several awards that recognize the strength of its quality services and its focus on offering superior diagnostic tests and services. It has comprehensive facility of TDM (Therapeutic Drug Monitoring) for Neuropsychiatric drugs and anti-tuberculosis Drugs. The company also gets samples for processing from outside the country for high end tests. For the convenience of its patients, it has developed a mobile application for scheduling house calls, accessing test reports, receiving test reminders as well as making online requests for billing information. It offers its patients a detailed test report which covers result and patient specific interpretations and comments by its doctors in some cases.
Centralized information technology platform: The company’s advanced centralized information technology platform seamlessly integrates its extensive network through a unified logistics and payment system. This robust infrastructure enables it to efficiently deliver diagnostic services while streamlining payment collection from both patients and healthcare providers, ensuring a smooth and hassle-free experience. Beyond facilitating transactions, its technology platform plays a crucial role in tracking operations and monitoring key internal performance metrics. By leveraging real-time data and analytics, it continuously optimizes its workflows, enhance operational efficiency, and drive overall business performance.
Risks and concerns
Potential operational impact due to supplier loss: The company’s top ten suppliers contributed approximately 68.93%, 68.00%, 69.12% and 61.17% of its total purchases for the period ended June 30, 2025, March 31 2025, March 31, 2024 and March 31, 2023 based on Restated Financial Statements. However, its top suppliers may vary from period to period depending on the demand-supply mechanism and thus the supply process from these suppliers might change as it continues to seek more cost-effective suppliers in normal course of business. Since its business is concentrated among relatively few significant suppliers, it could experience a reduction in its purchases and business operations if it loses one or more of these suppliers, including but not limited on account of any dispute or disqualification. While it has maintained good and long-term relationships with its other suppliers too, there can be no assurance that it will continue to have such long-term relationship with them. It cannot assure that it shall do the same quantum of business, or any business at all, with these customers, and loss of business with one or more of them may adversely affect its purchases and business operations.
Geographical revenue concentration: The company’s operations are primarily concentrated in state of Haryana, where it generates the majority of its revenue. The company has garnered 68.06%, 71.85% and 73.31% of its revenue from the state of Haryana in FY25, FY24 and FY23 respectively. Any major disruptions -- whether social, political, or economic -- in this region could have a substantial impact on its business. For instance, natural calamities, civil unrest, or other unforeseen disruptions in Haryana, as well as neighboring states such as Rajasthan, Punjab, Madhya Pradesh, West Bengal, and Uttar Pradesh including Assam and Jammu & Kashmir could pose risks to the continuity of its business activities.
Seasonal demand fluctuations in diagnostics: The demand for diagnostic services is subject to seasonal fluctuations based on factors such as disease outbreaks, weather patterns, public health awareness campaigns, and healthcare provider schedules. For instance, during monsoon and post-monsoon periods, there may be an increase in cases of vector-borne illnesses, leading to higher test volumes. Conversely, diagnostic volumes may decline during festive seasons, vacation periods, or due to reduced outpatient activity in certain months. These cyclical trends can lead to uneven monthly revenue, affecting capacity utilization, inventory planning, and staffing efficiency. While its diversified test portfolio, broad geographic coverage, and corporate tie-ups help smooth out some of these fluctuations, significant seasonal swings may still impact financial predictability. Moreover, unexpected epidemiological trends, such as sudden viral outbreaks or new disease variants, could lead to unpredictable surges or declines in demand. Although it strives to manage resources dynamically and optimize scheduling, there is no assurance that demand volatility will not affect profitability or working capital. Seasonal variability remains an inherent risk in the diagnostics business, which may lead to fluctuations in revenues and operating margins across quarters.
Outlook
Modern Diagnostic & Research Centre is a diagnostic chain in India, offering a comprehensive range of pathology and radiology services. The company provides reliable diagnostic tests, home specimen collection, online reports, and customized test packages for institutional customers and patients based on their specific needs. The company has comprehensive diagnostics provider delivering all-in-one solution at cost-effective prices. On the concern side, majority of its operations are concentrated in state of Haryana and any adverse developments affecting Haryana could have an adverse effect on its business, results of operations and financial condition. Moreover, the company’s top ten suppliers contribute majority of its purchases. Any loss of business with one or more of them may adversely affect its business operations and profitability.
The company is coming out with a maiden IPO of 40,99,200 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 85-90 per equity share. The aggregate size of the offer is around Rs 34.84 crore to Rs 36.89 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased by 16.11%, from Rs 6,713.05 lakh in Fiscal 2024 to Rs 7,794.54 lakh in Fiscal 2025. This growth was primarily attributable to higher sales volumes, improved product mix, and expansion into new customer segments and geographies. Moreover, the profit after tax (PAT) increased by 54.76%, from Rs 579.48 lakh in Fiscal 2024 to Rs 896.81 lakh in Fiscal 2025.
Currently, the company markets its diagnostic services across multiple states, with the majority of its revenue generated from Haryana, followed by Rajasthan, Jammu & Kashmir, Uttar Pradesh, and West Bengal. As it looks ahead, its primary focus is to deepen market penetration and strengthen its presence in these key regions by expanding its reach and enhancing service accessibility. To support its growth, it aims to strategically enter new markets, leveraging its expertise and established operational efficiencies to provide cost-effective diagnostic solutions. By differentiating itself from competitors through affordability, quality, and reliability, it seeks to build a stronger foothold in emerging regions where its services can offer significant value to patients and healthcare providers. Furthermore, it plans to cater to the growing demand of its existing patient base while simultaneously expanding its network of hospitals, healthcare providers, and corporate clients. By broadening its geographical presence and improving service availability, it aims to make high-quality diagnostics more accessible to a larger population across various parts of the country. Its long-term vision is to establish a widespread, trusted presence in the healthcare sector, ensuring that more individuals and medical institutions benefit from its advanced diagnostic capabilities.
