Molbio Reports Impressive FY25 Recovery with Strong Revenue and Profits
Molbio, a molecular diagnostics firm based in Goa, exhibited a significant recovery in FY25, achieving revenue of Rs 1,020 crore and a profit margin of Rs 138.5 crore. This recovery highlights a strong comeback from the challenging post-COVID phase.
Growth Trajectory and Revenue Details
Having gained prominence during the pandemic, Molbio’s revenue peaked at Rs 1,272 crore in FY21, only to decline to Rs 332 crore in FY23. However, the company’s draft red herring prospectus (DRHP) submitted to SEBI reveals a robust growth of 22% from Rs 836 crore in FY24, with profits climbing by an impressive 66% in FY25.
Innovation Driving Growth
The primary driver of this growth is Molbio’s flagship product, the Truenat platform. This portable, battery-operated molecular testing system is utilised for tuberculosis and over 30 infectious diseases. According to the DRHP, the company reported the sale of 2,180 devices along with 12.24 million test kits in FY25.
Expense Insights and Financial Ratios
Molbio’s total expenses escalated by 25% to reach Rs 820 crore in FY25. The expenditure on raw materials represented more than half of the total cost at Rs 413 crore, while employee benefits surged by 61% to Rs 103 crore. Additionally, advertising and marketing expenditures nearly doubled to Rs 22 crore.
Performance Metrics
In FY25, the EBITDA margin was recorded at 26.17%, with the return on capital employed (ROCE) reaching 22.06%. On a unit basis, the firm spent Rs 0.80 to generate a rupee of revenue, a slight improvement compared to Rs 0.82 in FY24.
Manufacturing and Operations
Currently, Molbio operates five manufacturing units located in Goa, Bengaluru, and Visakhapatnam. Their installed capacity allows for the production of 3,600 Truenat devices and 3.9 crore test kits annually. Backed by Temasek and Motilal Oswal Private Equity, the company has successfully raised approximately Rs 970 crore to date.
Through its upcoming IPO, Molbio aims to secure Rs 200 crore by issuing new shares, while existing shareholders plan to divest 1.25 crore shares through an offer for sale. The funds raised will facilitate the establishment of a new R&D facility, expansion of manufacturing capabilities, and general corporate purposes.
As per the DRHP, Exxora Trading LLP holds the largest stake in Molbio at 41.23%, followed by India Business Excellence Fund with 12.66%. Temasek’s ownership is at 8.93%, with Gopalkrishna Mangalore Kini and Dr. Chandrasekhar Bhaskaran Nair possessing stakes of 6.73% and 5.42%, respectively.
A Bright Future for Molbio
Having rebounded from its pandemic-induced boom and subsequent decline, Molbio is now witnessing steady growth and profitability. This positions the company as one of the rare healthcare startups poised for a public listing, with the impending IPO garnering significant attention to assess investor sentiment towards diagnostics firms post-COVID-19.
