Molbio Diagnostics IPO
IPO Price Range: Not Announced Yet
Objectives of IPO
- The total amount of money the company is raising through this IPO includes a fresh issue of up to ₹200 crore and an offer for sale (OFS) of up to 12,556,000 equity shares. The funds from the OFS portion will go to the selling shareholders, including investors like V Sciences Investments Pte. Ltd. and India Business Excellence Fund III, along with promoters such as Dr. Chandrasekhar Bhaskaran Nair and Exxora Trading LLP.
- Out of the total fresh issue, it will use ₹99.37 crore to fund the cost of setting up new facilities. This major project includes building a large research and development (R&D) center, a "Center of Excellence" (COE) to support other innovators in medical technology, and linked office space. The total estimated cost for creating this infrastructure is ₹118.08 crore.
- It plans to spend ₹73.59 crore to buy new machinery and equipment for its manufacturing sites located in Goa (Unit I and Unit II) and Visakhapatnam. This investment aims to make manufacturing processes more automated, which helps improve product quality and efficiency. For context, the company spent ₹59.47 crore on similar purchases in FY25. The remaining net money raised will be set aside for general corporate purposes.
Financial Performance of Molbio Diagnostics
The company successfully accelerated its total revenue from ₹ 337.41 crore in FY23 to ₹1,027.94 crore in FY25, achieving a compound annual growth rate (CAGR) of 74.5%. The immense growth between FY23 and FY24 was mainly driven by significantly higher sales of high-margin test kits (which grew from ₹178.53 crore to ₹552.55 crore). The consolidation of X-Ray machine revenues from a newly acquired subsidiary (Prognosys Medical Systems Private Limited) for the entire FY24 also contributed to this jump.
This strong top-line performance fueled a dramatic shift in bottom-line results: the company moved from a net loss of ₹3.45 crore in FY23 to a profit of ₹138.58 crore in FY25. This was supported by improved operational efficiency, as shown by the EBITDA margin increasing steadily from 14.26% in FY23 to 24.97% in FY25. Profitability growth in FY25 was further strengthened by a decrease in the cost of exceptional items compared to the prior year.
On the balance sheet, total assets expanded consistently by 18.9% CAGR, rising to ₹1,461.56 crore in FY25. This growth reflects significant investments in capital expenditure, including the purchase of freehold land/investment property in FY24 (₹32.97 crore) and strategic investments in associates in FY25 (₹41.55 crore). Meanwhile, total borrowings showed volatility, increasing sharply in FY24 to ₹174.58 crore but dropping back to ₹123.16 crore in FY25, following repayment of long-term debt and changes in working capital utilization.
Strengths and Risks
Strengths
Its flagship Truenat TB platform is globally recognized, being the only rapid molecular test by an Indian company and one of only two worldwide endorsed by the WHO for initial TB diagnosis. The high complexity means the platform required 13 years of R&D to obtain ICMR certification.
The company shows excellent control over operating expenses relative to income. Its EBITDA Margin has improved significantly, rising from 14.26% in FY23 to 24.97% in FY25, signaling higher efficiency in core operations.
The business model successfully generates strong, predictable recurring revenue from selling proprietary test kits. Sales from these kits totaled ₹730.96 crore in FY25, demonstrating stability and clear growth in consumables reliance.
The company has consistently improved its financial metrics, delivering a profit of ₹138.58 crore in FY25, significantly up from the prior year. This translated into a robust Return on Equity (ROE) of 16.20% for FY25.
It drives fundamental growth through continuous R&D, utilizing its wholly-owned R&D subsidiary, Bigtec Private Limited. In FY25, the company spent ₹68.57 crore on R&D. This investment maintains its strategy to expand the test menu, with plans for 37 new tests for 22 diseases.
The company successfully expanded the sale of consumables per device, indicating high utilization or high volume contracts. The volume of test kits sold increased dramatically to 12.24 million in FY25, up from just 2.81 million in FY23. This growth demonstrates the platform's utility and market adoption.
It successfully commercializes a growing portfolio of tests, having increased the scope of its platform to offer molecular testing for 30 diseases with 42 tests as of March 31, 2025. This breadth allows it to address clinical needs across multiple infectious and non-communicable diseases.
The promoters and senior management possess deep domain expertise, with the CEO having over 34 years of experience. Furthermore, key institutional investors like V Sciences Investments Pte. Ltd. and India Business Excellence Fund III provide strategic advice and capital allocation support.
Risks
The business faces extreme reliance on a limited group of customers; its top 10 customers accounted for a massive 83.62% of finished goods sales in FY25. The loss of, or reduced demand from, any of these key buyers would have a material adverse effect on sales.
A significant majority of revenue is derived from public expenditure; sales to Indian central/state governments and international aid agencies constituted 87.83% of finished goods sales in FY25. Any unfavorable policy changes or decrease in healthcare funding poses a serious risk.
The statutory auditor's reports on internal financial controls for Fiscals 2023 and 2024 contained a disclaimer of opinion due to the inability to obtain sufficient evidence regarding adequate internal controls. While measures were taken in FY25, deficiencies could re-emerge.
The company is highly exposed to the tuberculosis market, as revenue from TB test kits constituted 69.11% of finished goods sales in FY25. Any shifts in TB treatment protocols, government programs, or competitive technologies could immediately impact a majority of its revenue.
The business model requires significant working capital to fund operations before customer payment is received. Its current working capital stood at ₹488.17 crore as of March 31, 2025. Insufficient cash flow to cover these requirements would adversely affect its financial position.
The company holds high inventory levels, totaling ₹435.91 crore as of March 31, 2025. Since the specialized Truenat kits have a limited shelf life of only two years, any failure to accurately forecast demand or manage inventory can lead directly to material losses.
It relies heavily on a concentrated supplier base; raw material purchases from its top 10 suppliers accounted for 58.21% of total consumption in FY25. Disruptions in supply or unavoidable price increases from this limited group pose a critical supply chain risk.
How to Apply for Molbio Diagnostics IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on Molbio Diagnostics IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
Molbio Diagnostics Shareholding Pattern
| Promoters | 46.65% | |
| Name | Role | Stakeholding |
| Exxora Trading LLP | Promoter | 41.23% |
| Dr. Chandrasekhar Bhaskaran Nair | Promoter | 5.42% |
| Public | 53.35% | |
| Name | Role | Stakeholding |
| India Business Excellence Fund III | Public | 12.66% |
| V Sciences Investments Pte. Ltd. | Public | 8.93% |
| Gopalkrishna Mangalore Kini | Public | 6.73% |
| Gopalakrishna Sampathgiri | Public | 5.42% |
| J. Guru Dutt | Public | 5.38% |
| M.A. Usha Rani | Public | 2.9% |
| Sangeetha M Kini | Public | 2.72% |
| M.A. Rohit | Public | 1.73% |
| Shruthi G Kini | Public | 1.31% |
| M.A. Sharath | Public | 1.16% |
| Others | 4.41% |
About Molbio Diagnostics
The company generates its income by selling both the initial device hardware and the highly consistent, recurring revenue from the disposable test kits. Its primary target customers are government public health programs, diagnostic laboratories, and private/public hospitals. The company is highly concentrated toward large, institutional buyers: in FY25, sales to the Indian central and state governments and international aid agencies made up 87.83% of finished goods sales, and the top 10 customers accounted for 83.62% of finished goods sales. On an operational scale, the company sold 2,180 devices and 12.24 million test kits in FY25. It has manufacturing facilities in five locations in India and leverages a network of 114 distributors to export its products to more than 80 countries globally.
To ensure continued growth, the company relies heavily on intense, in-house research and development (R&D) carried out by its wholly-owned subsidiary, Bigtec Private Limited. This R&D effort employs 114 permanent employees as of March 31, 2025. Looking forward, the core strategy involves continuously expanding the test menu, with plans to add an additional 37 tests for 22 diseases. It is also focusing on geographic expansion, with intentions to register in new territories, including the US and EU markets. Furthermore, it plans to establish a Center of Excellence (COE) in Bengaluru by FY26 to support and accelerate other innovators in the medical technology field.
For more details, visit here: www.molbiodiagnostics.com
Frequently Asked Questions of Molbio Diagnostics IPO
Can we invest in Molbio Diagnostics IPO?
What would be the listing gains on the Molbio Diagnostics IPO?
What is 'pre-apply' for Molbio Diagnostics IPO?
When is the Molbio Diagnostics IPO coming?
The company has not finalized the IPO launch date. It filed the DRHP for the IPO in August 2025, which shows the offer will comprise a fresh issue of up to ₹200 crore and an offer for sale of up to 12,556,000 equity shares.
Who are the promoters of Molbio Diagnostics?
The promoters are Sriram Natarajan, Dr. Chandrasekhar Bhaskaran Nair, Sangeetha Sriram, Shiva Sriram, Sowmya Sriram, and Exxora Trading LLP. As of the DRHP filing date, these promoters collectively hold 46.65% of the pre-IPO equity share capital.
Who are the competitors of Molbio Diagnostics?
The company states there are no listed companies in India or globally that are of a comparable size and engage in a similar business. It operates in an oligopolistic market with high entry barriers, and key competitive factors include product accuracy, utility, and cost.
How does Molbio Diagnostics make money?
It generates revenue primarily by selling molecular diagnostic products, including the ‘Truenat’ platform and disease-specific test kits. In FY25, 74.31% (₹730.96 crore) of its finished goods sales came from the recurring sale of test kits alone.