Krsnaa Diagnostics has approved the sale of identified diagnostic equipment for an aggregate consideration of up to Rs 120 crore, as the company moves towards a more asset-light and capital-efficient business model. 

The board approved the transaction at its meeting on September 28, with the Operations Committee authorised to finalise the terms and complete the required formalities.

The company said the proposed sale is part of its ongoing strategy to optimise its asset portfolio and unlock capital from assets that are not critical to its core operations. Krsnaa has built a sizeable asset base over the years to support its diagnostic services, but it has now identified certain assets that can be monetised without affecting its ongoing business capabilities.

Importantly, the assets being considered for sale are not subject to any security interest in favour of the company’s lenders. As a result, Krsnaa Diagnostics said the transaction will not affect the assets included in its existing lender security package. The company also stated that the sale is not driven by any impairment or reduction in the value of the assets.

The proceeds from the transaction are expected to support the company’s capital efficiency and can be recycled into its core diagnostic business and identified growth opportunities. Krsnaa said the initiative could also improve asset utilisation, strengthen the balance sheet and support returns on capital employed.

The development comes shortly after Krsnaa Diagnostics expanded its healthcare services through a 15-year concession agreement with Punjab Health Systems Corporation. Under the agreement, the company will develop, operate and maintain PET-CT facilities at four government hospitals in Punjab.

Financially, Krsnaa reported a 22.05% year-on-year increase in Q1 FY27 revenue to Rs 235.53 crore. However, consolidated net profit declined 19.35% to Rs 16.55 crore during the quarter.

The proposed asset sale therefore comes as the company balances expansion with capital discipline. Krsnaa Diagnostics’ shares were trading around Rs 535.20 on the BSE on September 29, down marginally at the time of the Business Standard report.

The key factors to watch will be the final transaction value, deployment of the proceeds and whether the asset-light strategy improves the company’s capital efficiency while allowing it to continue expanding its diagnostic network.

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