Thyrocare Q2 Profit Drops 68% Following Diagnostic Subsidiary Impairment

Thyrocare Technologies reported a 68.2% decline in net profit for the second quarter of the 2027 fiscal year. The company’s profit fell to ₹15.2 crore from ₹47.8 crore during the same period last year, primarily driven by a significant impairment charge.

Key Takeaways

• Profit decline: Net profit dropped to ₹15.2 crore, down from ₹47.8 crore in the year-ago period.
• Impairment charge: The company recorded a ₹45 crore impairment loss related to its subsidiary, Nueclear Healthcare Limited.
• Revenue growth: Operating revenue increased 25% year-on-year to ₹270.8 crore, led by the diagnostics segment.
• Strategic divestment: Thyrocare plans to sell its entire stake in Nueclear Healthcare to Trovera Healthcare for approximately ₹141.4 crore.
• Operational volume: The company processed 61.6 million tests during the quarter, a 27% increase over the previous year.

Impact of Impairment and Divestment

The sharp reduction in profit was attributed to a ₹45 crore impairment loss linked to Nueclear Healthcare Limited, its radiology and diagnostic-imaging subsidiary. On September 21, Thyrocare’s board approved the sale of its entire stake in the subsidiary to Trovera Healthcare for ₹141.4 crore. The impairment charge was recognized following the signing of a definitive term sheet for the sale.

Thyrocare stated that the divestment is intended to allow the company to focus capital and resources on its pathology business. According to the firm, the pathology segment offers higher margins and a stronger growth trajectory compared to the imaging business.

Operational Performance

Despite the accounting impact of the subsidiary sale, the company reported growth in its core operations. Total operating revenue rose 25% year-on-year to ₹270.8 crore. Revenue from diagnostic testing services specifically grew 26% to ₹256.7 crore, while imaging services revenue decreased 5% to ₹13.6 crore.