Altman Z″
Needs current assets and current liabilities.
This company listed within the last twelve months, so its prospectus is still the primary source. The figures below were extracted from the DRHP and RHP before listing and scored then, and they are shown here as they stand in the IPO record rather than restated.
Each flag is a fact read in the filing, shown with the context that makes it meaningful.
Stated objects, as worded in the offer document. Deployment against them is tracked separately.
Claims made in the offer document, to be read against what the company has reported since.
Incorporated in 2000, Molbio Diagnostics Limited is a pioneer in the point-of-care (POC) molecular diagnostics space in India. Its flagship product, the 'Truenat' platform, is a battery-operated, portable real-time PCR system that performs automated sample preparation and analyzer functions, delivering results in under an hour even in resource-limited settings. The company has commercialized molecular testing for 30 diseases with 43 assays as of March 31, 2026, including tuberculosis, COVID-19, Hepatitis B/C, HIV, and HPV. Molbio relies heavily on public health programs, deriving 84.56% of its finished goods revenue in FY26 from Indian central/state governments and international aid agencies. The company's top ten customers, including the Central Medical Services Society, generated 83.26% of FY26 finished goods revenue. Molbio operates six manufacturing facilities in India (in Goa, Bengaluru, and Visakhapatnam) and is highly research-focused, conducting R&D through its wholly-owned subsidiary, Bigtec Private Limited. It also offers digital pathology, radiology, and breast health screening through subsidiaries like Prognosys and OptraScan. With institutional backing from Temasek and Motilal Oswal, the company has commercialized its products globally, exporting to more than 90 countries.
Molbio has created a strong entry barrier and oligopolistic positioning with its 'Truenat' platform, which underwent 13 years of R&D to obtain ICMR certification. Its Truenat test chip for diagnosing TB is the only one developed by an Indian company (and one of only two globally) endorsed by the WHO for initial diagnosis and rifampicin resistance detection. The platform operates on a razor-and-blade model, generating high-margin, recurring revenues from proprietary disease-specific test kits that must be used with the device.
Molbio Diagnostics Limited is an innovative point-of-care (POC) diagnostics company that designs, develops, and manufactures portable, real-time PCR platforms and diagnostic test kits. The company generates recurring revenue primarily through the sale of its 'Truenat' test kits and devices to public healthcare programs, private laboratories, and hospitals.
Source: RHP p. 142, 215, 219
Where the revenue came from, as the document splits it.
| Name | Pct | Source |
|---|---|---|
| Revenue from sale of test kits | 71.58 | RHP p. 144, 218 |
| Revenue from sale of devices | 14.06 | RHP p. 144, 218 |
| Others (including subsidiary revenues and other operating revenues) | 14.36 | RHP p. 218 |
According to the 1Lattice Report, the global point-of-care testing (POCT) market is experiencing rapid expansion, driven by the increasing relevance of near-patient diagnostics, which offer faster turnaround times, lower capital costs, and ease of use in resource-limited or decentralized settings. Electrification and battery operation are crucial for penetration in emerging economies. Molecular diagnostics represents a highly competitive yet high-barrier space characterized by intensive R&D, stringent regulatory clearances (such as ICMR and WHO), and oligopolistic structures. Key growth areas include infectious disease screening (such as TB and COVID-19) and non-communicable diseases. Established players with strong technological IP, razor-and-blade recurring revenue profiles, and validated manufacturing capabilities are well-positioned to capitalize on this shift from centralized laboratory testing.
Growth rate: 17.9% CAGR between 2025 and 2030
Market size: USD 29.3 billion (equivalent to ₹ 2,588.6 billion) (Global POCT Market)
Sector slug: point-of-care-diagnostics
Source: RHP p. 175, 215, 219
The comparable set the company chose, which is itself a disclosure.
| Name | Margin | Pb | Pe | Roe | Source |
|---|---|---|---|---|---|
| Poly Medicure Limited | 52.61 | 10.37 | RHP p. 142 | ||
| Dr. Lal Pathlabs Limited | 62.2 | 20.78 | RHP p. 142 | ||
| Metropolis Healthcare Limited | 63.72 | 12.56 | RHP p. 142 | ||
| Vijaya Diagnostics Centre Limited | 81.02 | 18.07 | RHP p. 142 |
As presented in the offer document. Post-listing figures are in the statements above.
| Period | Related party revenue cr | Pat cr | Ebitda cr | Pat margin | Revenue cr | Pat margin derived | Cff cr |
|---|---|---|---|---|---|---|---|
| FY26 | 164.14 | 328.243 | 11.35% | 1445.687 | yes | 276.066 | |
| FY25 | 138.579 | 256.639 | 13.58% | 1020.418 | yes | -26.147 | |
| FY24 | 83.542 | 185.093 | 9.99% | 836.561 | yes | -31.553 |
Written before listing, answered from the document itself.
Where is the money going?
The Net Proceeds from the ₹200.00 crore Fresh Issue are being deployed towards capital expenditure. Specifically, ₹105.54 crore is allocated for setting up research and development infrastructure and a Center of Excellence for wholly-owned subsidiary Bigtec, and ₹72.28 crore is earmarked for purchasing plant, machinery, and automation equipment for manufacturing units in Goa and Visakhapatnam.
RHP p. 37, 128-129
How concentrated is the customer base?
The customer base is highly concentrated. The top 10 customers contributed 83.26% of finished goods sales in FY26 (compared to 83.62% in FY25 and 78.54% in FY24). Additionally, finished goods sales to central/state government healthcare programs and international aid agencies represented 84.56% of total contract sales in FY26.
RHP p. 28, 368
Is it profitable and growing?
Yes. Revenue from operations increased from ₹836.56 crore in FY24 to ₹1,020.42 crore in FY25, and scaled to ₹1,445.69 crore in FY26. Consolidated net profit (PAT) was ₹83.54 crore in FY24, ₹138.58 crore in FY25, and ₹164.14 crore in FY26, maintaining an EBITDA margin of 22.56% in FY26.
RHP p. 79, 316, 371
What sits in the footnotes / contingent liabilities?
As of March 31, 2026, contingent liabilities total ₹1,687.42 million (comprising bank guarantees of ₹900.98 million, direct tax disputes of ₹461.48 million, indirect tax disputes of ₹322.37 million, and other claims of ₹2.59 million). Footnotes also disclose outstanding Income Tax department demands of ₹234.17 million following a survey under Section 133A, along with recurring statutory auditor exceptions regarding unenabled database-level audit trails and missing daily local server backups.
RHP p. 62, 84, 175, 419, 420, 425, 426, 428, 782, 803
What the issue priced at, on the figures in the document.
| Date | Name | Shares | Price per share | Category | Source |
|---|---|---|---|---|---|
| 2021-05-31 | India Business Excellence Fund III | 193138 | 7248.7 | financial investor | RHP p. 103 |
| 2021-05-31 | India Business Excellence Fund III | 31494 | 7248.7 | financial investor | RHP p. 103 |
| 2022-09-23 | V Sciences Investments Pte. Ltd. | 7340 | 54495.91 | financial investor | RHP p. 103 |
| 2024-09-03 | Shankar Gopalkrishnan | 15350 | 651.46 | financial investor | RHP p. 103 |
Ceo: Sriram Natarajan
Outstanding tax claims against the Company total 11 cases involving an aggregate disputed amount of ₹507.81 million (comprising ₹235.02 million in direct taxes and ₹272.79 million in indirect taxes). In addition, Promoter Sriram Natarajan has 1 pending direct tax dispute involving ₹46.03 million. Pending criminal proceedings filed by the Company and its subsidiaries total ₹188.89 million.
Promoters collectively hold 52,597,450 Equity Shares, which represents 46.65% of the pre-Offer paid-up equity share capital of the Company on a fully diluted basis. None of the promoter shares are pledged or otherwise encumbered as of the RHP date.
Statutory auditors included emphasis of matter paragraphs regarding a ₹199.00 million EMD fraud in subsidiary Prognosys Medical Systems and audit modifications/qualifications regarding unenabled database-level audit trails, disabled edit logs, and missing daily offsite server backups of electronic books of account. Significant related party transactions include a ₹1,233.62 million royalty expense paid to Bigtec Private Limited in FY26.
Source: RHP p. 22, 28, 36, 62, 84, 88, 101, 110, 137, 417, 419, 420, 422, 425, 426, 428, 803, 828, 836
A change between the two filings is a disclosure in itself.
| Field | Rhp value | Drhp value | Note | Source |
|---|---|---|---|---|
| Offer for Sale (OFS) Share Volume | Up to 9,166,000 Equity Shares | Up to 12,556,000 Equity Shares | The Offer for Sale size was reduced by 3,390,000 Equity Shares (representing a 27.00% reduction), while the Fresh Issue component remained unchanged at up to ₹ 2,000.00 million. | DRHP p. 4, 122; RHP p. 445, 511 |
| Financial Information Period | Restated Consolidated Summary Statements for Fiscals 2026, 2025 and 2024 | Restated Consolidated Summary Statements for Fiscals 2025, 2024 and 2023 | The financial disclosures were rolled forward to include full Fiscal 2026 financials, dropping the oldest reporting year (Fiscal 2023). | DRHP p. 16, 41; RHP p. 456, 478 |
| Chief Financial Officer | Manan Bimal Khokhani | Amol Narayan Lone | The company appointed Manan Bimal Khokhani as the new Chief Financial Officer, replacing Amol Narayan Lone, effective December 22, 2025. | DRHP p. 209, 218; RHP p. 521, 639, 847 |
| Use of Proceeds (CAPEX for R&D facility and Center of Excellence) | Up to ₹ 1,055.35 million | Up to ₹ 993.68 million | The proposed allocation from Net Proceeds for setting up the R&D facility and Center of Excellence was increased by ₹ 61.67 million. | DRHP p. 145; RHP p. 471, 128 |
| Weighted Average Cost of Acquisition (WACA) in preceding 1 Year | ₹ 1,090.00 per share | ₹ 1,042.95 per share | The weighted average cost of acquisition of shares transacted in the 1 year preceding the prospectus increased from ₹ 1,042.95 to ₹ 1,090.00, reflecting secondary transactions executed up to October 4, 2025. | DRHP p. 71; RHP p. 567 |
Trading at 123.4x earnings against its own median of 98.4x: 2.0 standard deviations above its usual range. This compares the company with its own history, not with other companies.
How to read this: Price shows the closing price with its 50-day (amber) and 200-day (grey) averages; bars at the bottom are daily volume, green on up days and red on down days; dashed lines mark the 52-week high and low. vs Nifty 50 starts both at 100 so you can see which did better over the period. P/E shows what the market paid for each rupee of profit, inside the band it usually trades in. Drawdown shows how far below its best price the share has been. Hover anywhere for the numbers on that day.
What the numbers mean when read together — computed from the filings, not a score.
The business reported a profit, yet its operations drained cash rather than generating it. Profit that comes with negative operating cash is the single most important thing to understand here.
Why this reading: Flagged on a single year deliberately: negative operating cash alongside a reported profit is plain, material, and hard to explain benignly — exactly the kind of obvious signal that should never be smoothed over.
Operating cash flow ₹-38 cr against trailing net profit ₹145 cr. When operations consume cash while the P&L shows profit, ask whether receivables are ballooning, revenue is booked ahead of collection, or costs are being capitalised.
Borrowings rose 507% over 3 years, but only about 26% of the new debt shows up as productive assets — worth understanding what the rest funded.
Why this reading: Kept at caution rather than flagged: the disproportion is real but not extreme, and part of the borrowing may fund working capital or intangibles that this view doesn't capture.
New borrowing ₹289 cr against an asset build of ₹74 cr. Some gap is normal (working capital, dividends); a persistent or widening gap is where it becomes a concern.
Free cash flow is negative — the business consumes more than it generates once capex is paid. Fine if it is deliberate growth investment; a problem if it is structural.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Latest free cash flow ₹-74 cr, negative in 1 of 6 years. Check whether the burn funds expansion (dark stores, plants, ports) or merely sustains operations.
Borrowings rose 394% over two years while the company also carries ₹317 cr in investments. Why borrow at interest while parking money elsewhere is a fair question.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Borrowings moved to ₹346 cr from ₹70 cr. Simultaneous large investments can be legitimate treasury management, or a sign that reported cash is not freely available.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, current assets, other expenses.
Accruals are 12.0% of assets. Free cash flow negative in 1 of 6 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Revenue grew faster than the capital behind it, which is what operating leverage looks like: the existing asset base is working harder.
cumulative operating cash flow ÷ cumulative net profit
₹759 cr ÷ ₹1,009 cr, over 6 years
0.75×
Below 1.0 and persistent means profit is being recognised before the cash arrives.(net profit − operating cash flow) ÷ average total assets
(₹145 − ₹-38) cr ÷ average assets
12.0%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
11.0% × 0.75 × 1.54
12.8%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹221 cr ÷ ₹23 cr
9.61×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹346 cr ÷ ₹1,134 cr
0.31×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +39% vs revenue +302%, FY2023 to FY2026
-262pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
Against a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%.
Cost of debt — Interest expense over average borrowings — the effective rate the company actually pays.
What the lenders charge, which is a market verdict on credit quality that no rating agency delay affects.
How to read itAgainst a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%. Read the direction over years as much as the level.
Where it failsUnderstated where a large share of interest is capitalised into projects under construction. Not meaningful for lenders, where interest is cost of goods.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter held steady from 41.29% to 41.29% across these quarters.
FII held steady from 1.51% to 1.59% across these quarters.
MF rose from 2.25% to 8.03% across these quarters.
Other trimmed from 54.95% to 49.09% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Debtor days
How long customers take to pay | 61 | 113 | 194 | 174 | 86 | 100 |
| Inventory days
How long stock sits before it sells | 261 | 402 | 885 | 393 | 395 | 286 |
| Payable days
How long the company takes to pay suppliers | 124 | 64 | 201 | 129 | 226 | 130 |
| Cash conversion cycle
Debtor + inventory − payable days | 198 | 450 | 877 | 438 | 254 | 256 |
| Working capital days | 75 | 206 | 479 | 239 | 155 | 143 |
| ROCE %
Return on capital employed | — | 41.0% | 4.0% | 22.0% | 21.0% | 18.0% |
What this sector is read on: Operational beds, Occupancy, ARPOB, ALOS, Cash and insurance share, Beds added. These come from the filings, not the market feed, and appear here once a quarter is read.
Read using the Hospitals framework (from the listed sector). Primary valuation lens: EV/EBITDA, mature and new hospitals separately.
Read more closely in this sector: New-hospital losses against mature margin · Government scheme receivables.
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue from operations | 1,271 | 776 | 327 | 756 | 971 | 1,313 |
| Other income | 1 | 5 | 8 | -21 | -2 | 4 |
| Depreciation | 12 | 42 | 19 | 24 | 26 | 36 |
| Finance cost | 35 | 25 | 6 | 8 | 9 | 23 |
| Profit before tax | 549 | 258 | 23 | 152 | 188 | 198 |
| Net profit (owners) | 410 | 187 | 16 | 111 | 140 | 145 |
| EPS (₹) | 2,027.06 | 833.37 | 69.00 | 493.01 | 62.00 | 12.83 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Metric | Jun 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|
| Revenue | 95 | 439 | 399 |
| Other Income | 1 | 3 | 1 |
| Expenses | 105 | 332 | 308 |
| Depreciation | 7 | 10 | 8 |
| Finance cost | 2 | 9 | 9 |
| Profit before tax | -17 | 91 | 76 |
| Net Profit | -13 | 66 | 57 |
| EPS | -5.95 | 5.83 | 5.02 |
| Item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Equity Capital | 2 | 2 | 2 | 2 | 2 | 11 |
| Reserves | 333 | 681 | 737 | 848 | 988 | 1,123 |
| Borrowings | 257 | 105 | 57 | 70 | 26 | 346 |
| Net block | 55 | 182 | 189 | 209 | 215 | 257 |
| CWIP | 100 | 0 | 0 | 2 | 18 | 6 |
| Investments | 9 | 9 | 54 | 54 | 95 | 317 |
| Total Assets | 806 | 874 | 920 | 1,077 | 1,307 | 1,741 |
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Cash from operations | 344 | 98 | 68 | 38 | 249 | -38 |
| Cash from investing | -142 | -87 | -51 | -31 | -98 | -256 |
| Cash from financing | -192 | -20 | 31 | -24 | -17 | 292 |
| Free cash flow | 212 | 35 | 55 | 24 | 206 | -74 |
| Net change in cash | 10 | -9 | 48 | -18 | 133 | -2 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.
The same read, applied to the companies this one competes with.
Molbio Diagnostics reported revenue of ₹399 cr for April to June 2026, +320.0% on the year and −9.1% on the quarter.
Operating profit (EBITDA) was ₹92.0 cr, a margin of 23.1%, +3,358 bps on the year and −132 bps on the quarter.
The company swung to a net profit of ₹57.0 cr from a loss of ₹13.0 cr a year earlier, with earnings per share of ₹5.02.
A hospital chain grows by filling beds and lifting revenue per bed. New hospitals dilute margins in their first years, so a margin dip during expansion is not on its own a sign of weakness. The quarterly statements do not carry occupancy, revenue per occupied bed and new beds added; those come with the filing read.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow, the auditor's review, segment results, one-off items line by line and what management said on the call.
No check fired. That is a statement about the checks below, not a verdict on the company.
Turned profitable from a loss a year ago.
Source: Quarterly statements
Could not run on this quarter: Headline vs core profit, Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
FinMinutes scored the offer document 63/100 before listing. 0 quarters of numbers since. Promise against delivery
| Q1 FY26 | Q4 FY26 | Q1 FY27 | |
|---|---|---|---|
| Revenue | ₹95.0 cr | ₹439 cr | ₹399 cr |
| YoY | — | — | +320% |
| EBITDA margin | −10.5% | 24.4% | 23.1% |
| Other income, % of PBT | — | 3% | 1% |
| Exceptional items | — | — | — |
| Tax rate | — | 28% | 25% |
| Net profit | −₹13.0 cr | ₹66.0 cr | ₹57.0 cr |
| YoY | — | — | — |
| Core profit YoY | — | — | — |
| EPS | −₹5.95 | ₹5.83 | ₹5.02 |
| Flags | · | · | ✓ |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.