Molbio Diagnostics IPO

India's diagnostics market is valued at ₹1,354.2 billion (USD 15.3 billion) in FY26 and is projected to reach ₹2,356.5 billion (USD 26.6 billion) by FY31, growing at a CAGR of 11.7%. 

In vitro diagnostics (IVD) accounts for 56.1% of the market, with a value of ₹760.5 billion (USD 8.6 billion). Clinical chemistry is the largest IVD technique, with a 31.0% share, followed by immunodiagnostics. 

India's per capita diagnostic spending stands at just USD 10, compared with USD 295 in the US, USD 280 in the UK and USD 264 in Germany. India conducts around 2 diagnostic tests per capita, compared with 21 in the US and 9 in Brazil. 

The global molecular diagnostics market was valued at USD 19.8 billion in CY25 and is projected to reach USD 31.1 billion by CY30, registering a CAGR of 9.4%. 

India's molecular diagnostics market is projected to grow at a CAGR of 12.0% between FY26 and FY31. Increased awareness of molecular testing following the COVID-19 pandemic has supported its adoption. 

The global point-of-care testing (POCT) market stood at USD 29.3 billion in CY25 and is expected to reach USD 67.1 billion by CY30, growing at a CAGR of 17.9%. 

India's POCT total addressable market is estimated at ₹203.2 billion (USD 2.2 billion) in FY26 and is projected to reach ₹446.8 billion (USD 5.0 billion) by FY31, representing a CAGR of 17.0%. 

India's infectious disease POCT market is estimated at ₹89.7 billion (USD 1.0 billion) in FY26 and is projected to reach ₹237.8 billion (USD 2.7 billion) by FY31, growing at a CAGR of 21.5%. 

The molecular point-of-care testing market in India is valued at ₹61.6 billion (USD 0.7 billion) in FY26 and is expected to reach ₹152.1 billion (USD 1.7 billion) by FY31, growing at a CAGR of 19.8%. Respiratory and TB diagnostics account for around 70.9% of the market. 

Around 85% of POC tests in India are conducted in clinical settings, while 15% take place in alternate settings such as homes and community outreach programmes. 

Molbio’s patented Truenat platform is a portable, battery-operated real-time micro-PCR system that delivers molecular diagnostics in around 60 minutes and is endorsed by the WHO for initial pulmonary TB and rifampicin resistance testing. 

Truenat uses battery-operated devices and room-temperature stable reagents, making it suitable for primary healthcare centres and low-resource settings.  

Through its wholly owned subsidiary Bigtec Private Limited, Molbio has a 153-member R&D team, including 136 scientists. It spent ₹87.46 crore on R&D in FY26, equivalent to 6.05% of operating revenue.  

Molbio follows a closed-system model where installed Truenat devices generate recurring demand for its test kits. Test kit sales stood at ₹1,034.82 crore in FY26, accounting for 73.98% of finished goods sales.  

Through Prognosys and OptraScan, the company has expanded into digital radiology, medical imaging and digital pathology, while partnerships have added adjacent screening products.  

The global POCT market was valued at USD 29.3 billion in CY25 and is projected to reach USD 67.1 billion by CY30, growing at a CAGR of 17.9%.  

India's per capita diagnostic spending is only USD 10, compared with USD 295 in the US. The Indian infectious disease POCT market is projected to grow at a CAGR of 21.5% from FY26 to FY31.  

The transition from traditional sputum smear testing to molecular PCR-based diagnostics provides an opportunity for Molbio to expand its Truenat platform across high TB-burden markets.  

Molbio is pursuing regulatory approvals in the US and Europe. Truenat CT/NG received the Class C IVDR Technical Documentation Assessment Certificate, while Prognosys and OptraScan have secured regulatory certifications and clearance for their respective products.  

Molbio plans to develop 34 additional assays covering 22 diseases and expand into areas such as biochemistry, immunochemistry, haematology, histopathology, and antimicrobial resistance.  

The company plans to use ₹105.54 crore of IPO proceeds to develop an R&D facility and Centre of Excellence in Bengaluru by FY28, supporting the development and commercialisation of new diagnostic technologies. 

Government and international aid procurements accounted for 84.56% of finished goods sales in FY26, down from 91.60% in FY24. Changes in healthcare policies, budgets, or procurement could affect sales.  

The top 10 customers contributed 83.26% of finished goods sales in FY26. The Central Medical Services Society alone accounted for 56.52%.  

TB test kits contributed 70.20% of finished goods sales in FY26, while accounting for 96.02% of total test kits sold by volume. Lower TB testing demand or a shift to alternative technologies could affect revenue.  

R&D expenditure increased to ₹87.46 crore in FY26, from ₹59.78 crore in FY24. The company plans to develop 34 additional assays, but there is no assurance that these products will achieve commercial success or regulatory approval.  

The company plans to use ₹105.54 crore of IPO proceeds for an R&D facility, Centre of Excellence and office space. The investment may increase depreciation and operating costs without generating immediate revenue.  

Some subsidiaries have reported losses. OptraScan INC recorded a standalone loss of ₹11.14 crore in FY26, while Prognosys Healthcare reported a loss of ₹0.70 crore.  

Certain subsidiaries have reported negative operating cash flows, including ₹10.77 crore for OptraScan INC and ₹52.84 crore for Prognosys Medical Systems in the respective reported periods.  

FY26 capacity utilisation stood at 42.30% for Truenat devices and 58.25% for Truenat test kits, limiting the scope to benefit from existing manufacturing capacity. 

The top 10 suppliers accounted for 58.52% of raw material consumption in FY26. Raw substrates are sourced exclusively from a single supplier, creating supply disruption risks.  

The group has reported multiple fraud incidents, including a ₹19.90 crore EMD fraud at Prognosys, a ₹4.43 million external fraud in FY25 and a ₹6.09 million internal fraud at Bigtec in FY24.  

Molbio Diagnostics IPO DRHP 

Molbio Diagnostics IPO RHP 

Kotak Mahindra Capital Company Limited 

Contact Number: 040-79615565 

Email Address: molbio.ipo@kfintech.com