Molbio Diagnostics, a leading Goa-based point-of-care (POC) molecular diagnostics company, has submitted IPO papers with the Securities and Exchange Board of India (SEBI). The company is best known for its innovative ‘Truenat’ PCR platform (a portable, rapid, real-time PCR platform for point-of-care diagnosis of infectious diseases). Molbio Diagnostics IPO aims to leverage capital markets to fund expansion in research, manufacturing and global market penetration.
Molbio Diagnostic IPO: Details & Structure
- Fresh Issue: INR 200 crore
- Offer for Sale (OFS): 1,25,56,000 equity shares
- Retail Quota: 35%
- Employee Quota: Reserved portion included
- Book Running Lead Managers: Kotak Mahindra Capital, IIFL Capital Services, Jefferies India, and Motilal Oswal Investment Advisors
- Registrar: KFin Technologies
Molbio Diagnostics IPO will consist of a combination of fresh issuance to fund capital expenditure and general corporate purposes, alongside an OFS by promoters and early investors, including Exxora Trading LLP, India Business Excellence Fund III, V Sciences Investments Pte., and individual shareholders.
Business Overview
Founded in Goa, Molbio Diagnostics has emerged as one of India’s most innovative healthcare technology companies, focused on rapid, accurate, and cost-effective molecular diagnostics. Its flagship ‘Truenat’ platform is a portable, battery-operated, real-time PCR device designed for resource-limited and decentralized healthcare settings.
- Truenat Platform: Comprises Trueprep Auto v2 (sample preparation) and Truelab analyzers (UnoDx, Duo, Quattro variants) capable of running 1–4 tests simultaneously.
- Disease Coverage: 30 diseases including Tuberculosis (TB), COVID-19, Hepatitis B & C, HIV, and HPV, supported by 42 assays as of FY25.
- Global Recognition: Truenat TB test is the only Indian-origin molecular TB test endorsed by the WHO, and one of only two globally, for initial TB and rifampicin resistance detection.
- Distribution: Sold 10,000+ devices across 80+ countries, with a strong foothold in India’s public health programmes.
The platform ensures recurring revenues, as devices function exclusively with Molbio’s proprietary Truenat test kits, accounting for 74% of revenue in FY25.
Financial Performance
Molbio Diagnostic has delivered strong growth over the last three years, underpinned by robust adoption of Truenat kits.
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue from Operations | 337.41 | 836.56 | 1,020.41 |
| PAT (Profit After Tax) | (3.45) | 83.54 | 138.58 |
| EBITDA Margin (%) | 14.26 | 22.02 | 24.97 |
| ROCE (%) | 2.17 | 15.80 | 20.98 |
| Debt to Equity (x) | 0.14 | 0.16 | 0.18 |
- Devices Sold: 2,180 units in FY25 (up from 1,541 in FY23)
- Test Kits Sold: 1.22 crore in FY25 (vs. 28 lakh in FY23)
- Export Growth: Revenues outside India rose from INR 48.7 Cr in FY23 to INR 197 Cr in FY25, led by Nigeria, Bangladesh, and Indonesia.
R&D and Innovation
Molbio is deeply R&D-driven, with innovation anchored by its wholly-owned subsidiary Bigtec.
- Team: 114 employees, including 100 scientists (~11% of total workforce).
- Patents: 16 in India, 187 abroad, across the US, China, Singapore and others.
- Pipeline: 37 new assays under development, targeting 22 diseases.
- COVID Legacy: Its platform was among the first approved by ICMR for COVID-19 testing in India, highlighting agility in responding to public health crises.
Manufacturing Footprint
The company operates five facilities across Goa, Bengaluru, and Visakhapatnam:
- Goa (2 units) – Truenat test kits
- Vizag – Truenat devices and components
- Bengaluru (Peenya) – Truenat kit components
- Bengaluru (Machohalli, via Prognosys) – Radiology devices
Capacity Utilisation FY25:
- Devices: 59% (2,120 units produced vs. 3,600 capacity)
- Test Kits: 43% (16.9 mn vs. 39 mn capacity)
- X-Ray Devices: 19% (350 vs. 1,820 capacity)
This underutilization suggests headroom for scaling without heavy capex.
Strategic Acquisitions & Collaborations
- Prognosys Medical Systems (65.5% stake, 2023) → Digital radiology (ProRaD) & AI platform (ProDigi).
- OptraScan (19.7% stake, 2024) → US-based digital pathology firm with AI-powered scanners.
- Collaborations:
- Xcyton Diagnostics – Multiplex panels for sepsis, meningitis.
- Stellar Diagnostics – Rapid TB triage test.
- Testi Technologies – Saliva-based alcohol detection strips.
- UE Lifesciences – iBreastExam™ for breast health screening.
Key Shareholders Pre-IPO
- Exxora Trading LLP – 41.2%
- India Business Excellence Fund III – 12.7%
- V Sciences Investments (Temasek entity) – 8.9%
- Promoter Group – Sriram Natarajan, Dr. Chandrasekhar Nair, family members
- Other Individuals (Kini family, Sampathgiri, Guru Dutt)
Use of IPO Proceeds
- INR 99.37 Cr – New R&D infrastructure (Center of Excellence, Bengaluru)
- INR 73.59 Cr – Plant & machinery upgrades at Goa, Vizag, Bengaluru units
- Balance – General corporate purposes
Final Words
Molbio Diagnostics arrives at the IPO stage with an attractive combination of strong revenue growth, robust margins, and global relevance. Its Truenat platform, validated by WHO and widely adopted by India’s TB control programme, provides both credibility and recurring revenue visibility.
The high entry barriers (13+ years R&D, regulatory endorsements, proprietary kits) and scalable manufacturing capacity give Molbio a defensible moat. Moreover, strategic acquisitions in radiology and pathology strengthen its positioning as an end-to-end diagnostics company.
However, risks include:
- Revenue concentration – Over 50% sales in FY25 came from central government contracts.
- Competition – Global diagnostics giants with deeper pockets could challenge expansion in developed markets (US/EU).
- Execution – Scaling exports, expanding assay pipeline, and integrating acquisitions remain critical.
Molbio Dx is positioned to capture a meaningful share of a market projected to grow at 18.7% CAGR to USD 65.7 billion by 2029.
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