Shares of Krsnaa Diagnostics slid 0.79% to ₹537.10 on the BSE as the market reacted to the announcement of a 15‑year PPP contract with the Punjab Health Systems Corporation. The deal, signed on Wednesday, will see Krsnaa develop, operate and maintain PET‑CT facilities at four state hospitals, a move that adds a new, long‑term revenue stream to the company’s portfolio.
The concession agreement, finalized after a Letter of Award dated 14 August 2026, follows a Design‑Build‑Finance‑Operate‑Maintain‑Transfer (DBFOT) framework. According to the BSE filing, the contract is cash‑based—the firm will earn per scan, with revenue directly tied to the volume of PET‑CT procedures performed.
Krsnaa’s leadership has said the entry into PET‑CT is a strategic pivot, leveraging its experience with government PPPs to capture a niche in advanced imaging. The company’s CEO, Vikas Sharma, noted that the project “provides a predictable, long‑term revenue stream that balances the cyclical nature of its core diagnostics business.”
While the contract value is undisclosed, analysts see the partnership as a diversification tactic, especially as the Indian diagnostics sector is tightening around high‑margin imaging services. Compared with peers like GE Healthcare and Siemens Healthineers, Krsnaa’s move could position it favorably in a segment that is expected to grow at a CAGR of 12% over the next five years.
Looking ahead, the company has not issued new guidance, but it will report its Q4 results on 31 October. Investors will be keen to see whether the PET‑CT revenue accelerates enough to offset the modest profit decline reported in Q3, where earnings fell 8% YoY to ₹12.5 cr. The market’s muted reaction suggests that analysts expect the new contract to take several quarters to materialise fully.