Chandan Healthcare Divests Entire Stake in Pharmacy Business to Sharpen Focus on High-Margin Diagnostics
Chandan Healthcare Limited has approved the divestment of its entire stake in Chandan Pharmacy Limited (CPL) to a group company, Chandan Hospital Limited. This strategic move aims to concentrate management bandwidth and capital on the high-growth diagnostics segment, which consistently delivers materially higher EBITDA margins compared to the pharmacy business.The decision was made by the Board of Directors at a meeting held on August 6, 2026. The company is selling its 53.56% shareholding in CPL for a consideration of Rs 31,31,36,168. Upon completion of the transaction, Chandan Healthcare Limited's holding in CPL will reduce to Nil, and CPL will cease to be a subsidiary of the company.
The sale is underpinned by the belief that it represents a considered, value-accretive step for shareholders. The rationale centers on refining the business mix and aligning with long-term capital allocation priorities, allowing the standalone financials of Chandan Healthcare Limited to accurately reflect the growth trajectory and profitability of its diagnostics operations.
A key aspect of this divestment is addressing the nature of CPL's revenue mix. Over 70% of CPL's revenue comes from low-margin B2B supply to Chandan Hospital Limited, which management feels dilutes consolidated margins without contributing proportionally to shareholder value. Exiting this segment is expected to be margin accretive at the consolidated level.
Key Transaction Details
The transaction was structured based on an independent valuation report dated August 3, 2026, issued by Registered Valuer Mr Gaurang Gaurav. The terms of the divestment are as follows:| Buyer | Chandan Hospital Limited (a group company) |
|---|---|
| Shares Divested | 1,72,992 equity shares of Rs. 10/- each (53.56% of CPL's paid-up equity capital) |
| Consideration | Rs. 31,31,36,168 |
| Basis of Valuation | Independent valuation report dated August 3, 2026 by Mr. Gaurang Gaurav, Registered Valuer |
| Resulting Holding | Nil (0%) - CPL ceases to be a subsidiary of the Company |
| Use of Proceeds | Development of new diagnostic centres, intended to strengthen the company's higher-EBITDA core business |
| Board Approval Date | August 6, 2026 |
Strategic Benefits and Outlook
The divestment is expected to yield several benefits for shareholders, including improved margin profiles and a stronger balance sheet. By focusing exclusively on diagnostics, Chandan Healthcare Limited aims to achieve a more simplified and investable structure that allows analysts to benchmark the entity against listed diagnostics peers.The proceeds generated from this sale are earmarked to fund the development of new diagnostic centres, ensuring capital is redeployed into higher-EBITDA assets. This strategic focus is anticipated to be accretive to the company's consolidated profitability over time.
Following the transaction, Chandan Healthcare Limited will operate as a focused diagnostics-led entity within the broader Chandan Group, while CPL continues operations under the Group umbrella via Chandan Hospital Limited.
Financial Performance Comparison
The following tables present the financial data for Chandan Healthcare Limited and Chandan Pharmacy Ltd across fiscal years 2024-25 and 2025-26 (figures are in Lakhs).Financial Metrics by Company
| Particulars | Chandan Healthcare Ltd. (2024-25) | Chandan Healthcare Ltd. (2025-26) | Chandan Pharmacy Ltd (2024-25) | Chandan Pharmacy Ltd (2025-26) |
|---|---|---|---|---|
| TOTAL SALES | 13,121.30 | 16,077.24 | 10,212.53 | 12,064.63 |
| EBITDA | 3,815.70 | 5,055.64 | 538.57 | 636.44 |
Profitability and Working Capital
| Particulars | Chandan Healthcare Ltd. (2024-25) | Chandan Healthcare Ltd. (2025-26) | Chandan Pharmacy Ltd (2024-25) | Chandan Pharmacy Ltd (2025-26) |
|---|---|---|---|---|
| NET PROFIT | 2,077.80 | 2,534.15 | 290.41 | 322.28 |
| EBITDA % TO REVENUE | 29.08% | 31.45% | 5.27% | 5.28% |
| NET PROFIT % TO REVENUE | 15.84% | 15.76% | 2.84% | 2.67% |
| WORKING CAPITAL (Receivables + cl. Stock) | 4,843.01 | 6,044.68 | 2,976.23 | 5,922.94 |
CHANDAN Stock Price Movement
Shares of Chandan Healthcare Limited slipped by 3.86% on Friday, settling at ₹231.10. The stock traded actively during the session, moving through 179,200 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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