Chandan Healthcare Limited divests 53.56% stake in Pharmacy business to Group Company
Chandan Healthcare Limited has approved a significant divestment of its entire shareholding in Chandan Pharmacy Limited (CPL). The transaction, finalized by the Board meeting on August 6, 2026, transfers all shares to Chandan Hospital Limited, a group company. This move aims to sharpen CHL's focus on higher-margin diagnostics and improve financial transparency for investors.The divestment involves the transfer of 172,992 equity shares of Rs. 10/- each, representing 53.56% of CPL’s paid-up equity capital. The consideration for this stake was determined to be Rs. 31,31,36,168, based on an independent valuation report dated August 3, 2026, prepared by Mr. Gaurang Gaurav, Registered Valuer.
Upon the completion of the transaction, Chandan Healthcare Limited’s interest in CPL will reduce to Nil, and CPL will no longer operate as a subsidiary of the company.
Strategic Rationale and Benefits
The decision stems from a comprehensive review of the Company's business mix and long-term capital allocation goals. The Board identified three key factors driving the divestment:1. Focus on Core Business: Divesting the pharmacy segment allows management bandwidth and capital to be concentrated on diagnostics, which is described as the segment offering materially higher EBITDA margins and a longer runway for profitable growth.
2. Enhanced Investor Transparency: With the pharmacy business deconsolidated, the standalone financials of Chandan Healthcare Limited will more accurately reflect the scale, growth trajectory, and profitability of its diagnostics operations, improving comparability with peers.
3. Exiting Low-Margin Mix: Over 70% of CPL's revenue is derived from low-margin B2B supply to Chandan Hospital Limited, limiting consumer (B2C) contribution. This mixed revenue stream was expected to dilute consolidated margins, and its exit is anticipated to be margin-accretive moving forward.
The transaction is set up to unlock value at a fair valuation determined by the independent Registered Valuer. Furthermore, the proceeds from this sale are designated for strengthening the balance sheet and providing capital to fund expansion within the higher-return diagnostics network, including new center roll-outs.
Key Transaction Details
| Particulars | Details |
|---|---|
| Buyer of Shares | Chandan Hospital Limited (a group company) |
| Shares Divested | 172,992 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 |
| Board Approval Date | August 6, 2026 |
Financial Performance Overview
Financial results for Chandan Healthcare Pvt. Ltd. and Chandan Pharmacy Ltd across fiscal years 2024-25 and 2025-26 reflect the operational performance of both entities.| Particulars | CHL (FY 2024-25) | CHL (FY 2025-26) | CPL (FY 2024-25) | CPL (FY 2025-26) |
|---|---|---|---|---|
| Total Sales | 13,121.30 Fig. in Lacs | 16,077.24 Fig. in Lacs | 10,212.53 | 12,064.63 |
| EBITDA | 3,815.70 | 5,055.64 | 538.57 | 636.44 |
| EBITDA % to Revenue | 29.08 | 31.45 | 5.27 | 5.28 |
Net Profit and Working Capital
| Particulars | CHL (FY 2024-25) | CHL (FY 2025-26) | CPL (FY 2024-25) | CPL (FY 2025-26) |
|---|---|---|---|---|
| Net Profit | 2,077.80 | 2,534.15 | 290.41 | 322.28 |
| Net Profit % to Revenue | 15.84 | 15.76 | 2.84 | 2.67 |
| Working Capital (Receivables + Stock) | 4,843.01 | 6,044.68 | 2,976.23 | 5,922.94 |
Outlook
Following the completion of the transaction, Chandan Healthcare Limited will function as a focused diagnostics-led entity within the broader Chandan Group. The proceeds from the sale are channeled into developing new diagnostic centers, which are expected to generate materially higher EBITDA than the pharmacy business that is being divested, thereby supporting stronger consolidated profitability over time.CHANDAN Stock Price Movement
Chandan Healthcare Limited shares slipped by 3.86% today, settling at ₹231.10 in post-market trading. The stock saw a total traded volume of 179,200 shares and hit an intraday low of ₹225.00.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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