Molbio Diagnostics Limited IPO Analysis, 117-Checkpoint Due Diligence & Valuation Dossier

Issue Size ₹2,400.00 Cr

Price Band ₹850 - ₹895

Lot Size / Min Inv. 16 shares

Estimated Market Cap ₹9,299.71 Cr

Anchor Allocation ₹281.91 Cr (30.0% of Issue)

Offering Dates 11 Aug 2026 - 13 Aug 2026

FAST-ORIENTATION TRIAGE

At a Glance: Fast-Orientation Triage

Mainboard or SME issue?

OK

Mainboard issue (SEBI ICDR Regulations)

Listing on BSE and NSE. Offer size up to ₹2,000.00 mn fresh issue + 9.166 mn shares OFS (total offer ~₹939.70 cr at ₹807 price). p.1, 76, 101

Can you explain what the company does in one plain sentence?

OK

Manufactures and commercializes portable point-of-care molecular diagnostic devices (Truenat PCR platform) and test kits for infectious diseases.

Pioneer in WHO-endorsed point-of-care TB testing with 30 disease test offerings across resource-limited settings. p.175, 215

Total issue size and post-issue market cap?

OK

Fresh issue ₹200.00 cr + OFS 9.166 mn shares (₹739.70 cr); total offer size ₹939.70 cr, post-issue mcap ₹9,299.71 cr.

Issue price fixed at ₹807 per equity share; post-issue equity shares count 115,238,064 (FV ₹1). p.76, 101

Fresh issue vs OFS - what's the split?

OK

₹200.00 cr Fresh Issue (21.28% of offer) vs ₹739.70 cr OFS (78.72% of offer).

OFS-dominated issue structure where existing investor (IBEF III) and early shareholders monetize stake. p.76, 101

Who is selling in the OFS - promoter, PE, or both?

OK

Promoter Dr. Chandrasekhar Bhaskaran Nair (6.11 mn shares) + Investor IBEF III / Motilal Oswal (14.28 mn shares holding, selling in OFS) + other early investors.

Promoter Exxora Trading LLP not selling in OFS; investor IBEF III WACA is ₹187.14/share. p.105, 122

Is the company profitable, or loss-making?

OK

Profitable and growing (Revenue: FY24 ₹836.56 cr → FY25 ₹1,020.42 cr → FY26 ₹1,445.69 cr; PAT: FY24 ₹101.95 cr → FY25 ₹145.10 cr → FY26 ₹166.59 cr).

3-year Revenue CAGR of 31.45% and PAT CAGR of 27.83% attributable to owners. p.298

Any headline red flag in the first 10 risk factors?

OK

High customer concentration (Top 1 customer 56.52% of revenue) and high product concentration (TB test kits 70.20% of sales).

Top 10 customers account for 83.26% of revenue, heavily tied to government and institutional TB eradication drives. p.30, 31

Auditor qualification or 'emphasis of matter'?

OK

No qualifications or emphasis of matter in restated report. Statutory auditor is S.R. Batliboi & Associates LLP.

Reputable Big-4 network firm auditor; clean opinion provided. p.290, 298

Any criminal case / SEBI-RBI action against promoters?

FLAG

No criminal cases against promoters. Total tax disputes of ₹19.18 cr (Direct tax ₹16.67 cr, Indirect tax ₹2.51 cr).

Total tax disputes represent ~11.5% of FY26 PAT, manageable relative to net worth of ₹1,169.34 cr. p.443

IPO P/E vs the peers listed in 'Basis for Offer Price'?

OK

At ₹807, post-issue FY26 P/E is 54.64x (vs peer average P/E of 64.89x) and P/B is 7.95x.

Nearest peers: Poly Medicure (52.61x), Dr. Lal Pathlabs (62.20x), Metropolis (63.72x), Vijaya Diagnostics (81.02x). p.142, 143

Is the use of fresh-issue money clearly growth-oriented?

OK

100% capex & growth oriented: ₹105.54 cr for R&D facility/Center of Excellence (Bigtec) + ₹72.28 cr for Goa & Vizag plant machinery + balance GCP.

Zero proceeds allocated to debt repayment; strong focus on R&D expansion and manufacturing automation. p.128, 131

Is this within your circle of competence to judge?

OK

Yes, high-margin razor-and-blade model: sells proprietary Truenat PCR diagnostic devices and recurring single-use testing chips/kits.

Consumable test kits generate 73.98% of total finished goods revenue, ensuring steady high-margin recurring cash flows. p.31, 215

LAYER 1 • STORY & POSITIONING

What The Company Does: Operational & Strategic Architecture

Molbio designs, manufactures, and commercializes portable, battery-operated real-time PCR devices (Truenat) and single-use microfluidic test chips. Its platform enables decentralized diagnosis of 30 infectious diseases (TB, COVID, Hepatitis, HIV, HPV) within 1 hour without requiring central lab infrastructure.

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
1	What does the company do, in one plain sentence?	Molbio Diagnostics manufactures and commercializes portable real-time PCR diagnostic devices (Truenat platform) and single-use test kits for 30 infectious diseases.	OK	Our Business, p.175, 215
Where in DRHP: Cover, 'Our Business', Industry Overview Why It Matters: If you can't say it simply, neither can the company - and that's telling. Benchmark / Red Flag Trigger: Unexplainable model = step back Exact Citation: Our Business, p.175, 215
2	Operating history & year of incorporation	Incorporated in Oct 2000 (25+ yrs legal history); Truenat molecular diagnostics platform commercialized after 13+ years of intensive R&D.	OK	History, p.246; Basis for Offer Price, p.142
Where in DRHP: 'History and Corporate Matters' Why It Matters: A long, consistent track record beats a recently assembled roll-up. Benchmark / Red Flag Trigger: <3 yrs real operating history = caution Exact Citation: History, p.246; Basis for Offer Price, p.142
3	Industry / sub-sector & position in the value chain	Point-of-care molecular diagnostics & med-tech. Positioned as pioneer in battery-operated rapid molecular testing for resource-limited settings.	OK	Industry Overview, p.175; Basis for Offer Price, p.142
Where in DRHP: 'Industry Overview' Why It Matters: Defines the correct peer set and the normal margin/return profile. Benchmark / Red Flag Trigger: - Exact Citation: Industry Overview, p.175; Basis for Offer Price, p.142
4	Stated competitive strengths - real or generic?	Strong moat: proprietary Truenat PCR tech, 100+ patents, WHO/ICMR endorsement for initial TB diagnosis, high-margin consumable kit recurring revenue.	OK	Our Strengths, p.219-225
Where in DRHP: 'Our Strengths' Why It Matters: 'Experienced promoters, quality focus' is boilerplate; specifics are real moats. Benchmark / Red Flag Trigger: Only generic strengths = weak moat Exact Citation: Our Strengths, p.219-225
5	Stated growth strategy - concrete or aspirational?	Clear strategies: expanding assay menu (HIV, HPV, Hepatitis), expanding international presence across 40+ countries, scaling Goa and Vizag plant capacity.	OK	Our Strategies, p.225-228
Where in DRHP: 'Our Strategies' Why It Matters: Fundable, specific plans beat vague ambition. Benchmark / Red Flag Trigger: Vague strategy = discount the story Exact Citation: Our Strategies, p.225-228
6	Industry tailwinds vs headwinds	Tailwinds: global TB elimination targets, decentralization of molecular diagnostics. Headwinds: reliance on government health program budgets.	OK	Industry Overview, p.175, 190
Where in DRHP: 'Industry Overview', MD&A Why It Matters: Structural growth vs a flat/declining or cyclical-peak market. Benchmark / Red Flag Trigger: Declining/flat industry = headwind Exact Citation: Industry Overview, p.175, 190
7	Who commissioned the industry report?	Industry report commissioned and paid for by the company from 1Lattice (1Lattice Advisory Private Limited dated July 2026).	Watch	Risk Factors #24, p.45; Industry Overview, p.175
Where in DRHP: 'Industry Overview' footnotes Why It Matters: Company-paid reports (e.g. CRISIL/F&S) skew optimistic - discount accordingly. Benchmark / Red Flag Trigger: Always company-commissioned Exact Citation: Risk Factors #24, p.45; Industry Overview, p.175
8	Is the TAM / market-size claim credible?	Indian point-of-care diagnostics market size projected ₹18,450 cr by FY30; global molecular POC market $4.8B. Market growth claims supported by 1Lattice.	OK	Industry Overview, p.175-185
Where in DRHP: 'Industry Overview' Why It Matters: Sanity-check the addressable market against the company's actual revenue. Benchmark / Red Flag Trigger: Implausibly large TAM = puffery Exact Citation: Industry Overview, p.175-185
9	Market share and its trend	Market leader in Indian point-of-care molecular TB diagnostics, having commercialized 17.56 million test kits in FY26.	OK	Risk Factors #2, p.31; Basis for Offer Price, p.142
Where in DRHP: Industry / Business Why It Matters: Share gains signal real competitiveness; losses signal pressure. Benchmark / Red Flag Trigger: Losing share = flag Exact Citation: Risk Factors #2, p.31; Basis for Offer Price, p.142
10	Key competitors named	Poly Medicure Limited, Dr. Lal Pathlabs Limited, Metropolis Healthcare Limited, Vijaya Diagnostic Centre Limited.	OK	Basis for Offer Price, p.142, 143
Where in DRHP: 'Competition', Basis for Offer Price Why It Matters: Tells you the genuine peer set for the valuation comparison later. Benchmark / Red Flag Trigger: - Exact Citation: Basis for Offer Price, p.142, 143

LAYER 2 • ISSUE STRUCTURE & OBJECTS

The IPO Itself: Capital Allocation & Objects Rupee Breakdown

The IPO totals ₹939.70 cr at ₹807 per share, comprising a ₹200.00 cr Fresh Issue (21.3%) and a ₹739.70 cr OFS (78.7%). Promoters Dr. Chandrasekhar Bhaskaran Nair (6.11 mn shares) and investor IBEF III / Motilal Oswal (selling part of 14.28 mn shares) are selling, while promoter Exxora Trading LLP retains its 41.2% stake. Fresh proceeds fund R&D infrastructure (₹105.54 cr) and plant machinery (₹72.28 cr).

Offering Structure & Tranche Breakup

Offering Parameter / Tranche	Mandate & Allocation	Value & Scale	Strategic Context & Terms
Fresh Issue (Primary Capital)	Growth capital directly reaching balance sheet	₹2,400.00 Cr	Primary equity expansion funding capex, working capital & debt
Offer for Sale (OFS Liquidations)	Secondary liquidity for existing promoters & early funds	OFS Dilution Tranche	Proceeds go entirely to selling shareholders; zero reaches company
Gross Total Issue Size	Aggregate offering scale at upper price band	₹2,400.00 Cr	Total book-building size
Anchor Investor Allocation	Reserved institutional QIB tranche	₹281.91 Cr (30.0% of Issue)	Anchor lock-in: 50% for 30 days, 50% for 90 days post-listing
Pre-IPO WACA Benchmark	Weighted average cost of acquisition for promoters	Disclosed in Basis for Issue Price	Benchmark for pricing fairness and insider multiple markup

Capital Allocation & Objects of the Issue

Object of Offer / Purpose	Allocated Amount	% Share	Execution Timeline
Plant, Machinery & Automated Assembly Capex	₹72.28 Cr	36.1%	Goa manufacturing expansion
Clinical Trials & R&D Platform Capex	₹50.00 Cr	25.0%	Next-gen assay development
General Corporate Purposes (GCP)	₹77.72 Cr	38.9%	Global commercialization
Total Fresh Growth Capital	₹200.00 Cr	100.0%	Balance Sheet Inflow

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
11	Mainboard or SME issue?	Mainboard public issue under SEBI ICDR Regulations.	OK	Cover page, p.1; Offer Structure, p.483
Where in DRHP: Cover page Why It Matters: SME = thinner disclosure, lower liquidity, higher risk. Benchmark / Red Flag Trigger: SME = extra caution Exact Citation: Cover page, p.1; Offer Structure, p.483
12	Total issue size (Rs cr)	Total offer size ₹939.70 cr at ₹807 price (Fresh Issue ₹200.00 cr + OFS 9,166,000 shares worth ₹739.70 cr).	OK	The Offer, p.76, 101
Where in DRHP: Cover page / 'The Offer' Why It Matters: Basic sizing of the raise. Benchmark / Red Flag Trigger: - Exact Citation: The Offer, p.76, 101
13	Fresh issue amount (Rs cr)	₹200.00 cr (aggregating up to ₹2,000.00 million).	OK	Objects of the Offer, p.128
Where in DRHP: 'The Offer' Why It Matters: Only the fresh issue brings new money into the company. Benchmark / Red Flag Trigger: - Exact Citation: Objects of the Offer, p.128
14	OFS amount (Rs cr)	9,166,000 Equity Shares (aggregating to ₹739.70 cr at ₹807 per share).	OK	The Offer, p.76, 101
Where in DRHP: 'The Offer' Why It Matters: OFS proceeds go to selling shareholders, not the business. Benchmark / Red Flag Trigger: - Exact Citation: The Offer, p.76, 101
15	Fresh : OFS ratio	Fresh Issue : OFS = 21.28% : 78.72% (Fresh ₹200.00 cr vs OFS ₹739.70 cr). OFS-heavy mix.	Watch	Objects of the Offer, p.128
Where in DRHP: 'The Offer' Why It Matters: A heavy OFS tilt means the IPO is mostly an exit. Benchmark / Red Flag Trigger: OFS >70% + tiny fresh = flag Exact Citation: Objects of the Offer, p.128
16	Who is selling in the OFS?	Selling Shareholders: Promoter Dr. Chandrasekhar Bhaskaran Nair (6.11 mn shares) + Investor IBEF III / Motilal Oswal + other early shareholders. Exxora Trading LLP not selling.	Watch	Details of OFS, p.105, 122
Where in DRHP: 'The Offer' / Selling Shareholders Why It Matters: Promoter exit and PE exit carry very different signals. Benchmark / Red Flag Trigger: Large promoter sell-down = flag Exact Citation: Details of OFS, p.105, 122
17	How much does the COMPANY actually receive?	Net Proceeds = ₹200.00 cr minus company's portion of offer expenses.	OK	Objects of the Offer, p.128
Where in DRHP: Fresh issue minus issue expenses Why It Matters: This is the real fuel for growth - often far less than the headline. Benchmark / Red Flag Trigger: - Exact Citation: Objects of the Offer, p.128
18	Objects: capex - amount & specificity	₹72.28 cr (36.14% of fresh issue) for purchasing plant, machinery and equipment at Goa Unit I, II and Vizag facility.	OK	Objects of the Offer, p.128, 133
Where in DRHP: 'Objects of the Offer' Why It Matters: Specific, costed capex is genuine growth spending. Benchmark / Red Flag Trigger: Vague/uncosted capex = flag Exact Citation: Objects of the Offer, p.128, 133
19	Objects: debt repayment amount	₹0.00 cr allocated to debt repayment from Fresh Issue proceeds.	OK	Objects of the Offer, p.128
Where in DRHP: 'Objects of the Offer' Why It Matters: Deleveraging is healthy but it is balance-sheet repair, not growth. Benchmark / Red Flag Trigger: High % to debt = repair, not growth Exact Citation: Objects of the Offer, p.128
20	Objects: working capital amount	₹0.00 cr directly earmarked for working capital (working capital funded via internal accruals/borrowings).	OK	Objects of the Offer, p.128
Where in DRHP: 'Objects of the Offer' Why It Matters: Normal for a growing WC-intensive business; large amounts can signal a stretched cycle. Benchmark / Red Flag Trigger: - Exact Citation: Objects of the Offer, p.128
21	Objects: acquisition - named target or 'future M&A'?	₹105.54 cr (52.77% of fresh issue) for funding R&D facility, Center of Excellence and office space operated by Bigtec.	OK	Objects of the Offer, p.128, 131
Where in DRHP: 'Objects of the Offer' Why It Matters: A named, costed target beats a blank cheque for 'inorganic growth'. Benchmark / Red Flag Trigger: Unspecified M&A = flag Exact Citation: Objects of the Offer, p.128, 131
22	General Corporate Purposes (GCP) as % of fresh issue	Balance Net Proceeds (capped at max 25% of Gross Proceeds per SEBI ICDR rules, i.e. max ₹50.00 cr).	OK	Objects of the Offer, p.128
Where in DRHP: 'Objects of the Offer' Why It Matters: SEBI caps GCP (and unidentified objects). High GCP = undefined use of your money. Benchmark / Red Flag Trigger: Maxed-out / high GCP = flag Exact Citation: Objects of the Offer, p.128
23	Issue expenses as % of the issue	Offer expenses shared proportionately between Company and Selling Shareholders based on shares offered.	OK	Objects of the Offer, p.137
Where in DRHP: 'Objects of the Offer' Why It Matters: Fees eat into the proceeds that reach the company. Benchmark / Red Flag Trigger: Unusually high = flag Exact Citation: Objects of the Offer, p.137
24	Overall read: growth / debt-repair / exit / mixed?	Primary proceeds (₹200.00 cr) are 100% growth & R&D oriented (52.77% R&D capex + 36.14% plant machinery capex), while OFS (₹739.70 cr) provides PE/promoter exit.	OK	Objects of the Offer, p.128, 131
Where in DRHP: Synthesise the objects Why It Matters: The single most important interpretation of the whole issue. Benchmark / Red Flag Trigger: Pure exit or repair = low enthusiasm Exact Citation: Objects of the Offer, p.128, 131
25	Pre-IPO placement done - at what price vs the IPO band?	No Pre-IPO placement reported in the RHP.	N/A	Capital Structure, p.101
Where in DRHP: 'Capital Structure' Why It Matters: A recent placement far below the IPO price signals aggressive pricing. Benchmark / Red Flag Trigger: Big gap below IPO price = flag Exact Citation: Capital Structure, p.101
26	WACA - weighted avg cost of acquisition of promoter/investor shares vs IPO price	WACA per equity share: Promoter Exxora Trading LLP ₹0.20; Promoter Dr. Chandrasekhar Bhaskaran Nair ₹6.90; Investor IBEF III ₹187.14. Issue price ₹807 is 4.31x over PE WACA.	Watch	Details of OFS, p.122
Where in DRHP: 'Basis for Offer Price' Why It Matters: SEBI-mandated. Shows the markup at which insiders are selling to you. Benchmark / Red Flag Trigger: IPO price >> WACA = priced for insiders Exact Citation: Details of OFS, p.122

LAYER 3 • BUSINESS QUALITY

Business Quality: Concentration, Retention & Durability

Business durability is anchored by customer stickiness, recurring volume growth, and disciplined operational execution.

Revenue Breakdown & Product Segment Mix

Product / Operating Segment	% Share	Revenue Value
Truenat Diagnostic Test Kits	74.0%	₹1,034.82 Cr
Diagnostic Devices & Testing Equipment	26.0%	₹364.55 Cr

Customer & Geographic Concentration Matrix

Counterparty / Customer Tier	Revenue Share (%)	Rupee Amount	Strategic Exposure Note
Truenat Diagnostic Test Kits & Cartridges	74.0%	₹1,069.81 Cr	High-margin consumable annuity stream
Diagnostic Testing Analyzers & Devices	26.0%	₹375.88 Cr	Capital equipment placement base
Domestic vs Export Revenue Mix	Domestic: 82.2% \| Exports: 17.8%	₹1,188 Cr / ₹257 Cr	Direct sales to 40+ countries
Top 1 Customer (Central Medical Services / TB)	34.2%	₹494.43 Cr	National public health programs
Top 5 Customers (Govt + Diagnostic Chains)	73.8%	₹1,067.35 Cr	High institutional concentration

#

Checkpoint

Your Finding (Prospectus Data)

Status

Page Ref

27

Revenue breakdown by segment / product

FY26 sales: Test Kits ₹1,034.82 cr (73.98%), Diagnostic Devices & Equipment ₹364.55 cr (26.02%). By disease: TB Test Kits ₹982.01 cr (70.20% of sales).

OK

Risk Factors #2, p.31; Our Business, p.215

28

Top customer as % of revenue

Top 1 customer (CMSS / Govt TB program) contributed 56.52% of FY26 sales (₹790.65 cr), 50.81% in FY25, and 33.83% in FY24. Exceeds 25-30% red-flag threshold.

Multi-Period Trend Breakdown

FY26	FY25	FY24
sales (₹790	, and 33	. Exceeds 25-30% red-flag threshold

Flag

Risk Factors #1, p.30

29

Top 5 customers as % of revenue

Top 5 customers contributed 73.83% of FY26 sales (₹1,032.80 cr), 74.97% in FY25, and 62.31% in FY24. Severe customer concentration.

Multi-Period Trend Breakdown

FY26	FY25	FY24
sales (₹1,032	, and 62	. Severe customer concentration

Flag

Risk Factors #1, p.30

30

Are customer relationships recurring/contracted or order-by-order?

Relationships operate via tender-based purchase orders and government procurement schedules without long-term binding volume commitments.

Watch

Risk Factors #1, p.30; Our Business, p.229

31

Recurring / repeat revenue %

High proportion of recurring consumable test kit sales (73.98% of finished goods sales) driven by expanding Truenat installed machine base.

OK

Risk Factors #2, p.31; Our Business, p.219

32

Supplier concentration (top / top-5)

Specialized raw material procurement (biochemical reagents, microfluidic components, optical sensors). Top suppliers maintain long-standing supply arrangements.

Watch

Risk Factors #8, p.37; Our Business, p.232

33

Single-source or single raw-material dependency?

Import dependency for specialized raw materials and electronic components from US, Europe, and Asia.

Watch

Risk Factors #8, p.37

34

Manufacturing footprint - single-plant dependency?

Multi-location manufacturing facilities at Verna Industrial Area, Goa (Unit I & II) and Visakhapatnam, Andhra Pradesh mitigate single-plant risk.

OK

Our Business, p.228

35

Current capacity utilisation

Truenat machine capacity 24,000 units/yr (utilization ~65%); Test chip capacity 30 million chips/yr (utilization ~58.5% with 17.56 mn kits produced in FY26).

OK

Our Business, p.228

36

Geographic concentration of revenue

Domestic sales: 82.2% (₹1,188.35 cr in FY26); Export sales: 17.8% (₹257.34 cr in FY26 across 40+ countries in Africa, SE Asia, and Latin America).

OK

Our Business, p.221

37

Asset-heavy or asset-light?

Net Fixed Assets / PPE ₹170.81 cr (plus ROU & Intangibles ₹226.16 cr) supporting revenue of ₹1,445.69 cr. Asset turnover ratio high at 8.46x.

OK

Restated Balance Sheet, p.297

38

Working-capital intensity

High working capital intensity. Net Working Capital ₹827.48 cr as of March 31, 2026 (57.24% of revenue). Inventories (₹449.26 cr) + Receivables (₹408.74 cr) absorb cash.

Watch

Restated Balance Sheet, p.297

39

Distribution model (direct / dealer / online)

B2B direct sales model to government health authorities (CMSS), state TB missions, WHO/UNICEF agencies, private hospital chains & diagnostic labs.

OK

Our Business, p.215, 229

40

Order book / backlog (if relevant)

Business driven by tender-based purchase orders and release schedules from government health missions.

OK

Risk Factors #1, p.30

41

Cyclicality of the business

Low macro cyclicality (healthcare diagnostic demand is essential), but vulnerable to government health budget allocations.

OK

Industry Overview, p.175; Risk Factors #1, p.30

42

Entry barriers / moat - real or weak?

High entry barriers: 13+ years R&D, WHO endorsement for TB diagnosis, ICMR approvals, 100+ patents held by Bigtec, proprietary micro-PCR chip tech.

OK

Basis for Offer Price, p.142; Our Business, p.219

43

Key licences / regulatory approvals the business depends on

CDSCO medical device manufacturing licenses, ISO 13485 certification, US FDA / CE clearances for exports.

Watch

Key Regulations, p.241; Approvals, p.445

44

Technology / obsolescence risk

Technology risk from competing molecular platforms (GeneXpert by Cepheid) or next-gen sequencing, though Truenat retains battery-operated point-of-care advantage.

Watch

Risk Factors #10, p.38; Industry Overview, p.175

LAYER 4 • FINANCIAL QUALITY

Are The Numbers Real? Multi-Year Forensic Quality Audit

Accounting quality is backed by statutory auditor S.R. Batliboi & Associates LLP (EY network) with zero qualifications. Gross margins are stable at ~60%, and cumulative 3-year CFO/PAT conversion is healthy at 84% (₹347.06 cr CFO vs ₹413.65 cr PAT), though FY26 CFO dipped to ₹50.39 cr due to inventory build-up for export expansion.

Revenue from Operations

+31.5%

₹1,445.69 Cr

₹836.56 Cr

FY24

₹1,020.42 Cr

FY25

₹1,445.69 Cr

FY26

EBITDA & Operating Profit

+17.9%

₹330.93 Cr (22.9%)

₹238.28 Cr (28.5%)

FY24

₹269.74 Cr (26.4%)

FY25

₹330.93 Cr (22.9%)

FY26

Profit After Tax (PAT)

+27.8%

₹166.59 Cr (11.5%)

₹101.95 Cr (12.2%)

FY24

₹145.10 Cr (14.2%)

FY25

₹166.59 Cr (11.5%)

FY26

Cash Flow from Operations (CFO)

Positive

₹50.39 Cr

₹9.57 Cr

FY24

₹287.10 Cr

FY25

₹50.39 Cr

FY26

3-Year Audited Financial Performance Summary

Financial Parameter / Metric	FY24	FY25	FY26	3-Yr CAGR
Revenue from Operations	₹836.56 Cr	₹1,020.42 Cr	₹1,445.69 Cr	+31.5%
EBITDA (Operating Profit)	₹238.28 Cr (28.5%)	₹269.74 Cr (26.4%)	₹330.93 Cr (22.9%)	+17.9%
Profit After Tax (PAT)	₹101.95 Cr (12.2%)	₹145.10 Cr (14.2%)	₹166.59 Cr (11.5%)	+27.8%
Operating Cash Flow (CFO)	₹9.57 Cr	₹287.10 Cr	₹50.39 Cr	Positive
ROCE (Return on Capital)	17.52%	18.21%	16.48%	Stable
Debt-to-Equity (D/E)	0.21x	0.13x	0.35x	Low Debt

#

Checkpoint

Your Finding (Prospectus Data)

Status

Page Ref

45

Revenue (3 yrs) and CAGR

Revenue: FY24 ₹836.56 cr → FY25 ₹1,020.42 cr → FY26 ₹1,445.69 cr. 3-year CAGR = 31.45%.

Multi-Period Trend Breakdown

FY24	FY25	FY26
₹836	₹1,020	₹1,445

OK

Restated P&L, p.298

46

Is growth organic or acquisition-driven?

Organic expansion of Truenat machine placements, scaling TB test volume (8.8 mn to 17.56 mn kits), and inorganic acquisitions of Prognosys & OptraScan.

OK

MD&A, p.394

47

Gross margin trend (3 yrs)

Gross Margin: FY24 59.31% (₹496.14 cr) → FY25 59.35% (₹605.58 cr) → FY26 60.15% (₹869.51 cr). Consistently high ~60% gross margins.

Multi-Period Trend Breakdown

FY24	FY25	FY26
59	59	60

OK

Restated P&L, p.298

48

EBITDA and EBITDA-margin trend

EBITDA: FY24 ₹238.28 cr (28.48%) → FY25 ₹269.74 cr (26.43%) → FY26 ₹330.93 cr (22.89%). EBITDA CAGR = 17.88%.

Multi-Period Trend Breakdown

FY24	FY25	FY26
₹238	₹269	₹330

OK

Restated P&L, p.298

49

Sudden margin spike right before the IPO?

EBITDA margin moderated from 28.48% in FY24 to 22.89% in FY26 due to higher employee costs (scaling sales force) and other operating expenses.

Watch

Restated P&L, p.298; MD&A, p.394

50

PAT and PAT-margin trend

PAT: FY24 ₹101.95 cr (12.19%) → FY25 ₹145.10 cr (14.22%) → FY26 ₹166.59 cr (11.52%). PAT CAGR = 27.83%.

Multi-Period Trend Breakdown

FY24	FY25	FY26
₹101	₹145	₹166

OK

Restated P&L, p.298

51

Other income as % of PAT

Other Income: FY24 ₹4.10 cr (4.02% of PAT) → FY25 ₹7.52 cr (5.18%) → FY26 ₹9.48 cr (5.69%). Low dependency on non-operating income.

Multi-Period Trend Breakdown

FY24	FY25	FY26
₹4	₹7	₹9

OK

Restated P&L, p.298

52

CFO (operating cash flow) trend

CFO: FY24 ₹9.57 cr → FY25 ₹287.10 cr → FY26 ₹50.39 cr. Fluctuating cash flow due to working capital absorption.

Multi-Period Trend Breakdown

FY24	FY25	FY26
₹9	₹287	₹50

Watch

Restated Cash Flows, p.299

53

CFO / PAT (cash conversion), multi-year

CFO/PAT: FY24 0.09x → FY25 1.98x → FY26 0.30x. 3-year cumulative CFO (₹347.06 cr) / cumulative PAT (₹413.65 cr) = 0.84x (84% conversion). Cumulative conversion is healthy.

Multi-Period Trend Breakdown

FY24	FY25	FY26
0	1	0

Watch

Restated Financials, p.298, 299

54

Was CFO negative in any year?

No negative CFO years in 3-year restated period, but FY24 (₹9.57 cr) and FY26 (₹50.39 cr) were low.

Watch

Restated Cash Flows, p.299

55

Free cash flow (CFO minus capex)

FCF (CFO - Capex): FY24 -₹39.51 cr → FY25 +₹232.44 cr → FY26 +₹0.36 cr. Cumulative 3-year FCF = +₹193.30 cr.

Multi-Period Trend Breakdown

FY24	FY25	FY26
₹39	+₹232	+₹0

OK

Restated Cash Flows, p.299

56

Total debt and net debt

As of March 31, 2026: Total Borrowings ₹412.64 cr (Long-term ₹212.41 cr + Short-term ₹200.23 cr); Cash & Bank ₹367.11 cr; Net Debt = ₹45.53 cr.

OK

Restated Balance Sheet, p.297

57

Debt / Equity

Debt/Equity ratio: FY24 0.21x → FY25 0.13x → FY26 0.35x. Low leverage relative to net worth of ₹1,169.34 cr.

Multi-Period Trend Breakdown

FY24	FY25	FY26
0	0	0

OK

Restated Balance Sheet, p.297

58

Interest coverage (EBIT / interest)

Interest coverage (EBIT / Finance Cost): FY24 13.43x → FY25 12.75x → FY26 7.99x. Healthy interest coverage.

Multi-Period Trend Breakdown

FY24	FY25	FY26
13	12	7

OK

Restated Financials, p.298

59

ROE and trend

Return on Net Worth (RONW): FY24 12.38% → FY25 14.98% → FY26 14.55%. Stable ~14.5% RONW.

Multi-Period Trend Breakdown

FY24	FY25	FY26
12	14	14

OK

Basis for Offer Price, p.142

60

ROCE and trend

Return on Capital Employed (ROCE): FY24 17.52% → FY25 18.21% → FY26 16.48%. Solid return metrics.

Multi-Period Trend Breakdown

FY24	FY25	FY26
17	18	16

OK

Financials, p.297, 298

61

ROCE vs cost of capital

FY26 ROCE of 16.48% comfortably exceeds estimated cost of capital (~10-11%).

OK

Basis for Offer Price, p.142

62

Debtor (receivable) days and trend

Debtor days (DSO): FY24 186 days → FY25 97 days → FY26 103 days (Trade Receivables ₹408.74 cr). Elevated due to government tenders.

Watch

Restated Balance Sheet, p.297

63

Inventory days and trend

Inventory days (DIO): FY24 137 days → FY25 156 days → FY26 285 days (Inventories ₹449.26 cr / raw mat consumed ₹576.18 cr). High inventory buffer for diagnostic chips & kits.

Watch

Restated Balance Sheet, p.297

64

Payable days and trend

Creditor days (DPO): FY24 41 days → FY25 82 days → FY26 126 days (Trade Payables ₹199.50 cr). Payables expanded to match inventory build.

OK

Restated Balance Sheet, p.297

65

Cash conversion cycle

Cash Conversion Cycle (CCC): FY24 282 days → FY25 171 days → FY26 262 days. Working capital intensive.

Watch

Restated Balance Sheet, p.297

66

Contingent liabilities vs net worth

Statutory auditor fees: FY26 ₹1.85 cr. Commensurate with size and multi-entity audit scope.

OK

Financial Notes, p.388

67

Capex history vs proposed capex

Contingent Liabilities ₹19.18 cr (tax disputes) + performance bank guarantees. No undisclosed off-balance sheet SPVs.

OK

Contingent Liabilities, p.84, 443

68

Dividend history

Goodwill ₹62.13 cr + Other Intangible Assets ₹170.81 cr (from acquisitions of Bigtec, Prognosys & OptraScan). Impairment testing conducted annually.

Watch

Restated Balance Sheet, p.297

69

Standalone vs consolidated divergence

Restatement adjustments adjusted prior periods in accordance with Ind AS guidelines with zero auditor qualification.

OK

Statement of Restatement Adjustments, p.290

70

Material restatement adjustments?

Nil equity dividend declared in FY24, FY25, and FY26 as earnings were re-invested in R&D and business growth.

OK

Dividend Policy, p.289

71

Auditor qualifications / emphasis of matter

FY24 ₹53.17 cr → FY25 ₹11.13 cr → FY26 ₹0.49 cr. Exceptional items relate to acquisition fair value adjustments and transaction expenses.

Multi-Period Trend Breakdown

FY24	FY25	FY26
₹53	₹11	₹0

OK

Restated P&L, p.298

72

Aggressive revenue-recognition policy?

Unhedged forex exposure on export revenues (~18%) and imported raw materials. Foreign exchange gain of ₹15.36 cr in FY26.

OK

Financial Notes, p.388

LAYERS 5 & 6 • GOVERNANCE & RPT

Governance Architecture & Related Party Transactions

Governance is clean: 0% promoter pledge, 50% independent board, and technocrat promoters with 25+ years experience. Related party transactions primarily consist of intra-group R&D royalty to 100% subsidiary Bigtec (capped at 10% of revenue), which eliminates completely on consolidation.

Pre & Post-Issue Shareholding Structure

Shareholder Category / Promoter	Pre-IPO %	Post-IPO %	Pledge Status	Statutory Lock-in
-	-	-	Nil	Standard
-	-	-	Nil	Standard
-	-	-	Nil	Standard

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
73	Promoter background and track record	Promoters Dr. Chandrasekhar Bhaskaran Nair (MD) and Sriram Natarajan (CEO) are technocrats with 25+ years experience in medical devices & R&D.	OK	Our Management, p.260
Where in DRHP: 'Our Promoters', 'Management' Why It Matters: The quality and integrity of stewardship. Benchmark / Red Flag Trigger: Prior failure/fraud = flag Exact Citation: Our Management, p.260
74	Promoter holding pre-IPO	Promoter group holding: 46.65% pre-offer. Post-offer holding ~42.9% (due to Dr. Nair selling 6.11 mn shares in OFS).	OK	Capital Structure, p.101, 105
Where in DRHP: 'Capital Structure' Why It Matters: Skin in the game today. Benchmark / Red Flag Trigger: - Exact Citation: Capital Structure, p.101, 105
75	Promoter holding post-IPO	0.00% of promoter shares are pledged or encumbered.	OK	Capital Structure, p.101
Where in DRHP: 'Capital Structure' Why It Matters: Alignment going forward. Benchmark / Red Flag Trigger: Very low post-IPO = misalignment Exact Citation: Capital Structure, p.101
76	Promoter share pledge	FY26 Remuneration: Dr. Chandrasekhar Bhaskaran Nair ₹3.50 cr; Sriram Natarajan ₹3.50 cr. Remuneration is ~4.2% of PAT, reasonable for tech founders.	OK	Our Management, p.266; RPT, p.86
Where in DRHP: 'Capital Structure', Risk Factors Why It Matters: Pledging signals financial stress. Benchmark / Red Flag Trigger: Any meaningful pledge = flag Exact Citation: Our Management, p.266; RPT, p.86
77	Promoter / KMP remuneration vs PAT and peers	5 subsidiaries (Bigtec, Prognosys Medical, Prognosys Healthcare, OptraScan INC, OptraScan India). Clear operational integration.	OK	Our Subsidiaries, p.254
Where in DRHP: 'Management' Why It Matters: Cash extraction relative to profits. Benchmark / Red Flag Trigger: High pay vs PAT = flag Exact Citation: Our Subsidiaries, p.254
78	Group structure - complex / circular / many entities?	S.R. Batliboi & Associates LLP (member firm of EY). Continuous auditor since conversion.	OK	General Information, p.91
Where in DRHP: 'Our Group Companies' Why It Matters: Complexity is where value and leakage hide. Benchmark / Red Flag Trigger: Complex web = flag Exact Citation: General Information, p.91
79	Auditor - reputable? Recent change or resignation?	KMP team stable. CFO Manan Bimal Khokhani and CS Darshan Karekar have been in place leading up to the IPO.	OK	Our Management, p.278
Where in DRHP: 'Auditors', history Why It Matters: Audit credibility and any pre-IPO churn. Benchmark / Red Flag Trigger: Resignation before IPO = flag Exact Citation: Our Management, p.278
80	CFO / KMP churn before the IPO	Board of 8 Directors includes 4 Independent Directors (50% independent), complying with SEBI LODR rules. Women independent directors present.	OK	Our Management, p.260
Where in DRHP: 'Management', history Why It Matters: Instability in key finance roles before listing. Benchmark / Red Flag Trigger: CFO exit pre-IPO = flag Exact Citation: Our Management, p.260
81	Board: proportion of independent directors	Independent Directors include seasoned industry experts and finance professionals (e.g. former healthcare executives & CA/legal experts).	OK	Our Management, p.260-265
Where in DRHP: 'Management' Why It Matters: Strength of independent oversight. Benchmark / Red Flag Trigger: Below norms = flag Exact Citation: Our Management, p.260-265
82	Independent-director credentials - real or token?	ESOP Scheme 2024 with 854,480 outstanding options (0.74% of post-issue capital). Moderate dilution impact.	OK	Capital Structure, p.125
Where in DRHP: Director bios Why It Matters: Whether oversight is actually effective. Benchmark / Red Flag Trigger: Token / related IDs = flag Exact Citation: Capital Structure, p.125
83	ESOP / outstanding options - dilution overhang	20% promoter minimum contribution locked in for 18 months; balance promoter holding locked in for 6 months. Anchor investors locked in for 30/90 days per SEBI ICDR.	OK	Capital Structure, p.113
Where in DRHP: 'Capital Structure' Why It Matters: Future dilution of your stake. Benchmark / Red Flag Trigger: Large unvested pool = caution Exact Citation: Capital Structure, p.113
84	Lock-in: promoter and anchor / pre-IPO investors	No SEBI debarment, economic offences, or wilful defaulter classifications against company, promoters, or directors.	OK	Other Regulatory Disclosures, p.456
Where in DRHP: 'Capital Structure' Why It Matters: Share supply that hits the market post-listing. Benchmark / Red Flag Trigger: Big near-term unlocks = caution Exact Citation: Other Regulatory Disclosures, p.456
85	Past corporate-governance issues / regulatory strictures	Established Board committees (Audit, Stakeholders Relationship, Nomination & Remuneration, Risk Management, CSR).	OK	Our Management, p.268
Where in DRHP: Risk Factors, Litigation Why It Matters: A pattern of past behaviour. Benchmark / Red Flag Trigger: Any history = flag Exact Citation: Our Management, p.268

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
86	Sales to related parties (% of revenue)	Inter-company sales between Molbio and subsidiaries (Bigtec, Prognosys) eliminated on consolidation. External related party sales negligible (<0.1%).	OK	Summary of RPT, p.85-90
Where in DRHP: RPT note Why It Matters: Revenue propped up by group entities? Benchmark / Red Flag Trigger: High % = flag Exact Citation: Summary of RPT, p.85-90
87	Purchases from related parties (% of costs)	Royalty paid to 100% subsidiary Bigtec (₹123.36 cr in FY26) for micro-PCR IP license. Eliminates in consolidated financial statements.	OK	Summary of RPT, p.85; Risk Factors #5, p.35
Where in DRHP: RPT note Why It Matters: A channel to manipulate margins. Benchmark / Red Flag Trigger: High % = flag Exact Citation: Summary of RPT, p.85; Risk Factors #5, p.35
88	Loans / advances to promoter or related entities	Inter-company loans provided to 100% subsidiaries (Bigtec, OptraScan) for operational capex. All eliminated on consolidation.	OK	Summary of RPT, p.85-90
Where in DRHP: RPT note Why It Matters: Company cash diverted to insiders. Benchmark / Red Flag Trigger: Any sizeable loan out = flag Exact Citation: Summary of RPT, p.85-90
89	Rent / royalty / brand fees paid to related parties	Royalty paid to Bigtec capped at 10% of revenue (₹123.36 cr in FY26). Since Bigtec is a 100% subsidiary, cash stays within consolidated entity.	OK	Summary of RPT, p.85; Risk Factors #5, p.35
Where in DRHP: RPT note Why It Matters: Recurring cash extraction from the company. Benchmark / Red Flag Trigger: Royalty to promoter = flag Exact Citation: Summary of RPT, p.85; Risk Factors #5, p.35
90	Outstanding RPT balances (receivable / payable)	Outstanding balances relate to subsidiary trade payables/receivables, fully eliminated in restated consolidated balance sheet.	OK	Summary of RPT, p.85-90
Where in DRHP: RPT note Why It Matters: Money stuck with related parties. Benchmark / Red Flag Trigger: Large outstanding = flag Exact Citation: Summary of RPT, p.85-90
91	RPT trend over 3 years	Royalty and inter-company support scaled proportionally with consolidated revenue growth.	OK	Summary of RPT, p.85-90
Where in DRHP: RPT note Why It Matters: Rising reliance on related-party dealings. Benchmark / Red Flag Trigger: Increasing trend = flag Exact Citation: Summary of RPT, p.85-90
92	Disclosed at arm's length? Pricing basis?	All transactions with subsidiaries and related entities certified by management as conducted on arm's length basis and ordinary course of business.	OK	Summary of RPT, p.85
Where in DRHP: RPT note Why It Matters: Whether terms are fair to minority shareholders. Benchmark / Red Flag Trigger: 'At cost'/unclear basis = scrutinise Exact Citation: Summary of RPT, p.85
93	Overall RPT concern level (Low / Medium / High)	Low concern. RPTs are almost exclusively intra-group transactions with 100% subsidiaries that eliminate on consolidation.	OK	Summary of RPT, p.85-90
Where in DRHP: Synthesise this layer Why It Matters: Your single judgment on related-party risk. Benchmark / Red Flag Trigger: - Exact Citation: Summary of RPT, p.85-90

LAYER 7 • LITIGATION & REGULATORY

Litigation, Tax Disputes & Materiality Sizing

Outstanding legal proceedings represent standard commercial and tax disputes with low aggregate materiality relative to net worth.

Outstanding Legal & Tax Dispute Summary

Litigation / Regulatory Category	Case Count	Quantifiable Exposure	Materiality & Balance Sheet Risk
Direct & Indirect Tax Proceedings	1	₹19.18 Cr	Evaluated
Patent / Intellectual Property Suits	1	₹0.00 Cr	Evaluated

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
94	Criminal cases against promoters / directors	Zero criminal cases or proceedings pending against Promoters, Directors, or the Company.	OK	Outstanding Litigation, p.437
Where in DRHP: 'Outstanding Litigation' Why It Matters: An integrity red flag that can override the numbers. Benchmark / Red Flag Trigger: Any = serious flag Exact Citation: Outstanding Litigation, p.437
95	Material civil / commercial cases - company	No material civil litigation against Company or Promoters exceeding the materiality threshold (₹16.66 cr / 1% of PAT).	OK	Outstanding Litigation, p.437
Where in DRHP: 'Outstanding Litigation' Why It Matters: Direct business and financial risk. Benchmark / Red Flag Trigger: - Exact Citation: Outstanding Litigation, p.437
96	Direct + indirect tax disputes and amounts	4 Direct tax cases (₹16.67 cr) + 3 Indirect tax cases (₹2.51 cr). Total tax disputes = ₹19.18 cr.	Watch	Outstanding Litigation, p.443
Where in DRHP: 'Outstanding Litigation' Why It Matters: Contingent cash outflows. Benchmark / Red Flag Trigger: Large vs PAT = flag Exact Citation: Outstanding Litigation, p.443
97	Regulatory / statutory actions (SEBI, RBI, environmental, labour)	No regulatory actions or show-cause notices threatening core business operations or approvals.	OK	Outstanding Litigation, p.437
Where in DRHP: 'Outstanding Litigation' Why It Matters: Signals compliance culture. Benchmark / Red Flag Trigger: Active actions = flag Exact Citation: Outstanding Litigation, p.437
98	Total quantifiable amount involved	Total quantifiable litigation amount: ₹19.18 cr (tax disputes).	Watch	Outstanding Litigation, p.443
Where in DRHP: Litigation summary Why It Matters: Sizing the aggregate exposure. Benchmark / Red Flag Trigger: - Exact Citation: Outstanding Litigation, p.443
99	Materiality vs PAT and net worth	Litigation exposure (₹19.18 cr) represents 11.51% of FY26 PAT (₹166.59 cr) and 1.64% of Net Worth (₹1,169.34 cr). Non-material threat.	OK	Outstanding Litigation, p.443
Where in DRHP: Compare Why It Matters: Whether the exposure is survivable. Benchmark / Red Flag Trigger: Multiple of PAT / net worth = flag Exact Citation: Outstanding Litigation, p.443
100	Any case threatening a key licence or the business model?	No pending proceedings threatening CDSCO medical device manufacturing licenses for Goa or Vizag units.	OK	Government Approvals, p.445
Where in DRHP: Litigation, Risk Factors Why It Matters: Existential risk to operations. Benchmark / Red Flag Trigger: Yes = serious flag Exact Citation: Government Approvals, p.445

LAYER 8 • VALUATION & PEER BENCHMARK

Valuation: Peer Comparison & Multiples Benchmark

Valuation benchmark indicates competitive pricing relative to listed industry peers and forward earnings power.

Listed Industry Peer Valuation Benchmark

Company Name / Peer Benchmark	P/E (x)	EV/EBITDA	P/S (x)	ROE (%)	ROCE (%)	YoY Growth	PAT Margin
Molbio Diagnostics Limited	54.6x	28.2x	-	-	16.5%	-	-
Metropolis Healthcare Limited	72.4x	34.5x	-	-	19.2%	-	-
Dr. Lal PathLabs Limited	64.8x	31.8x	-	-	24.5%	-	-
Agappe Diagnostics (Benchmark)	42.0x	22.0x	-	-	18.0%	-	-
Industry Diagnostic Composite	59.7x	29.4x	-	-	20.6%	-	-

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
101	IPO P/E (post-issue, upper band)	At ₹807 issue price, FY26 Diluted EPS ₹14.77 → Post-issue P/E = 54.64x (Weighted Average EPS ₹13.18 → P/E = 61.23x).	OK	Basis for Offer Price, p.141, 142
Where in DRHP: Basis for Offer Price / compute Why It Matters: The headline earnings multiple you're paying. Benchmark / Red Flag Trigger: - Exact Citation: Basis for Offer Price, p.141, 142
102	Peer P/E - and is the peer set fair or cherry-picked?	Peer P/E range 52.61x to 81.02x (Average 64.89x): Poly Medicure (52.61x), Dr. Lal Pathlabs (62.20x), Metropolis (63.72x), Vijaya Diagnostics (81.02x). Molbio at 54.64x is priced below peer average.	OK	Basis for Offer Price, p.142, 143
Where in DRHP: 'Basis for Offer Price' Why It Matters: Companies pick flattering peers; rebuild the set yourself. Benchmark / Red Flag Trigger: Cherry-picked rich peers = flag Exact Citation: Basis for Offer Price, p.142, 143
103	EV / EBITDA vs peers	Post-issue Mcap ₹9,299.71 cr + Net Debt ₹45.53 cr = EV ₹9,345.24 cr. EV / FY26 EBITDA (₹330.93 cr) = 28.24x. Reasonable for a high-growth med-tech leader.	OK	Restated Financials, p.297, 298
Where in DRHP: Compute / peers Why It Matters: A capital-structure-neutral comparison. Benchmark / Red Flag Trigger: - Exact Citation: Restated Financials, p.297, 298
104	Price / Sales (especially if loss-making)	Mcap ₹9,299.71 cr / FY26 Revenue ₹1,445.69 cr = 6.43x P/S. Supported by 60% gross margins and 22.9% EBITDA margin.	OK	Basis for Offer Price, p.143
Where in DRHP: Compute Why It Matters: The relevant lens for unprofitable companies. Benchmark / Red Flag Trigger: Aggressive P/S on losses = flag Exact Citation: Basis for Offer Price, p.143
105	Price / Book	At ₹807, NAV per share ₹101.51 → P/B = 7.95x.	OK	Basis for Offer Price, p.143
Where in DRHP: Compute Why It Matters: Relevant for asset-heavy and financial businesses. Benchmark / Red Flag Trigger: - Exact Citation: Basis for Offer Price, p.143
106	Implied market cap at IPO	115,238,064 post-issue equity shares * ₹807 = ₹9,299.71 cr (~₹9,300 crore).	OK	The Offer, p.76, 101
Where in DRHP: Compute Why It Matters: The absolute size of what you're buying. Benchmark / Red Flag Trigger: - Exact Citation: The Offer, p.76, 101
107	ROE vs peers	Molbio FY26 ROE of 14.55% vs peers: Poly Medicure (10.37%), Dr. Lal Pathlabs (20.78%), Metropolis (12.56%), Vijaya Diagnostics (18.07%). Molbio ROE is in line with peer median.	OK	Basis for Offer Price, p.143
Where in DRHP: Compare Why It Matters: Does quality justify any premium? Benchmark / Red Flag Trigger: Premium + lower ROE = flag Exact Citation: Basis for Offer Price, p.143
108	ROCE vs peers	Molbio ROCE of 16.48% vs peer range 14-22%. Solid operational return.	OK	Basis for Offer Price, p.143
Where in DRHP: Compare Why It Matters: Capital efficiency relative to price. Benchmark / Red Flag Trigger: - Exact Citation: Basis for Offer Price, p.143
109	Growth vs peers	Molbio 3-year Revenue CAGR of 31.45% and PAT CAGR of 27.83% outperforms pathology peer set (12-18% revenue growth).	OK	Basis for Offer Price, p.143; MD&A, p.394
Where in DRHP: Compare Why It Matters: Does faster growth justify the premium? Benchmark / Red Flag Trigger: Premium + slower growth = flag Exact Citation: Basis for Offer Price, p.143; MD&A, p.394
110	Margins vs peers	Gross margin ~60% and EBITDA margin ~22.9% are strong and comparable to med-tech peer Poly Medicure.	OK	Basis for Offer Price, p.143
Where in DRHP: Compare Why It Matters: Quality of earnings relative to price. Benchmark / Red Flag Trigger: - Exact Citation: Basis for Offer Price, p.143
111	IPO price vs WACA / pre-IPO placement (the markup)	Issue price ₹807 is 4.31x over investor IBEF III WACA (₹187.14) and 116.95x over promoter WACA (₹6.90 due to bonus issuances). Standard PE monetization multiple.	Watch	Capital Structure, p.122
Where in DRHP: Basis for Offer Price Why It Matters: What insiders paid versus what you're paying. Benchmark / Red Flag Trigger: Large multiple over WACA = flag Exact Citation: Capital Structure, p.122
112	Is the premium justified by ROCE / ROE / growth / margins?	Valuation of 54.64x FY26 P/E at ₹807 is justified by proprietary med-tech IP, WHO endorsement, high entry barriers, 31%+ top-line CAGR, and lower P/E than industry peer average (64.89x).	OK	Basis for Offer Price, p.142, 143
Where in DRHP: Synthesise Why It Matters: The core valuation verdict. Benchmark / Red Flag Trigger: Premium unsupported by quality = flag Exact Citation: Basis for Offer Price, p.142, 143
113	What growth does the price implicitly assume?	Implies ~20-25% PAT CAGR expectation over FY26-30 driven by international market expansion and expanding test menu beyond TB (HIV, HPV, Hepatitis).	OK	Basis for Offer Price, p.142
Where in DRHP: Reverse the multiple / judgment Why It Matters: Are the embedded expectations realistic? Benchmark / Red Flag Trigger: Heroic assumptions = flag Exact Citation: Basis for Offer Price, p.142

LAYER 9 • STATED RISK ADMISSIONS

In The Company's Own Words: Stated Risk Admissions

Management highlights key operational sensitivities including raw material pricing, client concentration, and execution timelines.

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
114	Top 5 risk factors the company itself lists	1) Top 1 customer accounts for 56.52% of revenue; 2) TB test kits generate 70.20% of revenue; 3) R&D investments (6.05% of rev) may fail to yield approved new tests; 4) Past losses & negative operating cash flows in certain subsidiaries (Prognosys, OptraScan); 5) Reliance on government & international aid agency procurements.	Watch	Risk Factors #1-5, p.28-35
Where in DRHP: 'Risk Factors' Why It Matters: Management's own stated worries - read them first. Benchmark / Red Flag Trigger: - Exact Citation: Risk Factors #1-5, p.28-35
115	Any genuine dealbreaker buried in boilerplate?	High working capital intensity (CCC 262 days) and risk of government healthcare tender budget cuts or delay in TB program procurement.	Watch	Risk Factors #1, p.30; Financials, p.297
Where in DRHP: 'Risk Factors' Why It Matters: The serious risks hide among generic ones; find them. Benchmark / Red Flag Trigger: - Exact Citation: Risk Factors #1, p.30; Financials, p.297
116	Quantified risks (e.g. 'X would cut revenue by Y%')	Top 1 customer ₹790.65 cr (56.52%); TB test kits ₹982.01 cr (70.20%); Tax disputes ₹19.18 cr; R&D spend ₹87.46 cr.	OK	Risk Factors #1, 2, p.30, 31; Litigation, p.443
Where in DRHP: 'Risk Factors' Why It Matters: The risks management bothered to quantify are usually the real ones. Benchmark / Red Flag Trigger: - Exact Citation: Risk Factors #1, 2, p.30, 31; Litigation, p.443
117	Going-concern or liquidity language anywhere?	Clean auditor report from S.R. Batliboi & Associates LLP; zero going-concern or qualification language.	OK	Restated Financial Information, p.290
Where in DRHP: Risk Factors / Auditor Why It Matters: A direct signal of survival risk. Benchmark / Red Flag Trigger: Any going-concern language = serious flag Exact Citation: Restated Financial Information, p.290

AUDIT TALLY • 117-CHECKPOINT RISK MATRIX

Red-Flag Dashboard: 117-Checkpoint Audit Tally

91

Checkpoints Clean (OK)

23

Watchlist Monitor Rows

2

High-Severity Red Flags

117

Total Forensic Checkpoints

L1 Story & Positioning

9 1 0

L2 Issue Structure & Objects

12 3 0

L3 Business Quality

10 6 2

L4 Financial Quality

20 8 0

L5 Governance

13 0 0

L6 Related Party Transactions

8 0 0

L7 Litigation & Regulatory

5 2 0

L8 Valuation

12 1 0

L9 The Company's Own Risk Factors

2 2 0

Layer 1: Story & Positioning

9 OK 1 Watch 0 Flag

Layer 2: Issue Structure & Objects

12 OK 3 Watch 0 Flag

Layer 3: Business Quality

10 OK 6 Watch 2 Flag

Layer 4: Financial Quality

20 OK 8 Watch 0 Flag

Layer 5: Governance

13 OK 0 Watch 0 Flag

Layer 6: Related Party Transactions

8 OK 0 Watch 0 Flag

Layer 7: Litigation & Regulatory

5 OK 2 Watch 0 Flag

Layer 8: Valuation

12 OK 1 Watch 0 Flag

Layer 9: The Company's Own Risk Factors

2 OK 2 Watch 0 Flag

How To Read This Risk Matrix

These tallies reflect the 117 checkpoints evaluated across the 9 analytical layers. In institutional forensic analysis, clusters matter far more than isolated totals: an amber or red flag in Layer 4 (Financial Quality) or Layer 5 (Governance) carries exponentially higher structural weight than narrative observations in Layer 1. Always evaluate flags against company peers and industry context.

Statutory Educational Compliance & Analyst Disclaimer

This research report is prepared strictly for educational and informational purposes only and does not constitute financial, investment, legal, tax, or underwriting advice. Neither IPrOspecta nor the author (Tanish Vijayvargiya) is a SEBI-registered Research Analyst or SEBI-registered Investment Adviser under the SEBI (Research Analysts) Regulations, 2014 or SEBI (Investment Advisers) Regulations, 2013.

Nothing in this publication should be construed as an explicit or implicit recommendation, solicitation, endorsement, or offer to buy, sell, subscribe to, or hold any security, IPO application, or financial product. Prospective investors must conduct their own independent due diligence, carefully review the complete Red Herring Prospectus (RHP) / Draft Red Herring Prospectus (DRHP) filed with SEBI and the stock exchanges, and consult a qualified, SEBI-registered financial adviser before committing capital.

Position Disclosure: The author and IPrOspecta maintain zero commercial affiliation with the issuer company, book running lead managers, selling shareholders, or syndicate underwriters. All opinions expressed represent personal analytical frameworks.