Molbio is a point-of-care technology (POCT) diagnostics company whose IPO is open from August 10-12. The company developed Truenat, a POCT polymerase chain reaction (PCR) platform for molecular diagnosis of 40 diseases currently, including TB, hepatitis, HIV and HPV. With revenue and PAT growing at CAGR of 31 per cent and 40 per cent, respectively, during FY24-26, the fast-growing company has strong drivers to sustain growth over the next few years.The IPO consists of a fresh issue of ₹200 crore (primarily for capital expenditure and R&D) and an OFS portion of ₹739 crore. At the upper price band, the IPO is valued at 56.6 times FY26 earnings or 29 times EV/EBITDA, which is comparable to peers in diagnostics. While valuation is not cheap, long-term investors with a high risk appetite can subscribe to Molbio given its strong R&D capability, a growing Truenat platform and several growth drivers compared to other diagnostics which have to rely on retail volumes and store expansion for growth.The Truenat platform, the main product, comprises two portable instruments. The device for nucleic acid extraction and Truelab analyser, which conducts real-time PCR tests. The tests use a disease-specific Truenat test-kits, which are single-use consumables pre-loaded with necessary reagents. The test portfolio consists of 40 infectious diseases currently and can be expanded on the same platform. Compared to smear test (patient’s sputum sample is stained and viewed under a microscope), which is the earlier method, this device is portable, implying last-mile reach at primary healthcare centres. It is accurate too, owing to genetic testing and is a confirmatory diagnosis compared to smear test that requires further confirmation. The device can also detect low level of pathogens and is an early indicator. Compared to smear tests which take 7-10 days, Truenat platform delivers results in one hour.Growth driversDemographic factors and continued adoption should support good demand for the Truenat platform in India and other markets. The company has sold 12,500 devices in over 90 countries since 2020 — primarily in India and also in Africa, Bangladesh and Nigeria. TB testing has seen a significant shift from smear tests to molecular platforms owing to portability, accuracy and turnaround time. Adoption of molecular diagnostics in India has also increased from 7 per cent in 2018 to 18 per cent in 2026 and a similar growth is witnessed in other countries as well. The rising disease burden and the solution Molbio offers in diagnosis, particularly in TB, is also a factor driving growth. India accounts for about 25 per cent of global TB cases, with nearly 2.7 million new cases each year in India and 10 million globally.The 12,500-device count compares with 94,000 primary health centres (or equivalent) in target countries including 33,000 in India. This implies a long runway for adoption of the platform. The company is in an oligopoly (one competitor) and in a market with high barriers for entry. It developed the product for 13 years before approval from ICMR in India and being endorsed by WHO for complete replacement of smear testing for TB diagnosis, — this acts as a strong technological barrier.In developed markets where there are lower number of TB patients, the Truenat platform finds application through testing for other diseases like STI diagnosis (sexually transmitted diseases) and Hepatitis. The company has secured European CE mark approval for two conditions (chlamydia/gonorrhea) and will start commercialisation process in Europe. Similar pathway may be adopted for clearance from the US FDA as well.Molbio has a strong R&D team, with close to 11 per cent of the 1,225 employees in March 2026 being scientists. The company and subsidiaries have registered 16 patents in India and 191 patents internationally to protect their development. It will supplement the 40-test portfolio with the 22 tests in development pipeline. In addition, the platform can support epidemics and has played a significant role in diagnosis for Covid, swine flu and Nipah virus outbreaks.Acquisitions and developed marketsMolbio has completed two acquisitions. In March 2023, the company acquired 70 per cent of Prognosys for around ₹45 crore. The acquired business manufactures digital imaging solutions such as ultraportable X-ray systems, mobile digital X-ray systems and others. It reported ₹160 crore of sales in FY26 (11 per cent of revenues) from the division and has grown at 44 per cent CAGR in FY24-26. The subsidiary recently has secured European approval for the portfolio and US FDA approval for portable X-ray machines, both for human and animal healthcare.Molbio also acquired 60 per cent shareholding in the US-based OptraScan for $30 million in Novemeber 2025. OptraScan, in early phase of development, provides digital pathology solutions, by scanning the slides that go into a microscope and digitally enhancing them along with an AI layer on top, replacing the need for microscopes. It also enables telepathology, eliminating bulky physical records for remote diagnosis. Molbio has received US FDA approval in July 2026 and it is likely to explore European approval as well.The two subsidiaries present strong opportunities for growth in the US and European markets, but are in early stages of commercialisation.FinancialsMolbio reported revenue of ₹1,445 crore in FY26 and PAT of ₹164 crore. The revenue consists of devices (14 per cent of revenues) and test-kits (72 per cent), as shown in the figure. The 12 per cent CAGR growth of devices sold in FY24-26 has resulted in 41 per cent CAGR growth for test-kits. The devices sold contributes to a strong repeat business from sale of test-kits. As the number of diseases covered increases and end-users scale up on the adoption of tests, the high growth of test-kits should sustain, even as devices continue with relatively-modest growth.The company has a good EBITDA margin of 22 per cent in FY26, which is calculated after accounting for R&D costs of 6-7 per cent per year. The margins have declined 600 bps from FY24, which it attributes to the product mix. The product mix has tilted towards higher test volume markets, which led to margin compression. This aspect can be monitored after listing. Despite the margin compression, the company reported strong earnings growth of 40 per cent compounded over FY24-26.Molbio has several growth drivers, including favourable demographics, export opportunities, new subsidiaries and an expanding test portfolio. Its intellectual property also creates a strong barrier for competitors. These factors should help the company sustain growth despite high valuation. The company also faces concentration risk. Governments and international aid agencies accounted for 85 per cent of revenues in FY26. Despite the high concentration, this is to be expected in public health diagnostics. Also, in FY26, 96 per cent of the tests conducted on the Truenat platform were for TB diagnosis. The company has to diversify this risk with new disease profile in the pipeline.Published on August 8, 2026