Krsnaa Diagnostics Share Price in Focus as Company Gets Fresh LoA from Rajasthan Government

Market Performance

The Krsnaa Diagnostics share price could remain in focus following a significant legal and operational breakthrough. The company has received a fresh Letter of Award (LoA) from the Rajasthan government, ending a prolonged two-year legal deadlock that had stalled its diagnostic service expansion in the state.

This positive development is expected to influence investor sentiment as the stock draws attention amid sectoral news flow.

Main News: Fresh LoA Received After Two-Year Legal Delay

On July 7, Krsnaa Diagnostics confirmed that it had received a new LoA from the Rajasthan Government under the National Health Mission (NHM). This marks a significant milestone as the company can now resume plans to implement state-wide diagnostic services across Rajasthan.

• The company will enter into a formal agreement with the government authorities.
• The LoA comes after a favourable order by the Rajasthan High Court, which directed authorities to proceed with the agreement.

This decision is expected to help Krsnaa Diagnostics accelerate the operational rollout in the region and regain momentum in public-private partnership (PPP) healthcare projects.

Company Details and Background

The dispute began in July 2023, when the NHM Rajasthan cancelled Krsnaa's earlier LoA due to disagreements over performance security clauses in the tender process.

• Krsnaa was selected to provide lab services using the hub-and-spoke model under NHM.
• The disagreement stemmed from additional performance security clauses that weren't initially agreed upon.

Krsnaa Diagnostics, along with consortium partner Telecommunications Consultants India Ltd (TCIL), filed a legal challenge. By August 2023, the Rajasthan High Court reinstated the LoA, paving the way for the latest approval in July 2025.

National-Level Presence and Scale

Krsnaa Diagnostics has emerged as a primary healthcare service provider under the Central Diagnostic Initiatives. Its presence spans multiple states and includes both pathology and radiology services.

• 12 states have adopted Krsnaa's free pathology services.
• Nineteen states have partnered to provide free radiology services.
• The company has successfully won:
  • 8 out of 12 pathology tenders
  • 12 out of 19 radiology tenders

This translates to an impressive 75% win-to-bid ratio across national diagnostic projects, highlighting Krsnaa's operational capability and execution strength.

Revenue Impact (Based on Operational Metrics)

While specific projections cannot be included per editorial guidelines, it is important to note:

• The newly reactivated Rajasthan project covers state-wide diagnostic services.
• Given the state's population and healthcare needs, this could significantly scale Krsnaa Diagnostics' revenue base.

With the legal hurdle cleared, operational timelines for rollout may now proceed without delay, enabling further expansion of its national footprint.

Summary of the Article

• Krsnaa Diagnostics' share price is in the spotlight following the receipt of a new LoA from the Rajasthan government.
• The legal resolution ends a two-year delay caused by tender-related disputes.
• The company, in consortium with TCIL, will now implement state-wide diagnostics under NHM.
• Krsnaa already operates in multiple Indian states and has a strong win rate in public health tenders.
• The development strengthens Krsnaa's position in the PPP healthcare sector and may positively influence its operational trajectory.