Archive · 7 Oct 2026
Motilal Oswal Initiates Buy Coverage on Molbio, Sees Growth
Motilal Oswal has started studying Molbio Diagnostics and recommends buying its shares, with a target price of ₹1,800.
Molbio makes Truenat, a portable system that can test for diseases near where patients receive care.
The brokerage expects more devices, more test-kit sales and new tests to help the company grow.
It also sees possible growth from selling in more countries and from Molbio’s imaging and digital pathology businesses.
The brokerage forecasts strong revenue and profit growth through FY29.
But much of Molbio’s business still depends on tuberculosis tests and a small number of large customers.
Government purchasing, slower adoption, approval delays or product problems could make growth harder.
The target price is the brokerage’s estimate, not a guarantee of what the shares will be worth.
Motilal Oswal initiated coverage of Molbio Diagnostics with a Buy rating and a target price of ₹1,800, about 19% above the cited CMP of ₹1,543.75.
The brokerage forecasts 23% annual revenue growth and 50% adjusted PAT growth from FY26 to FY29, with EBITDA margins rising to about 31.3% by FY29.
Truenat accounted for about 90% of FY26 revenue; its device network exceeded 12,500 units across more than 90 countries as of March 2026.
Motilal Oswal sees test-kit sales, new assays such as HPV, international expansion, and the Prognosys and OptraSCAN businesses as potential growth drivers.
Risks include heavy dependence on TB testing, concentrated customers and programme procurement, slower adoption, and regulatory or product-quality setbacks.
- Who
- Motilal Oswal Financial Services Ltd. and Molbio Diagnostics Ltd.
- What
- Motilal Oswal initiated coverage of Molbio with a Buy rating and a ₹1,800 target price.
- When
- The article was published on October 7, 2026; forecasts cover FY26-FY29.
- Where
- Molbio’s Truenat devices were deployed in more than 90 countries as of March 2026.
- Why
- Motilal Oswal expects recurring test-kit sales, new assays, international expansion and newer businesses to drive growth.
Growth opportunity
Risks and constraints
Truenat growth
Growth opportunity
Motilal Oswal expects the installed base, higher utilisation, test-kit sales and a wider assay menu to support growth.
Risks and constraints
Slower-than-expected device adoption or utilisation could weaken the growth outlook.
Expansion beyond TB
Growth opportunity
HPV testing, international expansion, Prognosys imaging and OptraSCAN digital pathology could broaden Molbio’s business.
Risks and constraints
TB test kits represented about 70.2% of FY26 revenue and 96% of test-kit volumes; OptraSCAN was loss-making in Q1 FY27 and was not expected to be profitable in FY27.
Customer and programme demand
Growth opportunity
Government and international health programmes may support deployment and demand for Molbio’s products.
Risks and constraints
The top 10 customers contributed about 83% of FY26 revenue, while procurement cycles, policy changes and regulatory delays could affect sales.
- Rating
- Buy
- Target price
- ₹1,800
- CMP cited
- ₹1,543.75
- Implied upside
- About 19%
- Valuation basis
- 45 times 12-month forward earnings
- Truenat footprint
- More than 12,500 devices across over 90 countries as of March 2026
- FY26 revenue mix
- Truenat contributed about 90% of Molbio revenue
- FY26-FY29 forecasts
- 23% revenue CAGR and 50% adjusted PAT CAGR, according to Motilal Oswal
