India’s diagnostics industry is expanding rapidly, with Molbio Diagnostics preparing for a significant IPO amid a broader shift towards preventive healthcare and decentralised testing, highlighting the sector’s promising future.
Molbio Diagnostics’ planned initial public offering arrives at a time when India’s diagnostics industry is expanding faster than the country’s broader healthcare market, offering a window into a business that sits between hospitals, drugmakers and the growing demand for preventive care. The Hindu BusinessLine said in its market note on the company’s prospectus that diagnostics is already the largest healthcare segment after hospitals and pharmaceuticals, but still makes up a smaller share of the overall market than in the US, leaving room for further growth.
According to the draft prospectus details reported by The Economic Times and IPO trackers, the Goa-based company plans to raise ₹200 crore through fresh equity, alongside an offer for sale of up to 1.25 crore shares. Molbio’s flagship Truenat PCR platform is designed for decentralised testing and is used for rapid diagnosis of more than 30 diseases, including tuberculosis, COVID-19, hepatitis B and C, HIV and HPV. The company reported revenue of ₹1,020 crore and profit after tax of ₹138.5 crore in fiscal 2025, figures that suggest a profitable business with scale ahead of its market debut.
The wider market context appears favourable. Molbio’s own industry report said the Indian diagnostics market grew from ₹675.8 billion in fiscal 2020 to ₹1,131.3 billion in fiscal 2025, and could rise to ₹1,964.3 billion by fiscal 2030 if current trends persist. The same report said in vitro diagnostics, or IVD, accounted for 57% of the market in fiscal 2025. Separate research from Grand View Research put India’s IVD market at $394.76 million in 2023 and forecast compound annual growth of 4.6% through 2030, supported by infectious disease testing, chronic illness screening and laboratory expansion.
Taken together, the numbers point to a sector being pulled by both necessity and aspiration. Rising rates of chronic disease and an ageing population are increasing the need for routine testing, while preventive screening is becoming more common as incomes rise and access broadens. Government healthcare access schemes and manufacturing incentives such as Make in India are also supporting domestic IVD producers, according to market research. For Molbio, that backdrop gives its IPO a story beyond fundraising: it is a bet that India’s diagnostics market will keep moving from niche use towards a more central role in healthcare.
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