Orange Health Labs managed to achieve remarkable top-line growth for the financial year ending March 2026. Based on the financial statements submitted to the Registrar of Companies (RoC), the firm witnessed considerable top-line growth as it penetrated several urban locations. The increased income was matched by increased spending, with a growing operating deficit and costs above the level of income.

Strong revenue growth and foundation

Orange Health Labs reported operating revenue of ₹138.6 crore in FY26, a 65% rise over the operating revenue of ₹84 crore in FY25. Diagnostics accounted for the sole contributor to revenue from operations in the company. 

The startup also generated an additional revenue of ₹4.7 crore from non-operating sources and net gains from investment sales, totaling the revenue needs of ₹143 crore for FY26. 

The company, launched in 2020 by Dhruv Gupta and Tarun Bhambra, through its full-stack diagnostics model, offers on-demand diagnostics and home delivery of samples, both funded by Y Combinator and Bertelsmann India. 

In addition to its direct-to-consumer business, it has created a network of over 2,000 clinics to accelerate diagnostic turnaround. The company’s physical network grew during the year with more than 60 company-owned collection centres, of which almost 50 are based in Bengaluru.

Escalating expenditure and competitive landscape

Although top-line growth was quite significant, the total cost incurred by the company was more than the revenue generated by it. The total cost increased by 36% on a year-on-year basis to reach ₹240.3 crore in FY26 from ₹175.9 crore in FY25. At a unit-level basis, Orange Health had to spend ₹1.73 to generate one rupee of operating revenue.

An employee benefit expense was the biggest cost category, making up 30% of overall expenditure. The expenditure more than doubled from ₹30.1 crore in FY25 to ₹72.2 crore in FY26. The cost on testing and diagnostic material rose by 40% to ₹42.9 crore. 

Other major expense categories were claims contract costs, which rose to ₹35.8 crore, and marketing and advertising, which held steady at ₹34.4 crore. The additional cost is ₹55 crore due to overheads including IT, legal, professional fees, research and development, and rent.

This rise in cost affected the bottom line, as the losses before tax increased 11% on YOY to ₹97 crore in FY26. The company also recorded deferred tax expense of ₹49 crore, further increasing its total loss to ₹146 crore. EBITDA loss was reported at ₹92.4 crore with an EBITDA margin of -66.68% at the operational level. Still, Orange Health said it has posted 20 per cent EBITDA profit in the Bengaluru market.

On March 31, 2026, Orange Health had total current assets of ₹55 crore, comprising cash and bank balances totaling ₹4.5 crore. The startup is seeking an additional $30 million in fresh capital, with earlier investments coming in at a $12 million round headed by Amazon Sambhav Venture Fund and a $25 million Series B round led by General Catalyst and Bertelsmann India Investments.

Its operations are also spread across competitive healthcare services, where Thyrocare achieved ₹829 crore in revenue for FY26 and made a profit of ₹163 crore in the same period, while Redcliffe Labs and Healthians generated revenues of ₹419 crore and ₹263 crore, respectively, for FY26.

Conclusion

Top-line results for FY26 were positive as Orange Health Labs secured 65% growth in operational revenues to ₹138.6 crore, driven by robust service demand and network expansion. The loss before tax of ₹97 crore and the unit spend at ₹1.73 per rupee earned were caused by cost pressures in employee benefits, diagnostic materials, and regional expansion.

Operational efficiency will still be a key point of focus for the future financial trajectory as the company continues to raise additional capital and ensure profitability in the local market.