IKS Health expects TrueBridge to start contributing from September quarter

An Indian technology-enabled healthcare solutions provider, Inventurus Knowledge Solutions, widely known as IKS Health, expects its acquisition of TrueBridge to start contributing to earnings from the second quarter of the financial year 2026-27 (FY27), with the company targeting more than $300 million in earnings before interest, taxes, depreciation, and amortisation (EBITDA) by 2029-30 (FY30) as it integrates the acquired business and reduces debt.

Nithya Balasubramanian, Chief Financial Officer of the company, said the transaction closed ahead of schedule and will contribute around 80 days of financials in the July-September quarter of 2026-27, while nearly nine months of

TrueBridge's performance will be reflected in the company's 2026-27 results. The company also plans to reduce leverage over the next four years by extracting operational and cost synergies.

Balasubramanian added that almost nine months of TrueBridge's financials would be reflected in 2026-27.

The acquisition, completed for an enterprise value of $557 million, was funded through a $611 million loan from a consortium of three banks, taking leverage to around 3x.

The company has set 2029-30 financial targets centred on growth and deleveraging.

IKS Health, which has a market capitalisation of ₹33,129 crore, has seen its shares gain more than 22% over the past year.

She added that IKS Health also aims to bring net debt back to 2025-26 levels by 2029-30.

The integration is expected to temporarily lower margins because TrueBridge operates at lower profitability than IKS Health. The combined entity is expected to report EBITDA margins of around 26% initially before improving to the early-to-mid 30% range over the longer term through operational efficiencies, a better onshore-offshore workforce mix and cost synergies.

The company also plans to increase investment in technology and artificial intelligence. Balasubramanian said spending on research and development, currently around 5% of revenue, is expected to rise as the company invests in TrueBridge's electronic health record (EHR) platform and

artificial intelligence (AI) capabilities.

IKS Health does not sell AI as a standalone product but uses technology to improve customer outcomes, she said, adding that automation across front-office, mid-office and back-office functions will continue to increase as the company scales its technology platform.

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