Vijaya Diagnostic Centre Q2 margin rises 355 basis points

Vijaya Diagnostic Centre Ltd. raised its Q2 FY27 earnings before interest, tax, depreciation and amortisation (EBITDA) margin to 44.1%, up 355 basis points from Q2 FY26, as EBITDA increased 37.8% to Rs 112.75 crore while revenue from operations grew 26.7% to Rs 255.39 crore.

How did Vijaya Diagnostic Centre expand its Q2 EBITDA margin?

Vijaya Diagnostic Centre expanded EBITDA margin to 44.1% in Q2 FY27 from 40.6% in Q2 FY26. EBITDA rose to Rs 112.75 crore from Rs 81.83 crore, exceeding the increase in revenue from operations to Rs 255.39 crore from Rs 201.56 crore.

The sequential comparison also showed a higher margin. Q2 FY27 EBITDA margin was 149 basis points above the 42.7% reported in Q1 FY27, when revenue was Rs 230.98 crore and EBITDA was Rs 98.54 crore.

For H1 FY27, Vijaya Diagnostic Centre reported EBITDA of Rs 211.29 crore, up 36.0% year on year, while revenue grew 24.8% to Rs 486.37 crore. Its first-half EBITDA margin therefore increased 357 basis points to 43.4% from 39.9% in H1 FY26.

Which costs grew more slowly than Vijaya Diagnostic Centre revenue?

Vijaya Diagnostic Centre's materials, employee and other expenses each grew more slowly than quarterly revenue in Q2 FY27. Cost of materials consumed rose 16.2% to Rs 28.26 crore, employee benefits expense increased 18.9% to Rs 38.35 crore, and other expenses rose 20.4% to Rs 76.03 crore, against revenue growth of 26.7%.

That cost pattern accompanied a 28.1% increase in gross profit to Rs 227.12 crore from Rs 177.24 crore. Gross profit margin rose 100 basis points to 88.9% from 87.9% in Q2 FY26 and was nearly unchanged from the 88.9% reported in Q1 FY27.

Below EBITDA, depreciation and amortisation increased 20.8% to Rs 26.90 crore, while finance costs rose 45.4% to Rs 11.38 crore. Other income declined 20.8% to Rs 4.95 crore from Rs 6.25 crore, but earnings before interest and tax still increased 38.0% to Rs 90.80 crore.

Profit after tax, or PAT, rose 37.4% to Rs 59.47 crore from Rs 43.28 crore, and PAT margin increased 181 basis points to 23.3%. Tax expense increased 35.7% to Rs 19.94 crore, while the profit and loss statement recorded no exceptional items or minority interest in either Q2 FY27 or Q2 FY26.

Did testing activity support Vijaya Diagnostic Centre revenue growth?

Vijaya Diagnostic Centre reported 4.98 million tests in Q2 FY27, 16.5% above Q2 FY26, while footfalls increased 14.5% to 1.37 million. Management said existing centres grew by approximately 20% and newer centres continued to ramp up during the quarter.

Revenue per test increased to Rs 513 from Rs 471 in Q2 FY26 and Rs 503 in Q1 FY27. Revenue per footfall reached Rs 1,865, compared with Rs 1,685 a year earlier and Rs 1,860 in the preceding quarter.

Tests per footfall were 3.64 in Q2 FY27, up from 3.57 in Q2 FY26 but below 3.70 in Q1 FY27. The quarter therefore combined higher test volumes and higher revenue per test with a sequential reduction in tests per customer visit.

For H1 FY27, tests rose to 9.57 million from 8.22 million and footfalls increased to 2.61 million from 2.30 million. Revenue per test was Rs 508, compared with Rs 474 in H1 FY26, while tests per footfall increased to 3.67 from 3.58.

What did Vijaya Diagnostic Centre's revenue mix show?

Vijaya Diagnostic Centre reported pathology at 63% of Q2 FY27 revenue and radiology at 37%. The mix shifted by one percentage point from Q2 FY26, when pathology was 62% and radiology was 38%, while it was unchanged from Q1 FY27.

Business-to-consumer, or B2C, revenue accounted for 92% of Q2 FY27 revenue, unchanged from Q2 FY26 and Q1 FY27. B2C revenue was also 92% in both H1 FY27 and H1 FY26, indicating no disclosed change in the channel share alongside the 26.7% quarterly revenue increase.

Wellness accounted for 14.5% of Q2 FY27 revenue, compared with 14.4% in Q2 FY26 and 14.8% in Q1 FY27. Vijaya Diagnostic Centre reported wellness growth of 27.1% year on year in Q2 FY27 and 27.4% in H1 FY27, citing wellness testing demand among younger people, digital promotions, home testing and faster report turnaround times.

Hyderabad contributed 67% of Q2 FY27 revenue and RoAPT contributed 20%, followed by Pune and West Bengal at 5% each and other markets at 3%. In H1 FY27, Hyderabad and RoAPT remained at 67% and 20%, while Pune was 6% and West Bengal was 4%.

What expansion milestones has Vijaya Diagnostic Centre disclosed?

Vijaya Diagnostic Centre had commissioned two hubs and seven spokes during FY27 through Q2, with 168 centres reported in Q2 FY27. Management said it expects to commission another three hubs and seven spokes in H2 FY27, followed by three additional hubs in Q1 FY28.

During Q2 FY27, Vijaya Diagnostic Centre entered into a Business Transfer Agreement to acquire Arya Wellness Centre in Guwahati, Assam. Management described the transaction as its entry into the North-East and said it would provide a platform to establish a presence in Guwahati and explore further regional opportunities.

Vijaya Diagnostic Centre also inaugurated a flagship hub in JP Nagar, Bengaluru, in the second week of July 2026 as part of its organic Bengaluru expansion strategy. The hub covers more than 10,000 square feet and includes a Wide Bore 3T MRI and a digital PET system with a 160-slice cardiac CT.

Conclusion

Vijaya Diagnostic Centre's Q2 FY27 results show EBITDA and PAT growing faster than revenue, with EBITDA margin reaching 44.1% as materials, employee and other expenses increased at lower rates than revenue. Higher tests, footfalls and revenue per test accompanied the profitability improvement, while B2C revenue stayed at 92% and the pathology-radiology mix changed by one percentage point year on year.

The next disclosed operational milestones are three hubs and seven spokes planned for H2 FY27 and three more hubs planned for Q1 FY28. Management's intended Guwahati entry through the Arya Wellness Centre agreement, the ramp-up of newer centres and Pune's reported double-digit growth are matters to watch in subsequent volume, revenue and margin disclosures.