Vijaya Diagnostic Centre: A Robust Q3 FY26 Driven by Strategic Expansion and Operational Excellence

Vijaya Diagnostic Centre Limited has reported an exceptional performance for the third quarter of fiscal year 2026, marking its highest-ever quarterly revenue. The company achieved a consolidated revenue of INR 205.2 crore, reflecting a robust 21.4% year-on-year growth. This impressive financial outcome, coupled with a healthy EBITDA margin of 41.9% and a profit after tax (PAT) margin of 21%, underscores the company's strong execution and resilient integrated business model. The management highlighted that this growth was particularly notable given that Q3 is traditionally impacted by festive and seasonal softness, yet revenues surpassed Q2 in absolute terms.

The growth drivers were well-distributed across both radiology and pathology segments. Radiology benefited significantly from strong execution and strategic hub expansions, with the Vijaya brand gaining considerable traction in new geographies. The pathology segment's growth was primarily fueled by the burgeoning wellness segment, driven by increasing demand for preventive health services, favorable seasonality, and ongoing network expansion. The acquired PH segment also contributed positively, registering an 8% year-on-year growth, mainly due to network expansion. Geographically, Hyderabad remained a dominant contributor at 68% of revenue, followed by Rest of AP and Telangana at 19%, Pune at 6%, West Bengal at 3%, and other geographies at 4%.

Vijaya Diagnostic Centre's strategic expansion initiatives have been a cornerstone of its success. The company successfully commissioned two new hub centers in Phoolbagan and Diamond Harbour in West Bengal during the second week of December 2025, expanding its hub footprint in the state to seven. Notably, two hubs launched in Q1 FY26 in West Bengal, Krishnanagar and Barasat, achieved breakeven within just three quarters, significantly ahead of the projected one-year timeline. This rapid breakeven highlights the strong demand for quality integrated diagnostic services in these new regions. Additionally, two new hubs were commissioned in core markets of Khammam and Nandyal in October 2025, reinforcing the company's commitment to making world-class diagnostic services more accessible in Tier 2 and Tier 3 geographies.

Beyond physical expansion, the company has also focused on strengthening its leadership team to drive the next phase of growth. Key strategic hires include a new Chief Financial Officer, Chief Operating Officer, Chief Technology Officer, and Lab Director. These additions are expected to bolster financial governance, improve operational efficiency, and support future M&A initiatives. Management emphasized that building the right leadership and capabilities is crucial for sustained success. The company's focus areas moving forward include stabilizing newly launched hubs, commissioning multiple spokes across its network, continued investment in the latest technology to enhance customer experience, and building strong brand equity in new geographies.

Looking ahead, Vijaya Diagnostic Centre is well-positioned for continued growth. The company anticipates a capex outlay of INR 100 crore to INR 120 crore for new centers in FY27, with plans to add approximately 4 to 5 hubs and 10 to 12 spokes. Spokes are expected to contribute INR 1.5 crore to INR 2.5 crore in revenue at maturity, typically within 1.5 to 2 years. The wellness segment, which has grown from 8% of revenue pre-COVID to 15% currently, is expected to continue its upward trajectory, driven by increasing health consciousness and corporate wellness packages. The company's integrated business model, coupled with its strategic expansion and focus on customer experience through digital initiatives, reinforces its position as a leading player in the diagnostic healthcare sector.