Vijaya plans Rs 155-160 crore network buildout by Q1 FY28

Vijaya Diagnostic Centre Limited plans to complete eight hub centres and 14 spoke centres by Q1 FY28 for estimated capital expenditure of Rs 155-160 crore, after commissioning two hubs and seven spokes in H1 FY27. Management set out the timeline on its November 4, 2026 earnings call, alongside separate laboratory, Pune and Kadapa investments.

What is Vijaya’s network expansion plan by Q1 FY28?

Vijaya plans to launch eight hubs and 14 spokes by Q1 FY28, with estimated capital expenditure of Rs 155-160 crore for this network programme. Management did not provide a market-by-market allocation of this spending, but said the facilities would expand the network across its operating geographies.

The programme is larger than Vijaya’s historical annual pace of four to five hubs and eight to 10 spokes. The company opened 10 hubs in FY26, compared with four to five hubs in earlier years, and management linked the higher execution pace to a strengthened internal project team and faster ramp-up at newly opened centres.

Management said it expects to add a further four to five hubs in FY28 after completing the eight-hub programme through Q1 FY28. Those prospective additions include a third flagship diagnostic centre planned in western Hyderabad, where the company already operates its Himayatnagar and Panjagutta flagship facilities.

How far has Vijaya progressed on its hub and spoke rollout?

Vijaya had commissioned two hubs and seven spokes in H1 FY27, completing half of the 14-spoke target by the November 4, 2026 call. The completed hubs include a flagship centre at JP Nagar in Bengaluru, which management had highlighted during its prior earnings call.

Management expects three additional hubs to be operational by March 2027 and the remaining three hubs in Q1 FY28. Although Vijaya did not give a commissioning timetable for the seven spokes still to be opened, it said the full eight-hub and 14-spoke programme would be completed by Q1 FY28.

The completed first-half rollout occurred while existing centres delivered 20% growth, according to management. New centres opened in the preceding two years supplied the remaining contribution to Q2 FY27 revenue growth of 26.7%, alongside test-volume growth of 16.5%, a more favourable test mix and revised Central Government Health Scheme, or CGHS, tariffs.

What capital projects sit outside Vijaya’s main network plan?

Vijaya has identified additional spending outside the Rs 155-160 crore hub-and-spoke programme, including a Panjagutta central laboratory, Pune replacements and land in Kadapa. These projects total disclosed spending of Rs 66-68 crore, excluding the cost of two upgraded computed tomography, or CT, machines and future Kadapa hub construction.

The Panjagutta laboratory will use an automated track system and is expected to be operational in the next few months, with estimated capital expenditure of Rs 20 crore. Vijaya also upgraded two CT machines to high-end 160-slice cardiac CT equipment because management cited higher demand for complex CT examinations, but it did not disclose the equipment cost.

In Kadapa, a Tier-2 location in Andhra Pradesh, Vijaya completed a Rs 9 crore land purchase and plans to establish a hub within two years. Management did not disclose the capital cost of building or equipping the future Kadapa centre, so the Rs 9 crore figure covers the acquired land rather than the full project.

Why is Vijaya relocating and enlarging its Pune facilities?

Vijaya is investing Rs 37-39 crore in two Pune projects because its Satara Road hub is congested and its Mayur Colony leased premises is due for redevelopment. The Market Yard replacement hub will include a central laboratory for the whole Pune network, while the Mayur Colony replacement will occupy a purchased building nearby.

The Market Yard hub is close to the existing Satara Road centre and is expected to open in FY27 at estimated capital expenditure of Rs 18-20 crore. Management said the project would ease current capacity constraints and create headroom to serve a higher number of customers through a larger site and central laboratory.

Vijaya has finalised the purchase of a Rs 19 crore building near the Mayur Colony hub because the owner plans to redevelop the current leased property. The replacement hub is expected to be commissioned in FY28, with management describing the two Pune moves as investments in capacity, customer experience and diagnostic technology.

Pune’s operating trend informed the further investment: the geography recorded approximately 15.5% year-on-year revenue growth in Q2 FY27 and had posted double-digit growth for the preceding three to four quarters. Pune accounted for 5% of consolidated revenue in Q2 FY27, compared with Hyderabad’s 67%, while Hyderabad grew by more than 20% year on year.

How does Vijaya’s operating performance support its expansion plan?

Vijaya reported approximately Rs 355 crore of surplus cash in Q2 FY27, which management said gives it flexibility to pursue the stated expansion projects. The company also reported return on capital employed of about 25%, return on equity of about 20%, and cash profit after tax above 30%, without specifying cash allocated to individual projects.

Consolidated revenue reached approximately Rs 255 crore in Q2 FY27, up 26.7% year on year, while earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 37.8% to approximately Rs 113 crore. EBITDA margin increased 350 basis points to 44.1%, which management attributed primarily to operating leverage.

For H1 ended September 2026, revenue rose 24.8% to Rs 486 crore from Rs 390 crore in the prior-year period. EBITDA increased 36% to Rs 211 crore from Rs 155 crore, and the EBITDA margin was 43.4%; management said at least 20% revenue growth was achievable in FY27.

Management expects longer-term revenue growth above 15% over three to five years, primarily led by volume. It estimated that Q2 FY27 growth included 16.5% volume growth, a 4-5% benefit from test mix and approximately 3% from the CGHS tariff increase, while saying pricing was not expected to be the main long-term growth driver.

Conclusion

Vijaya’s disclosed programme combines an Rs 155-160 crore eight-hub and 14-spoke rollout with separately identified expenditure of Rs 66-68 crore on the Panjagutta laboratory, Pune projects and Kadapa land. The investments follow 26.7% Q2 FY27 revenue growth and extend capacity in Bengaluru, Pune, Hyderabad and Andhra Pradesh while adding a future platform in Kadapa.

The next operating milestones are three hub openings by March 2027, three more in Q1 FY28 and the FY27 launch of Pune’s Market Yard hub and central laboratory. Management also expects the Panjagutta laboratory to be operational within months, the Arya Wellness Centre acquisition in Guwahati to close within two months, and the Mayur Colony replacement hub to open in FY28.