Vijaya Diagnostic Q1 FY27: Strong Growth, Higher Margins, and a Bigger Expansion Agenda

Vijaya Diagnostic Centre opened FY27 with a strong quarter. Consolidated revenue from operations for Q1 FY27 stood at INR 231.0 crore, up 22.8% year on year. Profitability expanded faster than revenue, with EBITDA at INR 98.5 crore and an EBITDA margin of 42.7%. Profit after tax came in at INR 53.1 crore, translating into a PAT margin of 23.0%.

The growth mix in Q1 FY27 leaned on both volumes and realisations. Test volumes rose 16.5% year on year, while footfalls increased 12.7% to 1.24 million. Revenue per test improved to INR 503 and revenue per footfall rose to INR 1,860, indicating that mix and pricing discipline contributed alongside higher throughput.

Volumes rose, but the margin story stood out

Operationally, Vijaya performed 4.59 million tests in Q1 FY27, compared with 3.94 million in Q1 FY26. Tests per footfall were steady at 3.70. The company continues to be a B2C-focused diagnostics chain, with B2C revenue holding at 92% in Q1 FY27.

The company’s integrated model remained stable in revenue mix. In Q1 FY27, pathology contributed 62.8% of revenue and radiology contributed 37.2%. The presentation and management commentary positioned this balance as a core strength: radiology pulls high-end walk-ins and prescription demand, while pathology scales as hubs mature and central labs improve processing and turnaround.

Cost trends in the P&L show controlled operating leverage. Employee benefits expense grew 18.6% year on year, while other expenses rose 12.8%. With gross margin at 88.9%, incremental volumes and higher realisation flowed meaningfully into EBITDA.

Hyderabad remains dominant, but newer markets are scaling

The geographical revenue mix shows that Vijaya is still anchored in its core market. Hyderabad contributed 67% of Q1 FY27 revenue, while rest of AP and Telangana contributed 20%. Pune contributed 6%, Kolkata 4%, and other geographies 3%.

Management commentary on the call underscored that Hyderabad continues to grow at a healthy pace even on a large base. The CFO stated Hyderabad revenue grew 17% year on year. Pune also delivered 18% growth year on year for the quarter.

This pattern matters because it reduces the risk that growth is driven only by new centre additions. Management also disclosed that mature centres grew 16% in Q1 FY27, while new centres contributed about 6% to 6.5% of revenue for the quarter on a year-on-year basis.

At the same time, the company’s ambition is clearly to replicate the hub-and-spoke density model in newer geographies. Bengaluru, Pune, and Kolkata have been the focus markets for building metro-scale hub capacity.

Expansion plan: 9 hubs, 10 to 12 spokes, and higher FY27 capex

The most decisive message from management was the next phase of expansion. Vijaya plans to commission 9 hub centres and 10 to 12 spoke centres in the next 12 months. In Q1 FY27, it commissioned a hub centre in Gachibowli, Hyderabad, and the company also inaugurated a flagship hub in Bengaluru at JP Nagar in July 2026.

Management disclosed specific capex for the two recently commissioned hubs:

• The JP Nagar Bengaluru hub had an estimated capex of about INR 30 crore. It includes advanced imaging capabilities such as a wide-bore 3T MRI and a digital PET-CT with in-built cardiac CT, and it houses a full-fledged automated lab that will serve as the central lab for Bengaluru.
• The Gachibowli Hyderabad hub had an estimated capex of about INR 9 crore and includes a 160-slice cardiac CT along with other radiology services.

For FY27, the company guided overall capex of approximately INR 190 crore to INR 195 crore. Management stated this includes the commissioning of planned hubs and spokes, the setup of a state-of-the-art Panjagutta reference laboratory, and a planned land purchase in a key medical hub location in Andhra Pradesh.

The land purchase is a notable change from a pure leasing approach. Management described it as a one-off decision driven by the inability to secure a leased location in a region where the company has been trying to open a centre for 6 to 7 years. The guided land investment was INR 8 crore to INR 10 crore, and management confirmed it is included in the capex estimate.

Margins amid expansion: management expects EBITDA above 40%

A key investor concern in any fast-expanding diagnostics network is margin sustainability. Vijaya’s Q1 FY27 EBITDA margin was 42.7%, despite the company having commissioned 10 hubs in the previous year.

On the call, management stated that operating leverage in existing clusters is playing out and is offsetting the drag from new hubs. The CFO indicated that the drag from the prior-year 10 hubs would have been roughly 0.5%. Management also quantified near-term losses from newer hubs: only 3 to 4 hubs are yet to reach break-even and the burn is around 0.5% of top line, with EBITDA loss in Q1 stated as less than INR 1 crore.

Management also reiterated confidence in sustaining EBITDA margin above 40% even with future expansion-related drag. The justification offered was a high fixed-cost structure at centre level and rapid absorption of those fixed costs once break-even is achieved.

Wellness: steady share, faster growth

Wellness packages remain a meaningful contributor. Wellness share was 14.8% of revenue in Q1 FY27. The presentation highlighted wellness YoY growth of 27.7% in Q1 FY27 and 25.6% in FY26.

Management attributed growth to higher awareness among younger customers, adoption in tier-2 and tier-3 markets, and customer preference for faster turnaround times and the convenience of home testing. Importantly, management stated that this is not driven by aggressive upselling or deep discounting. They indicated that discounts are limited, with roughly 20% being the highest discount. For context, management mentioned that an angio-based package could be priced around INR 8,000 to INR 10,000.

The company also pointed to upgrades in newer hubs, where packages can extend beyond basic investigations to include advanced imaging such as CT and MRI.

Technology and AI: selective adoption in radiology workflows

Vijaya continues to position technology as a differentiator. The presentation showcased AI use cases such as automated stone detection and 3D localisation for CT KUB reporting, and AI-powered dental diagnostics for 2D and CBCT scan analysis.

On the call, management stated that AI tools are implemented only after testing, validation and readiness for clinical use. They also stated that lifestyle and wellness packages include an AI-driven smart report alongside traditional reporting.

Management also addressed a question on healthcare data monetisation. They acknowledged having a large dataset but stated the company does not share patient data today and is uncertain about compliance requirements, indicating that any future approach would be driven by regulatory clarity.

What to track from here

Vijaya’s Q1 FY27 performance was led by consistent volumes, improving realisation and strong margins. The next 12 months, however, are primarily an execution story. The key moving parts are the commissioning of 9 hubs and 10 to 12 spokes, the rollout of the Panjagutta reference lab, and the ramp-up of newer geographies such as Bengaluru, Pune and Kolkata.

Management’s guidance suggests confidence that this expansion can be funded from a strong balance sheet and cash generation. The company reported strong operating cash flows in FY26 and has historically maintained a surplus cash position, while management on the call cited a surplus cash position of approximately INR 330 crore.

The quarter reinforces a clear theme: Vijaya is leaning into disciplined scale, using a hub-and-spoke model, advanced imaging capabilities, and a high B2C mix to protect margins while expanding into new clusters. The pace of hub ramp-up and the sustainability of above-40% EBITDA margins during FY27 capex deployment will be the most important markers for investors to monitor.