Vijaya plans third Hyderabad flagship after western ramp-up

In Q2 FY '27, Vijaya Diagnostic Centre Limited planned a third Hyderabad flagship after western Hyderabad spokes ramped faster, as consolidated revenue rose 26.7% year on year to approximately Rs 255 crore. Management linked the local demand to residential and commercial development, including the information-technology and financial district.

Why is Vijaya planning a third Hyderabad flagship?

Vijaya is planning the third Hyderabad flagship because its spoke centers in western Hyderabad are seeing particularly strong traction and faster ramp-up. Management said residential and commercial development, including the area’s IT and financial district, is supporting demand, and the proposed center would have advanced diagnostic equipment and infrastructure.

The proposed facility would be Vijaya’s third Hyderabad flagship after Himayatnagar and Panjagutta. On the November 4, 2026 earnings call, management did not disclose its location, commissioning date, capacity or capital expenditure, meaning the plan remains an expansion proposal rather than an announced launch.

Hyderabad was Vijaya’s largest reported geography in Q2 FY '27, contributing 67% of consolidated revenue of approximately Rs 255 crore. The western expansion therefore adds capacity within the company’s biggest market, where management said the Hyderabad business grew by more than 20% year on year.

What does Q2 FY '27 growth show about demand?

Vijaya’s Q2 FY '27 revenue growth was supported by both higher testing volumes and changes in mix and tariffs. Consolidated revenue rose 26.7% year on year to approximately Rs 255 crore, while test volumes increased 16.5%; management attributed the balance of growth to a favourable test mix and revised Central Government Health Scheme, or CGHS, tariffs.

Existing centers grew 20% during the quarter, while centers opened in the preceding two years contributed the balance of revenue growth. This shows that the established network expanded alongside newer facilities, including the western Hyderabad spokes that management said were ramping faster.

Profitability rose faster than revenue in Q2 FY '27. Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 37.8% year on year to approximately Rs 113 crore from approximately Rs 82 crore, and EBITDA margin rose 350 basis points to 44.1%, which management attributed primarily to operating leverage.

Profit after tax, or PAT, rose 37.4% year on year to approximately Rs 59 crore, producing a PAT margin of 23.3%. For the half year ended September 2026, revenue increased 24.8% to approximately Rs 486 crore, while EBITDA rose 36% to approximately Rs 211 crore and PAT was approximately Rs 113 crore.

How important is Hyderabad to Vijaya’s revenue base?

Hyderabad contributed 67% of Vijaya’s Q2 FY '27 revenue, compared with approximately 20% from the rest of Andhra Pradesh and Telangana. Pune and West Bengal each accounted for 5%, while other geographies made up the remaining 3%, showing the concentration of the current revenue base in Hyderabad.

Hyderabad also outgrew Pune during the quarter. Management said Hyderabad revenue increased by more than 20% year on year, versus approximately 15.5% growth in Pune, where it reported healthy double-digit growth over the past three to four quarters.

Vijaya’s business-to-consumer, or B2C, model generated 92% of Q2 FY '27 revenue, while radiology accounted for approximately 37%. Revenue per test was Rs 513 and revenue per footfall was Rs 1,865, providing operating context for management’s plan to add a larger diagnostic facility with advanced equipment in western Hyderabad.

What is Vijaya’s hub and spoke rollout timetable?

Vijaya plans to launch eight hub centers and 14 spokes by Q1 FY '28. It commissioned two hubs and seven spokes in the first half of FY '27, including the flagship hub at JP Nagar in Bengaluru, and management expects three more hubs to be operational by March 2027.

The remaining three hubs are scheduled for Q1 FY '28. Management estimated capital expenditure, or CAPEX, of approximately Rs 155 crore to Rs 160 crore for the eight hubs and 14 spokes, but discussed the third Hyderabad flagship separately and did not say whether it is included in that range.

The rollout accompanies expansion beyond Hyderabad. Vijaya said newer centers in West Bengal were maturing as brand awareness rose, including in Krishnanagar and Diamond Harbour, while Pune’s improved performance led management to plan larger replacement facilities at Satara Road and Mayur Colony.

What other capacity investments is Vijaya making?

Vijaya expects its new Panjagutta central laboratory, fitted with an automated track system, to become operational in the next few months at estimated CAPEX of approximately Rs 20 crore. The company also completed the purchase of land in Kadapa, Andhra Pradesh, for approximately Rs 9 crore, where it plans to set up a hub within the next two years.

In Pune, Vijaya plans a Market Yard hub close to the existing Satara Road center, including a central laboratory serving the wider Pune network. Management put estimated CAPEX at approximately Rs 18 crore to Rs 20 crore, expects launch during FY '27, and said the relocation would ease capacity constraints at the congested existing site.

Vijaya has also finalised the purchase of a property near its Mayur Colony hub for approximately Rs 19 crore because the existing leased premises will be redeveloped. The replacement hub is expected in FY '28, while two computed tomography, or CT, machines have been upgraded to 160-slice cardiac CT systems in response to demand for complex CT examinations.

Management also expects to complete the acquisition of Arya Wellness Centre in Guwahati within two months of the November 4 call, subject to completion of conditions precedent under the business transfer agreement. The transaction, structured as a slump sale, would mark Vijaya’s entry into the Northeast region.

Conclusion

Vijaya’s planned third flagship reflects management’s reported faster ramp-up at western Hyderabad spokes within a market that supplied 67% of Q2 FY '27 revenue. The plan follows a quarter in which revenue grew 26.7%, test volume rose 16.5%, and existing centers increased revenue by 20%, alongside contributions from newer sites.

The next disclosures to watch are the third flagship’s site, cost, capacity and opening schedule, none of which management provided on November 4, 2026. Management has also scheduled three hubs for commissioning by March 2027 and another three in Q1 FY '28, expects the Panjagutta laboratory to start in the next few months, and targets Arya Wellness Centre transaction completion within two months.