Vijaya Diagnostic Centre announced a record quarterly performance for Q3 FY26, achieving consolidated revenue of approximately ~INR 205 crores, marking a 21.4% YoY growth. This was driven by a 14.7% YoY volume growth. The company noted robust execution across both Radiology and Pathology, with EBITDA margins remaining strong at 41.9%. Management also highlighted successful early breakevens for recently launched hubs.
Q3 FY26 Performance Highlights
Vijaya Diagnostic Centre reported its highest-ever quarterly revenue for the third quarter of FY26 (ending December 31, 2025), achieving ~INR 205 crores. This represents a significant year-on-year (YoY) revenue growth rate of 21.4%. The growth was strongly underpinned by a 14.7% YoY increase in test volume, with the remaining growth attributed to favorable test mix changes.
Profitability and Operational Efficiency
EBITDA for the quarter stood at ~INR 86 crores, reflecting a YoY growth rate of 28.2%. The EBITDA margin remained healthy at 41.9%, improving by 221 basis points YoY. Profit After Tax (PAT) for Q3 FY26 reached ~INR 43 crores, demonstrating a 22.3% growth, resulting in a PAT margin of 21%.
Nine-Month Financial Summary
For the first nine months of FY26, consolidated revenue grew 17.1% YoY to ~INR 595 crores. EBITDA for this period reached INR 241 crores (18.1% YoY growth), with an EBITDA margin of 40.6%. PAT for the nine months was INR 125 crores (21% margin).
Business Segment Insights
Management highlighted the resilience of the integrated model, with balanced growth across both Radiology and Pathology. B2C revenue accounted for 92% of total revenue. The core Hyderabad market saw growth close to 15% YoY, driven by favorable seasonality and incremental market share gains in the Pathology segment.
Geographic Contribution (Q3 FY26)
- Hyderabad: 68%
- Rest of AP and Telangana: 19%
- Pune: 6%
- West Bengal: 3%
- Rest of Geographies: 4%
Network Expansion and Capital Outlook
The company reported successfully commissioning two new hubs in West Bengal (Phoolbagan and Diamond Harbour) and two new hubs in core markets (Khammam and Nandyal) during the quarter. Notably, two hubs launched in Q1 FY26 in West Bengal achieved breakeven within just 3 quarters, ahead of the guided timeline.
For the full year FY26, the total capex outlay to date stands at INR 159 crores. The estimated capex for the new centers in FY27 is projected to be between INR 100 crores to INR 120 crores. Expansion focus for FY27 includes adding approximately 4 to 5 hubs and 10 to 12 spokes.
Wellness Segment Growth
The Wellness segment showed sustained traction, growing robustly. Wellness revenue, which stood at 8% pre-COVID, has now reached 15% of total revenue. Management expects this segment to continue growing, potentially moving north of 20% share in the future, irrespective of hub or spoke expansion, due to specialized health checkups.
Q&A Key Takeaways
Hub Maturity and Returns
New spokes in non-core regions are expected to reach positive EBITDA contribution in the third or fourth quarter, with maturity expected around 18 to 24 months. Spoke revenue potential at maturity in newer regions is estimated between INR 1.5 crores to INR 2.5 crores.
Cash Position and M&A
Net surplus cash as of December 31, 2025, was INR 260 crores. Management confirmed that M&A remains an option, provided the asset is B2C in nature, in a comfortable geography, and the valuation is reasonable.
Competitive Environment
Regarding competition, management stated that organized pathology chains venturing into radiology have only been seen initiating pilots in their home geographies. Vijaya believes its integrated model, particularly its specialized radiology work (like second opinions), provides a significant moat and faster breakeven cycles, even in newer regions.
Source: BSE
