Synopsis: The company’s share surged after reporting strong Q4 FY26 results, supported by EBITDA margin expansion, healthy diagnostic volumes, operational efficiency, and a growing focus on AI-led diagnostics.
The shares of this company, a leading Hyderabad-based integrated diagnostic chain in India specialising in high-end radiology (PET-CT, 3T MRI) and laboratory services, came into focus after it posted strong Q4 numbers.
With a market capitalization of Rs 12,831 crore, Vijaya Diagnostic Centre Ltd’s shares on Friday made a day high of Rs 1,298.75 per share, up by 7.4 percent from its previous day’s close of Rs 1,208.85 per share. The share of the company has given a 100 percent return over the last five years.
Results highlights
QoQ View: Revenue from operations increased by around 6.8 percent from Rs 205 crore in Q3 FY26 to Rs 219 crore in Q4 FY26, indicating improved business momentum. EBITDA grew by nearly 11.6 percent from Rs 86 crore in Q3 FY26 to Rs 96 crore in Q4 FY26, reflecting better operating efficiency and margin expansion. Profit after tax also rose by about 11.6 percent from Rs 43 crore in Q3 FY26 to Rs 48 crore in Q4 FY26.[screener]
YoY View: Revenue from operations increased by around 26.4 percent from Rs 173.24 crore in Q4 FY25 to Rs 219 crore in Q4 FY26. EBITDA rose by nearly 39.4 percent from Rs 68.86 crore in Q4 FY25 to Rs 96 crore in Q4 FY26, supported by improved operational performance. Profit after tax also registered healthy growth of about 37.1 percent, increasing from Rs 35 crore in Q4 FY25 to Rs 48 crore in Q4 FY26.
Fiscal year comparison: revenue from operations rising by around 19.5 percent from Rs 681 crore in FY25 to Rs 814 crore in FY26. EBITDA increased by nearly 23.3 percent from Rs 273.22 crore in FY25 to Rs 336.94 crore in FY26, while EBITDA margin improved from 40.1 percent in FY25 to 41.4 percent in FY26.
Profit after tax also grew by about 20.3 percent from Rs 143.79 crore in FY25 to Rs 172.98 crore in FY26. Meanwhile, PAT margin remained stable at 21.2 percent in both FY25 and FY26.
Q4 Business Highlight
- Strong Growth in Test Volumes The company reported healthy operational momentum in Q4 FY26, with total tests conducted rising by 18.5 percent YoY from 3.79 million in Q4 FY25 to 4.49 million in Q4 FY26. The growth was supported by strong demand across both pathology and radiology segments along with network expansion across key markets.
- Footfall Expansion Across Network Total footfall increased by 15.8 percent YoY from 1.05 million in Q4 FY25 to 1.21 million in Q4 FY26, reflecting improving customer additions and higher patient engagement across centres. The company’s continued focus on expanding hubs and spokes also contributed to stronger volumes during the quarter.
- Improvement in Realizations and Efficiency Average realization per test improved by 6.8 percent YoY from Rs 457 in Q4 FY25 to Rs 488 in Q4 FY26, while average realization per footfall increased by 9.3 percent YoY to Rs 1,808. The improvement indicates a better service mix, operational efficiency, and increasing contribution from specialised diagnostics.
- Expansion and Technology-Led Growth The company continued to strengthen its expansion strategy during the quarter, with Khammam and Nandyal hubs achieving break-even within two quarters and the Ambegaon hub in Pune turning profitable within one year. Additionally, the company is increasing its focus on AI-led diagnostic solutions and plans to add 4–5 hubs and 10–12 spokes in FY27.
Conclusion
The company delivered a strong Q4 FY26 performance, supported by healthy growth in diagnostic volumes and margin expansion. EBITDA margin improved to 43.5 percent in Q4 FY26 from 39.8 percent in Q4 FY25, driven by better operational efficiency, improving realizations, and strong traction across pathology and radiology segments.
Management also highlighted its growing focus on AI-led diagnostic solutions to improve workflow efficiency and diagnostic accuracy. The company is currently deploying AI tools in urology and dental diagnostics while exploring expansion into additional segments, alongside plans to strengthen its network with new hubs, spokes, and automated laboratory infrastructure in FY27.
About the company
Vijaya Diagnostic Centre Limited (Vijaya), is one of India’s largest integrated diagnostic chains, providing one-stop solution for pathology and radiology investigations through an extensive operational network spanning 160+ diagnostic centres and 30 reference laboratories in 27 cities and towns spread across Telangana, Andhra Pradesh, Maharashtra, Karnataka, NCR and West Bengal. The company offers comprehensive diagnostic services ranging from basic pathology to high-end radiology.
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