VIJAYA - Vijaya Diagnostic Centre Limited Share Price

The management of Vijaya Diagnostic Centre Limited provided a strong outlook during the earnings conference call held on May 8, 2026. They highlighted a significant milestone with revenues surpassing INR 800 crores, marking a year-on-year growth of approximately 26.5% in Q4 FY'26, supported by an 18.5% increase in volume. The year also showcased an impressive revenue CAGR of 17% over the past five years, exceeding their previous guidance of 15%.

Key forward-looking points included plans for FY'27, where management aims to commission 4 to 5 hubs and 10 to 12 spokes, alongside the establishment of an automated lab in Hyderabad. They projected a capital outlay for new centers, including this lab, of INR 140 crores to INR 150 crores, reflecting a commitment to expanding their network.

Additionally, the management emphasized the introduction of advanced Genomic Testing as part of their specialized diagnostic offerings, although they noted it would be a long-term growth avenue. They remain focused on enhancing operational productivity and turnaround times, expecting to maintain a strong EBITDA margin above 40%, despite continuous investments into technology and talent.

Overall, the management expressed confidence in building on current momentum and creating long-term value for stakeholders, with continuous network expansion and strong operational execution as key drivers.

Major Questions and Answers from Q&A Section of Earnings Transcript

1. Question from Surya Patra:
"Since it is the fourth quarter, very consistent performance has been observed in case of the wellness segment wherein, consistently around 30% growth that has been maintained. What would be the mix between pathology and radiology when we talked about wellness?"

Answer from Siva Rama Raju:
All our packages combine pathology and radiology, typically around a 50-50 mix. This applies to both corporate and retail wellness. The trend reflects clients requesting a blend of tests for comprehensive health assessments.

2. Question from Surya Patra:
"In terms of the growth in Hyderabad, which has reported around 20% growth, what factors contribute to this growth and how sustainable is it?"

Answer from Siva Rama Raju:
Hyderabad shows strong growth due to favorable seasons and our enhanced market share. Our strategic focus on quality services, an expanded network, high-end technology, and competitive pricing enables us to sustain double-digit growth even in a mature market.

3. Question from Surya Patra:
"Could you elaborate on the capex for FY'27 given the geographical diversification and growing cash flows?"

Answer from Siva Rama Raju:
Our capex guidance for FY'27, including new hubs and spokes, is around INR 140-150 crores. This sum accounts for executed leases and reflects our commitment to continuing expansion while capitalizing on operational cash flow improvements.

4. Question from Surya Patra:
"Is there potential for premiumization and growth in genomics?"

Answer from Siva Rama Raju:
Genomics is a long-term strategy. While immediate revenues won't be significant, we're expanding specialized testing as demand grows. Our focus remains on driving volume through established services for the next 2-3 years.

5. Question from Rajat Baldewa:
"What specific cost levers drove the margin outperformance to 43.5% in Q4?"

Answer from Siva Rama Raju:
The margin improvement is driven by significant operational leverage from revenue growth, especially in Hyderabad, plus faster breakeven of new hubs. We're confident in maintaining margins above 30% while investing in growth.

6. Question from Anshul Agrawal:
"What are the cash deployment plans considering the healthy cash balance?"

Answer from Suprita Reddy:
We remain open to inorganic growth aligned with our values. We assess numerous opportunities annually. Our focus is primarily on strengthening existing operations, but if the right acquisition appears, we would pursue it.

7. Question from Akshaya Shinde:
"How have the hubs in Kolkata progressed in terms of growth and profitability?"

Answer from Siva Rama Raju:
In Kolkata, established centers have shown strong growth, with new hubs breaching breakeven in under 9 months. We anticipate continued robust growth given enhanced brand presence and network density.

8. Question from Rishi Mody:
"What progress have you made on tech investments, especially in AI?"

Answer from Siva Rama Raju:
We're enhancing our tech stack, including ongoing investments in CRM, ERP, and AI systems, which facilitate customer service. We're cautiously integrating AI solutions after thorough validation to ensure quality and compliance.

9. Question from Dr. Kartick Bane:
"When was the last price hike, and when do you plan the next one?"

Answer from Dhiren Gala:
We last increased prices in Q1 of FY '26 by approximately 1-1.5%. We'll consider a similar adjustment around Q1 or Q2 this year based on market conditions, though hikes are selective.

10. Question from Abin Benny:
"How are you tracking repeat customers in the wellness segment?"

Answer from Siva Rama Raju:
We've recently started tracking repeat customer metrics with our new systems. It requires time to analyze trends as customers may return every year or two, so we need more data before making solid assessments.

This summary encapsulates key inquiries and responses during the Q&A, highlighting the company's performance, future guidance, investment strategies, and market positioning.