VIJAYA - Vijaya Diagnostic Centre Limited Share Price

Management provided an optimistic outlook during the earnings call on November 4, 2025, reflecting significant operational successes and future expansion plans. Ms. Suprita Reddy, the Managing Director, highlighted that the consolidated revenue for Q2 FY'26 was Rs.202 crores, marking a 10.2% growth year-on-year and a 7.2% growth quarter-on-quarter, largely driven by an 8.3% increase in test volume. The half-yearly consolidated revenue reached Rs.390 crores, with a year-on-year growth of approximately 15%.

Key highlights included:

• EBITDA margins stood strong at 40.6%, with a PAT margin of 21.5%.
• The company commenced Q3 FY'26 positively, reporting an increase in footfalls and revenue across its network.
• The approval for the merger with Medinova Diagnostic Services Limited was secured, effective April 1, 2024.
• Break-even was achieved at the Yelahanka Hub Centre within just two quarters, with plans for a flagship centre in Bannerghatta, Bengaluru, featuring advanced facilities, including a state-of-the-art automated lab.

Management reiterated their commitment to growth, offering a guidance of a 15% CAGR over the next three years and reaffirming an EBITDA margin target around 39%-40% for the current fiscal year. They projected to launch several new hubs across locations in the coming quarters, aiming for continued robust performance despite temporary industry challenges.

1. Question from Nancy Yadav:
"Could you just tell me the net debt or net cash number for September end?"

Answer:
As of September 30, 2025, we have a surplus cash balance of around Rs. 235 crores, excluding the deferred capital creditors' balance. The actual cash balance stands at approximately Rs. 295 crores.

2. Question from Anshul:
"While this is a seasonally strong quarter... anything particular to call out in the current quarter why our performance has sort of dipped?"

Answer:
The muted growth can be attributed to three main factors: the continuous rains leading to lower incidence of monsoon-related diseases, the early onset of the festive season disrupting footfalls, and a high base of 23% growth from last year. However, we maintain a positive outlook for Q3 with increased footfall.

3. Question from Aksha:
"What has been the growth rate on an organic basis and inorganic basis?"

Answer:
Our reported growth of 10.2% is entirely organic. If we exclude the impact from the recent acquisition, we observe approximately 50 basis points more growth on a standalone basis. This indicates our core business remains strong, with substantial contributions from organic growth.

4. Question from Krishna Raj:
"What is Vijaya doing different compared to peers that we have a higher number in revenue per patient?"

Answer:
Our advantage lies in being a 95% B2C company with a strong mix of radiology and pathology at a 60:40 ratio. Most national players focus more on B2B samples. This direct engagement with patients ensures a higher revenue per patient, as we're providing quality diagnostics directly to consumers.

5. Question from Abdulkader Puranwala:
"Are we holding on to the 17%-18% top line growth and EBITDA margin guidance of 38%-39% for the full year?"

Answer:
Yes, we reaffirm guidance of 15% CAGR over the next three years. While we anticipate fluctuations in quarterly growth rates, our long-term strategy is geared towards maintaining a comfortable 15% growth. Our EBITDA margins have also surpassed initial guidance and are likely to remain around 39% for the financial year.

6. Question from Deven:
"Can you share any numbers on how the new hub centers in Pune are ramping up?"

Answer:
In Pune, we expect new hubs to break even within 10 months, with the older centers stabilizing as we streamline operations. Although there was a slight revenue dip recently, we remain optimistic about significant growth in the coming quarters as we consolidate and expand our hub network in the region.

7. Question from Hitaindra Pradhan:
"Are you observing any cost related to the GST reform?"

Answer:
Our business is GST-exempt, and we've primarily focused on growth through volume rather than price increases. While we've faced rising input costs, particularly related to advanced radiology, we have not adjusted our prices beyond a minimal 1%-2% increase historically to keep services affordable.

8. Question from Shivam:
"Have you finalized any numbers on how we are looking at the Bangalore market?"

Answer:
In Bangalore, we aim to establish around four to five hubs total. Currently, two hubs are operational, and we have finalized a flagship center at Bannerghatta, featuring advanced technology. This expansion reflects our commitment to strengthening our presence and capabilities in the Bangalore market.

Each answer captures key details while maintaining a concise format.