spent a few days on Vijaya Diagnostic
they run blood test labs and scan centres. MRI, CT, X-ray, ECG under one roof
started in Hyderabad, now in Andhra, Pune, Kolkata and Bengaluru too
92% of their sales come from people walking in themselves, not from hospitals or other labs
I read their May and August calls
₹1,437 now, in an uptrend since late May
went up to ₹1,559 in September
what happened in April–June
sales ₹188 Cr to ₹231 Cr, up 23%
profit ₹39 Cr to ₹53 Cr, up 36%
OPM 39% to 43%
1. more people coming in
tests done went up 16.5% on last year
the rest of the sales growth came from people doing more, and costlier, tests
"this strong revenue growth was again driven by test volume growth of 16.5% year-on-year. Balance growth was due to change in the test mix and increase in realization."
— Narasimha Raju, CFO, call of 7 August 2026
Hyderabad grew 17%. it’s 67% of their sales, so this matters most
centres there older than five years also grew in double digits
they say they’re taking customers from small local labs
sales went up every quarter, ₹156 Cr to ₹231 Cr in two years
2. most costs don’t move with sales
rent, machines, doctors and staff are most of the cost
test kits and chemicals are only about 11% of sales
"60% to 70% of our cost is coming from the fixed cost base. So most of these centres as we announced in the previous calls they’ve already achieved the break even."
— Narasimha Raju, call of 7 August 2026
OPM sat around 40% for years. last two quarters, 44% and 43%
3. last year’s new centres caught up fast
they opened 10 big centres (hubs) last year
most now cover their costs
Khammam and Nandyal did it in 2 quarters, they had said 3
the ones still losing money cost under ₹1 Cr a quarter
"But overall if you compare all the 10 hubs together, there is no burn as such because majority of the hubs have achieved break even."
— Dhiren Gala, head of corporate development, call of 7 August 2026
4. bigger bills per visit
a Vijaya customer spends about ₹1,860 a visit
a lab that only does blood tests gets ₹900–950, per the CFO
because people get scans done in the same visit, 3.7 tests each vs 2.5–3
health check-up packages people book themselves are now 15% of sales. before Covid, about 8%
and the packages are getting bigger
"early on the packages would probably end at an ultrasound 2D echo TMC. Now you are seeing packages go all the way from your basic urine blood investigations all the way up to whole body imaging."
— Suprita Reddy, managing director, call of 7 August 2026
5. not price
no price rise since June 2025, and that one was only in Hyderabad
so all of this came without charging more for the same test
The good and the bad
Hyderabad still growing 17%
their oldest city, and still the biggest piece
2 new hubs covered costs in 2 quarters, they’d said 3
Bengaluru’s big new hub only opened in July. too early for that one
₹271 Cr cash from the business on ₹173 Cr profit
year to March 2026. patients pay at the counter, so cash comes in fast
spending plan ₹140–150 Cr in May, ₹190–195 Cr in August
9 more hubs this year
they say the margin can take a 1–1.5% hit from these and stay above 40%
no price rise in over a year
in May they said 1–1.5% this year. in August, they’ll look at it again after September or December
Pune stuck at 6% of sales for over two years
Pune grew 18% in April–June. the whole company grew 23%
What did management say
on running the business, they deliver, sometimes early
on spending and price, the numbers keep moving
they do admit misses. on Pune in May:
"that was the only one guidance which did not happen according to our guidance, which we gave three years back"
— Siva Rama Raju, COO, call of 8 May 2026
and on price, the August call:
"The last price hike which we had taken was in the month of June 2025 where it was restricted to Hyderabad across select tests."
— Dhiren Gala, call of 7 August 2026
P/E 79, usual level about 62
what I’m checking next
the 9 new hubs
₹190–195 Cr this year, about 70% of last year’s cash from the business
last time they opened 6 hubs in one quarter, OPM dropped to 39% for that quarter
this time they say the openings are spread out
OPM above 40% while these open, I’m fine
sales growth under 15% and OPM under 40% for two quarters, I’ll be worried
July–September results are next. last year that was their slowest quarter, sales up just 10%
anyone used a Vijaya centre outside Hyderabad?
The 90-second video
that’s it from me, see you tomorrow
— Roshan, Sector Alpha
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Prices as of 9 October 2026 · results to Apr–Jun 2026 · business analysis from 22 August 2026
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