Vijaya's Q1 margin slips sequentially despite 22.83% YoY revenue growth
Volume growth supported the YoY improvement, but faster sequential cost growth and higher interest expense moderated operating leverage.
Filed 06 Aug 2026, 20:33 IST · after market close · Vijaya Diagnostic Centre Ltd (VIJAYA)
Key takeaways
- Consolidated revenue grew +22.83% YoY, supported by nearly 16.5% volume growth, while operating margin expanded 3.56 percentage points.
- Sequentially, expenses grew +6.93% against +5.29% revenue growth, narrowing operating margin by 0.88 percentage points.
- Net profit rose +37.60% YoY, although other income contributed 12.02% of pre-tax profit and interest expense increased +46.86%.
Price around the results
Volume growth drives Q1FY27 expansion
Management said Q1 FY27 volume growth was nearly 16.5%, indicating that the revenue increase was primarily volume-led rather than dependent only on pricing. Sequential revenue growth was more measured at +5.29%, while net profit still increased +10.79%.
Sequential cost pressure offsets part of the margin gain
Year on year, expenses grew +15.65% versus +22.83% revenue growth, expanding operating margin by 3.56 percentage points. The sequential picture was less favourable: expenses rose +6.93% against +5.29% revenue growth, reducing margin by 0.88 percentage points. Interest expense also increased +18.03% sequentially and +46.86% YoY, while the 0.93 percentage-point YoY decline in the tax rate helped net profit growth. Other income accounted for 12.02% of pre-tax profit, so reported earnings included a meaningful non-operating contribution.
Margin trend pauses after four-quarter climb
Operating margin had risen from 39.10% in Q1FY26 through 40.60% in Q2FY26, 41.93% in Q3FY26 and 43.54% in Q4FY26 before easing to 42.66% in Q1FY27. This is a sequential pause in the upward trend, not a third consecutive quarter of decline. The margin remained 20.58 percentage points above the 22.08% median for 46 Healthcare peers that had reported the quarter.
Network expansion accompanies the volume increase
Management said the company commissioned four spokes across Hyderabad, Andhra Pradesh and Pune during the quarter. The company also said it opened a Gachibowli hub in Hyderabad with a 160-slice cardiac CT in April and commissioned its flagship Bengaluru hub in JP Nagar in July. Management said the Bengaluru centre includes a digital PET-CT with an integrated cardiac CT and a 75cm-wide-bore 3T Omega MRI.
No market reaction yet after the post-close filing
The results were filed after market close, so there is no post-results stock reaction to assess yet. In eight prior result reactions, the stock rose five times and fell three times, with a median absolute move of 5.86%, providing the relevant historical context for the eventual response.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹231 cr | ₹219 cr | +5.29% | +22.83% |
| Other income | ₹9 cr | ₹2 cr | +255.42% | +20.99% |
| Expenses | ₹132 cr | ₹124 cr | +6.93% | +15.65% |
| Operating profit | ₹99 cr | ₹96 cr | +3.16% | +34.01% |
| Operating margin (%) | 42.66% | 43.54% | — | — |
| Interest | ₹11 cr | ₹9 cr | +18.03% | +46.86% |
| Depreciation | ₹25 cr | ₹24 cr | +3.25% | +20.25% |
| Profit before tax | ₹71 cr | ₹64 cr | +10.38% | +35.87% |
| Tax | ₹18 cr | ₹16 cr | +9.18% | +30.98% |
| Net profit | ₹53 cr | ₹48 cr | +10.79% | +37.60% |
| EPS (₹) | ₹5.16 | ₹4.66 | +10.73% | +37.23% |
Operating margin of 42.66% compares with a Healthcare sector median of 22.08% across 46 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q1 FY27 volume growth was nearly 16.5%.
Expansion
- The company commissioned four spokes across Hyderabad, AP and Pune during the quarter.
- The company commissioned a hub centre in Gachibowli, Hyderabad, with a 160-slice cardiac CT in April.
- The company commissioned its flagship Bengaluru hub in JP Nagar in July.
New initiatives
- The new Bengaluru hub introduced a digital PET-CT with an in-built cardiac CT and a 75cm wide bore 3T Omega MRI.
What to watch
- Operating margin against the Q1FY27 level of 42.66% after the 0.88 percentage-point sequential decline.
- Expense growth against the +6.93% QoQ increase as the expanded network contributes to operations.
- Other income's 12.02% share of pre-tax profit and the 25.15% tax rate.