Vijaya's Q4 margin expands as revenue growth outpaces costs
Revenue rose 26.63% YoY and operating margin reached 43.54%, while management said network volumes grew approximately 18.5%.
Filed 07 May 2026, 19:19 IST · after market close · Vijaya Diagnostic Centre Ltd (VIJAYA)
Key takeaways
- Consolidated revenue grew 26.63% YoY as expenses rose 18.66%, lifting operating margin by 3.79 percentage points.
- Consolidated net profit increased 37.49% YoY to Rs 47.93 cr despite interest costs rising 29.62%.
- The stock rose 5.86% on the results reaction day, broadly in line with its 6.62% median absolute move after the last eight results.
Price around the results
Revenue growth accelerated into a record Q4
Consolidated revenue rose 26.63% YoY and 6.91% QoQ, with operating profit growing faster at 38.72% YoY and 11.01% QoQ. Management said Q4FY26 revenue was its highest-ever quarterly revenue and that network volume growth was approximately 18.5%, led by pathology and radiology. It also said FY26 revenue crossed Rs 800 cr and delivered a 16.5% five-year CAGR, ahead of its long-term 15% guidance.
Operating leverage outweighed higher finance costs
Expenses grew 18.66% YoY versus 26.63% revenue growth and 3.94% QoQ versus 6.91% revenue growth, widening operating margin by 3.79 percentage points YoY and 1.61 percentage points QoQ. Interest costs rose 29.62% YoY and 8.50% QoQ, while depreciation increased 29.28% YoY, but the improvement in operating profit still lifted profit before tax by 35.68% YoY. The 0.98-percentage-point YoY decline in the tax rate also supported net profit growth; other income contributed 3.73% of pre-tax profit.
Margin has risen for three consecutive quarters
Operating margin improved from 39.10% in Q1FY26 to 40.60% in Q2FY26, 41.93% in Q3FY26 and 43.54% in Q4FY26, extending the recovery after the Q1 dip. The latest margin was 20.16 percentage points above the 23.38% median for 48 Healthcare peers that had reported the quarter. Management said FY26 EBITDA margins remained above its 40% guidance.
Expansion plans now meet a stronger market reaction
Management said Vijaya plans to add 4–5 hubs and 10–12 spokes in FY27, and reported that the Khammam and Nandyal hubs reached break-even within two quarters while Ambegaon did so within one year. It also said the company acquired PH, described as Pune's largest B2C integrated diagnostic chain. The stock rose 5.86% on the reaction day and 11.13% by the next observation, a broadly ordinary initial move against the 6.62% median absolute reaction after its past eight results.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹219 cr | ₹205 cr | +6.91% | +26.63% |
| Other income | ₹2 cr | ₹5 cr | -52.94% | -46.90% |
| Expenses | ₹124 cr | ₹119 cr | +3.94% | +18.66% |
| Operating profit | ₹96 cr | ₹86 cr | +11.01% | +38.72% |
| Operating margin (%) | 43.54% | 41.93% | — | — |
| Interest | ₹9 cr | ₹9 cr | +8.50% | +29.62% |
| Depreciation | ₹24 cr | ₹24 cr | -0.04% | +29.28% |
| Profit before tax | ₹64 cr | ₹58 cr | +10.39% | +35.68% |
| Tax | ₹16 cr | ₹15 cr | +8.57% | +30.62% |
| Net profit | ₹48 cr | ₹43 cr | +11.00% | +37.49% |
| EPS (₹) | ₹4.66 | ₹4.20 | +10.95% | +37.87% |
Operating margin of 43.54% compares with a Healthcare sector median of 23.38% across 48 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +5.86% | +6.48% |
| Next session | +11.13% | — |
| 5 sessions | +10.02% | +12.83% |
| 15 sessions | +2.72% | — |
| 30 sessions | +9.70% | — |
Volume on the results session was 6.50× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q4 FY26 volume growth was approximately 18.5% across the network, with momentum in pathology and radiology.
- The Khammam and Nandyal hubs reached break-even within two quarters, while Ambegaon reached break-even within one year.
Guidance & outlook
- FY26 revenue CAGR reached 16.5%, exceeding the company's long-term guidance of 15%.
- FY26 EBITDA margins remained above the company's 40% guidance.
Expansion
- Vijaya plans to add 4–5 hubs and 10–12 spokes in FY27.
- Vijaya acquired PH, Pune's largest B2C integrated diagnostic chain.
What to watch
- Whether operating margin holds above 43.54% after three consecutive quarterly increases.
- Whether network volume growth remains near the approximately 18.5% reported for Q4FY26.
- Progress against management's stated FY27 plan to add 4–5 hubs and 10–12 spokes.