Vijaya Diagnostic Centre has finalized the distribution of proceeds from the sale of fractional entitlements generated during its scheme of amalgamation with Medinova Diagnostic Services Limited. The company’s Audit Committee and Independent Directors certified on August 6, 2026, that net sale proceeds totaling ₹51,84,902.83 have been disbursed to eligible shareholders or held in escrow in compliance with Securities and Exchange Board of India (SEBI) regulations.

The certification addresses the resolution of fractional shares that emerged from the 22:1 share exchange ratio approved by the National Company Law Tribunal (NCLT), Hyderabad Bench. Under the scheme, Medinova shareholders received one Vijaya Diagnostic Centre equity share for every 22 Medinova shares held as of the record date on November 25, 2025. Allotments were issued on January 8, 2026. Fractional entitlements aggregating to 3,914 equity shares were consolidated and allotted to Catalyst Trusteeship Limited, the corporate trustee appointed by the Board, to hold in trust for eligible shareholders.

Vijaya Diagnostic Centre sold the 3,914 fractional shares on June 22, 2026, generating gross proceeds of ₹51,97,897.68 at an average price of ₹1,328.027 per share. After deducting expenses and applicable taxes amounting to ₹12,994.85, the net sale proceeds stood at ₹51,84,902.83. These funds were transferred to a separate account with HDFC Bank titled "Vijaya Diagnostic Centre Ltd-Fractional shares" specifically for distribution purposes.

Distribution was executed via banking mode on August 5, 2026. However, a significant portion of the funds could not be immediately disbursed due to incomplete or unavailable bank account details for certain eligible shareholders. Consequently, ₹36,85,326.84 has been maintained in an escrow account (account number 50200118300305) with HDFC Bank. Only ₹14,99,575.99 was directly credited to shareholders who provided valid banking information.

The company has undertaken to use its best efforts to trace the missing bank details and remit the outstanding amounts. If the details remain untraceable after seven years despite these efforts, the unpaid amounts will be transferred to the Investor Education and Protection Fund (IEPF) as per statutory rules. This process ensures compliance with Master Circular No. SEBI/HO/CFD/POD-2/P/CIR/2023/93 dated June 20, 2023, which mandates the disposal of fractional entitlements and proportional distribution of proceeds to shareholders.

Vijaya Diagnostic Centre Limited reported a 36.1% year-on-year increase in consolidated net profit to ₹531.01 lakh for the first quarter ended June 30, 2026, driven by robust growth in revenue from operations. Consolidated revenue rose 22.8% to ₹2,309.82 lakh from ₹1,880.53 lakh in the corresponding period of the previous year, reflecting strong demand in its diagnostic services segment. The Board of Directors, meeting on August 06, 2026, approved the unaudited standalone and consolidated financial results and recommended a dividend of Re. 2 per equity share, representing a 200% payout for the financial year 2025-26, pending approval at the ensuing Annual General Meeting.

The filing was submitted pursuant to Regulation 33 read with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors B S R and Co conducted a limited review of the interim financial information and issued an unmodified report. The results were prepared in accordance with Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013. Management highlighted that the comparative figures have been restated to reflect the amalgamation of Medinova Diagnostic Services Limited, approved by the National Company Law Tribunal (NCLT) on October 13, 2025, ensuring consistent presentation across reporting periods.

Financial Performance Highlights

Consolidated profit before tax increased to ₹709.45 lakh from ₹522.07 lakh in Q1FY25, aided by operational efficiencies despite a rise in total expenses to ₹1,685.68 lakh. Standalone net profit also grew significantly, reaching ₹531.48 lakh compared to ₹390.50 lakh in the prior year period. Earnings per equity share (basic) stood at ₹5.16 on a consolidated basis and ₹5.17 on a standalone basis, up from ₹3.76 and ₹3.80 respectively in the same quarter last year.

Operational Updates and Corporate Actions

During the quarter, the company granted 179,500 employee stock options to eligible employees under the 'Employee Stock Option Plan 2018', as approved by the Nomination and Remuneration Committee on May 07, 2026. This move aligns with the company's strategy to retain key talent amidst expansion. Additionally, the Board had previously approved the acquisition of Medinova Millennium MRI Services LLP via a slump sale, accounted for using the pooling of interest method under Ind AS 103. This transaction has been integrated into the financial statements, with assets and liabilities recorded at their existing carrying amounts.

What the Numbers Show

The divergence between revenue growth (22.8%) and expense growth (18.0%) indicates improving operating leverage for Vijaya Diagnostic Centre Limited. While employee benefits and finance costs rose due to business expansion and inflationary pressures, the company managed to control cost of materials consumed relative to revenue. The significant jump in net profit, outpacing revenue growth, suggests that fixed costs are being spread over a larger revenue base, enhancing overall profitability margins. The proposed 200% dividend further signals management's confidence in cash flow generation and commitment to shareholder returns.