Vijaya Diagnostic Centre Reports Robust FY26 Results; Q4 EBITDA Margin Expands to 43.54%
Vijaya Diagnostic Centre reported strong FY26 results with standalone net profit of Rs. 17,831.03 lakhs and consolidated revenue of Rs. 81,420.19 lakhs. Q4 consolidated EBITDA expanded to 955M rupees with a margin of 43.54% vs 39.75% YoY. The board recommended a 200% final dividend, granted 1,79,500 ESOPs at ₹784/- per option, and approved the acquisition of MRI LLP's business for ~₹4.20 Crore.
*this image is generated using AI for illustrative purposes only.
Vijaya Diagnostic Centre Limited's Board of Directors, at its meeting held on Thursday, May 07, 2026, approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2026, under Regulation 33 read with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors, B S R and Co, Chartered Accountants (Firm Registration No.: 128510W), issued an unmodified opinion on both the standalone and consolidated annual financial results. Alongside the financial results, the board also approved several significant corporate actions, including an ESOP grant, a business acquisition, a dividend recommendation, and noted the cessation of an Independent Director. The board meeting commenced at 05:00 P.M. and concluded at 06:45 P.M. (IST).
Standalone Financial Performance
Vijaya Diagnostic Centre delivered a significant improvement in its standalone financial performance for the year ended 31 March 2026. Revenue from operations grew to Rs. 76,542.88 lakhs from Rs. 63,400.30 lakhs in the previous year, while total income rose to Rs. 79,058.69 lakhs from Rs. 65,252.39 lakhs. Standalone net profit for the year stood at Rs. 17,831.03 lakhs, compared to Rs. 13,592.97 lakhs in the prior year. For the quarter ended 31 March 2026, standalone revenue from operations was Rs. 20,626.71 lakhs, up from Rs. 16,163.85 lakhs in the corresponding quarter of the previous year.
The following table summarises the key standalone financial metrics:
| Metric: | Q4 FY26 | Q3 FY26 | Q4 FY25 | FY26 | FY25 |
|---|---|---|---|---|---|
| Revenue from Operations (Rs. lakhs): | 20,626.71 | 19,308.31 | 16,163.85 | 76,542.88 | 63,400.30 |
| Other Income (Rs. lakhs): | 722.75 | 554.51 | 548.91 | 2,515.81 | 1,852.09 |
| Total Income (Rs. lakhs): | 21,349.46 | 19,862.82 | 16,712.76 | 79,058.69 | 65,252.39 |
| Total Expenses (Rs. lakhs): | 14,523.51 | 13,960.04 | 12,056.39 | 55,419.85 | 46,897.00 |
| Profit Before Tax (Rs. lakhs): | 6,825.95 | 5,902.78 | 4,553.41 | 23,638.84 | 18,252.43 |
| Net Profit (Rs. lakhs): | 5,265.14 | 4,421.24 | 3,342.48 | 17,831.03 | 13,592.97 |
| Basic EPS (Rs.): | 5.12 | 4.30 | 3.25 | 17.33 | 13.23 |
| Diluted EPS (Rs.): | 5.11 | 4.29 | 3.24 | 17.31 | 13.20 |
Consolidated Financial Performance
On a consolidated basis, the Group recorded strong growth for the year ended 31 March 2026. Consolidated revenue from operations increased to Rs. 81,420.19 lakhs from Rs. 68,139.01 lakhs in the previous year. Total consolidated income for the year stood at Rs. 83,500.11 lakhs, compared to Rs. 69,970.96 lakhs. Consolidated net profit for the year was Rs. 17,297.66 lakhs, against Rs. 14,379.35 lakhs in the prior year. For the quarter ended 31 March 2026, consolidated revenue from operations was Rs. 21,937.67 lakhs, compared to Rs. 17,324.25 lakhs in the corresponding quarter of the previous year. On an operational efficiency basis, Q4 consolidated EBITDA rose to 955M rupees from 689M rupees in the same quarter of the previous year, with the EBITDA margin expanding to 43.54% from 39.75% year-on-year, reflecting improved operating leverage across the business.
| Metric: | Q4 FY26 | Q3 FY26 | Q4 FY25 | FY26 | FY25 |
|---|---|---|---|---|---|
| Revenue from Operations (Rs. lakhs): | 21,937.67 | 20,521.03 | 17,324.25 | 81,420.19 | 68,139.01 |
| Other Income (Rs. lakhs): | 240.03 | 510.19 | 554.86 | 2,079.92 | 1,831.95 |
| Total Income (Rs. lakhs): | 22,177.70 | 21,031.22 | 17,879.11 | 83,500.11 | 69,970.96 |
| Total Expenses (Rs. lakhs): | 15,750.88 | 15,208.94 | 13,039.09 | 60,232.22 | 50,551.59 |
| Profit Before Tax (Rs. lakhs): | 6,426.82 | 5,822.28 | 4,737.06 | 23,267.89 | 19,316.41 |
| Net Profit (Rs. lakhs): | 4,792.93 | 4,317.53 | 3,486.47 | 17,297.66 | 14,379.35 |
| Basic EPS (Rs.): | 4.66 | 4.20 | 3.39 | 16.81 | 13.99 |
| Diluted EPS (Rs.): | 4.65 | 4.19 | 3.38 | 16.79 | 13.97 |
Key Q4 consolidated EBITDA metrics are summarised below:
| Metric: | Q4 FY26 | Q4 FY25 |
|---|---|---|
| EBITDA (Rupees): | 955M | 689M |
| EBITDA Margin (%): | 43.54% | 39.75% |
Balance Sheet Highlights
The standalone balance sheet as at 31 March 2026 reflects total assets of Rs. 145,975.46 lakhs, compared to Rs. 122,097.53 lakhs as at 31 March 2025. Total equity on a standalone basis stood at Rs. 94,345.26 lakhs, with other equity at Rs. 93,316.29 lakhs. On a consolidated basis, total assets were Rs. 150,704.83 lakhs as at 31 March 2026, against Rs. 127,361.64 lakhs in the previous year, with total consolidated equity at Rs. 95,715.18 lakhs.
| Balance Sheet Metric: | Standalone FY26 | Standalone FY25 | Consolidated FY26 | Consolidated FY25 |
|---|---|---|---|---|
| Total Assets (Rs. lakhs): | 145,975.46 | 122,097.53 | 150,704.83 | 127,361.64 |
| Total Equity (Rs. lakhs): | 94,345.26 | 78,013.71 | 95,715.18 | 79,914.25 |
| Cash & Cash Equivalents (Rs. lakhs): | 3,776.47 | 1,084.12 | 3,967.52 | 1,279.40 |
Cash Flow Summary
Standalone net cash generated from operating activities for the year ended 31 March 2026 was Rs. 25,596.44 lakhs, compared to Rs. 20,837.81 lakhs in the previous year. Net cash used in investing activities was Rs. (16,584.07) lakhs, while net cash used in financing activities was Rs. (6,320.02) lakhs. On a consolidated basis, net cash generated from operating activities was Rs. 27,059.04 lakhs, compared to Rs. 22,447.25 lakhs in the prior year.
ESOP Grant
The Board approved the grant of 1,79,500 (One Lakh Seventy-Nine Thousand Five Hundred) Employee Stock Options (ESOPs) under the VDCL Employee Stock Option Plan 2018. These options are convertible into 1,79,500 equity shares of face value ₹1/- each. The ESOPs are being granted at ₹784/- per option, representing the average closing price of the shares during the three months preceding the month of the grant date after providing a discount of 20%. The grant is in compliance with the SEBI (Share Based Employee Benefits & Sweat Equity) Regulations, 2021.
Key terms of the ESOP grant are as follows:
| Parameter: | Details |
|---|---|
| Number of Options Granted: | 1,79,500 |
| Exercise Price: | ₹784/- per option |
| Minimum Vesting Period: | One (1) year from date of grant |
| Exercise Period: | Ten (10) years from the grant date |
| Plan: | VDCL Employee Stock Option Plan 2018 |
| Applicable Schemes: | Scheme 5 & Scheme 6 |
Acquisition of MRI, EEG and NCV Services Business
The Board approved the acquisition of the MRI, EEG and NCV Services Business from Medinova Millennium MRI Services LLP (MRI LLP), a wholly-owned subsidiary of the Company, through a Business Transfer Agreement. The transaction is classified as a related party transaction but is exempt under Regulation 23(5) of SEBI Listing Regulations and Section 188 of the Companies Act, 2013. The acquisition is expected to result in growth opportunities in line with the strategic directions of the Board of Directors.
Key details of the acquisition are summarised below:
| Parameter: | Details |
|---|---|
| Target Entity: | Medinova Millennium MRI Services LLP (MRI LLP) |
| Business Acquired: | MRI, EEG and NCV Services |
| Industry: | Healthcare |
| Acquisition Cost: | ~₹4.20 Crore |
| Nature of Consideration: | Cash |
| Control Acquired: | 100% |
| Date of Incorporation: | 21-11-2014 |
| Registered Office: | 1, Sarat Chatterjee Avenue, Ravindrasarobar Stadium, Kolkata, West Bengal 700029 |
| Indicative Completion Period: | 3 Months |
| Governmental Approvals Required: | None |
MRI LLP's last three years of turnover (approximate) are as follows:
| Financial Year: | Turnover |
|---|---|
| FY 2025-26: | ₹2.36 Crores |
| FY 2024-25: | ₹2.35 Crores |
| FY 2023-24: | ₹2.49 Crores |
Amalgamation, Dividend, and Other Key Developments
Several significant corporate developments were noted alongside the financial results. Key highlights include:
- Amalgamation: The Scheme of Amalgamation of Medinova Diagnostic Services Limited with the Company, sanctioned by the National Company Law Tribunal, Hyderabad Bench vide order dated 13 October 2025, was accounted for under the "pooling of interest" method as per Ind AS 103. On 8 January 2026, the Company allotted 171,792 equity shares of INR 1 each in exchange for 3,779,420 equity shares held by non-controlling shareholders of the transferor company, amounting to INR 1,405 lakhs.
- Equity Shares: During the year ended 31 March 2026, the Company issued 88,658 equity shares of face value of Re. 1/- each on exercise of employee stock options.
- Dividend: The Board recommended a final dividend of ₹2/- per equity share of Re. 1 each, i.e., 200% for the financial year 2025-26, subject to approval of members at the ensuing Annual General Meeting. The AGM date and record date for dividend payment will be announced in due course.
- Director Cessation: Dr. D Nageshwar Reddy (DIN: 00324725) will not be seeking re-appointment as an Independent Director for a second term of five consecutive years upon completion of his first term, which concludes on May 25, 2026, owing to pre-occupation and other professional commitments. He confirmed there are no other material reasons for his decision.
- Cost Auditors: M/s. Santhosh & Associates, Cost Accountants (Firm Registration No. 003955), were re-appointed as Cost Auditors of the Company for the Financial Year 2026-27.
- New Labour Codes: The Company recognised an additional gratuity and leave liability of Rs. 78.82 lakhs (standalone) and Rs. 91.83 lakhs (consolidated) basis actuarial valuation, in accordance with guidance issued by the Institute of Chartered Accountants of India, pending finalisation of rules under the New Labour Codes effective 21 November 2025.
- Segment: The Company and the Group each have one reportable segment, namely Diagnostic Services, as per Ind AS 108.
Historical Stock Returns for Vijaya Diagnostic Centre
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.49% | +8.44% | +34.44% | +18.67% | +20.76% | +94.82% |
How might the absorption of MRI LLP's business into Vijaya Diagnostic's standalone operations impact consolidated margins and revenue mix in FY27, given the subsidiary's relatively flat turnover over the past three years?
With Dr. D Nageshwar Reddy's departure creating a vacancy on the Board, what profile of Independent Director is Vijaya Diagnostic likely to seek, and how could the change in board composition affect corporate governance and strategic decision-making?
Given the strong EBITDA margin expansion to 43.54% in Q4 FY26, is this level of operating leverage sustainable as the company continues geographic expansion, or could increased capital expenditure and new centre ramp-up costs compress margins in FY27?
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