Vijaya Diagnostic Centre soars 11% on heavy volumes in range bound market

India's diagnostic services market is expected to maintain double-digit growth (~12% CAGR) by FY30, driven by rising preventive healthcare awareness and expanding health insurance coverage.

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Vijaya Diagnostic Centre share price today

 

Share price of Vijaya Diagnostic moved higher by 11 per cent to ₹1,112.40 on the National Stock Exchange (NSE) on Thursday in an otherwise range-bound market. The stock was quoting at its highest level since September 9, 2025. It had hit a 52-week high of ₹1,275 on January 13, 2025.

 

At 02:27 PM; Vijaya Diagnostic quoted 10 per cent higher at ₹1,105, as compared to 0.09 per cent rise in the Nifty 50. The average trading volumes at the counter jumped over 8-fold, with a combined 2.76 million equity shares changing hands on the NSE and BSE. 

 

Vijaya Diagnostic Centre’s Q2 financial performance

 

Vijaya is one of India’s largest integrated diagnostic chains, providing one-stop solution for pathology and radiology investigations.

 

The company’s consolidated revenue for the September quarter (Q2FY26) grew by 10.2 per cent year-on-year (YoY) and 7.2 per cent quarter-on-quarter at ₹202 crore. This growth was primarily driven by an 8.3 per cent YoY increase in the test volume. However, profit after tax was up 2.7 per cent YoY at ₹43.28 crore, against ₹42.12 crore in Q2FY25.

 

Earnings before interest, tax, depreciation and amortisation (EBITDA) margin for the quarter ended September 2025 stood strong at 40.6 per cent, reflecting the resilience of the company’s business model with a minimal drag and an encouraging performance from the newly launched hub centres this year, Vijaya Diagnostic said.

 

The management in the Q2 earning conference call said that Vijaya commenced Q3FY26 on a very positive note, witnessing a notable increase in footfalls and revenue across the network.

 

The company’s Yelahanka Hub Centre in Bengaluru achieved break-even within just two quarters of operations, well ahead of the projected one-year timeline. This strong performance underscores the growing demand of high-quality integrated diagnostics in the region, the management said.

 

CareEdge Ratings view on Indian diagnostic industry

 

India’s diagnostic services market is expected to maintain double-digit growth (~12 per cent CAGR), reaching $15-16 billion by FY30, driven by rising preventive healthcare awareness, demographic shifts, and expanding health insurance coverage. The growth is expected to be majorly supported by volumes, while pricing may remain stable. However, competitive intensity will keep margins under check. Large diagnostic chains must thereby focus on volume growth, operational efficiency, and technology adoption (AI, genomic testing) to sustain profitability, according to CareEdge Ratings.

 

Organised diagnostic chains are taking steps to gain scale through consolidation. Large, well-capitalised players are also best positioned to benefit from digital transformation and market expansion. Strong investor interest, PE funding, and M&A activity could accelerate consolidation, enabling organised players to further scale up and innovate, while smaller labs may face continued profitability challenges, said rating agency.

 

Although diagnostic services accounts for less than 10 per cent of the overall healthcare industry in India, they play a critical role in early disease detection, guiding treatment decisions, and monitoring recovery.

 

Demand from the wellness/ preventive testing segment is expected to be a major growth driver, alongside factors such as changing demographic profile, expanding healthcare infrastructure in tier-2/3/4 towns, and rising private and public health insurance coverage. India’s diagnostic services remain among the most affordable globally, which is expected to further boost demand.

 

The industry faces intense competition, with numerous unorganised players, prompting consolidation. CareEdge Ratings anticipates accelerated consolidation, which will enhance growth and profitability for large diagnostic chains.