Vijaya Diagnostic Centre Q2 FY27 Results Analysis: PAT Jumps 37%, EBITDA Margin Expands 355 bps

Vijaya Diagnostic Centre Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 255.39 Cr (+26.70% YoY) and PAT growth of +37.41% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q2 FY27 revenue accelerated to +26.70% YoY with EBITDA margin at 44.15% (up ~355 bps YoY), tracking ahead of management's 'above 40%' FY27 margin guidance. PAT grew 37.41% YoY with 1.61x cash conversion and zero borrowings, while the 9-hub expansion is being absorbed with margin still rising. The Rs.46.20 crore Guwahati acquisition closing within 90 days and the remaining ~Rs.121-126 crore capex program are the key near-term items.

Key Investment Insights

Key Positives

• Revenue grew 26.70% YoY to Rs.255.39 crore, accelerating from +10.2% YoY in Q2 FY26
• PAT grew 37.41% YoY to Rs.59.47 crore; EPS rose to Rs.5.78 from Rs.4.21
• EBITDA margin expanded ~355 bps YoY and ~149 bps QoQ to 44.15% (H1: 43.44%)
• All cost lines grew slower than revenue; cost of materials fell to 11.07% of revenue from 12.06% year-ago
• H1 normalized PAT grew 40.22% YoY to Rs.105.22 crore after stripping treasury gains
• H1 CFO/PAT of 1.61x and FCF of Rs.112.83 crore fund expansion internally
• Zero borrowings; liquid resources of Rs.348.68 crore cover the Rs.46.20 crore Arya Wellness acquisition
• Tracking management's FY27 guidance: EBITDA margin above 40% (H1 at 43.44%) and high double-digit revenue growth (H1 at +24.87%)

Risk Factors

• Finance costs rose 45.38% YoY to Rs.11.38 crore, though only +3.42% QoQ
• Other income fell 20.77% YoY and 41.96% QoQ as treasury gains lapped
• Equity-settled ESOP charge of Rs.2.72 crore in H1 vs Rs.1.18 crore in H1 FY26, a growing recurring non-cash cost
• Remaining capex of ~Rs.121-126 crore over the next two quarters against the ~Rs.190-195 crore 12-month guide is the main execution watch item