Ladies and gentlemen, good day, welcome to the Q4 FY 2026 earnings conference call for Vijaya Diagnostic hosted by JM Financial. As a reminder, all participant lines will be in the listen- only mode; there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amey Chalke from JM Financial. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone. I'm Amey Chalke, and on behalf of JM Financial, I would like to extend a warm welcome to all of you on the fourth quarter FY 2026 earnings call of Vijaya Diagnostic Centre Limited. At the outset, I would like to thank the management of Vijaya Diagnostic for giving us the opportunity to host the call. We look forward to having an engaging and insightful discussion on the company's quarterly performance and outlook. From the company, we have with us today Ms. Suprita Reddy, Managing Director and Chief Executive Officer, Mr. Ankit Shah, Chief Financial Officer, Mr. Siva Rama Raju, Chief Operating Officer, and Mr. Dhiren Gala, Assistant General Manager, Strategy and Investor Relations. With that, I will now hand over the call to the management for their opening remarks. Over to you, ma'am.
Thank you, Amey, for hosting the call. Good afternoon, thank you all for joining us on the call today. As we complete our fifth financial year since listing, I would like to first thank all our shareholders and the research houses for their continued trust, confidence, and support throughout our journey. Over these five years, we have accomplished several important milestones. We have doubled our centers from 81 to 162, expanded our footprint from two states to six states, and successfully acquired PH Diagnostic Centre in Pune, which majorly aligns with our ethos. Like we have consistently stated over the years, the core principles and DNA of the company remain unchanged. Our business continues to be guided by the key pillars of strong focus on quality and customer experience, continuous investment into technology while ensuring affordability, and most importantly, our investment into talent.
Our workforce has grown from nearly 2,000 employees to over 3,500 employees over these five years, welcoming close to 1,500 new members into the Vijaya family. Going forward, we will continue to invest in talent and technology while maintaining a sharp focus on quality, as we always believe that sustainable financial performance is ultimately a byproduct of a discipline and a purpose-driven approach. Having said that, over the last five years since listing, we have delivered a revenue CAGR of 17%, exceeding our guidance of 15%. Most importantly, this growth has been achieved without any dilution in the EBITDA margin. FY 2026 has been a landmark year for Vijaya, with revenues crossing the INR 800 crore milestone, reflecting a strong operational execution across the business.
We have also delivered a robust year-on-year revenue growth of 26.5% in Q4 FY 2026, supported by a healthy volume growth of around 18.5%. This performance was attributable to both pathology and the radiology segments, aided by a very favorable seasonal environment, strong momentum in the wellness segment, continued network expansion across geographies, and accelerating traction of the Vijaya brand in new markets, supported by our differentiated service proposition. Turning to PH, we delivered a year-on-year growth of 16%, primarily driven by network expansion and favorable seasonality during the quarter. Our Ambegaon center has achieved break- even in one year, in line with our guidance.
Further, the two hubs launched in Q3 FY 2026 in our core markets, Khammam and Nandyal, achieved break- even within just two quarters, outperforming our guided timeline of three quarters for hubs in our core markets. Coming to our expansion plans for FY 2027, we would be commissioning four to five hubs and 10-12 spokes across our network. We're also coming up with a state-of-the-art, totally automated lab in Panjagutta, Hyderabad, with an automated track system, which is expected to enhance turnaround times and operational productivity. Additionally, we plan to introduce advanced genomic testing as part of our specialized diagnostic offering. With this, I would like to once again thank our teams across the network for their commitment to make this a very successful year for Vijaya.
We remain confident in our ability to build on this momentum and continue to create a long-term value for all of our stakeholders. I will now hand over to Ankit to walk you through the operational and the financial highlights. Thank you.
Good afternoon, everyone, and a very warm welcome to everyone joining us on the call today. I'll quickly take you through the financial performance and the quick, key developments for the current quarter, Q4, and the financial year ended March 31, 2026. The consolidated revenue for the current quarter stood at INR 219 crores, reflecting a strong revenue growth rate of 26.6% YoY. This strong revenue growth, just like the previous quarter, was driven by test volume growth of 18.5% YoY. Balance growth of 8.1% was largely on account of change in the test mix. Coming to the geography-wise revenue contribution for the quarter, Hyderabad contributed 67%, rest of AP Telangana contributed 20%, Pune 6%, West Bengal 4%, and rest of the geographies contributed 3%.
Like the previous quarter, the revenue growth has been driven by both radiology and pathology segments, reflecting the robustness of our B2C-focused integrated business model. The B2C revenue stood healthy at 92%. Our radiology business stood at 37%. The revenue per test and revenue per footfall stood at INR 488 and INR 1,808, respectively, during the current quarter. EBITDA for the current quarter stood at INR 95.5 crores as compared to INR 68.9 crores in the corresponding quarter in the previous year, reflecting a YoY growth rate of 38.7%. The EBITDA margin stood healthy at 43.5% in the current quarter, with a improvement of 379 basis points YoY.
The profit after tax for the current quarter stood at INR 47.9 crores, reflecting a strong growth of 37.5%. A PAT margin also stood healthy at 21.8%. I will now summarize our performance for the financial year ended March 2026. The consolidated revenue for the financial year ended FY 2026 stood at INR 814 crores as against INR 681 crores in the previous financial year, FY 2025, reflecting a YoY growth of 19.5%. EBITDA stood at INR 337 crores as against INR 273 crores in the previous financial year, registering a YoY growth of 23.3%. EBITDA margin stood healthy at 41.4%. The profit after tax was INR 173 crores with a margin of 21.2%.
Coming to the update on capital investment in the current period, the overall CapEx outlay has been INR 169 crores, inclusive of replacement CapEx. For FY 2027, the capital outlay for the new centers, including the lab, the new automated lab, is estimated to be INR 140-INR 150 crores. That's all from my side. I would now like to request the moderator to open the lines for the Q&A session. Hello.
Shall we proceed, sir, with the question and answer session?
Yeah. Yes, please.
Certainly, sir. Ladies and gentlemen, we will now begin with the question and answer session. Our first question comes from the line of Surya Patra with PhillipCapital. Please go ahead.
Thanks for the opportunity, sir, congratulations for the great set of numbers. For the fall, since it is the fourth quarter, we are seeing a very consistent performance in case of the wellness segment, consistently around 30% kind of growth that is being maintained. Sure, I just wanted to understand what would be the mix between pathology and radiology when we talk about wellness, and what should be contributing incrementally to this kind of growth?
Surya, all our packages have mix of both radiology and pathology. While we don't have the very exact number because it's a bundled package, right from corporate wellness to retail wellness, it's mix of both radiology and pathology. If you see more or less there'll be the, there'll be mostly a 50/50% proposition. You know, it is also based on, if you see our retail packages which are there on the website, right from, you know, lifestyle to full body health checkup, you have mix of both path and rad. Even what we are seeing, the trends that we are seeing from the corporates, right? Whenever they're planning for their employee health checks, they are asking us a mix of both pathology and radiology tests.
That's the trend that we are seeing, you know, across the packages.
Okay. Is it fair to believe that whatever the mix that we are seeing for the overall business, that is the mix also for the wellness business that one should think?
It depends. When it comes to corporate wellness, it purely depends on the client's requirement. In terms of retail, yes, it's more or less, maybe in the similar range.
Okay. In terms of the growth, what we are seeing that even Hyderabad, which is being considered to be a kind of mature segment, still that we are seeing around 20% kind of growth, one of the strongest growth that we have reported this quarter. Anything specific that is contributing here? How sustainable is the kind of growth momentum here in Hyderabad?
Like we discussed in the past, right? Whenever we have a good season, you know, when we have that kind of revenue in the market. Hyderabad, like we discussed in the previous calls, also, right, we feel the market is matured, but then we see the market growing at a single pace a little bit in a better pace, both across hospitals and diagnostics, right?
Yes.
Especially like ma'am mentioned in our opening remarks, I think the three, four key pillars, right, is making us strong. We being the largest player and, being in the industry for more than 40 years in the market, I think we are inching as and when there is a favorable season, we are inching the market share. You know, we are growing better than our peers. Even in terms of network expansion and also if you see the service addition, et cetera, in the diagnostic market, we are growing better than our peers on this base. Right? It is because of the three, four things. One, we are available across the city, right?
We have, you know, the wide range of services both in pathology and radiology. We have very high-end technology, and we have very good talent in terms of doctors and technical staff. While maintaining all this, we are not charging anything extra. More or less we match the market rates maybe 2%-3% here and there. I think that over the years, if you see, it's not today's scenario, maybe like few percentages here and there. Over the years in Hyderabad, we were growing in double-digit.
Even in the near time, you know, in the current financial year also we are planning to add few more spokes in Hyderabad. There are many new markets, new pockets that have opened up in Hyderabad. We foresee that even in the near future of two to three years of term, we will still grow in double-digit in Hyderabad.
And in terms of the CapEx or investment per annum. We have seen obviously in the recent years because of our geographical diversification, some CapEx intensity that we have seen. We are now talking about similar kind of a CapEx momentum even in FY 2027. Practically, what are the thought process here? Because obviously the cash flows from the operation, if we see, it's been obviously becoming stronger and stronger. Is it fair to believe that the CapEx momentum also simultaneously will become stronger and stronger with more and more kind of a newer area penetration?
You are right, Surya. The number that we just quoted is basically the centers, which are like where we have taken on lease.
These are executed, signed, registered lease is something that we would probably announce out on a call. The capital outlook of what Ankit has given is keeping in mind the entire four hubs of what is being signed and the automated lab, and the 10, 12 spokes that are coming. Like we've mentioned earlier on, last year you'd not see any spokes coming out in Hyderabad or the co-market. This year w e will be seeing a few spokes here, around four to five spokes coming out in Hyderabad in the newer geographies and the new pockets that are coming in the city.
CapEx guidance for the executed leases, which is the four to five hubs and the 10 to 12 spokes. Like I've always mentioned, when there's opportunity, there's not looking back. Now we have two or three more geographies. Whether it's going to be Bangalore or Pune or Calcutta, anything that comes across, we will be signing and probably executing it on the similar lines. We'll be able to give you guidance on that once that's executed.
Yeah. This guidance for next one, two years, because we have many newer geographies, this guidance. We will revisit every single quarter, and we will give you more updates as and when we finalize more centers.
Okay. Just last one point from my side, ma'am. In fact, in your opening remark that you mentioned, over the last five years, the kind of a growth in terms of the center addition that we have seen, tell me that is the kind of business growth that is what we have seen. That means it is the volume-led growth only that we have seen practically in a way. Is there any scope of a premiumization in play there in the near future that you think? Simultaneously, as you have mentioned also that genomics, that is a new area of opportunity for you. What is the kind of incremental business that you are thinking out of this? What is the target market that you are identifying for the genomics?
As of now, it is a smaller one, and the competition is intensifying.
Genomics is a long-term play. I don't think we'll see any significant revenue coming in, the next two, three financial years.
There are few departments in lab, Surya, irrespective of volume, say histopathology, high-end IHC testing, genomics. These are all specialized testing, and especially being a 92% B2C-driven player, we kind of look at the load building up and then decide to add it. Histopathology has now been there for more than 35 years and one of a very large department in the lab. We've started genomics. We will slowly grow it through the same medium of walk-ins, B2C, and then add panels as what is required, as per the market needs. What we see in Kolkata might be very different from what Pune would want. It will be one central lab in Hyderabad trying to cater to all of these six geographies that we are operating in. It's just the beginning.
It's something that we would like to build out and then make it profitable in the years to come. Can't give a number on that right away.
The focus for the next two years will be on center addition and volume-driven growth. While we may have that 1-1.5% of realization growth, right? The major focus for the next two to three years is capacity addition and then, you know, volume-driven revenue growth.
Sure. Yeah. Thank you, sir. Wish you all the best.
Thank you.
Thank you. Our next question comes from the line of Rajat Baldewa with the Kizuna Wealth. Please go ahead.
Yeah. Hi, sir. Thank you for giving me the opportunity, and congratulations on a good set of numbers. My first question is on like in Q4, where EBITDA margin came in 43.5%, which is a 380 basis points jump YoY expansion. Hello, am I audible, sir?
Yeah. Would you mind repeating? There has been a bit of wobble.
Yeah. Okay. Yeah, yeah. My first question would be like in Q4, the EBITDA margin came in 43.5%, which is 380 basis points year-over-year expansion. When you strip out the operating leverage on the fixed cost base, the other expense line grew 21% in year-over-year in Q4. What specific cost levers drive this margin outperformance? Can you throw some color on that?
It's basically the operating leverage in existing network. If you see, you know, if you see our business except few costs like consumables, doctors, et cetera, it's more a fixed cost business, right? Whenever you see a jump in the revenue growth, obviously, that will flow down to EBITDA. Also, the other point is all the new hubs that started, majority of the new hubs have broken even faster than the expectation. It is a mix of both the operating leverage and the break-even of new centers that have led to the, you know, 43.5% margin. At the same time, if you see, the company is now also focusing of adding more centers and also getting into genomics and also investing onto technology and talent.
We, in fact, you know, in many of the newer geographies, we are developing the second in line because we feel the talent is important, you know, for us to scale the centers there.
Cost will be coming for this financial year. In terms of the guidance, we are with growth while opening new centers, we'll still be delivering 40%+ EBITDA margins.
Rajat, one of the reasons why the EBITDA margins were, you know, closer to 43.5% this time around was due to, you know, Hyderabad geography growing at 20%.
Yeah.
There was a huge operating leverage which came due to that. Overall, if you look at the OpEx burn also for the entire year, for all the new centers which commenced, it is roughly about 0.8% versus what we had envisioned before the start of the year, of roughly about 2%-2.5%. These two, you know, reasons helped in improvement in the EBITDA margin. Having said that, I think, going forward, because of, you can say we would be slightly conservative in giving our margin guidance of 40%, we are pretty confident of delivering more than that in the future.
Okay. Great, sir. Sir, the last question on the revenue per test, which has been jumped by 4.3%. Even though your pathology radiology mix is quite same as FY 2025, is it because of wellness share increase or what's the reason of this?
That is largely because of the new hubs ramping up. All, you know, the new hubs in Bangalore, West Bengal, now they are ramping up quickly. That is just because of the change in the test mix. In the first year, it is still driven largely by radiology.
Yes.
That's why you are seeing that higher number.
Sir, what's the volume growth in terms of core geography and non-core geography?
Volume growth.
Volume growth in core versus non-core.
Yeah, core versus non-core. Yeah.
Yeah. When it comes to Hyderabad, for Q4 YoY, the volume growth is roughly about 18 .5%.
Okay.
Thank you. Our next question comes from the line of Anshul Agrawal from Emkay. Please go ahead.
Hi. Thank you for the opportunity. Just harping on the margins guidance, I understand we wanna be conservative, but if I just look at the mix of assets that we are sort of commissioning in FY 2027, which are more spokes than hubs, would it be fair to assume margin accretion in FY 2027 would be sharper than the accretion we have witnessed in FY 2026 itself?
Anshul, if you see the full year, I understand in Q4 we have delivered 43.5%. If you see for the entire full year, it was around 41.5%, right? Like, if we are opening, let's say 12 spokes and four hubs, yes, more or less, we may end up in the similar range. Let's say, like we also said, there are more hubs in pipeline. If we can close a higher number of hubs than we open in FY 2027, then maybe the drag will be slightly higher than, what, you know, what we are talking now.
Keeping all this in mind, what we feel is also taking, you know, both the investments onto technology and talent into consideration.
We feel that we'll be able to comfortably deliver more than 40%. Like Dhiren said, you know, while the guidance will be 40%, we'll try to, you know, deliver a better number than that.
Sure. Next question I had was we already have a cash balance of almost INR 200 crore or INR 300 crore odd. I think by the looks of it, with, you know, assuming, sort of, the CapEx that you have just outlined, you should be able to add another INR 150 crore to INR 200 crore, odd number in the next year as well. Any plans on sort of deploying this balance for any inorganic expansion? How does management think about this, deploying this cash on books?
Anshul, like we've mentioned earlier, anything that comes to us in terms of an inorganic or a merger acquisition, JV, whatever it might be, if it is in the same value system and it is B2C-driven, even if it's pure pathology or radiology, and the ethos matches, we're more than happy to look at that asset. Then comes the valuation reasonability, there also. There's almost close to about eight to 15 assets that come to us on a yearly basis. We are very, very conscious about what we bring onto the table to the board and to our shareholders, because it needs to add value. That probably that look is going to be out even for the future.
Also, like, Siva mentioned, these are only executed leases for this year, of, say, the three to four hubs. If an opportunity comes up, like I mentioned, two to six states. If, say, we get an opportunity to add another four or five, we would definitely go ahead doing that. You would also see additional deployment and CapEx happening accordingly. With hubs also comes spokes. That's a reason why we are only probably committing on the number of leases that are executed today. As we go quarter on quarter, we will be giving you a quarterly update on what's going to be happening.
Sure. Very clear, ma'am. There are no plans of adding another cluster for the next two odd years?
Absolutely. See, if you're looking at the numbers and everybody is very happy, the operating leverage playing out today is because of the dense network.
We're saying you have entire Pune and then Kolkata, and now already Bangalore is a new baby, and with a few more hubs coming there. The denser we grow into Kolkata in West Bengal and into, Pune, this is probably going to just get better.
If at all, we have to add, it should be through inorganic.
Which should be large enough for us to say we're ready to take on one more cluster.
Got it. Clear, ma'am. Just a sort of follow-up question on the answer that you gave. Our current CapEx guidance, if I just, you know, sum up, the bits and pieces of our network addition or the automated lab, our current CapEx guidance of INR 140 crore-INR 150 crore, does it not assume any new hubs that you have planned which have not yet signed the lease on? Because if you could just slightly break up the INR 150 crore CapEx number in terms of network addition, in terms of IT spends or maintenance CapEx, that will be very useful, to help us understand, you know, this better.
Anshul, for the new centers which have been outlined in the investor presentation, which are roughly about four to five hubs and 10 to 12 spokes, the CapEx would be between INR 120 crore-INR 130 crore. The additional CapEx would be on the automated lab in Panjagutta. These are only, you know, this CapEx is for the leases which have been executed. Having said that, as S iva and ma'am mentioned, there are a lot of projects in the pipeline. Whenever we get the opportunity, we will definitely, you know, revise the CapEx guidance. That revision will happen on a quarter basis.
Just to add, Anshul. What we have considered in this INR 150 crores is about close to INR 10 crore-INR 12 crore of replacement CapEx. It is not just the replacement CapEx. CapEx is in the existing centers where we'll add some new modality.
Got it. Are we planning any flagship hubs in the non-core clusters? Because INR 120 odd crores for four hubs and-
Yeah.
10 new spokes seems heavy.
Yeah. We had announced in Q3 of FY 2026 that we'll be coming up with flagship centers in Bannerghatta, Bangalore, JP Nagar.
Which will have the high-end PET CT, high-end MRI.
This is a center, Anshul, where the center has equipments which are probably not there in our core markets of Hyderabad itself. You will be looking at digital cardiac PET CT coming in there, and it's one of its kind, very wide bore, 70 uMR Omega. I think there are only a few in India. This is what Bannerghatta is going to offer, and probably it should be ready to go in the next couple of months. That's something that's ongoing. Going forward, we'll probably, in the coming year, look at bringing in a center like that even in the core market of Hyderabad. Finding that right place, location in Hyderabad, we will do a center like that, provided we find the right location.
Okay. Very clear. Just a couple of more questions, if I may. On wellness.
Of course.
What would be the average realizations of in our wellness portfolio for the company? Average realizations for us.
It's in the range of INR 1,800-INR 2,000, actually. For Q4. Otherwise, generally at a full year level, it was more or less closer to INR 2,000. It is because of, you know, corporate wellness. Corporate wellness, you know, every client has a different requirement. If you see retail wellness, it will be slightly higher than INR 2,500 is the average realization.
Okay. The reason I ask this question is incremental wellness, sort of incremental contribution from wellness portfolio, would not lead to realization per patient improving. Would that be fair to say?
It will lead to realization per patient improving, but not the realization of test. If you see at a company level, we were at INR 1,800 realization per patient. If we add more wellness packages, realization per patient will go up, but realization per test will come down.
Got it. Very clear. Just one last question. I think Ma'am mentioned that PH or the Pune cluster has grown by 16% year-on-year. That is for the current quarter or for the full year?
The current quarter. If you see Anshul, Q1, Q2 there was slight degrowth, and Q3 we have seen improvement. I think Q3 we have grew by I think 8%. Right? This quarter, about 16%.
We are seeing uptick in revenue both month-on-month and year-on-year.
Yeah. This would be largely on the back of the new center additions we have done, right? Have we done any capacity bottlenecking in the PH centers that we had?
Yes, we have little bit of capacity constraint, but then we have seen growth even in the existing centers. It is in the low single digit. It's a mix of both, the old centers and
Lovely. That's it from my end. All the very best. Thank you.
Thank you.
Thank you. Our next question comes from the line of Akshaya Shinde with Centrum Broking Limited. Please go ahead.
Thank you for the opportunity and congratulations on good set of numbers. My question pertains to the Kolkata region. The two hubs launched in FY 2024 were contributing around 3% of revenue. Could you share, now these hubs have progressed so far in terms of volume growth, the B2C mix and the break-even trajectory? Also, with the five new hubs added in FY 2026, do you expect similar ramp-up trajectory for these centers or, could the scale-up be relatively faster, supported by the higher network density and the improving brand presence in the region? Yeah, that's it.
As of now, we have seven hub centers in Kolkata. Out of which, you know, three centers were just opened a couple of quarters back. If you see the old centers, Medinova and the VIP Road, you have seen the growth, right? They have grown at very. Majorly VIP Road, because Medinova again, was an old center and it is running at its full capacity. Right? If you see VIP Road, you have seen double-digit growth year-on-year. The rest of the five centers were added during the last financial year, out of which two centers which were added in Q1 of FY 2026, they did break- even in less than nine months. The rest of the centers like Phoolbagan and Diamond Harbour.
Yes, sir.
They just opened a couple of quarters back. We expect the similar kind of ramp-up to happen at these centers, and we are confident of achieving the break- even within one year of our guided timeline. The next financial year-
Thank you.
I don't think we should compare with the current base to the next year growth because of the center addition that happened.
You will see a very healthy growth of revenue in West Bengal in the current financial year.
Understood. Also, following the Pune expansion, are there any inorganic opportunities shortlisted for the further expansion in the western region, like for the mid to long term?
Not in Pune as of now. We want to more go organically because, since we have acquired a brand, now I think we feel that it would be better if we expand this brand rather than acquiring one more asset in the same geography.
Okay. Yeah. Thank you and all the best.
Thank you. Our next question comes from the line of Kirti Agrawal from Aditya Birla Sun Life Mutual Fund. Please go ahead.
Yeah. Hi, congratulations on the good set of numbers. I just had a bookkeeping question. What would be your pre-Ind AS margin for FY 2026 and for the quarter, if you can help me with that?
See, by pre-Ind AS, you are referring to more of Indian GAAP.
Yeah, it's just Ind AS impact of rentals.
Yes. While we don't maintain books as per Indian GAAP, but it should be close to about 7%.
That should be about 35%.
Yeah. It's 35% for the entire year.
Got it. Great. That's helpful. Thank you.
Thank you. Our next question is from the line of Rishi Mody with RDM Advisory LLP. Please go ahead.
Yeah. Hi, guys. Am I audible?
Yeah, you're audible.
Yeah.
First question I had was on the tech investments that you all are making, or you all have made. Just, is it upcoming, or you all have already made the CRM, ERP and AI in radiology investments?
Rishi, it's ongoing. We have invested little bit in the last financial year, right? Over the years, if you see from FY 2023 onwards, consistently every year, we are either revamping the existing systems, and we are also getting more integrations, right, to enhance the customer service, and also, like, in terms of the billing software, LIMS, radiology, all that we have done in the last two financial years. When it comes to the CRM, or when it comes to the ERP, we have started the work in the last financial year, but, you know, we'll be launching them in the current financial year. Apart from that, in terms of AI, we have onboarded few solutions in Q4, right? The back end of Q4.
Like it can be CT KUB or the dental scans. We are also in talks with few of the other firms, you know, to see how we can implement for the other modalities like something for lung, liver and brain. This will be an ongoing process and also in terms of data security, right? Year-over-year, we are increasing our spends on that. In terms of digital marketing. Digital marketing was something which we started 2.5 back.
If you see last one financial year, we almost spent roughly around INR 6 crores-INR 7 crores on digital marketing, where we see that cost, you know, doubling in the current and the next financial year because that's one of the channel where we have seen good revenue coming from. Likewise, Rishi, I think, you know, technology is something that is still evolving. Right, for the next one, two financial years, you'll be seeing some investments happening on this front.
Right. This will be an ongoing process now for you all, and we should not expect ideally any hiccups in the implementation of this. Like you mentioned, right, the last time we implemented LIMS, there was some of a hiccup in one of one odd quarter.
Implementation is not going to be the problem, especially in radiology. These patches that come for any kind of a specific organ, they're basically patches which have to be layered onto our radiology information software. They need certain licensing, just like we would need a CE or an FDA, some background to bringing in any kind of AI, because you're going to be releasing it for retail customers. We can't just bring in something without validation. Validation requires certain paperwork, and those are very limited in nature as we speak as of today. Probably something that we can release to customers is not going to be more than six or seven. When these come in, these have to be layered onto the existing software, and those are always ongoing. We have two or three that are done.
You will always see two or three happening. As and when it gets approved, these get layered on.
All right. That's great to hear. Second, I wanted to understand on the Pune piece, right? Great job on getting the revenue growth back on track. And the new team, I think, has done a good job on ground. Just, if I could get an understanding, say the second hub that you all opened, right, the new hub, is it ramping up faster, or is it approaching breakeven faster than the first new hub that you all had opened?
No, Rishi, I think both the hubs have taken similar time because I think both the areas are on two different sides of the city. Right? If you see both in Ambegaon and Kalyan Nagar, PH never had any presence. It was more like a newer within the city, it's like a newer geography. Right? Kalyan Nagar, the full-fledged operation, started in Q2 of FY 2026. Even that hub, like Ambegaon, took time. We've almost completed six to seven months of full-fledged operations by now. I think eight months of full-fledged operations by now. I think we'll be taking the full one year here also for the break-even to happen.
Okay. All right. Finally, just any favorable seasonality element in our numbers this quarter, like some illness or some seasonal flu or something in our numbers?
Nothing specific, Rishi, but we have seen growth across both retail.
And across-
Quick and also wellness. I think all the modalities and all the, you know, all the channels have basically fired.
Rishi, overall.
All right, great.
Wellness.
Yeah. Sorry.
The overall lifestyle segment also has shown a good growth during this quarter. That has also helped in, you know, the overall revenue growth.
All right. Great. Thank you. Thank you, guys. That's all from my end.
Thanks.
Thanks.
Thank you. Our next question is from the line of Sumit Gupta from Antique. Please go ahead.
Hello.
Hi, Sumit. Hello.
Yeah. Hi, good afternoon.
Yeah. Hi, Supri. Yeah, thanks. Yeah.
Sumit, sorry to interrupt. You're not audible clearly.
Is this fine?
Much better, sir. Please go ahead.
Yeah. With respect to Pune, it grew 16%. What would be the volume growth for this quarter in PH?
Footfall growth was roughly about 15% during this quarter, year-on-year. Purely footfall growth, Sumit.
Okay. What is the, like, outlook for the PH segment over the next, let's say, three to four years? How should we see this contribution increasing on the group basis?
For all of these new geographies, Sumit, like we said, right, quarter on quarter, maybe we'll have to change our guidance little bit because, you know, we have the regional heads for each of these regions, and then, parallelly, all these regions are growing. In terms of finding the new centers, et cetera, the work is happening on the ground at all of these regions. If you ask us, we are very confident in the next one, two financial years we'll be growing in double digit. At the same time, let's say if you find more centers, if you can close on more centers, maybe one geography may be overtaking the other geography. That is something that maybe next two years will be slightly dynamic between these geographies.
Otherwise, with the existing network, with these two new hubs and two new spokes that we have opened, and also the effort that is going on to the corporate segment within Pune, we are confident that we'll be growing in double digit for the next financial year as well at the full year level.
Okay. I was asking from, let's say, not in the near term, but from a medium-term point of view. Should we see, like, the kind of pressure that you're getting in Pune market, like, can we hope to see that continuing?
Sumit, can you please repeat?
Basically, the kind of pressure that you are witnessing in Pune. Over the medium term, let's say next three to four years, how should we see Pune geography evolving? You would be adding more hubs and spokes recently opened up Bangalore, that has also break- even. How should we see that planning, basically, the revenue per center improving?
Sumit, I think, especially in Pune, right? I think that was the only one guidance which, you know, did not happen according to our guidance, which we gave three years back. We thought, you know, Pune in three to five years, we will double our revenue. We went very slow. We did not open centers also. We went very slow because, you know, after acquiring, we took one and a half years to settle in, ground- level things like changing software, you know, aligning the processes, etc. Before taking on growth, that is very important. You know, you have to imbibe the culture there before you take on growth. That's one of the reason why you've seen the delay in the growth.
Having said that, with whatever effort that we have put in the last two years and with the kinds of teams now we are deploying there, we are very confident that in next three to five years, we'll be easily doubling up our revenue from where we are now.
Understood. Okay. With respect to revenue per center at the mature stage, let's say in Hyderabad, you are nearly around INR 6 crores per year. Like what is the, let's say, repeat revenue per center which one can achieve? Or is there like any global figure, or am I missing something?
No, no, even if you will see at maturity the revenue from the new hub that we have opened, you will see more, you know, more than INR 12 crore-INR 15 crore kind of a revenue, similar like any other geography there. In the older hubs, because of the capacity constraint, the hubs being smaller, right? You have one hub which is already even in the older hub, one hub, which is doing about INR 15 crore. The rest of the two hubs, because of the capacity constraint, they're doing more or less close to INR 10 crore kind of a revenue. Otherwise, in the newer hubs that we open, because the hubs will be more or less similar to what we do in Hyderabad, you'll see the similar kind of revenue profile coming from these centers.
Understood. Lastly, on the Bangalore performance, two hubs which are opened in HSR and Yelahanka, how are they performing? Like, what's the overall traction that you're seeing in Bangalore?
We are very optimistic about that geography with whatever results that we have seen in the last two to three quarters. We opened in Q1 of last financial year, and like we told Yelahanka did break even and HSR is almost closer to break even. That's one of the reason why we have already finalized one flagship facility there. We also finalized one more location in Rajajinagar, which we have put on the PPT. Parallelly we are looking for new, more hubs in Bangalore. We are very optimistic about the Bangalore city.
Okay. I just want to understand from the sector point of view, let's say, there are so many hospitals which have come with their own labs like across different parts of India. Like in your geography, like have you witnessed any like competition increasing, which has led to like a bit challenging for you?
I think, Sumit, this is there across the geographies, not just the hospital-based labs. You have the other labs, which are into purely into diagnostics also. Right.
Right.
Bangalore also has a very strong pathology diagnostic player. Right. Like, you know, the differentiator is the radiology, right? We have both path and rad, radiology, and it's a more of an integrated play. Bangalore, as a market, like we told you, it is almost similar to Hyderabad, but you don't have any large integrated diagnostic player. You have multiple small integrated players. That's where we see the opportunity. In terms of the bed density, bed capacity, right, in terms of the healthcare infrastructure in hospitals, both the cities are more or less closer. The one more challenge in Bangalore is the traffic, right, which will also give us the opportunity to add more centers.
Even if you open two hubs within 7 km radius, like if you see our HSR versus the flagship, it is only hardly 6, 7 km radius. I don't think a patient from, you know, JP Nagar will be traveling to HSR for their diagnostic needs. That is also another opportunity. Right. Considering all these factors, we feel Bangalore city will give us, give us that room to add more hubs and spokes, both hubs and spokes. I, in the next, at least, I think the CapEx deployment will be continuously happening for the next five to seven years.
Okay. Basically, my question was lastly competition from the hospital-based labs.
Absolutely.
Now we're going-
Hospitals are basically probably designed to take care of the needs of their inpatients. If you look at their labs, which are more or less like back in kitchens are to cater to their inpatients. When they run their OPDs, it's also an odd time where customers will have to get their testing done during fasting, and then they'll have to have some preparation. The pricing is taken into consideration, keeping the entire CapEx of the hospital in mind. Insurance is a major factor there for admissions. If you look at largely the OPD business, the OPD diagnostics, there are fewer people who. Basically, in India, they need to pay out of their pocket, and cost is one part of it. That's why we say we are a differentiated kind of a diagnostic facility. We give importance to the customer experience.
The large format centers of the 6,000-8,000, they're not having to go to two or three places for their pathology, radiology needs, and at the same time not compromising on quality and keeping the prices affordable, which would probably be, say, about 20%-25% cheaper than the hospital. Being in a close proximity to their residential areas. That is why the dense network of Vijaya. That is why the number of spokes to create that density, and these spokes feeding into the hubs. That is the basic nature of how we grow and choose where we want to grow in.
Understood, ma'am. Thank you. All the best.
Thank you. The next question is from the line of Ayush Agrawal from AARD Capital. Please go ahead.
Yes. Hello, ma'am. Hello, sir. Congratulations on the wonderful performance. I just had two quick questions. That we do not have any significant coverage in North India, so that is a strategic decision or that is something that we are not looking at altogether right now?
To answer you directly, we are not looking at that right now because like we mentioned, we've grown from two to six states hands are full trying to build denser networks in two new states that we've acquired. It's a very strategic decision that we do not want to grow in North. We have one single center in Gurgaon, which is purely a wellness and a single center is in fact spread across almost an acre of land in 8,000 sq ft , and we tend to leave it like that. We want to do more of corporate, and at the point immediately we would not want to grow in that region.
Just a follow-up question, ma'am. When you say immediately, you are talking for the next one to three years or three to five years?
Probably say another three to five years or something, because we have Karnataka and West Bengal to look at, concentrate and grow with, Pune already in that process. Definitely three to five years.
Sure. Thank you, ma'am.
Thank you. Our next question is from the line of [Vivek] from Emkay Global. Please go ahead.
Yeah. Thank you for the opportunity. Just a question on the breakdown of centers by region. Could you please help me with the numbers in terms of centers for each region?
In Hyderabad, we have roughly about 95 centers. In rest of AP Telangana, we have 35 centers. In Kolkata, we have seven large hubs. In Bangalore, we have two centers. We have one in Gulbarga. We have one in Gurgaon and the balance in Pune.
Okay. Could you also provide a breakdown of your centers in terms of labs? Sorry, in terms of flagship centers, hubs and diagnostics. Sorry, spokes?
Yeah. Roughly, we have about 50 hubs and balance, you know, 112 spokes. As highlighted in the press release, we have 30 labs, which also include a couple of mini labs as well.
Got it. Thank you.
Thank you. Our next question is from the line of Akash Shah from Investec Capital Services ( India) Private Limited. Please go ahead.
Hi, sir. Just one question. What would be the indicative number for the maintenance CapEx for FY 2027?
It'll be around INR 10 crores-INR 15 crores. Typically, the maintenance CapEx is roughly about, you know, 2%-2.5% of our top line.
Okay. Sir, just one more question. Are we seeing any traction in the volumes from the offtake of the recent weight loss drug that has gone generic?
It is slightly difficult to track also because I think somebody who is onto the medicine, not every clinician, is writing the package name. Sometimes it's a list of tests that we get as part of prescription. Significantly, we are not seeing any change on the ground.
In spite of being a majorly B2C-driven company, we've hardly seen a request for a proper GLP package come in. They tend to either choose to go to a physician or an endocrine, and it's the doctor's choice of the test that they request. We would not probably be able to give you that right number. We've not seen actual request for a GLP package come in yet in the geographies that we operate in.
Okay. Sorry, just to add one line. A number of players in the diagnostic space have launched their packages. Just wanted to know your view on it. Thank you.
Thank you.
Thank you. Our next question is from the line of Dr. Kartick Bane with Bajaj Life. Please go ahead.
Thank you for the opportunity. I would like to ask, when was the last time we have taken a price hike? When are we taking it next, and how much would that be in terms of percentage?
We had taken a price hike in Q1 of FY 2026. And it was roughly about, you can say, 1.2% overall growth realization. This year also, you know, we'll be, you know, taking roughly about 1%-1.5% of price hike. That will be effective either in Q1. As of now, we may not do that. Maybe, in Q1 or Q2, we may take depending on the. Not every year we do the price hike across tests. Every year, we pick few tests and then do the price hike.
Okay. Thank you.
Thank you. Our next question is from the line of Abin Benny with JM Financial. Please go ahead.
Hi. Good afternoon. Am I audible?
Yes, sir.
You are audible, sir.
Yeah.
Hi, ma'am. Congratulations on the good numbers. I have two questions. First one was regarding the wellness segment. Our wellness segment growth has been really strong. Just wanted to understand that the demand that we are seeing in this, is there any track that we are keeping on the repeat customers and the first-time users? Like, any color on that?
We have the data, but it's too early to comment because, you know, we started tracking these numbers, we migrated to newer systems two years back, and we just started tracking the numbers. While with your, with phone number and also with the unique UHID, we track these numbers, I think we should give another two years of time for us to actually see what is the recurring pay. They don't come. They may come once in a year or once in two years. Not every customer will come once in a year. Right?
Yeah.
So, I think we should give two, three more years time. Yeah.
In terms of corporate, what is the kind of pipeline or the order book that we are seeing in terms of repeat and also like, retention and also the new ones that being are added?
Few large corporate, yes, we are capturing them for last two years. At the same time, you know, with lot of aggregators in play, right, and the corporates, few corporates being price-sensitive, we keep seeing the churn. In terms of the large corporates, in the, from the last two, three years, we are continuously getting the orders from them.
All right. Just one last question. In terms of, ma'am had mentioned between that the pricing related to Vijaya versus hospitals, but in terms of online players, especially in our core geographies and the newer separately, what are the dynamics that we are seeing?
There is no much impact from online players because for the past, I think post-COVID, we have seen different, multiple online players. You know, the names have changed. If you see, as such, we do not see any much impact coming from these players. The only change that we see is there are many aggregators which have come into wellness business, especially for corporate wellness. They don't have their own labs. What they do is they take the bundled package in terms of insurance and also the wellness, and then they again outsource these diagnostics to Vijaya or any of the other diagnostic players.
Understood. Thank you very much.
Thank you. Our next question is from the line of Ayush Agrawal from AARD Capital. Please go ahead.
Yes, ma'am. I had one follow-up question. Do we have a plan for the next either one to three years or three to five years of ever exploring the franchisee side of things?
No, Ayush. At the moment, I would not be able to comment on the future, but all of these centers that we operate today are company-owned, company-operated, and we do not have any kind of probably an idea on wanting to start franchising right now.
That is definitely, ma'am. That is, I know and you know, very much appreciated that this is being done by the company. I just wanted to ask this as a follow-up question that if in the near future or if in the distant future you wanted to explore the franchising model, like others.
No intention, Ayush. Not at all. Not at all.
Okay. Thank you, ma'am.
Thank you.
Thank you. We have no further questions, ladies and gentlemen. I would now like to hand the conference over to the management for closing comments.
I would like to thank everyone for attending this call. Should you need any further clarification or any other information about the company, please feel free to reach out to us. Thank you so much.
Thank you.
Thanks.
Thank you.
Thank you. On behalf of JM Financial, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.