ICICI Securities has issued a buy rating on Vijaya Diagnostic Centre with a target price of ₹1,600 in its research report dated August 09, 2026. According to the brokerage's analysis, the company's Q1FY27 results exceeded expectations with revenue growing 22.8% year-on-year, marking the fastest pace among listed peers in the diagnostic sector.
The company demonstrated strong operational performance by commissioning 10 new hubs in FY26, representing approximately 20% network addition. As reported by ICICI Securities, most of these newly commissioned hubs achieved EBITDA break-even within six months of operations. The expansion continues with plans to add seven more hubs in the remaining FY27 period, including one hub commissioned in July 2026.
Vijaya Diagnostic is implementing an aggressive expansion strategy in Bengaluru market, recently commissioning a central hub that is expected to help replicate the company's success model in other markets. According to ICICI Securities, the company has charted a comprehensive plan to revitalise growth in Pune market, which showed 18% growth in Q1. Management projects revenue growth of 17-19% in FY27 with EBITDA margin of over 40%, after accounting for approximately 1.5% drag from network expansion.
ICICI Securities has raised FY27/28E EPS estimates by approximately 3%/8% respectively to reflect the company's better growth prospects and margin improvements. The brokerage's upgrade to buy rating with the higher target price of ₹1,600 reflects confidence in the company's expansion strategy and operational execution capabilities in the diagnostic services sector.
