Vijaya Diagnostic Centre Limited (NSE: VIJAYA) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Sura Suprita Reddy — Managing Director & Chief Executive Officer
Ankit Shah — Chief Financial Officer
Dhiren Gala — AGM – Strategy & Investor Relations
Venkata Siva Rama Raju Vegesna — Chief Operating Officer
Analysts:
Amey Chalke — Analyst
Anshul Agrawal — Analyst
Abin Benny — Analyst
Gnyan Thaker — Analyst
Ankit Shah — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to Vijaya Diagnostic Q3FY26 earnings conference call hosted by GM Financial Institutional securities Limited. As a reminder, all participants line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amaya Chalke from JM Financial. Thank you. And over to you sir.
Amey Chalke — Analyst
Thank you. Good evening everyone. I’m Amir Chalke and on behalf of JM Financial I would like to extend a warm welcome to all of you to the third quarter FY26 earning call of Vijaya Diagnostic Center. At the outset I would like to thank the management of Vijaya Diagnostic for giving us 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. Shiva Amaraju, 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.
Sura Suprita Reddy — Managing Director & Chief Executive Officer
Thank you for hosting the call. Good evening and thank you all for joining us on the call today. Firstly, I’m happy to share that we have delivered our highest ever quarterly revenue of 205 crores in Q3 FY26. Reflecting strong execution across the organization. I would like to congratulate the entire team for delivering robust performance across both the top line and bottom line. Before I move to a detailed business update, I would like to welcome Mr. Ankit Shah who has joined us as our Chief Financial Officer. Ankit brings over 20 years of experience in finance including more than a decade in the healthcare sector.
Along with a proven track record of leadership. We are confident that his expertise will strengthen our financial governance, improve operational efficiency, support M and A initiatives and contribute to a sustainable long term value creation. I’m also very happy to welcome Shiva back as our Chief Operating Officer of the company. I don’t think he needs any introduction as you all know him very well. We wish him success in this new role. I would also like to welcome Mr. Sai Prasad as our new Chief Technology Officer. And also Dr. B. Kiran as our Lab Director. In addition, we have strengthened our clinical and corporate functions with key strategic hires and will continue to invest in talent as we believe that building the right leadership and capabilities is critical to our sustained success with these additions.
I am confident that the team will be instrumental in driving our next phase of growth. Moving to the Business updates I am pleased to start on a very positive note as we have delivered a robust year on year revenue growth of approximately 21.4% supported by volume growth of nearly 15% in Q3. FY26 revenues also surpassed Q2 in absolute terms, which is notable again that Q3 is typically impacted by festive and seasonal softness. This performance underscores the resilience of our integrated business model with a very balanced growth across both Radiology and pathology. Radiology benefited from the strong execution driven by our hub expansions over the past few years and the strong reception of the Vichia brand in new geographies.
Pathology growth was primarily led by the Wellness segment fueled by rising demand for both preventive health services, favorable seasonality and the ongoing network expansion. Turning to physical we delivered a year on year growth of approximately 8% primarily driven by network expansion. Our two new hubs are ramping up steadily and are on track to reach break even within one year in line with our guidance during the quarter, we further expanded our network with the successful commissioning of two new hub centers in Fullbuddhal and Diamond Harbour, bringing our West Bengal hub footprint to seven. We also commissioned two new hubs in our core markets of Khammam and Nandial, reinforcing Vijay’s commitment to making world class diagnostic services more accessible.
I am very pleased to share that two hubs launched in Q1 FY26 in West Bengal, Krishna Nagar and Barasat have achieved break even within just three quarters ahead of the expected one year timeline. This highlights the strong demand for quality integrated diagnostic services in the region. Looking ahead, a key focus area will be stabilizing the newly launched hubs, commissioning multiple spokes across our network, continuing to invest in the latest technology to enhance the customer experience and strengthening our brand presence in these new geographies. With that, I will now hand over to Ankit to walk you through the operational and the financial highlights.
Thank you.
Ankit Shah — Chief Financial Officer
Good evening Good evening everyone and a very warm welcome to everyone joining us. On the call today. Thank you Ma’ am for the warm welcome. I’m delighted to be joining the organization at a time when the company has delivered such strong performance and build strong momentum. The timing presents a great opportunity to build on this success, further strengthen our financial foundation and support the next phase of sustainable growth. Alongside the leadership team, I will quickly take you through the financial performance and key developments for the current quarter and nine months ended 12-31-2025. The consolidated revenue for the current quarter stood at INR 205 crores reflecting a strong revenue growth rate of 21.4%. YOY and with strong revenue growth just like previous quarter was driven by test volume growth of 14.7% YoY balance growth of 6.7% was largely on account of change in the test M Coming to the geography wise revenue contribution for the quarter, Hyderabad contributed 68%, rest of AP, Telangana contributed 19%, Pune 6%, West Bengal 3% and rest of the geographies contributed 4%.
Like the previous quarters, 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 487 and INR 1756 respectively during the current quarter. EBITDA for the current quarter stood at INR 86 crores as compared to INR 67 crores in the corresponding quarter in the previous year reflecting a worldwide growth rate of 28.2%. The EBITDA margin stood healthy at 41.9% in the current quarter with the improvement of 221 basis points.
The profit after tax for the current quarter stood at INR 43 crores reflecting a strong growth of 22.3% and PAT margin also stood healthy at 21%. I will now summarize our performance for the nine months ended December 2025. The consolidated revenue for the current nine months period stood at INR 595 crores as against 508 crores in the corresponding previous year reflecting a YoY growth of 17.1%. The EBITDA stood at INR 241 crores against 204 crores in the nine months of the previous year registering a YoY growth of 18.1%. EBITDA margin stood healthy at 40.6% and profit after tax was at INR 125 crores with a margin of 21%.
Coming to the update on capital investment in the current period, we have largely utilized our capex plan for FY26 with the overall capex outlay of INR159 crores till date inclusive of the replacement capex for FY27. The capex outlay for the new center sees estimated to be INR 100 to 120 crores. That’s all from my side. I would now request the moderator to open the line for the Q and A session. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. To ask a question. Please press star and one. Now the first question is from the line of Anshul Agrawal from MK Global. Please go ahead.
Anshul Agrawal
Hi. Thank you for the opportunity and many congratulations on the strong quarter. First question is on the Hyderabad region. Like you I think ma’ am alluded that PH or Pune region has grown by 8%. Could you quantify the growth in the Hyderabad market on a Y and Y basis?
Dhiren Gala
Anshul, the growth in the Hyderabad market was close to 15% on a yoy basis. And this was equal across pathology and radiology.
Anshul Agrawal
Got it. And if I’m not mistaken, we have not added any hub centers in Hyderabad in the current or in the last two or three quarters. So this is purely organic. As in like for like growth in the region.
Venkata Siva Rama Raju Vegesna
Yes. From the existing capacity.
Dhiren Gala
This is from the existing capacity.
Anshul Agrawal
Would you be able to allude as to what has caused this strong growth in the core region?
Dhiren Gala
I think during this quarter the season has been favorable for us on the pathology side in specific. And what we have seen is whenever the season is favorable, Vijay not only outpaces the industry growth but also incrementally gains market share from the competitors. Also there was a spillover which we saw from Q2 to Q3 because of extended monsoon season. And also we did benefit from pre festive season this time around. So all these factors have led to strong growth of 15% especially in the Hyderabad region and overall as well.
Venkata Siva Rama Raju Vegesna
In fact, that is one of the reason, Anshul, why we say healthcare being seasonal. It is always. I would. I would say better to look at a full year level rather than seeing quarter on quarter. So we had a very good Q1, likely softer Q2 and then you know, a very good Q3.
Anshul Agrawal
Sure, Shiva. So the growth on a nine month basis for the Hyderabad region would also be somewhere around mid teens.
Venkata Siva Rama Raju Vegesna
Yes. Yes.
Anshul Agrawal
Okay. Okay. Clear. Second question was on our hub expansion plans for H1 or rather full year FY27. While I understand you guys have presented only for the half year period. Would it be possible to share your thoughts around what could be the steady state of hub expansion over the next two to three years? What I’m trying to understand is we have, we have opened two new geographies in the last year. You know, counting Bangalore and probably revamping the Pune cluster. Would we look at more spoke additions in the next two years or would it be sort of balanced?
Venkata Siva Rama Raju Vegesna
So FY27 per se you’ll be seeing about 4 to 5 hubs and about 10 to 12 spokes. But if I take FY28 and 29 I think you’ll see an optimal mix of spokes and hubs because like you rightly said, we added three new geographies, Bangalore, Pune and Kolkata at the same time. You know in by FY28 what also will happen is the existing hubs will stabilize by then we’ll be adding few spokes and then we will take on the next set of hubs. So FY27 it will be more of spokes. In FY28 and 29 you’ll see an optimal mix of both hubs and spokes.
Anshul Agrawal
Got it. And again if I understand this correctly, spokes would largely be sort of margin accretive within 2/4 time etc. Even in the non core region.
Venkata Siva Rama Raju Vegesna
Yeah, it will take 2 to 3 quarters. So the break even may happen within 2 quarters the margin. The positive EBITDA, you know will the spokes will contribute to the positive maybe in the third or fourth quarter.
Anshul Agrawal
Got it. And any, any color on what could be the peak revenue potential from a spoke? Again ballpark number. Even in the non core region, would it be very similar to a spokes center in Hyderabad?
Venkata Siva Rama Raju Vegesna
It will be in the range of. You know in Hyderabad we have spokes ranging from you know 1 and a half crore to even 6 and half crores. But then if you see in this new region what we expect is, you know these spokes will contribute anything between 1 and a half to 2 and half crores of revenue at maturity
Anshul Agrawal
and. Maturity would be after 12 months,
Venkata Siva Rama Raju Vegesna
about. One and a half year. 18 months.
Dhiren Gala
18 to 24 months.
Anshul Agrawal
18 to 24 months of a great. Just one last booking question. Maybe I might have missed it in the opening remarks. What would be the net cash position as on December?
Dhiren Gala
The net surplus cash as at 31st December is 260 crores. The total cash is around 305 crores. But we always exclude, you know, deferred capital freighters balance. So the surplus cash is around 260 crores as at 31st December.
Anshul Agrawal
Great. Many thanks and all the very best for the coming quarters. Thank you.
operator
Thank you. Anyone who wishes to ask a question may press star and one at this time. The next question is from the line of AMH Alke from JM Financial. Please go ahead. You can go ahead.
Amey Chalke
Yeah. Am I audible now?
Sura Suprita Reddy
Yes. Am I? You are.
Venkata Siva Rama Raju Vegesna
Yeah, yeah, yeah.
Amey Chalke
So the first question I have is basically we have added several hubs during this year and still in terms of margins we have been able to expand margins really well. We have delivered something like 42% margin. Even for nine months the margins looks good. So like going ahead like what stops us from adding more hubs? If there is no impact as such of expansion in terms of our margin performance or we don’t have any restrictions or basically the constraint on the capital side then what stops us from adding more hubs going ahead?
Venkata Siva Rama Raju Vegesna
So Amit, so the expansion plan, if you see internally, you know we are not saying that we’ll add only four or five hubs because of the margins. It is more about you. Right. Last two, three years there’s a good capex cycle that we have done. We’ve had multiple hubs across regions, right. So it is more in terms of, you know, the ground level operational challenges and also sometimes we have to give the hubs to stabilize before we take on a few more hubs, right. And we keep adding the team locally so that you know, like if you take Pune, right.
So we have acquired an asset and then we added two hubs and spokes. We have to give that geography some time for these centers to stabilize and we also on the ground have to stabilize the operations, add more and more bandwidth and they then take on the next round of, you know, growth. The similar concept, you know, if you see it worked well for us in Hyderabad, right. There was a phase when we added hubs, then two, three years of spokesperson and then again we have taken the next set of apps. It’s not the decision making is not on the margins.
It is more on the, you know, operational and you know, additional bandwidth and stabilizing things on the ground.
Amey Chalke
Sure, sure, got it. And the second question I have like for this quarter has been good but even for nine months our volume growth has been around 13%. So is it possible to give how the distribution is in the core and non core market markets for volumes?
Dhiren Gala
In the core markets it has been close to, you know, 10%, 10 to 11% and in the non core it has been close to 2 to 3%.
Amey Chalke
Sure. And for even for mature hubs, are we seeing a good amount of volume increase in core markets?
Venkata Siva Rama Raju Vegesna
So few of these hubs which have hit the capacity. Right. We see anything between 2 to 4% of volume growth. But at the same time in Hyderabad, even in few of the mature assets we are seeing about 10 to 12% of volume growth. So that is the reason still Hyderabad as a cluster is growing at 15% for the last few quarters.
Amey Chalke
Sure. And last question I have on the GLP1, what plans do we have for the because from March onwards we should see GLP generic launches to start happening and the other basically the innovative products are already there in the market. Have we come up with some plans for the GLP1 opportunity and how do you see it impacting volumes as well as revenue per test going ahead? Thank you
Venkata Siva Rama Raju Vegesna
Amir, to be very transparent. So as of now we are not seeing much of inquiries but we have all the tests that are required, you know, which will be part of this package. They are more routine in nature. Right. So I think maybe in next one or two months like you said, once the demand pitch, you know, we’ll also be ready with our own package. Maybe we’ll be able to share more information by the next earnings call.
Amey Chalke
Sure, sure. Thank you. I will join back. Thank you.
operator
Thank you. The next question is from the line of Abin Benny from J Financial. Please go ahead.
Abin Benny
Hi. Thank you for the opportunity. Am I audible?
Dhiren Gala
Yes, yes.
Abin Benny
Hi. So my questions are mostly more towards the cluster wise performance so or to the rather the newer ones that we have added. So to the Pakata 1 West Bengal, the new ones that we added have already broken even within much before the timeline that was anticipated. So any color on the overall like trend that we are going to be looking here because the break even has been happening much before than anticipated. Last time it happened in Bangalore also. So what is the change in outlook on this specifically for West Bengal and coming to Bangalore of the asset that broke even last quarter, how is that ramping up?
Sura Suprita Reddy
There’s no strategy change in this ebb and because we would still say that we would give it about 12 to 14 months in any geography outside of Hyderabad. It’s probably I think like I said and congratulated the team, they’ve been working an extra mile and these centers, Bangalore and Kolkata have broke even in the third quarter it says. But that does not probably lay ground to say that we would be able to replicate that across any new geography that we open a new hub in. Like I mentioned, Kolkata Also opened two more centers right now increasing the footprint.
We will have to wait it out and I would still say we would be confident about the 12 to 14 month timeline in any geography outside of Hyderabad. And when it comes to Bangalore, both the centers are ramping up well and in fact that’s a region where we would like to add a few more spokes and hubs also. And I’ll probably be able to give you a little more light in the next call but they’re doing extremely well both the centers.
Abin Benny
So ma’, am, also in Bangalore, are we like nearer to Bangalore? Are they any tier 2 or tier 3 new markets under penetrated that we might be looking at any expansion plans in that Karnataka market.
Sura Suprita Reddy
There are a lot of markets but at the moment our concentration is going to be on the city itself and there’s a lot of room for us to actually open up hubs and join the dots to be able to open up the spokes in your 28 29. So the focus is going to be opening more hubs in Bangalore and a few spokes going along with that. That will give us room to grow further at probably a faster pace in 28:29. So you will see the city being covered first. The priority is not on tier 2, tier 3 in Karnataka as of right immediately.
Abin Benny
Sure ma’. Am. Coming to Pune ma’, am, what is like right now it’s growing at the pH is growing at 8% yoy. So any color on apart from network expansion among about the other drivers in terms of demand or pricing, any growth levels that might be coming into picture that can lead to an incremental growth year.
Sura Suprita Reddy
So both these centers after we’ve acquired the center, the new two new hubs that we’ve opened, those are ramping up. Well we’re seeing a growth there traction is happening. This is when the brand visibility is getting created and we’ll have to give it a little more time and it’s only going to see a further traction probably in the few quarters to come. So it’s on track and probably will continue to do the same in Pune as well.
Abin Benny
Sure ma’. Am. Thank you. I’ll join back to the question for a moment.
operator
Thank you. A reminder to all the participants if you wish to ask a question you may press Star and one at this time. To ask a question please press Star and one now the next question is from the line of Anshul Agrawal from MK Global. Please go ahead.
Anshul Agrawal
Hi. Thank you for the follow up opportunity. Just one question on competition incrementally we are hearing even large organized pathology change, sort of venturing into radiology, advanced radiology. Just wanted to get your thoughts around, you know, any disruption that we may sort of witness from standalone chains or organized chains in our core cluster or any other cluster that they might sort of venture into.
Venkata Siva Rama Raju Vegesna
So Anshul. So I think especially in diagnostics we keep hearing two things. One is the disruption and the consolidation. I think these are like the objects that we see on the side mirror, right? They appear to be closer but they’re very far away. So you know, I think both consolidation and disruption, they’ll take it, it will take its own time. And like you rightly said, these players, we also heard that they’re starting up with advanced and basic radiology. But I think that they’re at a very initial stage where they’re doing a pilot in their own geographies.
And I think this business, healthcare is a business where I don’t think it will be prone to disruption. While technology, all that will allow us to improve the quality, right. And then players like Vijay, we’re already equipped with that kind of quality and the kind of the track record that we have and the expertise that we have, I think we’ll always have the edge over the other players.
Sura Suprita Reddy
The differential factor, Anshul would be anybody starting a chain with radiology or being integrated probably would start off typically with a wellness segment. But when you look at radiology per se in Vijaya, it’s a lot of work that comes in as second opinions, a specialized work. This is not just to do with your wellness segment. That is also the reason why you see the hubs actually ramping up faster, break evens, happening faster because the work speaks for itself. And that’s when the system that we bought into place, the teleradiology system, is creating that operating leverage, giving you the profitability that you’re seeing today is because you have specialized doctors sitting across all of these regions and still being able to deliver a very high end report even in a tier 2 geography.
So probably that’s a key differentiator to drive and ramp up all these centers, irrespective of whether being in a tier 2, tier 3 or the city itself. And the work that comes in is just not wellness driven. So it’s a lot more. That’s also reason why you see the PET CT is ramping up quickly in both Tirupati and Vizag. So it’s a, it’s a different kind of model itself.
Anshul Agrawal
Very clear, ma’. Am. And Siva, I think what, what I Gazed was in addition to the high end equipment. I think the moat lies in the radiologist network
Sura Suprita Reddy
size in all of them. If you look at it, the radiologist, cardiologists, your nuclear medicine specialist, it’s all a team that is doing work together which is integrated. Both pathology, radiology are talking to each other. So you’re giving an end conclusion, a final report to the customer before he walks out. So the time that is getting saved on the final diagnosis and treatment also is way shorter. So if we take Rajamhanvi for example, probably they would have had to come to the city, spend four days, we’re able to deliver this report in four hours sitting in Rajmandary.
Venkata Siva Rama Raju Vegesna
And that’s also one of the reason why you are seeing the faster break evens even in the newer geographies.
Anshul Agrawal
Clear, clear. Second question on was on the increase in realizations on a per footfall or a per test basis. While I understand it could be because of case mix as as you guys pointed out, wanted to understand would this be sustainable as sort of these hubs ramp up and then probably we’ll have more of pathology share of revenues come in. Do you expect realizations to again trend down going forward or would they be maintained in your view? I suppose we haven’t taken any tariff hikes in the current quarter.
Venkata Siva Rama Raju Vegesna
Yeah Anshul, you’re right. So the tariff hike that you have taken was I think in Q1. Right. So and it’s about one and a half percent of the revenue growth like you rightly said, as the hubs, you know, stabilizes, you’ll see more pathology were coming in and you will see the average realization coming down. But at the same time, you know, year on year you’ll see you know about close to 1 to 1.5% of tariff increase. Right. So I think that will be able to take the hit, you know of the, you know, ARPP is diluting because of pathology increase.
So I think the ARPPs will be in the range plus or minus, you know, 3 to 4% from where they are now.
Anshul Agrawal
Got it. Just a question following up on that. Would this then sort of help us to sort of expand our EBITDA margins? Because we’ll obviously not have the drags from the new hubs as we are just planning to set up more spokes in the future and operating leverage kicking in. Any thoughts around what how or how could EBITDA margins expand from the current levels?
Venkata Siva Rama Raju Vegesna
So Anshul, definitely from the existing network obviously because these centers are breaking even much ahead of what we have thought there will be leverage coming out of these centers but at the same time still we want the guidance to be at 40%. The reason being, you know, we are also doing significant investments onto talent and also on, you know, few IT initiatives, digital initiatives to improve the customer experience. Right. We are going to come up with a very high end CRM and many other, you know, investments into digital apps like maybe it can be a logistic app, you know, and multiple other internal apps.
So that. And we have moved all our core applications to cloud which is, is also coming with an incremental cost. So considering all this, we still want to guide margins at 40% but like you rightly said, if you see at a center level EBITDA there will be a leverage that would be coming because of this faster breakevens.
Anshul Agrawal
Got it. And depreciation levels, we’ve obviously seen them short up because of hub expansion. Would depreciation sort of stabilize at at the current quarterly run rate?
Venkata Siva Rama Raju Vegesna
It should, you know, except for that incremental hubs and spokes that are going to come in the next financial year. And in fact I think with India. So what also happens is if you see last three to four years we have added so many hubs and all these are 15 year leases. Right. Once you cross, you know, five years of lease period, you will see the depreciation, you will see the interest portion on index 116 coming down as the liability goes down. So but yes, for the next one to two years what we should see is we’ll, you know, the current depreciation plus the incremental.
The depreciation on account of the incremental capex.
Anshul Agrawal
Sure. Would you be able to share the pre index EBITDA margin and the impact on PAT as well because of India’s in the current quarter and the nine month period.
Venkata Siva Rama Raju Vegesna
So EBITDA will be roughly around.
Dhiren Gala
Would be roughly around 34% and on the PAT it would be closer to 22%.
Venkata Siva Rama Raju Vegesna
That would be higher than what we have reported.
Anshul Agrawal
Correct. This is for the nine month period or Q3.
Dhiren Gala
This is for the nine month period.
Anshul Agrawal
34% and 22% PAT much perfect. Yes, great. Many thanks. Thank you.
operator
Thank you. Participants who wish to ask questions may press star and one at this time. The next question is from the line of Gyan Tucker from Edelweiss amc. Please go ahead.
Gnyan Thaker
Congratulations ma’ am for good set of numbers considering we have a good cash balance. How are you? What is your M and A strategy going ahead?
Sura Suprita Reddy
As we mentioned earlier in the earlier calls MA is always an option, but probably to find the right asset, which is B2C. Nature, geography that we are probably comfortable in is something that we always look out for. And also what comes with it is the valuation has to be reasonable and make sense to all of us. So we’re always on the lookout. I have nothing to share as good news as of now. Let’s hope for the best. And we’re always on the lookout. So I think we’re open to that.
Gnyan Thaker
Okay, thank you.
operator
Thank you. A reminder to all the participants, if you wish to ask a question, you may press Star and one at this time. Anyone who wishes to ask a question may press star and 1. To ask a question, you may press Star and one at this time. The next question is from the line of Amit Chalk from JM Financial. Please go ahead.
Amey Chalke
Sure. Thank you so much. So I have one question on the the new geographies where we are entered, like Kolkata or Pune, how the competitors have reacted to our entry. Is there any changes in their behavior in terms of pricing, discounts, etc?
Venkata Siva Rama Raju Vegesna
I mean nothing as such. So if you see Pune was an acquired asset, Right. And then we’ve added, you know, centers and in fact if you see an integrated next to us, I think our competitors have, I think hardly one or two. Like if I take the next two, three competitors in that market, they hardly have one or anything between two to three, two to three centers. So we did not see any reaction at all such and at the same time, even in other geographies like Kolkata and Bangalore, I think, you know, like we don’t react immediately and we have not seen the competitors also reacting, you know, on our growth.
Amey Chalke
Sure. And in terms of our pricing strategy, are we at par with some of these competitors or we are still at discount because we are the new player.
Sura Suprita Reddy
We might be at par or a little discounted. There will be a mix certain death.
Venkata Siva Rama Raju Vegesna
But it will be in the range of 1 to 2%, not more than that.
Amey Chalke
Sure, sure. And second question I have on the Medinoa merger, are there any synergies we have realized post this merger in terms of volume or cost or anything in.
Venkata Siva Rama Raju Vegesna
Terms of cost, but not significant because Medina was having only one single center. Right. So now the back end is one, you know, we’ll have. We have some synergy but not a very significant number.
Amey Chalke
Sure, sure. Thank you so much. I will join them.
operator
Thank you. Participants who wish to ask a question may press star and 1. The next question is from the line of Ankit Shah from Kanara Robeco amc, please go ahead.
Ankit Shah
Hi, thanks for the opportunity. Firstly, I just wanted to understand. So our wellness revenues have been growing pretty well for the. They are up 20% plus. So any incremental measures that we are taking to drive this growth and how do you see this growth continuing going forward?
Sura Suprita Reddy
Yes, there has been significant growth in this segment Ankit. In fact it’s been growing. It was at about 12, 13, 14, it’s almost reached 15 now. I think it’s also because of people just being a lot more health conscious, being aware and you’re looking at a lot more newer geographies including Tier 2 geographies where we see this wellness segment grow, which was not the case say probably a couple of years back post Covid, this is a positive change that I see from Tier 2 and Tier 3 geographies and in terms of probably what Vijay is doing, yes, there’s been a lot of effort that’s going into digital initiatives, in fact region based wellness education and we’re seeing a traction from that and we would continue to do that going forward also.
So we would definitely look at this segment growing in future.
Dhiren Gala
Also. Ankit, in terms of the corporate wellness, what we have seen is more companies are offering preventive, you know, health checks. So that is also creating a steady revenue for diagnostic players. And that’s where we have seen good growth in the corporate packaging. This as well.
Ankit Shah
Do you expect this year to continue grow? I mean any cap. Do you see that?
Sura Suprita Reddy
I’m sorry, we can’t hear you.
Ankit Shah
Hello? Hello. Is it better? So I was asking, do you envision any cap for this share of revenues or it can grow much further, even north of 20% share. Any thoughts on that?
Sura Suprita Reddy
It could definitely grow north of 20% and it also depends on your geography expansion. Right. So the more number of spokes, in fact it’s an, it’s an advantage for Vijaya because even the smallest spoke can do a full master health checkup. So irrespective of whether the expansion is in spokes or hubs, you will see an expansion in the wellness segment also.
Venkata Siva Rama Raju Vegesna
So pre Covid, we were getting 8% of our revenue from wellness. So five years from then to now, so from 8 has become 15.
Ankit Shah
Got it, got it. And secondly, I just wanted to check and so now we have presence in three additional regions in addition to our core markets. Any, any plans to scale up in any newer markets or even the Gurkha geography where we have some presence. So any new regions we are looking. At right now
Sura Suprita Reddy
at the moment. Angit, I think our Hands are full and we would prioritize and concentrate on the geographies that we’re working in. We do not have any plans of looking at other geographies. If not for some, probably a good M and a opportunity that comes in which is large in size and forces us to enter that geography otherwise organically hands are full would stay put with these geographies that we would work in.
Venkata Siva Rama Raju Vegesna
At least for the next two to three years.
Ankit Shah
Thank you. That’s it from all the best.
Sura Suprita Reddy
Thanks. Thanks.
operator
Thank you. A reminder to all the participants, if you wish to ask a question you may press Star and one at this time to ask a question please press Star and one. Now we have the next question from the line of Abin Benny from JM Financial. Please go ahead.
Abin Benny
Hi, thank you for the follow up question opportunity first one ma’. Am. So given the current for dollar fluctuation and the GST changes that have taken place, how do we look at the input cost for our current expansion for 27 and other items that might be impacted because of this?
Dhiren Gala
So you know I’ve been on. So. On the pathology friend, you know all these contracts for rental reagents, these are long term in nature and over the last couple of years if we have to look into the volume commitment I think we’ve met volume commitment. In fact it’s surpassed as well. So we don’t foresee any major changes happening on the pathology front and on the CAPEX front. Yes there has been a little bit of an impact because of the USD INR breaching 19 but then there has been GST benefit also also from 12% to 5% which has more or less offset, you know the negative impact on account of this increased capex.
So net net the impact even on the CAPEX front is minimal.
Abin Benny
Got it, thank you. And also in the earlier opening comment you had mentioned, we had mentioned that the growth was also led by seasonal impact and lot of spillover from this last season. Right. But given that Q4 will be a more non flu season and there are much, not much of seasonality in general to be expected, what might be the levels that will be leading to the growth year?
Venkata Siva Rama Raju Vegesna
But it was the same case last year as well. So I think you know Overall even for Q4 we will we expect to surpass the guidance of 15%.
Abin Benny
Okay sir. And any color on the ramp up of the wellness segment in Q4 because I believe that this is the time when more corporate packages and more of the people will be testing for their overall body checkups. Right. So any improvement that we are looking at here?
Venkata Siva Rama Raju Vegesna
Yeah, generally in the past as well we have seen you know, incremental revenue coming from wellness in Q4 that to post, you know mid of from it generally picks up from mid of Feb until fag end of March. So similarly we are hoping that you know the wellness share as a percentage of revenue in Q4 what we have seen in Q3.
Abin Benny
Got it sir. Thank you very much. I’ll join. Dr.
operator
Thank you. Anyone who wishes to ask a question may press star and one at this time. To ask a question, please press star and one now. A reminder to all the participants, if you wish to ask question, you may press star and one at this time. To ask a question, you may press star and one now. Participants who wish to ask question, you may press star and one at this time. A reminder to all the participants, if you wish to ask a question, you may press star and one at this time. Ladies and gentlemen, that was the last question for today.
I would now like to hand the conference over to the management for closing comments.
Dhiren Gala
I would like to thank everyone for attending this call. Should you have any further clarifications or any other information needed about the company, please feel free to reach out to us. Thank you.
operator
Thank you. On behalf of JM Financial Institutional securities limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.