Are Vijaya Diagnost. latest results good or bad?

Vijaya Diagnostic's latest financial results for the quarter ended September 2025 reflect a continued operational momentum, with net sales reaching ₹201.56 crores, marking the highest quarterly revenue on record. This growth is attributed to an expanding network presence and improved utilization rates, resulting in a year-on-year revenue increase of 10.17%. Sequentially, net sales grew by 7.18% compared to the previous quarter.
The company's net profit for the same quarter stood at ₹43.28 crores, showing a sequential increase of 12.15% and a modest year-on-year growth of 2.75%. This divergence between revenue growth and profit growth indicates emerging margin pressures as the company scales its operations. The operating margin for the quarter was reported at 40.60%, which reflects a sequential improvement of 150 basis points but a decline of 94 basis points compared to the same quarter last year.

Despite the positive revenue and profit figures, there are concerns regarding the company's elevated valuation multiples and moderating margin profile. The operational dynamics show that while Vijaya Diagnostic is successfully expanding its market presence, it faces challenges in maintaining profitability margins amidst rising costs and competitive pressures.

The company has seen an adjustment in its evaluation, reflecting the complexities of its operational performance and market conditions. Overall, Vijaya Diagnostic's results highlight a strong revenue trajectory, but the pressures on margins and valuation considerations warrant close attention moving forward.