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India's Health Crisis: A Lucrative Market
18 Oct
Summary
- Diabetes and hypertension drive demand for healthcare services.
- Vijaya Diagnostic Centre focuses on high-margin diagnostics.
- Nephrocare Health Services expands through asset-light dialysis centers.
India faces a growing burden of diabetes and hypertension, fueling demand for healthcare services.
Vijaya Diagnostic Centre, a Hyderabad-based provider, is investing in diagnostic equipment. It reported FY26 revenue growth of 19.5% to ₹814.2 crore and a net profit increase of 20.3% to ₹173 crore. Its EBITDA margin reached 41.4% in FY26, expanding to 42.7% in Q1 FY27.
Vijaya's integrated pathology and radiology network and a B2C focus drive its performance, with increasing revenue per visit. However, revenue concentration in Telugu-speaking markets presents a key concern as it expands.
Nephrocare Health Services, operating as NephroPlus, is Asia's largest dialysis network with an asset-light model. In FY26, revenue grew 32.2% to ₹998.8 crore, with an EBITDA margin of 22.7%. Q1 FY27 saw revenue rise 23.7% to ₹281.8 crore.
Nephrocare's growth relies on scale and cost efficiency in India, with 80% of its clinics in Tier-2 and Tier-3 towns. Overseas expansion in markets like Saudi Arabia and the Philippines aims to improve revenue realization.
Both companies trade at premium valuations, with Vijaya at 76.2 times trailing earnings and Nephrocare at 72.6 times. Their future growth depends on sustaining margins and profitability in new geographies and markets.
