Vijaya Diagnostic Centre Recommends Final Dividend, Approves Business Acquisition

Vijaya Diagnostic Centre Ltd has recommended a final dividend of ₹2 per share, equivalent to 200% on a face value of ₹1. The company's board also approved the acquisition of a diagnostic services business, specifically MRI, EEG, and NCV services, from Medinova Millennium MRI Services LLP for approximately ₹4.20 crore. The board's decisions were made during a meeting on May 7, 2026, where audited financial results for the fiscal year ended March 31, 2026, were reviewed but not publicly disclosed.

In addition to the dividend and acquisition, the board authorized the grant of 1,79,500 Employee Stock Options (ESOPs) with an exercise price of ₹784 per option. Separately, the board noted that Independent Director Dr. D Nageshwar Reddy will not seek re-appointment for a second term.

The recommended dividend signals the company's commitment to rewarding shareholders, suggesting financial stability. The acquisition of Medinova's specific diagnostic services aims to bolster Vijaya Diagnostic's offerings, potentially enhancing its market presence in key areas. This move aligns with the company's strategy of expanding its capabilities, following its previous acquisition of a 26% stake in Medinova Diagnostics and Imaging Services Private Limited in December 2023 for ₹3.25 crore.

Investors will be tracking several key points. The proposed dividend requires shareholder approval at the upcoming Annual General Meeting (AGM). The acquisition, while strategic, involves a cash outflow of ₹4.20 crore and potential integration challenges. The absence of disclosed FY26 financial performance leaves investors awaiting more detailed results. The departure of an experienced Independent Director also prompts attention regarding board composition and governance.

In the competitive Indian diagnostic sector, Vijaya Diagnostic Centre competes with larger players like Dr. Lal PathLabs, which reported ₹1,137 crore in FY23 revenue, and Metropolis Healthcare, with ₹1,046 crore in FY23 revenue. Smaller entities like Krsnaa Diagnostics often focus on government tenders. Vijaya Diagnostic's acquisition appears to be a targeted move to strengthen specific service lines.

Key upcoming developments include the official announcement of the AGM date, the record date for the dividend, and details on the completion and integration timeline for the Medinova Millennium MRI, EEG, and NCV Services Business acquisition. Future financial results will provide clarity on the company's performance during FY26.