Dr Lal Pathlabs Reports Strong Q3FY25 Performance with 19.3% Profit Growth
Dr Lal Pathlabs, India’s leading diagnostic chain, has reported impressive financial results for the third quarter of FY25, with a 19.3% rise in profit after tax (PAT) to Rs 98 crore. The company’s revenue grew by 10.7%, reaching Rs 597 crore, while EBITDA saw a 9.6% increase to Rs 443 crore.
Strategic Expansion Driving Growth
The company attributed its strong performance to volume-led growth achieved through deeper penetration in core markets and a carefully planned expansion into newer regions, particularly in the western and southern parts of India. Notably, the western region contributed 15% of total revenue for the quarter.
A key highlight of Dr Lal Pathlabs’ expansion strategy has been its focus on Tier-III and smaller cities, where the company has recorded a four-year compound annual growth rate (CAGR) of 17%, compared to the overall revenue CAGR of 14% during the same period. These smaller cities now account for 3% of the company’s total revenues, reflecting the increasing demand for organized diagnostic services in underserved regions.
Suburban Diagnostics Growth
Suburban Diagnostics, a subsidiary of Dr Lal Pathlabs, also posted a strong performance with revenue growth of 9.2% in Q3FY25. This expansion further solidifies Dr Lal’s presence in western India, where it has been working to establish a stronger foothold.
The Need for Robust Healthcare Infrastructure
Dr. Arvind Lal, Executive Chairman of Dr Lal Pathlabs, emphasized the urgent need to strengthen primary and secondary healthcare infrastructure, particularly in rural and Tier-III cities. “With the increasing prevalence of non-communicable diseases, the role of organized diagnostics in delivering timely and reliable testing is becoming critical,” he stated.
Currently, Dr Lal Pathlabs operates 280 laboratories and 5,700 collection centers across India, ensuring wide accessibility for patients in various regions.
Price Stability and Increased Testing per Patient
Despite rising operational costs, the company has not implemented any price hikes in nearly two years. Instead, its growth has been primarily driven by an increase in testing per patient. Managing Director Om Manchanda noted that their franchise network continues to expand, with each lab now servicing a larger number of collection centers.
“In North and East India, our cluster-based approach is driving accelerated growth in Tier-III and Tier-IV cities. In the West, Suburban Diagnostics is gaining significant traction. Meanwhile, in South and West India, we are enhancing infrastructure and brand communication to further boost sample volumes,” Manchanda added.
Surge in Sample Volumes
Chief Executive Officer Shankha Banerjee highlighted that sample volumes grew by 10.3% year-over-year, accompanied by a 3.8% increase in patient numbers.
To support this growth, Dr Lal Pathlabs is aggressively expanding its network. “We are accelerating our reach with plans to open 15-20 new labs in this financial year. Our focus is on extending our presence in Tier-III and Tier-IV markets while simultaneously strengthening our core regions. We are also investing in new infrastructure in metro and Tier-I cities to cater to growing demand,” Banerjee said.
Future Outlook
With a solid financial performance, ongoing strategic expansions, and a commitment to maintaining price stability while increasing service accessibility, Dr Lal Pathlabs is poised for sustained growth. The company’s focus on tiered expansion, infrastructure development, and customer-centric services ensures that it remains a leader in India’s fast-evolving diagnostic sector.
