1. Opening Hook
India’s weather gods pulled a sick joke this year—monsoons arrived, mosquitoes clocked in, but fevers forgot to show up. Yet Dr. Lal PathLabs still posted double-digit growth, proving that their business isn’t dependent on whether dengue feels like visiting. Like theBhagavad Gitareminds us,“You have control over action, not its fruits.”Well, Lal PathLabs acted, and fruits showed up anyway… though margins kept trying to hide behind the curtains.
Stick around—this gets juicier than a glucose tolerance test.
2. At a Glance
- Revenue up 10.7%– CEO swears it’s not fever season luck; just disciplined hustling.
- EBITDA up 10.8%– The dependable sidekick growing almost exactly like revenue (cute).
- PAT up 16.4%– Profits got a caffeine boost while volumes yawned.
- Margins at 30.7%– Even with “investments,” they refused to budge.
- Volumes up 10.3%– Patients didn’t fall sick, but still showed up.
- EPS up to ₹18.1– Bonus + dividend cherry on top.
3. Management’s Key Commentary
“Healthcare in India is at a crucial inflection point.”(Translation: Everyone’s getting older, sicker, and more insured—yay for diagnostics.)
“Digitization is redefining patient experience.”(Translation: Even your report now reaches before your doctor does.)
“Non-communicable diseases remain the biggest challenge.”(Translation: Lifestyle problems are great for recurring revenues 😏.)
“We are the first in India to use AI for lymph node metastasis detection.”(Translation: AI is not taking jobs… yet. But it’s definitely taking the microscope’s job.)
“Swasthfit contributed 26% of revenue.”(Translation: Indians love discounts even when checking cholesterol.)
“Margins may land at 27–28% for the year.”(Translation: We’re spending, but not enough to scare investors.)
“Radiology pilot in Delhi is tracking well.”(Translation: CT/MRI money smells too good to ignore.)
“We have no intention of retaining GST benefits.”(Translation: Don’t even ask. Government might be listening.)
4. Numbers Decoded
Metric Q2 FY26 Q2 FY25 YoY Change
----------------------------------------------------------------------
Revenue (₹ Cr) 731 660 +10.7%
EBITDA (₹ Cr) 224 202 +10.8%
EBITDA Margin 30.7% 30.6% +10 bps
PAT (₹ Cr) 152 131 +16.4%
PAT Margin 20.8% 19.8% +100 bps
Patients (Mn) 8.2 7.8 +5%
Samples (Mn) 25.4 23.0 +10.3%
RPP (₹) 889 844 +5.4%
EPS (₹) 18.1 15.5 +17%
Net Cash (₹ Cr) 1367 1240+ Rocket fuelHigh-end tests, Swasthfit bundles, and NCR growth played doctor; seasonal illnesses took the day off.
5. Analyst Questions
Morgan Stanley:Why isn’t network expansion directly translating to higher revenue?Mgmt:Because new labs don’t magically print money on Day 1. (If only.)
Indus Capital:Why aren’t realizations growing faster?Mgmt:We track realizations perpatient, nottest. (Corporate speak for “stop overthinking.”)
Prakash Kapadia:Is Suburban integration finally done?Mgmt:Yes. Growth coming back by Q4… hopefully.
Emkay:Price hikes?Mgmt:LOL no. GST cuts means pricedrops, not hikes.
Retail Investor:Radiology expansion?Mgmt:Pilot is on track. Expansion coming, but don’t call it a pivot
