Dr Lal Pathlabs, India’s largest diagnostic chain, posted a 19.3 per cent rise in profit after tax to Rs 98 crore for Q3FY25 on a 10.7 per cent rise in revenue to Rs 597 crore. The Ebitda grew by 9.6 per cent to Rs 443 crore during the quarter.
The company said that volume-led growth was achieved through deeper penetration in core markets and calibrated expansion in newer regions in the West and South. The western region contributed 15 per cent of total revenue in Q3FY25 for this Delhi-headquartered company. The four-year compound annual growth rate (CAGR) of Tier-III and beyond cities was 17 per cent, compared to the 14 per cent revenue CAGR overall for the same period. These smaller cities now contribute 3 per cent of Dr Lal’s revenues.
As for Suburban Diagnostics, an arm of Dr Lal Pathlabs, revenue growth was 9.2 per cent in Q3.
Arvind Lal, executive chairman, said: “The need to strengthen primary and secondary healthcare infrastructure, especially in rural areas and in cities classified as Tier-III and beyond, has never been more pressing. With the increasing prevalence of non-communicable diseases, the role of organised diagnostics in delivering timely and reliable testing is becoming critical.”
Dr Lal now has 280 labs and 5,700 collection centres.
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Om Manchanda, managing director, said that they have not taken any price hikes in nearly two years. Their growth is fuelled by higher testing per patient. “Our franchise network is expanding, with each lab now servicing a larger number of collection centres. In North and East India, our cluster-based approach is accelerating growth in Tier-III and Tier-IV cities, while in the West, Suburban Diagnostics is gaining traction. In South and West India, we are also strengthening infrastructure and brand communication to boost sample volumes,” he added.
Meanwhile, Shankha Banerjee, chief executive officer, said that sample volumes grew by 10.3 per cent Y-o-Y, with patient growth of 3.8 per cent.
“We are accelerating our reach with the planned opening of 15-20 new labs in this financial year. We are expanding our reach into Tier-III and Tier-IV markets while strengthening our presence in the core regions. We are making investments in new infrastructure in metro and Tier-I cities as well.”