Dr Lal PathLabs Q4 profit rises 81% on volume growth, geographic expansion

India’s largest diagnostics service provider, Dr Lal PathLabs (DLPL), on Friday reported an 81.4 per cent year-on-year (Y-o-Y) increase in consolidated net profit for the March quarter of financial year 2024-25 (Q4FY25) at Rs 156 crore, up from Rs 86 crore reported for the same period last year.

 

The company’s revenue from operations also rose to Rs 603 crore in Q4FY25, a 10.5 per cent Y-o-Y growth from Rs 545 crore reported in Q4FY24.

 

On a sequential basis, the company exhibited a flat 59 per cent rise in net profit, while revenue remained flat, from Rs 98 crore and Rs 597 crore reported in Q3FY25, respectively.

 

The company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) rose by 16.9 per cent Y-o-Y to Rs 169 crore, with the Ebitda margin coming in at 28.1 per cent in the March quarter compared to 26.5 per cent in the same period last year.

 

The company attributed the strong performance to increased testing volumes and its expanding footprint, particularly in Tier-III and Tier-IV towns.

 

Speaking on the results, DLPL group chief financial officer Ved Prakash Goel said that the strong results were driven by volume growth, and supported by a favourable test and geographic mix, without taking any price hikes. 

 

DLPL said that volume-led growth was achieved through deeper penetration in core markets and calibrated expansion in newer regions of the West and South.

 

“Growing sample and patient volumes are driving increased operating leverage, enabling the company to maintain competitive pricing while realising efficiency gains through optimised IT infrastructure,” it added.

 

Commenting on future plans, Shankha Banerjee, chief executive officer (CEO) at DLPL, said that the company will look to strategically evolve its test portfolio to meet the dynamic needs of healthcare.

 

“This includes a focused expansion into specialised verticals like genomics and advanced diagnostics, exemplified by our recent launch of the advanced Amyloid Typing test – a first in South Asia,” he added.

 

As of March 31, 2025, DLPL operates 298 clinical laboratories, including a National Reference Lab in Delhi and Regional Reference Labs in Kolkata, Bangalore, and Mumbai.

 

Its network also includes 6,607 patient service centres (PSCs) and 12,365 pick-up points (PUPs), serving individual patients, hospitals, healthcare providers, and corporate clients.

 

On Friday, Dr Lal PathLabs’ stocks were up by 4.26 per cent, ending the day’s trade at Rs 2,906.55 apiece on the Bombay Stock Exchange (BSE).