India's diagnostics pivots to precision tests as high-value segments grow

Industry leaders say demand for these higher-value tests aimed at early disease detection, personalised treatment and long-term health management has been expanding far faster than routine pathology

India’s diagnostics industry is undergoing a structural shift, as companies increasingly pivot toward preventive and precision testing, amid rising health awareness and post-pandemic changes in patient behaviour.

 

According to industry leaders, lifestyle profiling, gut health and oncogenomics are emerging as the fastest-growing segments.

 

Demand for these higher-value tests, aimed at early disease detection, personalised treatment and long-term health management, has been expanding far faster than routine pathology, they said.

 

As a result, precision and preventive diagnostics now contribute an estimated 15 to 25 per cent of revenues for leading players, a share that is expected to double over the next two to three years.

   

“Preventive and precision testing is the fastest-growing segment within diagnostics today,” said GSK Velu, chairman and managing director of Neuberg Diagnostics.

 

He noted that such tests currently account for around 15 per cent of Neuberg’s revenues and could rise to about 30 per cent over the medium term as adoption accelerates across lifestyle, gut health and genomic testing.

 

However, Velu added that operating margins have remained broadly stable as companies continue to invest heavily in capital expenditure, and research and development to scale up advanced testing capabilities.

 

A similar trend is visible at Suraksha Clinic and Diagnostics, where precision diagnostics, including genomics and specialised molecular tests, now contribute 22 to 25 per cent of overall revenues.

 

“In the post-Covid era, there has been a clear shift towards preventive healthcare and precision testing that enables early detection and better disease management,” said Somnath Chatterjee, chairman and joint managing director of the company.

 

He added that as volumes of such tests increase, margins are expected to improve over time.

 

Digital-first diagnostics players are also seeing a sharp uptick in demand for preventive testing. Tarun Bhambra, co-founder of Orange Health Labs, said nearly a third of the company’s business now comes from preventive testing, particularly lifestyle-related assessments and advanced screening.

 

“Over the past year, check-up packages priced above ~5,000 have grown more than three times, making them a key driver of incremental revenue growth compared to routine diagnostics,” he said, adding that rising awareness around proactive health management is accelerating adoption of higher-value tests.

 

Bhambra noted that preventive testing is largely delivered through curated health packages, which typically involve higher bundled discounts and can put some pressure on margins.

 

However, this is being offset by consumers opting for larger, more comprehensive packages that include advanced tests. Orange Health Labs has been expanding its specialised test offerings, including molecular panels, genomic tests such as full exome sequencing, BRCA gene testing, gut microbiome analysis and, soon, liquid biopsy solutions for cancer detection.

 

Industry executives expect the shift toward preventive and precision diagnostics to deepen over the next few years as testing becomes a routine part of health, fitness and nutrition management, especially among urban and younger consumers.

 

While near-term profitability gains may be moderated by investments and discounting, companies believe the higher clinical value and complexity of these tests will ultimately support both revenue growth and margin expansion, reshaping the diagnostics landscape over the long term.