Dr Lal PathLabs reports higher Q3 profit on steady testing demand; dividend declared

Dr. Lal PathLabs Ltd.'s net profit for the October-December period increased by 19% from last year to ₹98 crore. A CNBC-TV18 poll had pegged the figure at ₹99 crore.

Revenue for the quarter stood at ₹596.7 crore, which is a growth of nearly 11% from the year-ago quarter and was lower compared to the CNBC-TV18 poll of ₹598.5 crore.

The company said that volume-led growth was achieved through deeper penetration in core markets and calibrated expansion in newer
regions of West and South. The West region contributed 15% to the total revenue in the quarter.

Dr. Lal PathLabs' Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 9.5% year-on-year to ₹154 crore. The figure was lower than the CNBC-TV18 poll of ₹160 crore.

EBITDA margin contracted by 30 basis points from last year to 25.8% from 26.1%. The margins were also lower than the CNBC-TV18 poll estimate of 26.7%.

Besides, the company has approved a third interim dividend of ₹6 per equity share, which is 60% on a face value of ₹10 each, for the financial year 2024-25. The record date for the purpose of payment of the dividend will be February 5, 2025.

The said dividend will be credited within 30 days of the declaration, the company said in an exchange filing.

The company, which operates about 300 testing labs, said the number of samples tested grew 10% during the third quarter.

Dr Lal Path has also benefited from strong demand for its bundle test offerings, which combine tests for multiple diseases such as hyperthyroidism and diabetes, according to analysts.

"We continue to drive growth through strategic expansion and deeper market penetration. While we have not taken any price hikes in nearly 2 years, sample growth is fueled by higher testing per patient and the strong momentum of SwasthFit, particularly in underserved towns and cities," Managing Director Dr Om Manchanda said.

"Investments in digital infrastructure, AI and genomics are enhancing efficiency and early diagnosis. This is also equipping us to meet evolving patient needs," said Executive Chairman Dr. Arvind Lal.

Shares of Dr. Lal PathLabs Ltd. are currently trading 4% higher following the Q3 results announcements at ₹2,866.45. The stock is down 6% so far in 2025.