Dr Lal PathLabs Ltd., a leading diagnostic services provider, is targeting margins of 27% in financial year 2025-26, according to its Group Chief Financial Officer Ved Goel.
The company aims to open 15 to 20 labs in this fiscal, while expanding its network in southern and western states. In fiscal 2025, it had opened 18 labs.
"Margins in the range of 27% are more sustainable. We are investing in the business. We are going deeper into our core geography, we are expanding our footprints in the south and the west. We will open 15 to 20 labs in the coming year. Investments are required in technology, automation. These investments will require a bit of profit. That's why I am saying 27% is the more sustainable margin,” he said, during a conversation with NDTV Profit.
He added that investments made in the past are still not mature. They will take 12 to 18 months to mature.
In the March quarter, Dr Lal PathLabs' revenue increased by 10.5% year-on-year to Rs 602.6 crore, whereas the earnings before interest, taxes, depreciation and amortisation was up 17% year-on-year at Rs 169 crore. The company's Ebitda margin stood at 28.1% compared to 26.5% in the same period last year.
The company reported an 81.2% increase in its consolidated net profit to Rs 155.5 crore in from Rs 85.8 crore in the year-ago quarter. Its board also recommended a final dividend of Rs 6 per equity share for FY25.
According to Goel, the reasons for the company exceeding expectations in the March quarter include its geographical mix and test mix. He added that the company's “Swasthfit” health package played a significant role, saying that it has contributed 26% to the revenue in the quarter under review.
As of March 31, 2025, Dr Lal PathLabs has 298 clinical laboratories, 6,607 patient service centers and 12,365 pick-up points in India.
Shares of the company settled 2.94% lower at Rs 2,825.6 apiece on the NSE, compared to 1.2% rise in the benchmark Nifty 50.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
