Dr Lal PathLabs Q2 FY26 Earnings Conference Call Transcript

Dr Lal PathLabs reported a revenue increase of 10.7% YoY in Q2 FY26, with revenue reaching ₹731 crore. Sample volume grew by 10.3% to 25.4 million. The company saw a 16.4% increase in PAT, recording ₹152 crore. Focus remains on technical expertise and digital integration, including AI for detecting lymph node metastasis. An interim dividend of ₹7 per share has been approved.

Financial Performance

In Q2 FY26, Dr Lal PathLabs maintained a strong growth trajectory, demonstrating robust operational performance across its network. Key highlights include:

  • Revenue growth of 10.7% YoY, with revenue for the quarter at ₹731 crore compared to ₹660 crore in the same quarter last year.
  • H1 FY26 revenue grew by 11%, totaling ₹1,400 crore.
  • Sample volume increased by 10.3% to 25.4 million.
  • Patient volume rose by 5% to 8.2 million.
  • Profit After Tax (PAT) grew by 16.4%, reaching ₹152 crore.

Revenue per patient for Q2 FY26 stood at ₹889, a 5.4% increase compared to ₹844 in Q2 FY25. Test per patient grew by 5%.

Strategic Focus

Dr Lal PathLabs is focused on deepening its technical expertise, particularly in high complexity testing areas. The Genevolve division is enhancing capacity and accuracy for specialized services. The company has also integrated AI for detecting lymph node metastasis in cancer cases, improving precision and speed in oncology reporting.

The Swasthfit program contributed 26% to Q2 revenues, driven by affordable bundled preventive health checkup packages.

Network and Digital Expansion

Network expansion is disciplined, focusing on a cluster-based approach. Efforts are intensifying to deepen reach into Tier-3 and Tier-4 towns. Investments in digital assets and technology platforms are ongoing to improve patient and client experience.

Dividend and Bonus Issue

The Board of Directors has approved an interim dividend of 70%, which is ₹7 per share. Additionally, a bonus issue of shares in the ratio of 1:1 has been approved.

Guidance and Outlook

The company reaffirms its revenue growth guidance of 11% to 12% for the financial year. Margins for the year are expected to be in the range of 27% to 28%.

Source: BSE

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