Dr. Lal PathLabs (LALPATHLAB) Q2 25/26 earnings summary

Executive summary

• Revenue and profit grew robustly in Q2 and H1 FY26, driven by increased sample volumes, network expansion, and operational discipline in both core and underpenetrated markets.

• Investments in digital infrastructure, AI, high-complexity testing, and operational efficiency support scalable, sustained growth.

• Board approved a 70% interim dividend (INR 7/share) and a 1:1 bonus issue.

• Increased authorized share capital to INR 2,000 million and introduced RSU 2025 employee stock plan.

• Lower incidence of seasonal illnesses moderated overall volumes compared to last year.

Financial highlights

• Q2 FY26 consolidated revenue: INR 7,306 million (up from INR 6,602 million YoY); H1 FY26 revenue: INR 1,400 crore (up 11% YoY).

• Q2 FY26 EBITDA: INR 224 crore (up 10.8% YoY), margin 30.7%; Q2 FY26 PAT: INR 152 crore (up 16.4% YoY), margin 20.8%.

• Q2 FY26 EPS (Basic): INR 18.1 (up from INR 15.5 YoY); H1 FY26 EPS: INR 33.9 (up from INR 28.3 YoY).

• Net cash as of September 30, 2025: INR 1,367 crore; consolidated cash and equivalents: INR 1,161 million.

• Interim dividend of 70% (INR 7/share) and 1:1 bonus issue approved.

Outlook and guidance

• FY26 revenue growth guidance maintained at 11%-12%, with margins expected in the 27%-28% range.

• No price hikes planned for FY26; GST benefits to be passed to customers.

• Long-term revenue CAGR target of 13%-14% seen as realistic, supported by network expansion, portfolio innovation, and digital enablement.

• Bonus shares to be issued within two months of board approval, subject to approvals.

• Interim dividend to be dispatched/credited within 30 days of declaration.