Dr. Lal PathLabs (LALPATHLAB) Q3 25/26 earnings summary

Executive summary

• Revenue grew 10.6% year-on-year in Q3 FY26 to INR 660 crore, with 10.8% growth for the nine-month period, driven by increased sample volumes, network expansion, and operating leverage.

• Patient volume growth was 2.7% in Q3, impacted by a decline in the seasonal fever portfolio; YTD patient volume growth is 4.4%.

• SwasthFit preventive health program contributed 26% to total revenue, supporting B2C market growth and expansion into Tier 2 and below towns.

• Launched Sovaaka, a personalized preventive healthcare platform, and expanded high-end diagnostics and AI-supported imaging.

• Third interim dividend of INR 3.5 per equity share declared, with a 1:1 bonus share issue completed.

Financial highlights

• Q3 FY26 revenue: INR 660 crore (up 10.6% YoY); 9M FY26 revenue: INR 2,060 crore (up 10.8% YoY).

• Q3 FY26 EBITDA before exceptional items: INR 179 crore (27.2% margin), up 16.3% YoY; PAT: INR 91 crore (13.9% margin), down from INR 98 crore last year due to a one-time INR 30 crore Labour Code cost.

• EPS for Q3 FY26: INR 5.4 (vs INR 5.8 YoY); YTD EPS: INR 22.4 (vs INR 20 YoY).

• Net cash and cash equivalents: INR 1,411 crore as of December 31, 2025.

• Exceptional item of INR 301 million recognized due to impact of new Labour Codes.

Outlook and guidance

• Management expects organic revenue growth of 11%-12% for FY26, with a goal to improve further in coming years.

• EBITDA margin guidance maintained at 27%-28% for the year, even after accounting for Labour Code impact.

• CapEx guidance for FY26 is INR 100-150 crore, including investments in radiology and Sovaaka.

• Focus on expanding network in underpenetrated markets, especially West and South India, and enhancing high-end test portfolio.

• No price increases expected in the next 2-3 quarters following GST-related price cuts; future increases depend on cost inflation and market dynamics.