Dr. Lal Path Labs , a leading diagnostic chain in India, has announced significant corporate actions aimed at rewarding shareholders and retaining talent. The company's Board of Directors has approved a 1:1 bonus share issue and the introduction of a new employee stock plan, along with an interim dividend.

Bonus Share Issue and Dividend

Dr. Lal PathLabs has declared a bonus issue in the ratio of 1:1, meaning shareholders will receive one new fully paid-up equity share for every existing share held. This move comes as the company celebrates ten years of listing on stock exchanges. To facilitate this, the company plans to increase its authorized share capital from Rs. 107.96 crore to Rs. 200.00 crore.

The bonus issue will be funded by capitalizing up to Rs. 83.78 crore from the company's Securities Premium Account. This action is subject to shareholder approval through a postal ballot, with e-voting scheduled from November 8 to December 7, 2025.

Additionally, the Board has declared an interim dividend of 70% (Rs. 7.00 per share) for the fiscal year 2026.

New Employee Stock Plan

The company is introducing the 'Dr. Lal PathLabs Employee Restricted Stock Unit Plan 2025' (RSU 2025). This plan will offer up to 5,27,403 options, sourced from 3,19,023 fresh shares and 2,08,380 shares through secondary acquisition. The plan will be administered through the existing Dr. Lal PathLabs Employee Welfare Trust.

Simultaneously, the company is reducing the options reserve under its existing Employee Stock Option Plan 2022 from 12,50,278 to 7,22,875 options.

Financial Performance

For the second quarter of fiscal year 2026, Dr. Lal PathLabs reported:

The company maintained a healthy growth trajectory with strong profitability. Sample volume grew by 10.30% to 25.40 million, while patient volume increased by 5.00% to 8.20 million.

Strategic Initiatives

Dr. Lal PathLabs is focusing on deepening its technical expertise in high-complexity testing areas. The company has become the first lab in India to integrate a deep learning-based AI module for detecting lymph node metastasis in cancer cases.

The company's flagship "Swasthfit" program, an affordable bundled preventive health checkup package, contributed 26% to Q2 revenues.

Dr. Lal PathLabs continues its network expansion with a disciplined, cluster-based approach, reinforcing its leadership in core markets of North and East India while deepening reach into Tier-3 and Tier-4 towns.

These corporate actions and strategic initiatives demonstrate Dr. Lal PathLabs' commitment to shareholder value and long-term growth in India's evolving diagnostic sector.

Dr. Lal Path Labs , a leading diagnostic chain in India, has reported a robust performance for the second quarter, with significant growth in revenue and profitability. The company also announced an interim dividend and a bonus share issue, rewarding its shareholders.

Financial Highlights

• Revenue for Q2 stood at Rs. 731.00 crore, marking a 10.7% year-over-year growth
• Half-year revenue reached Rs. 1,400.00 crore, reflecting an 11% increase
• Profit After Tax (PAT) grew by 16.4% to Rs. 152.00 crore, with a margin of 20.8%
• EBITDA came in at Rs. 224.00 crore, maintaining a healthy margin of 30.7%

Operational Performance

Dr. Lal PathLabs demonstrated strong operational metrics during the quarter:

• Sample volume growth of 10.3% to 25.4 million
• Patient volume increase of 5% to 8.2 million
• Revenue per patient rose by 5.4% to Rs. 889.00

The company's flagship Swasthfit program, an affordable bundled preventive health checkup package, contributed 26% to the quarterly revenues, underscoring its growing popularity among customers.

Shareholder Rewards

The Board of Directors approved two significant measures to benefit shareholders:

1. An interim dividend of 70% (Rs. 7.00 per share)
2. A bonus issue of shares in the ratio of 1:1 (one bonus equity share for every fully paid equity share held on the record date)

Strategic Initiatives and Outlook

Dr. Lal PathLabs continues to focus on expanding its network and enhancing its service offerings:

• Plans to add 15-20 new labs and 600-800 collection centers this fiscal year
• Exploring high-end radiology services with pilot programs for CT and MRI in select centers
• Investing in cutting-edge technologies, including AI-powered diagnostics for improved accuracy and efficiency

The management has guided for a revenue growth of 11-12% for the financial year, with EBITDA margins expected to be between 27-28%.

Market Position and Future Prospects

With a strong net cash position of Rs. 1,367.00 crore, Dr. Lal PathLabs is well-positioned to invest in growth opportunities and technological advancements. The company's focus on expanding its presence in Tier 2 and Tier 3 cities, coupled with its digital initiatives, is expected to drive future growth.

As the diagnostic sector in India continues to consolidate, Dr. Lal PathLabs aims to leverage its brand strength, extensive network, and technological capabilities to maintain its leadership position in the market.

The company's performance reflects the growing demand for quality diagnostic services in India, driven by factors such as increasing health awareness, rising non-communicable diseases, and the government's focus on expanding healthcare access.