Dr. Lal PathLabs Faces ₹2.43 Crore Income Tax Demand for FY2017-18

Dr. Lal Path Labs , a leading diagnostic services provider in India, has received an Assessment Order and Demand Notice from the Income Tax Department, the company disclosed in a recent filing. The order, pertaining to the financial year 2017-18, includes additions and disallowances amounting to ₹2.79 crore, resulting in an income tax demand of ₹2.43 crore.

Details of the Assessment Order

The company received the order on October 31, which outlines the following key points:

Particulars	Amount
Additions/Disallowances	₹2.79 crore
Income Tax Demand	₹2.43 crore
Financial Year	2017-18

Company's Response

Dr. Lal PathLabs has stated that the tax demand does not have a material impact on its financials, operations, or other activities beyond the mentioned amount. The company is currently examining the order and plans to take appropriate steps, which may include filing an appeal against the assessment.

Investor Implications

While the tax demand is significant, it represents a relatively small fraction of the company's overall financial position. In its latest financial results, Dr. Lal PathLabs reported:

Revenue of ₹731.00 crore
EBITDA of ₹224.00 crore
PAT of ₹152.00 crore

The tax demand of ₹2.43 crore is approximately 1.60% of the company's quarterly profit after tax, suggesting a limited immediate financial impact.

Looking Ahead

As Dr. Lal PathLabs navigates this tax issue, investors and stakeholders will be watching closely to see how the company addresses the demand and what impact, if any, it may have on future financial statements. The company's approach to resolving this matter could provide insights into its financial management and regulatory compliance strategies.

Dr. Lal PathLabs continues to maintain a strong market position in the diagnostic services sector, with a wide network of laboratories and patient service centers across India. The company's ability to manage regulatory challenges while maintaining its growth trajectory will be crucial for its long-term success in the competitive healthcare diagnostics market.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.45%	+0.60%	-2.25%	+10.69%	+0.25%	+34.04%

Dr. Lal Path Labs , a leading diagnostic and related healthcare service provider, has made two significant announcements that may benefit its shareholders.

Second Interim Dividend Declaration

The Board of Directors of Dr. Lal PathLabs, in their meeting held on October 31, 2025, approved a second interim dividend of INR 7.00 per equity share. This dividend represents 70% of the face value of INR 10.00 per share for the financial year 2025-26.

Key details of the dividend:

Record Date: November 7, 2025
Payout Timeline: Within 30 days of declaration

The company had already paid an interim dividend of INR 6.00 per share earlier in the financial year, which was disbursed on August 14, 2025.

Bonus Share Issue

In addition to the dividend, the company has also announced a bonus share issue in the ratio of 1:1. This means shareholders will receive one new fully paid-up equity share for every existing share they hold.

Important points regarding the bonus issue:

Ratio: 1:1 (One bonus share for every one share held)
Face Value: INR 10.00 per share
Subject to: Shareholders', statutory, and regulatory approvals

The record date for determining the eligibility of shareholders for the bonus shares will be announced in due course.

Increase in Authorized Share Capital

To facilitate the bonus issue, the company plans to increase its authorized share capital from INR 1,07,96,00,000 to INR 2,00,00,00,000, subject to shareholders' approval.

Financial Implications

The bonus shares will be issued from the company's Securities Premium Account, which stood at INR 1,247.85 Million as per the audited financial statements for the year ended March 31, 2025.

Particulars	Pre-Bonus	Post-Bonus
Authorized Capital	1,07,96,00,000	2,00,00,00,000
Issued, Subscribed and Paid-up Capital	83,77,55,100	1,67,55,10,200
Number of Equity Shares	8,37,75,510	16,75,51,020

The company expects to credit/dispatch the bonus shares within two months from the date of board approval, i.e., by December 30, 2025.

Recent Financial Performance

For the quarter ended September 30, 2025, Dr. Lal PathLabs reported:

Consolidated revenue: INR 7,548.00 million
Profit after tax: INR 1,333.00 million

Investors should note that while bonus shares increase the number of shares held, they do not affect the company's underlying value. However, such corporate actions often lead to increased liquidity and broader shareholding base.

Shareholders are advised to consider their individual financial situations and consult with their financial advisors before making investment decisions based on these corporate announcements.