Dr. Lal Pathlabs (DLPA.BO): Network Expansion Paying Off, Adding a 90D +ve CW

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Dr. Lal Pathlabs (DLPA.BO): Network Expansion Paying Off, Adding a 90D +ve CW

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08 Jul 2026 07:39:22 ET │ 12 pages

Dr. Lal Pathlabs (DLPA.BO)

Network Expansion Paying Off, Adding a 90D +ve CW

CITI’S TAKE

We introduce a 90-day Positive Catalyst Watch on Dr. Lal PathLabs.

Buy Despite a ~20% stock appreciation over the last three months, the stock

Catalyst Watch: Upside continues to trade near its 5-year average EV/EBITDA multiple, leaving

Price (08 Jul 26 13:02) Rs1,671.20 room for further upside. Volume growth accelerated to ~9% in 4QFY26,

reflecting the benefits of sustained network expansion (figure 1,2), and we Target price Rs1,950.00

expect this momentum to sustain over the coming quarters (1Q/2Q FY27E) Expected share price return 16.7%

which may drive consensus upgrades as well as expansion in valuations. Expected dividend yield 1.4%

Our FY27/28E EPS are 6-8% ahead of consensus. Please see our March Expected total return 18.1%

2026 upgrade note. Market Cap Rs279,192M

US$2,960M

Network expansion driving growth — Over the last two years, Dr. Lal PathLabs has

accelerated its network expansion, adding a significant number of laboratories and

patient service centers across geographies (Figure 1) with a focus on strengthening its

leadership in Delhi NCR, improving its presence in western India, and increasing Vivek Agrawal, CFAAC

penetration in Tier 2/3 cities. The benefits of this deeper market penetration are +91-22-6175-9875

becoming increasingly visible, with volume growth accelerating meaningfully (Figure vivek1.agrawal@citi.com

2). Patient volumes grew ~9% YoY in 4QFY26, and we expect this momentum to

sustain over the near-to-medium term, supporting mid-teen revenue growth.

Healthy balance sheet for inorganic expansion — company’s strong balance sheet