Q2 FY27 results analysis · November 04, 2026
Dr Lal PathLabs Q2 FY27 Results Analysis: PAT Jumps 27%, EBITDA Margin 400 bps Above Guidance (LALPATHLAB)
+27.4%PAT year on year, Rs. 193.90 Cr
Source: Quarterly results filing (BSE)
Quick summary
Dr Lal Pathlabs Ltd reported Q2 FY27 numbers with revenue of Rs. 873.90 Cr (+19.61% YoY) and PAT growth of +27.40% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 04, 2026 |
|---|---|
| Revenue (Q2) | Rs. 873.90 Cr (+19.61% YoY) |
| PAT (Q2) | Rs. 193.90 Cr (+27.40% YoY) |
| EBITDA margin | 32.06% (+139 bps YoY) |
| EPS (Q2) | Rs. 11.51 (+27.46% YoY) |
Quarter Snapshot
Q2 FY27 delivered 19.61% revenue growth with EBITDA margin of 32.06%, over 400 bps above the company's own FY27 guidance band of 27-28%, while PAT grew 27.40% YoY. The debt-free balance sheet funded five acquisitions and two dividends while net cash rose to Rs.1,373.5 Cr, and H1 cash conversion was 1.10x PAT. Management is tracking ahead of its FY27 revenue, margin, and capex guidance even before H2 consolidation of SN Genelab and Centrapath.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| "Seasonal acute-test kicker should support volume against the soft base… Q2 consolidated revenue should be essentially organic" | Revenue +19.61% YoY; consolidation lands in H2 | Played out |
| Margins "flat-to-modestly-compressing from Q1's 31.03%", YoY vs 30.7% favorable | EBITDA margin 32.06% — expanded both QoQ (+103 bps) and YoY (+139 bps) — YoY favorable ✓; expansion, not compression | Partially |
| Question whether the 16.6% employee-expense ratio "persists or normalizes toward 18–19%" | 15.86% — persisted and fell | Played out |
| Imported-cost squeeze from WPI ~11.4% and INR −1.2% (web-sourced, dated) | Material ratio 18.53% vs 19.02% Q1, 19.41% YoY | Contradicted |
| M&A "consolidation landing in H2"; Ghana closing date unconfirmed | Ghana closed Sep 26, 2026; SN Gene Oct 1; Centrapath Oct 13 | Played out |
| CGHS/ECHS tailwind persisting into Q2; formal guidance decision expected on this call | No KPI or guidance in filing — remains open for the call | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 revenue growth "early to mid-teens", tilted "more towards mid-teens rather than early teens" | Q4 FY26 call; tilt at Q1 FY27 call; formal revision promised post-H1 | H1 FY27 +19.37% YoY | On Track |
| FY27 EBITDA margin 27–28% (company basis) | Q4 FY26 call; reinvest-vs-upgrade decision promised after Q2 | Q2 FY27 32.06%; H1 31.57% — above band | On Track |
| FY27 capex Rs.100–120 Cr | Q4 FY26 call | H1 Rs.54.7 Cr | On Track |
| H2 FY27 general price-hike decision | Q4 FY26 call (reassess post-H1) | Not stated in filing | Too Early |
| SN Genelab completion by Nov 30, 2026 | Board approval disclosed Sep 24, 2026 | Completed Oct 1, 2026 | Met |
| "Chances are we might be more towards mid-teens rather than early teens" (FY27 growth) | Q1 FY27 earnings call | Q2 grew +19.61% YoY; H1 +19.37% | Confirmed |
| "The idea always is to reinvest for future growth" | prior earnings calls | Margin rose to 32.06% while costs grew slower than revenue — reinvestment headroom visible | Confirmed |
| CGHS/ECHS price benefit (2–3% company-level) to persist 2–3 quarters from Q1 | Q1 FY27 call | Margins consistent with a continuing realization tailwind, but no RPP/volume KPI in the filing | Too Early |
| Q2 volume read rides on a soft prior-year fever base | prior-quarter notes | Revenue +19.61% YoY on Q2 FY26's +10.7% — soft-base comparison played out | Confirmed |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|
| Patients (Mn) | 8.2 | 7.1 | 7.4 | 8.2 |
| Samples (Mn) | 25.4 | 22.2 | 23.6 | 25.9 |
| RPP (Rs.) | 889 | 927 | 956 | 968 |
| SwasthFit % | 26 | 26 | 28 | 27 |
Key Investment Insights
Key Positives
- Consolidated revenue grew 19.61% YoY to Rs.873.9 Cr; H1 FY27 revenue Rs.1,671.6 Cr, +19.37% YoY
- EBITDA margin expanded 139 bps YoY and 103 bps QoQ to 32.06%, above the FY27 guidance band of 27-28%
- PAT grew 27.40% YoY to Rs.193.9 Cr; EPS Rs.11.51 vs Rs.9.03 YoY
- Employee-cost ratio fell to 15.86% of revenue from 16.92% a year ago
- Material-cost ratio fell to 18.53% of revenue from 19.41% YoY despite imported-input inflation (WPI ~11.4%)
- H1 CFO of Rs.402.2 Cr was 1.10x PAT; FCF Rs.347.5 Cr; net cash Rs.1,373.5 Cr, up from Rs.1,133.1 Cr at Mar-26
- SN Genelab acquisition completed Oct 1, 2026, ahead of the Nov 30, 2026 deadline; Centrapath remaining 30% acquired Oct 13, 2026
- 2nd interim dividend of Rs.5/share declared, record date Nov 11, 2026
Risk Factors
- Finance costs rose 45.83% YoY to Rs.7.0 Cr and D&A rose 15.80% YoY to Rs.46.9 Cr
- Trade receivables grew 27.64% vs Mar-26, faster than six-month revenue growth of 19.37%
- Other expenses grew 24.09% YoY, faster than revenue, partly due to prior-year base regrouping of Rs.8.5 Cr
- IT Department appealed to ITAT on ESOP expense disallowance of Rs.32.66 Cr (AY 2022-23)
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