Indigenous diagnostic firms of India. Does your possession include any?
Growing Diagnostics Market in India: Top Players to Watch Out For
The Indian diagnostics market is gearing up for significant growth, with estimates suggesting it could reach a staggering $25 billion by FY28, expanding at a 14% compound annual growth rate (CAGR) over the next five years [1]. Here we take a closer look at five leading diagnostic companies in India that are riding this growth wave.
#1 Dr. Lal PathLabs
Dr. Lal PathLabs, one of India's prominent diagnostic and healthcare testing companies, has made great strides since its inception as a sole proprietorship. Now, boasting 298 clinical laboratories, 6,607 Patient Service Centers, and 12,365 Pick-up Points, the company continues to scale [1]. The company's impressive financial growth can be seen in its Q1 2025 results, with net profits surging to Rs 1,555 million (m) from Rs 858 m in the corresponding period last year and net sales jumping to Rs 6,026 m from Rs 5,454 m [1]. Over the past five years, Dr. Lal PathLabs' compounded sales growth has been an impressive 13.1%, while its 5-year average return on equity (ROE) has stood at 21.4%, with the average 5-year return on capital employed equity (ROCE) at 30.1% [1].
#2 Metropolis Healthcare
Founded on a similar mission as Dr. Lal PathLabs, Metropolis Healthcare operates diagnostic centers in India and offers specialized tests. Through advanced laboratories and Patient Service Centers scattered across the country, Metropolis Healthcare has grown rapidly [1]. Financial growth and profitability have been strong for the company, with sales showing a 9.7% compounded annual growth rate over the last five years, an average 5-year ROE of 20.3%, and a 5-year average ROCE of 28.5% [1]. The company is aiming to expand its presence in India, particularly in tier-2 and tier-3 cities, and plans to set up labs in states like Telangana, Uttar Pradesh, Andhra Pradesh, and Assam [1].
#3 Thyrocare Technologies
Thyrocare Technologies, now partially owned by PharmEasy, is a significant player in the diagnostic sector. The company has reported strong financial performance, with consolidated revenue for Q4 2024-25 increasing by 21% year-over-year (YoY) and net profits surging to Rs 325 million (m), marking a massive 88% YoY jump [1]. Sales have grown at a solid 7.3% compounded growth rate over the last five years, with a 5-year average ROE of 22% and an average 5-year ROCE of 31.2%. Expansion plans include setting up additional centers across the country, as well as an overseas presence in the Middle East, Bangladesh, and Nepal [1].
#4 Vijaya Diagnostic Centre
Specializing in clinical pathology, microbiology, molecular pathology, radiology, and health check-up packages, Vijaya Diagnostic Centre has established a strong presence in the south, notably in Hyderabad [1]. The company has seen steady financial growth, with net profits growing to Rs 335.3 million (m) for Q3 2024 from Rs 252.4 m and revenues increasing to Rs 1,562.5 m from Rs 1,291 m [1]. Over the last five years, Vijaya Diagnostic Centre's compounded sales growth has been a robust 13.4%, with an average 5-year ROE of 20.8% and an average 5-year ROCE of 31.3% [1].
#5 Krsnaa Diagnostics
A significant player in pathology and radiology, Krsnaa Diagnostics has set itself apart by collaborating with government hospitals [1]. Boasting over 3,000 centers and laboratories nationwide, the company continues to expand, with new projects in Maharashtra, Assam, Odisha, Rajasthan, and Madhya Pradesh in the pipeline [1]. Q3 2024 net profits climbed to Rs 216 m from Rs 135.8 m, while revenues rose to Rs 1,651.5 m from Rs 1,515.5 m [1]. Over the past five years, the company's compounded sales growth has been an impressive 24.3%, with a 5-year average ROE of 21.1% and a 5-year average ROCE of 23.4% [1].
The diagnostic industry in India is poised for growth despite facing challenges, such as uneven rural penetration, high costs, regulatory complexities related to AI and digital health adoption, and data privacy concerns. The fragmented nature of the industry provides opportunities for consolidation and growth among the organized players, who are better equipped to compete with advanced technology and efficient services.
Investors are encouraged to evaluate the fundamentals, corporate governance, and valuations of these companies before making investment decisions.
[1] Equitymaster, (202(?)). (n.d.). Retrieved from https://www.equitymaster.com/
[2] Grand View Research, (2021). Retrieved from https://www.grandviewresearch.com/
[3] AIMA, (2020). Retrieved from https://www.aima.in/
[4] FICCI, (2020). Retrieved from https://www.ficci.in/
- The diagnostics market in India, including science and medical-conditions related to health-and-wellness, is projected to reach $25 billion by FY28, growing at a rate of 14% CAGR.
- Dr. Lal PathLabs, a prominent diagnostic and healthcare testing company, has grown substantially since its inception, currently operating 298 clinical laboratories, 6,607 Patient Service Centers, and 12,365 Pick-up Points.
- Metropolis Healthcare, another leading diagnostic company, is planning to expand its presence in India, targeting tier-2 and tier-3 cities for growth.
- Thyrocare Technologies, collaborating with PharmEasy, is aiming to establish additional centers across the country and expand its presence in the Middle East, Bangladesh, and Nepal.
- Vijaya Diagnostic Centre, specializing in various diagnostic services, has seen robust financial growth with a compounded sales growth of 13.4% over the last five years.
- Krsnaa Diagnostics, known for its collaboration with government hospitals, plans to expand its operations in Maharashtra, Assam, Odisha, Rajasthan, and Madhya Pradesh.
- The Indian diagnostic industry, despite potential challenges such as rural penetration, high costs, regulatory complexities, and data privacy concerns, offers opportunities for organized players to grow and consolidate, equipped to compete with advanced technology and efficient services.
