Dr Lal Path Labs shares jump 20% on strong buying cue post Q4 results; factors fuelling today’s gains

Dr Lal Path Labs shares surged 20% to hit their intraday high of ₹1,640 during the stock market session on Monday, May 4, on strong investor buying interest, prompting high volume gains amid steady revenue in the March quarter financial results for the year ended 2025-26.

As of 1:44 pm, Dr Lal Path Labs shares were trading 15% higher at ₹1,573 during Monday’s trading session, compared to ₹1,367.20 at the previous market close, according to NSE data.

On the technical front, the Relative Strength Index (RSI) 14-day average of the stock surpassed 70 in the overbought territory before dropping to normal levels around 50. As of the afternoon market session, the RSI 14 was trading around 46 points.

Dr Lal Path Labs' stock was witnessing high volume gains on Monday’s market, with trading volumes surging past 7.9 million shares across both benchmark stock exchanges, according to data collected from Trendlyne.

Dr Lal Path Labs Q4 results

Although Dr Lal Path Labs, in its January to March quarter results, recorded a nearly 15% fall in net profits to ₹132 crore, compared with ₹155 crore in the same quarter of the previous financial year, the revenues witnessed a steady rise on strong volume momentum in business operations.

The revenue from core operations of the company rose 16% to ₹702 crore in the fourth quarter, compared year-on-year with ₹602 crore in the same period a year earlier, according to the consolidated financial statement.

The financial statements showed that Dr Lal Path Labs’ earnings per share dropped to ₹7.86 per share, compared to ₹9.29 per share in the same period a year ago. The company also declared a dividend issue for its shareholders.

Lal Path Labs final dividend

Lal Path Labs’ board of directors last week recommended a final dividend of ₹4 per share with a face value of ₹10 apiece for eligible shareholders, subject to the member approval in the upcoming AGM, according to an exchange filing.

“Recommendation of final dividend of ₹4 per equity share (@ 40% on a face value of ₹10 each) for the financial year ended March 31, 2026, subject to approval of the Members of the Company at ensuing Annual General Meeting (AGM),” said the company in its official statement.

This means that eligible shareholders will receive a dividend payment of ₹4 per share for every share they own in the healthcare company, up to one day ahead of the pre-determined record date of the dividend issue.

Dr Lal Path Labs, in its statement, also mentioned that the board has fixed June 26, 2026, as the official ‘record date’ for the corporate action, and the payment will be issued to the shareholders within 30 days of the member approval.

What analysts say

Experts from Goldman Sachs said that the company’s sales for the fourth quarter surpassed the analysts' expectations of 10.5% YoY due to the strong volume momentum generated by the increase in the number of patients and improved test & geographic mix in the period.

“EBITDA margin was 26.6% (vs 28.1% in 4QFY25), in line with GSe; management reiterated a calibrated pricing approach and continued reinvestment to support long-term growth,” Goldman Sachs analysts said.

Analysts from the Japanese investment giant Nomura said that although the current valuations of the company are near seven-year lows, the revenues came ahead of the estimates, and EBITDA remained in line with the predictions for the March quarter.

Looking ahead, the experts also said that the revenues are expected to grow 13-15%, with the company margins expected to improve 27-28% as the focus remains on increasing network and infrastructure.