Shares of Dr Lal PathLabs fell over 2% to Rs 2,849.00 on Monday after Amazon India announced the launch of its diagnostics service in collaboration with Orange Health Labs. The new offering is expected to intensify competition in the organised diagnostics and pathology services space.
Amazon Diagnostics, rolled out under the newly consolidated Amazon Medical umbrella, will provide customers across major cities such as Bengaluru, Delhi, Gurgaon, Noida, Mumbai, and Hyderabad with access to over 800 diagnostic tests and doorstep sample collection within 60 minutes. This aggressive entry could potentially disrupt pricing and margins for existing players like Dr Lal PathLabs and Metropolis Healthcare.
Despite the stock’s dip today, Dr Lal PathLabs recently reported strong Q4 FY25 earnings. Net profit surged 81.4% YoY to Rs 155 crore, with PAT margin improving to 25.8%. Revenue rose 10.5% YoY to Rs 603 crore, driven by increased testing volumes and operational efficiency.
However, the market reaction suggests concerns about long-term competitive pressure from tech giants like Amazon entering the healthcare segment with integrated services and scale advantages.
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