The chain will pay a further Rs 31.5 crore if SN Genelab meets agreed performance targets, on top of Rs 168 crore for a 70 per cent stake.
New Delhi: Dr Lal PathLabs’ purchase of a majority stake in SN Genelab adds a specialised genomics laboratory to its business, but the target is too small to lift the diagnostic chain’s earnings in the short run, according to an analysis published by Mint.
SN Genelab reported revenue of Rs 58 crore in FY26, roughly 2 per cent of what Dr Lal PathLabs earned last year, the report said. It cited Nomura Research as saying the deal could be marginally dilutive to Dr Lal’s earnings per share in the near term.
The acquired laboratory works across oncology, reproductive health, rare diseases, cytogenetics and infectious disease testing, and has built expertise in specialised genomics. Its revenue and Ebitda rose at annual rates of 24 per cent and 31 per cent respectively between FY21 and FY26, and its FY26 Ebitda margin was 26 per cent, the report said. At about 16 times SN Genelab’s FY26 Ebitda, Mint described the price as fair for a high-margin business growing at that pace.
The case for the deal rests on distribution. According to the report, Dr Lal’s large network of hospitals, doctors and patients across both business-to-business and consumer channels could carry SN Genelab’s specialised tests to far more customers, which may raise volumes over the next two to three years. The transaction also adds weight in western India, a region that brings in 14 per cent of Dr Lal’s revenue.
The move fits a wider pattern in Indian diagnostics. Smaller specialist labs in cancer, genetics and rare disease testing often lack national reach, and Nomura said cash-rich organised chains see such bolt-on purchases as a quicker way to add high-end testing capability. In December 2024, Metropolis bought Delhi-NCR based genomics and advanced oncology specialist Core Diagnostics for Rs 247 crore, though Nomura noted that Core was only at Ebitda break-even when acquired, unlike SN Genelab.
Dr Lal holds about Rs 1,700 crore in cash, so a slower payoff would not stretch its finances, the report said. Emkay Global Financial Services expects the company’s FY27 revenue to rise around 15 per cent to Rs 3,165.5 crore, with the Ebitda margin improving to 28.8 per cent from 28.3 per cent in FY26. The stock has gained 30 per cent in 2026 and was trading about 5 per cent below its 52-week high of Rs 2,038.60, touched on 16 September.
Source: Mint, 28 September 2026
