The diagnostic industry in India is growing rapidly. Some estimates suggest that the industry could reach a size of US$ 25 billion (bn) by FY28, growing at a compound annual growth rate (CAGR) of around 14%.
This growth is driven by several factors including the rising prevalence of chronic diseases, increasing demand for preventive healthcare tests, and supportive government initiatives.
The industry is also benefitting from rising income levels, an ageing population, and higher health insurance coverage boosting affordability and access to diagnostics.
The Indian diagnostics market is highly fragmented, comprising a mix of standalone centers, private hospital labs, regional chains, and national chains.
Despite this, there are some companies that have emerged as leaders in the diagnostic sector. Here are 5 of the top diagnostic companies in India.
#1 Dr. Lal PathLabs
Firston the list is Dr. Lal PathLabs.
Dr. Lal PathLabs is one of India’s leading diagnostic and healthcare testing companies.
It started as a sole proprietorship providing pathology services and maintaining a blood bank. The company has now grown into a prominent nationwide diagnostic network offering a broad range of diagnostic and related healthcare tests and services.
As on 31 March 2025 the company had 298 clinical laboratories, 6,607 Patient Service Centers, and 12,365 Pick-up Points.
Dr. Lal PathLabs Financial Snapshot (FY20-24)
| (Rs m, consolidated) | FY20 | FY21 | FY22 | FY23 | FY24 |
| Net Sales | 13,304 | 15,813 | 20,874 | 20,169 | 22,266 |
| Net profit | 2,276 | 2,965 | 3,503 | 2,411 | 3,623 |
| Return on Equity (%) | 22.8 | 24.6 | 24.3 | 15.0 | 20.1 |
| Return on Capital Employed (%) | 32.6 | 34.0 | 31.4 | 22.5 | 29.7 |
Source: Equitymaster
For the quarter ending March 2025, the company saw net profits and revenues surge. Net profits grew to Rs 1,555 million (m) from Rs 858 m in the corresponding period of last year.
Similarly, net sales grew to Rs 6,026 m from Rs 5,454 m. The compounded sales growth over the last 5-years has been 13.1%, while the 5-year average return on equity (ROE) has been 21.4%. The average 5-year return on capital employed equity (ROCE) stands at 30.1%.
Going forward, Dr. Lal PathLabs has an expansion plan focused on growing its footprint and increasing testing volumes, particularly in tier-3 and tier-4 cities across India.
#2 Metropolis Healthcare
Second on the list is Metropolis Healthcare.
Metropolis Healthcare like Dr. Lal’s PathLabs operates diagnostic centres in India. The company offers various tests, including specialised tests. Over the years it has grown rapidly through advanced laboratories and patient service centres across India.
Metropolis Healthcare Financial Snapshot (FY20-24)
| (Rs m, consolidated) | FY20 | FY21 | FY22 | FY23 | FY24 |
| Net Sales | 8,564 | 9,980 | 12,283 | 11,482 | 12,077 |
| Net profit | 1,276 | 1,833 | 2,147 | 1,434 | 1,285 |
| Return on Equity (%) | 24.5 | 26.3 | 24.6 | 14.6 | 11.8 |
| Return on Capital Employed (%) | 34.8 | 36.7 | 30.8 | 21.7 | 18.6 |
Source: Equitymaster
The company has reported a good growth in revenues and profitability. Sales have seen a compounded annual growth rate of 9.7% in the last 5-years. The average ROE over the last 5-years has been 20.3%, while the average ROCE over 5-years has been 28.5%.
For the quarter ended December 2024, the company reported a net profit of Rs 274 m, up from Rs 267 m in the corresponding period of last year.
Going forward, Metropolis Healthcare has chalked out ambitious plans. It aims to reach 1,000 towns largely from tier 2 and tier 3 cities. The company is also investing in setting—up labs in states like Telangana, Uttar Pradesh, Andhra Pradesh, and Assam.
#3 Thyrocare Technologies
Third on our list is Thyrocare Technologies.
In 2021, the parent company of PharmEasy acquired a majority stake of 66.1% in Thyrocare Technologies. The idea of the acquisition was to create a company that would have diagnostics as well as pharmacy businesses.
Thyrocare Technologies Financial Snapshot (FY20-24)
| (Rs m, consolidated) | FY20 | FY21 | FY22 | FY23 | FY24 |
| Net Sales | 4,343 | 4,946 | 5,889 | 5,267 | 5,719 |
| Net profit | 884 | 1,132 | 1,761 | 644 | 695 |
| Return on Equity (%) | 24.4 | 26.7 | 33.7 | 12.1 | 13.3 |
| Return on Capital Employed (%) | 38.9 | 36.1 | 44.1 | 17.6 | 19.0 |
Source: Equitymaster
For the fourth quarter ending March 2025, the company reported a good set of numbers. Consolidated revenue at Thyrocare Technologies increased by 21% year-over-year (YoY) with Pathology and Radiology segments growing by 23% YoY and 7% YoY respectively.
Net profits at the company for the quarter ending March 2025 surged to Rs 325 m from Rs 172 m, showing a jump of 88%.
Sales at the company have seen a compounded growth of 7.3% over the last 5-years. The average ROE over 5-years has been 22%, while the average ROCE during the period is 31.2%.
Going forward, Thyrocare Technologies has expanded to countries in the Middle East as well as Bangladesh and Nepal. It is also expanding and setting up additional centres across the country.
It acquired Polo Labs, which will give it access to fast growing markets in South India and North India.
#4 Vijaya Diagnostic Centre
Next on our list is Vijaya Diagnostic Centre.
The company offers a range of diagnostic services including clinical pathology, microbiology, molecular pathology, radiology (CT scans, X-rays, MRI, PET-CT), and health check-up packages.
Vijaya Diagnostic Centre has a strong presence in the south, particularly Hyderabad. The company has over the years grown rapidly, especially in advanced technology adoption.
Vijaya Diagnostic Centre Financial Snapshot (FY20-24)
| (Rs m, consolidated) | FY20 | FY21 | FY22 | FY23 | FY24 |
| Net Sales | 3,388 | 3,767 | 4,624 | 4,592 | 5,478 |
| Net profit | 625 | 851 | 1,107 | 852 | 1,196 |
| Return on Equity (%) | 22.8 | 23.8 | 23.7 | 15.7 | 18.2 |
| Return on Capital Employed (%) | 33.3 | 35.2 | 35.1 | 24.8 | 27.8 |
Source: Equitymaster
On the financial front, the company is seeing steady growth in revenues and net profits. For the quarter ending December 2024 net profits grew to Rs 335.3 m from Rs 252.4 m. Revenues during the period rose to Rs 1,562.5 m from Rs 1,291 m.
The compounded sales growth in the last 5-years has been 13.4%. The average return on equity for 5-years was at 20.8%, while the average ROCE in the same period was placed at 31.3%.
The company faces competition from some established players, who are making their presence felt in the south.
#5 Krsnaa Diagnostics
Next on the list is Krsnaa Diagnostics.
This company has a strong presence in pathology and radiology segments. Krsnaa Diagnostics is accredited by NABL and NABH, ensuring quality and compliance standards.
The company has differentiated itself from competition by working in collaboration with government hospitals. It has tie-up with several government hospitals. Like its peers it has rapidly expanded and continues to grow its pan India presence.
Krsnaa Diagnostics Financial Snapshot (FY20-24)
| (Rs m, consolidated) | FY20 | FY21 | FY22 | FY23 | FY24 |
| Net Sales | 2,584 | 3,965 | 4,555 | 4,871 | 6,196 |
| Net profit | -1,120 | 1,849 | 684 | 621 | 568 |
| Return on Equity (%) | 56.8 | 80.0 | 10.0 | 8.4 | 7.0 |
| Return on Capital Employed (%) | 180.0 | 80.5 | 14.7 | 11.6 | 10.2 |
Source: Equitymaster
On the financial front net profits of the company grew to Rs 216 m for the quarter ending December 2024 from Rs 135.8 in the corresponding period of the previous year.
Similarly, revenues grew to Rs 1,651.5 in the December 2024 quarter from Rs 1,515.5 m in the corresponding period of the previous year.
The company has seen a compounded sales growth of 24.3% over the last 5-years. The average ROE for the last 5 years was placed at 21.1%, while the average ROCE for the period was 23.4%.
The company is growing its footprint with over 3,000 centers and laboratories nationwide, focusing on new projects in Maharashtra, Assam, Odisha, Rajasthan, and Madhya Pradesh.
Krsnaa Diagnostics continues to deepen its PPP engagements, operating diagnostic services in government hospitals such as Ranchi’s RINPAS and Sadar Hospital under PPP models.
The focus on radiology and pathology, strong public-private partnerships, expanding presence in underserved regions, and improving financial performance driven by operational efficiencies and network growth should help drive growth.
Conclusion
The diagnostic industry in India is experiencing robust growth and transformation.
However, challenges persist, including uneven rural penetration, high costs and regulatory complexities related to AI and digital health adoption, and data privacy concerns. Apart from this the industry is highly competitive, with the presence of several established players.
The fragmentation of the industry does present opportunities for consolidation and growth of organised players, who are better equipped with advanced technology and efficient services.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy investing.
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