Synopsis: India’s diagnostic services sector is set to grow at a 12% CAGR, reaching $15-16 billion by FY30, driven by rising healthcare demand and led by players like Thyrocare, Krsnaa, Metropolis, Dr Lal PathLabs, and Vijaya Diagnostic.
India’s diagnostic services sector is expected to see strong growth in the coming years. As per CareEdge Ratings, the sector is projected to grow at a compound annual growth rate (CAGR) of 12 percent over the next five years. By FY30, the market size is estimated to reach around $15-16 billion, reflecting the rising importance of diagnostic testing in India’s healthcare system.
A major driver of this growth is the steady increase in patient volumes. People are becoming more aware of preventive healthcare and the need for early diagnosis. Regular health check-ups, blood tests, imaging services, and screenings are now more commonly used, especially in cities and semi-urban areas, boosting demand for diagnostic services.
Demographic and insurance-related factors are also playing a key role. India’s ageing population and the rising burden of lifestyle diseases such as diabetes, hypertension, and heart ailments have increased the need for repeated diagnostic testing. At the same time, expanding health insurance coverage has made tests more affordable. The report notes that test volumes are expected to grow at a faster CAGR of around 17 percent, showing strong underlying demand across regions.
However, revenue growth is slower compared to volume growth. The average revenue per patient and per test has declined due to intense competition among diagnostic players. Revenue per patient dropped from about Rs. 786 in FY21 to Rs. 759 in FY25, while revenue per test declined from Rs. 233 to Rs. 187 during the same period.
Prices per test are expected to remain stable or grow slowly at 1-2 percent annually over the next four to five years. To maintain profitability, companies are focusing on higher volumes, innovation, automation, and operational efficiency.
Despite consolidation, the sector remains highly fragmented. Organised diagnostic chains account for only about 20-25 percent of the total market, while standalone labs and hospital-based centres dominate. This leaves significant scope for further expansion and consolidation in the future.
Here are stocks that have been in the diagnostic services sector
With a market capitalization of Rs. 6,952 crore, the shares of Thyrocare Technologies Limited closed at Rs. 436.80 per equity share, rising over 2 percent from its previous day’s close price of Rs. 427.90.
Thyrocare Technologies Limited is engaged in providing diagnostic testing and wellness services through a centralized, fully automated laboratory network. The company conducts thyroid, blood, biochemistry, infection, and cancer, along with health packages, serving patients across India via franchise collection centers and regional labs.
Coming into financial highlights, Thyrocare Technologies Limited’s revenue has increased from Rs. 177 crore in Q2 FY25 to Rs. 217 crore in Q2 FY26, which has grown by 22.60 percent. The net profit has also grown by 84.62 percent from Rs. 26 crore in Q2 FY25 to Rs. 48 crore in Q2 FY26.
With a market capitalization of Rs. 2,338 crore, the shares of Krsnaa Diagnostics Limited closed at Rs. 720.60 per equity share, rising nearly 1 percent from its previous day’s close price of Rs. 716.25.
Krsnaa Diagnostics Limited is engaged in providing affordable diagnostic services across India. The company offers a wide range of imaging and pathology tests, including MRI, CT scans, X-ray, ultrasound, mammography, and laboratory tests.
Krsnaa Diagnostics operates through a mix of government hospital contracts, trust hospitals, and private healthcare facilities, using digital platforms, tele-radiology, and automated systems to deliver services efficiently. Its network serves patients in urban, semi-urban, and rural areas across multiple Indian states, with a focus on improving access to quality diagnostics.
Coming into financial highlights, Krsnaa Diagnostics Limited’s revenue has increased from Rs. 179 crore in Q2 FY25 to Rs. 183 crore in Q2 FY26, which has grown by 2.23 percent. The net profit has also grown by 4.55 percent from Rs. 22 crore in Q2 FY25 to Rs. 23 crore in Q2 FY26.
With a market capitalization of Rs. 9,773 crore, the shares of Metropolis Healthcare Limited closed at Rs. 1885.85 per equity share, rising nearly 1 percent from its previous day’s close price of Rs. 1868.35.
Metropolis Healthcare Limited is engaged in providing pathology and diagnostic services through a network of reference labs and collection centers in India and abroad. The company offers routine and specialized tests in biochemistry, hematology, microbiology, oncology, genetics, and wellness, focusing on accurate reports, advanced technology, specialized test menus, and patient-friendly services.
Coming into financial highlights, Metropolis Healthcare Limited’s revenue has increased from Rs. 350 crore in Q2 FY25 to Rs. 429 crore in Q2 FY26, which has grown by 22.57 percent. The net profit has also grown by 12.77 percent from Rs. 47 crore in Q2 FY25 to Rs. 53 crore in Q2 FY26.
With a market capitalization of Rs. 23,330 crore, the shares of Dr Lal Pathlabs Limited closed at Rs. 1392.40 per equity share, declining by 0.4 percent from its previous day’s close price of Rs. 1398.35.
Dr Lal PathLabs Limited is engaged in providing diagnostic and pathology services across India through a hub-and-spoke network of central, regional, and satellite laboratories. The company offers a wide range of blood, urine, and tissue tests, molecular diagnostics, preventive health packages, and home sample collection, supported by digital booking and online report delivery.
Coming into financial highlights, Dr Lal Pathlabs Limited’s revenue has increased from Rs. 660 crore in Q2 FY25 to Rs. 731 crore in Q2 FY26, which has grown by 10.76 percent. The net profit has also grown by 16.03 percent from Rs. 131 crore in Q2 FY25 to Rs. 152 crore in Q2 FY26.
With a market capitalization of Rs. 10,221 crore, the shares of Vijaya Diagnostic Centre Limited closed at Rs. 995 per equity share, declining by 0.02 percent from its previous day’s close price of Rs. 995.15.
Vijaya Diagnostic Centre Limited is engaged in delivering integrated diagnostic services under one roof, including pathology tests and radiology imaging like MRI, CT, ultrasound, and X-ray. The company operates centers mainly in South India, providing accurate, timely reports using modern equipment, skilled doctors, and convenient services such as online booking and home collection.
Coming into financial highlights, Vijaya Diagnostic Centre Limited’s revenue has increased from Rs. 183 crore in Q2 FY25 to Rs. 202 crore in Q2 FY26, which has grown by 10.38 percent. The net profit has also grown by 2.38 percent from Rs. 42 crore in Q2 FY25 to Rs. 43 crore in Q2 FY26.
Written By – Nikhil Naik
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