Dr Lal PathLabs share price: Shares of Dr Lal PathLabs surged almost 8 per cent in early trade on Monday, July 27, after the company posted better-than-expected performance in the first quarter of the financial year (Q1 FY27), prompting brokerages to raise target prices on the counter. Dr Lal PathLabs’ share price hit a 52-week high of ₹1,893.65 on the BSE today, up 7.7 per cent against the last closing price of ₹1,756.70. The positive broader market mood also aided the stock performance. BSE Sensex was up 0.75 per cent at 76,610 at the time of writing this report. So far in 2026, the healthcare stock has rallied 22 per cent, outperforming the benchmark index that has lost 10 per cent in the period. Dr Lal PathLabs Q1 ResultsThe company, on Friday, reported a 27.2 per cent year-on-year (Y-o-Y) increase in the profit after tax to ₹170 crore for the quarter ended June compared with ₹134 crore in the same period a year ago. The revenue jumped 19.1 per cent Y-o-Y to ₹798 crore from ₹670 crore, while operating performance also remained strong. This was the second consecutive sector of over 15 per cent growth. Earnings before interest, tax, depreciation and amortisation (Ebitda) stood at ₹247 crore as against ₹192 crore a year ago, up 28.7 per cent Y-o-Y, with margins growing 230 bps to 31 per cent. The quarter was driven by robust patient and sample volume growth, a favourable test mix and higher realisation, aided by the revision in CGHS rates. Going ahead, the management remains constructive on the structural growth outlook for the industry and indicated the potential to revise its FY27 growth guidance upwards after H1. The company’s board also approved an interim dividend of ₹5 per equity share for the FY 2026-27. The record date for the purpose of payment of the dividend is July 30. Check Q1 Results Today Can Dr Lal PathLabs rally more?Following a robust performance in Q1, brokerages have raised their target prices and earnings estimates on Dr Lal PathLabs stock. Brokerage targets signal up to 25 per cent upside from last close. Nomura said that it has revised the FY27F estimates to reflect the strong Q1 results, factoring in higher revenue growth and lower EBITDA margins vs our earlier estimates. Consequently, our FY27F-29F earnings estimates rise ~6 per cent, it said. It has a Sep-27F target price of ₹2,085 based on an unchanged 45x Sep-28F EPS of ₹46.3. “DLPL currently trades at 43x our Sep-27F EPS estimate of ₹40.9 — at the lower end of the 40-60x P/E band that prevailed over the past three years. In our view, an improving revenue-growth trajectory should drive the multiple higher,” it said. Emkay Global also upped its earnings estimates. It said that factoring in the Q1 beat, we increase FY27/FY28 revenue estimates by 2 per cent/3 per cent, respectively. It added that the company’s investments in radiology and international business, albeit small currently, are likely to create additional growth vecto₹over the medium-to-long term. “Strong net-cash balance sheet, industry-leading margin, and stable return ratios provide comfort on valuations. We maintain BUY on DLPL and revise up Jun-27E TP by ~5 per cent to ₹2,000 from ₹1,900 (based on DCF method), implying FY28E PER of 46x (in line with LTA),” said Emkay Global. It has a ‘BUY’ rating on the stock. JM Financial also said that it remains positive on Dr Lal, supported by its market leadership, structurally superior B2C mix, healthy cash generation and revival of structural growth in the industry. “At its current price, the stock is trading at 40.4/33.6 FY28E/29E EPS, substantially below its historical average. We value the stock at 48x Jun’28 EPS, yielding a target price of ₹2,195,” it said while retaining a ‘BUY’ call on the counter. Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers’ discretion is advised.

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