Behind Dr Lal PathLabs’ Hi-Tech Makeover

The Hi-Tech Behind India’s Diagnostic Giants’ Premium Valuations

By Dev Chadrasekhar

For most of its history, the Indian diagnostics business has spoken a simple language. Patients fell ill, doctors prescribed tests, and laboratories collected, processed and reported results as fast and as cheaply as they could. 

The vocabulary was operational: collection centres, turnaround time, sample logistics, network density, cost per test. It was a commodity processing business, and it competed on cost.

Listen to the same companies today, and the vocabulary has changed. 

The investor communications from Dr Lal PathLabs, Metropolis Healthcare, Vijaya Diagnostic Centre and the newly listed Suraksha Diagnostic are full of a different set of words: genomics (reading a patient's genes), next-generation sequencing, AI-assisted pathology, liquid biopsy, molecular oncology and pharmacogenomics.

Dr Lal's executive chairman, Arvind Lal, has called the shift a move "from disease detection to disease prediction". 

Each of these is a distinct technology with its own economics, and together they describe an industry trying to climb out of the commodity tier into one where capability, not cost, decides the contest. It is worth taking them one at a time.

The New Toolkit 

Genomics is the furthest along. Genomics reads the DNA itself, looking for the mutations that cause or predict disease. 

Delhi-based Dr Lal has built the deepest pipeline through its Genevolve division, now around five years old, which offers more than 160 genomic tests spanning cancer, inherited disorders, neurological conditions and reproductive health, supported by four reference laboratories and roughly 3,000 prescribing clinicians.

Metropolis, the Mumbai-headquartered chain, got there by acquisition rather than construction, buying the oncology speciality laboratory Core Diagnostics, where cancer-gene testing already contributes about a quarter of high-end revenue, alongside a library of more than 40,000 stored and catalogued patient samples.

Suraksha, based in Kolkata, launched a dedicated genomics vertical in July 2025, committing Rs 22 crore upfront and a further Rs 46 crore over two years, and Vijaya intends to enter with a new automated laboratory in Hyderabad. Between them, the four cover the country — Dr Lal in the north, Metropolis in the west, Vijaya in the south and Suraksha in the east.

A clinical sequencing menu takes years to validate, which is what makes a head start in it durable in a way a head start in routine pathology never was.

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Air India And IndiGo Chase Demand With Simpler, Cheaper Fares

By Manish Pant

What?

India's airlines are cutting fares to lure back passengers after higher ticket prices and capacity constraints slowed travel demand in one of the world's fastest-growing aviation markets.

Major scheduled carriers have responded with discounted fare categories that remove bundled services and lower ticket prices by as much as 8%, betting that cheaper entry-level fares will encourage price-sensitive travellers to return.

Air India introduced a new 'Basic' fare option in Economy Class on select domestic routes. Within days, IndiGo followed with 'IndiGo Lite' fares for Economy Class customers across direct domestic and international flights.

The move comes after domestic passenger traffic weakened earlier this year as higher airfares and reduced capacity weighed on demand.

Why? 

India reported a dip in passenger traffic in April when domestic passengers fell 4% to 13.82 million from 14.32 million a year earlier. Newly redeveloped airports such as Prayagraj, Shirdi, Kalaburagi, Kushinagar and Pakyong have even reported no-flight days after several years.

Seasonality has also added to the pressure.  

Jyoti Mayal, director at the New Delhi-based travel services provider, New Airways Travels, said, "July to September is always a lean season, so airlines are stimulating demand. Discounted fares today are less about generosity and more about strategy."

Capacity constraints have also been significant

Jainam Shah, aviation analyst at the Mumbai-headquartered brokerage, Equirus Securities, said that the slowdown has been driven largely by supply-side constraints rather than weak demand. 

"Higher fuel prices, airspace restrictions and aircraft availability issues forced airlines to prioritise profitability over capacity growth by reducing frequencies on loss-making routes and passing on part of the higher costs through fare increases."

What Next? 

The easing of tensions is now helping international operations recover.

"International traffic already showed a sharp sequential improvement in June, with year-on-year declines narrowing significantly. This suggests that underlying demand remains healthy and passengers are returning as operational disruptions ease," said Shah.

Domestic traffic is also showing signs of recovery. DGCA data released on July 7 showed airlines carried 15.39 million passengers in May, up from 13.82 million in April, about a 10% month-on-month increase.

Air India CEO Search Continues

Air India Chairman N Chandrasekaran is setting up an interim committee of senior executives, including himself and former civil aviation official Pradeep Singh Kharola, to oversee the airline while a successor to CEO Campbell Wilson is finalised, Reuters reported.

The panel aims to ensure continuity at Air India, while Chandrasekaran's extension as Tata Sons chairman is pending. Wilson's notice period reportedly ends September 30.

Catch Up Quick: Commercial head Nipun Aggarwal and Singapore Airlines executive Vinod Kannan are frontrunners for the role.

However, Aggarwal's potential appointment has reportedly drawn opposition from Tata Trusts Chairman Noel Tata, according to a Financial Times report.

Setting: Air India, majority-owned by Tata Sons with Singapore Airlines holding 25%, posted a combined loss exceeding $2 billion last fiscal year with its budget subsidiary Air India Express. The airline faces intense scrutiny following safety lapses, last year's fatal Dreamliner crash, Pakistan's airspace ban, and rising costs from the West Asia conflict.

Monsoon Likely to Slow Crop Sowing

Below-average rainfall is expected across India's western and southern regions over the next fortnight, potentially slowing the sowing of cotton, soybeans and corn, two senior weather officials told Reuters.

Context: The Madden-Julian Oscillation is unlikely to be favourable over the next fortnight, and chances of any low-pressure system developing during this period are also low, said SD Sanap, a scientist with the India Meteorological Department, adding that Maharashtra, Karnataka, Telangana, Andhra Pradesh and Kerala are likely to receive below-average rainfall.

India received 39.8% below-average rainfall in June, with the IMD also forecasting below-average rainfall for July. Heavy rain in the first eight days of July shrank the country's rainfall deficit to 15.2%, but the deficit is expected to widen again as the monsoon enters a break. Farmers have planted 35 million hectares as of July 5, down 21% from a year earlier, farm ministry data showed.

Forecast: Farm minister Shivraj Singh Chouhan advised farmers to cultivate short-duration and low-water-intensive crops such as corn, pearl millet and green gram to minimise the impact of delayed rainfall.

Corporate Revenue Grows At Fastest Pace

India's corporate revenue is estimated to have grown 11–11.5% in the first quarter ended June 30, 2026, the fastest pace in two years, despite supply disruptions and higher input costs caused by the West Asia conflict, according to a Crisil Intelligence analysis of over 400 companies across 47 sectors.

By The Numbers: Unlike recent quarters where volume drove growth, pricing was the primary driver this time, contributing more to revenue growth than volume in sectors such as aluminium, steel, cement, airlines, fertilisers and gems and jewellery.

Primary aluminium revenue surged 51–53% on-year, automobile sector revenue grew 22–24%, pharmaceuticals grew around 12%, telecom services rose 10–11% and FMCG grew 6–7%. IT services revenue grew about 5%, primarily driven by favourable currency movements.

Fast Facts: Profitability was subdued, with aggregate EBITDA margin contracting 75–100 basis points on-year as companies could pass on only part of the cost increases. Airlines saw an estimated 1,000 basis point decline in EBITDA margin, while tyres saw a 200–300 basis point decline.

Sectors with stronger pass-through mechanisms such as power generation, telecom and hospitals were better positioned to protect margins.

No Tax On Imports

The Centre has scrapped basic customs duty on several key components used to manufacture mobile phones and other electronic devices, reducing import costs as India looks to strengthen its position as a global electronics manufacturing hub.

Fast Facts: The government has removed the 5% or 7.5% basic customs duty on components used in products such as smartphone camera modules, USB cables and wired headsets. Separately, it has extended customs duty concessions on machinery and components used to manufacture lithium-ion batteries, display modules and other electronics until March 31, 2029.

Origin: The move aims to lower production costs, attract fresh investment and make electronics manufactured in India more competitive. It will likely benefit companies including Apple suppliers, Samsung, Xiaomi and contract manufacturers. The policy also signals a shift towards lowering tariffs on imported inputs that are not yet produced domestically, while continuing to encourage local value addition and the expansion of India's electronics exports.

Another Scorching June

The world has recorded its second-hottest June on record, while Western Europe experienced its hottest June ever, according to the EU's Copernicus Climate Change Service. 

Global temperatures were 1.39°C above pre-industrial levels, and average sea surface temperatures reached a record high for June, highlighting the continuing pace of global warming.

Impact: The extreme heat had deadly consequences. The heatwave fuelled wildfires, disrupted transport, forced school closures and strained power systems across parts of Europe. Scientists have also linked the extreme temperatures to thousands of excess deaths across the region.

The Lead: The findings echo a growing concern in India, one of the countries most vulnerable to extreme heat. 

Much of north and central India endured repeated heatwave spells before the southwest monsoon arrived, with temperatures crossing 45°C in several regions. Rising temperatures are also taking a toll on India's workforce. Research from the University of Chicago finds that productivity in Indian manufacturing falls by 2% to 4% for every 1°C rise on hotter days, with sustained heat also increasing worker absenteeism.

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What Signals Are The Markets Really Looking For?

On Episode 923 of The Core Report, financial journalist Govindraj Ethiraj talks to Tejashree Joshi, Head - Environmental Sustainability at Godrej Enterprises Group as well as G Chokkalingam, Founder of Equinomics Research.

• What Signals Are The Markets Really Looking For?

• How India Inc Revenue Grew 11% + In The Latest Quarter And What Drove It?

• How Are Manufacturers Responding To Extreme Climate Situations, From Heatwaves To Heavy Rainfall

• India To Prepare For Peak Demand Of 300 GW Next Year, From Around 270 GW This Year