Shares of Dr Lal PathLabs and Aster DM Healthcare are trading higher by up to 18% on Monday, May 4, following their March quarter earnings and positive brokerage commentary.

Dr Lal PathLabs reported steady revenue growth in Q4FY26, with topline rising 6.5% QoQ and 17% YoY to ₹702.7 crore. Net profit increased 44.6% sequentially to ₹132.2 crore, though it declined 15% YoY due to a higher base.

For FY27, the company has guided for revenue growth of 13-15% and EBITDA margins in the 27-28% range. Management expects patient volume growth to accelerate, driven by network expansion, scaling up of preventive healthcare offerings, and a higher share of bundled packages.
Morgan Stanley has an ‘overweight’ rating on the stock with a target price of ₹1,819, citing revenue growth ahead of estimates and strong performance in the core Delhi-NCR market.

The brokerage said that an improving service levels, faster turnaround times, and portfolio expansion as key drivers. The B2C segment continues to dominate, contributing 75% of revenue, with a rising share of preventive testing.

Nomura has a ‘buy’ rating with a target price of ₹1,860, stating that growth momentum is picking up and valuations remain attractive, supported by strong volume growth and a robust balance sheet that enables acquisitions.

Goldman Sachs, however, maintains a ‘sell’ rating with a target price of ₹1,300, citing margin pressures and continued reinvestment needs despite strong volume-led growth.

Management indicated that growth in the coming year will be volume-driven, with no immediate plans for price hikes.

Meanwhile, Aster DM Healthcare reported a strong quarter, with normalised net profit rising 45% YoY to ₹153 crore. Revenue grew 18% to ₹1,182 crore, supported by higher patient volumes across inpatient and outpatient segments.

Operating EBITDA, excluding the Kasargod facility, increased 31% YoY to ₹253 crore, with margins expanding to 21.7% from 19.3% a year ago, aided by operating leverage and disciplined cost control.

HSBC has a ‘buy’ rating on the stock with a target price of ₹785, highlighting improved case mix across hospital clusters as a key growth driver.

The brokerage added that future growth will depend on talent retention and execution of new capacities, while the proposed Aster-QCIL merger is expected to be completed in Q1FY27.