One of India's leading diagnostic major is set to consider issuing bonus shares, interim dividend: Check details

The Board of Directors of Dr Lal PathLabs Ltd will consider issuing bonus shares and an interim dividend on October 31, signalling confidence in the business ahead of second-quarter results, the diagnostic major announced in an exchange filing on Friday.

"This is to inform you that a meeting of the Board of Directors is scheduled to be held on Friday, October 31, 2025 to inter alia:

1. Consider and approve Un-audited (Standalone & Consolidated) Financial Results of the Company for the Quarter and Half Year ended September 30, 2025;

2. Consider declaration of 2nd Interim Dividend, if any, on the Equity Shares of the Company for the Financial Year 2025-26; &

3. Consider issuance of bonus shares in accordance with the applicable provisions and subject to approval of Shareholders of the Company."

Explained | bonus share

The decision to consider both a bonus issue and a second interim dividend indicates that Dr Lal PathLabs is in a strong liquidity and confidence cycle. With cash reserves at ₹1,229

crore in Q1, the company appears comfortable returning value to shareholders while maintaining operating flexibility. A bonus issue typically signals management’s confidence in future earnings growth and aims to improve liquidity in the stock by increasing the share count.

Dr Lal Pathlabs Q1 results

Dr Lal Pathlabs reported a healthy 24% year-on-year rise in consolidated net profit for the June quarter at ₹132 crore, up from ₹106.4 crore in the same period last year and ahead of street estimates of ₹122.76 crore.

Revenue for the quarter grew 11.3% to ₹670 crore, compared to ₹602 crore a year ago, also marginally beating expectations of ₹668.3 crore. The growth was largely driven by a rise in sample volumes, which increased 10.7% year-on-year to 23.4 million, while patient visits rose 6% to 7.6 million.

The company’s EBITDA for the quarter stood at ₹192.5 crore, marking a 13% increase over last year. Margins improved slightly to 28.73% from 28.34% a year ago, also surpassing expectations of 28.2%.

The company ended the Q2 period with ₹1,229 crore in cash reserves. Its board also declared an interim dividend of ₹6 per equity share for FY26. The record date for the same was fixed as August 6, 2025.