IGI Logo

We monitor pricing data of various diagnostics tests offered by players across key markets to better understand the competitive dynamics between incumbents and challengers. We analyzed sample test pricing across Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, and Pune over Jan-Apr-26. Key observations include:

1) Pricing across both organized and online diagnostic platforms has been largely stable in YTD CY26. Vijaya, however, has taken price hikes to the tune of 7-12% across routine and semi-specialized test categories in Delhi-NCR.

2) While online players have maintained their pricing over the past four months, Apollo 24/7 has raised prices by 2-3% MoM across multiple test categories on average.

3) Max Labs hiked prices in the Bengaluru and Pune markets in Apr-26 by 7% each, likely supported by strong seasonal demand. However, despite these hikes, prices remain below those of the market leader. Going forward, we believe hospital chains are likely to continue leveraging competitive pricing as a lever to penetrate markets where they lack hospital network presence.

4) In Delhi, the pricing differential vs the market leader narrowed by ~700bps from Dec-25 (on a median basis), suggesting a pickup in competitive intensity in the region.

Stable pricing environment benefits incumbents Incumbent

Diagnostic chains largely maintained stable pricing during Q4FY26 and, in our view, are well positioned to continue capturing market share. Vijaya was the notable exception, implementing a 7–12% MoM price increase across sample routine and semi-specialized test categories in the Delhi NCR region, supported by strong seasonal demand. Vijaya has maintained pricing in the basic radiology category in Kolkata, which largely aligns with the region’s market leader (ie Suraksha), in line with Vijaya’s strategy for non-core regions. Regionally, Kolkata remains a brand-conscious market (28% price differential from the market leader), along with Hyderabad (24%) and Bengaluru (26%), while Delhi is the most competitive market (with the lowest price differential from the market leader at 3%). Max Labs continues to operate at a significant discount (Exhibit 7), especially in regions where it has no hospital presence.

Online players toe the line

As witnessed over the past few months, online players have overall maintained stable pricing. Tata 1mg has maintained status quo over the past few months, with its last hike in May-25, while PharmEasy reduced its prices by 2% in Q4FY26. Healthians too has maintained stable pricing over the past two quarters. Apollo 24/7, however, has hiked its rates by 2-3% MoM in Apr-26 in the routine and semi-specialized tests categories, suggesting a rational environment at play

We maintain a positive stance on listed diagnostics players

Q4 is expected to be a seasonally strong quarter for the diagnostics industry, with stable pricing regime suggesting a rational environment prevailing among the incumbents and the challengers. The incumbents stand to gain market share on the back of investments in specialized technology, aggressive network expansion, and superior brand equity, as customers gravitate toward quality operators. We remain positive on the incumbents, given their wellestablished networks, strong brand presence, expansion pipeline, and focus on preventive testing. We reiterate BUY on Dr Lal Pathlabs (Dec-26E TP: Rs1,740), Metropolis Healthcare (Dec26E TP: Rs580), and Vijaya Diagnostics (Dec-26E TP: Rs1,300). Hospital chains (such as Apollo and Max) venturing into retail diagnostics are likely to pose a risk to the incumbents, given their strong presence in the healthcare ecosystem.

For More  Emkay Global Financial Services Ltd Disclaimer http://www.emkayglobal.com/Uploads/disclaimer.pdf & SEBI Registration number is INH000000354