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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 May-Aug ’26.

Key observations:

1) Test pricing across diagnostic chains are largely unchanged through Jul/Aug-26, a period that coincides with a seasonally strong quarter for the sector – extending a trend of flat pricing over the past 3-4 months.

2) Max Labs hiked prices in the Bengaluru/Pune markets by 25%/23% in Jul-26 (vs May-26), likely supported by strong seasonal demand. However, despite the hikes, prices remain below the respective market leader’s.

3) Regional competitive intensity (Exhibit 3): Mumbai and Delhi were stable in Aug-26 (vs May-26), Hyderabad witnessed an uptick in competitive intensity, with price cuts by Neuberg (semi-specialized and specialized) and PharmEasy (specialized). Kolkata and Bengaluru saw a slight decrease in competitive intensity.

Stable pricing environment benefits incumbents

Incumbent diagnostic chains have largely maintained pricing during YTDFY27 (ending Aug-26) and, in our view, are well positioned to continue capturing market share. Vijaya has maintained pricing in the basic radiology category in Kolkata which largely aligns with the region’s market leader’s (ie Suraksha) and its own strategy for non-core regions. Regionally, there is an increase in Hyderabad’s pricing differential (33% price differential from the market leader’s, up from 24% in Apr-26), while Kolkata remains a brand-conscious market (27%) along with Bengaluru (22%). Delhi remains the most competitive market (with the lowest price differential from the market leader’s at 3%). Max Labs continues to operate at a significant discount (Exhibit 7), especially in regions where it has no hospital presence.

Online players - Moving past pricing-led competition

As witnessed over the past few months, online players are moving past a pricing-led competitive strategy. Tata 1mg has maintained status quo over the past few months, on the back of a strong performance in FY26 (diagnostic revenue grew 40% yoy, with exit ARR of Rs6bn by Mar-26), with its last hike in May-25; PharmEasy marginally reduced its prices for semi-specialized testing in Aug-26. Healthians hiked rates by 7-15% qoq in Aug-26 across routine and semi-specialized tests. Apollo 24/7 too hiked its rates, by 6% qoq in Aug-26 in both routine and semi-specialized test categories, suggesting a rational environment at play.

We maintain a positive stance on listed diagnostics players

2Q is expected to be a seasonally strong quarter for the diagnostics industry, which may be moving past the aggressive pricing-led competitive environment seen in prior years. With players, instead, prioritizing volume growth, geographic expansion, and profitable scaleup—while maintaining test quality and reporting standards as a differentiator, 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 incumbents, given their well-established network, strong brand presence, expansion pipeline, and focus on preventive testing. We reiterate BUY on Dr Lal Pathlabs (Sep-27E TP: Rs2,000), Metropolis Healthcare (Sep-27E TP: Rs675), and Vijaya Diagnostics (Sep-27E TP: Rs1,500). Hospital chains (such as Apollo and Max) venturing into retail diagnostics are likely to pose a risk to the incumbents, which have a strong presence in the healthcare ecosystem.

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