New Delhi, May 1 -- India's largest diagnostics firm, Dr Lal PathLabs, stunned the Street with its March 2025 quarter results: a whopping 81.4% year-on-year (YoY) jump in net profit to Rs.156 crore, easily beating market expectations. For FY25, the company posted a strong 35.6% YoY growth in net profit.

The initial reaction was euphoric-shares rose 6% after the results were announced. But the rally didn't last. The stock slipped over 4% shortly after, as analysts flagged warning signs around profitability and growth visibility in the months ahead.

The results underscore a key shift in strategy: Dr Lal is prioritizing scale over short-term profitability, betting that deeper market penetration and volume growth will pay off in the long ru...