Diagnostic services provider Dr Lal PathLabs Ltd has completed the acquisition of an 80% stake in Ghana-based Sunshine Healthcare Ltd (SHL) through its wholly owned subsidiary Dr Lal PathLabs FZCO, Dubai. According to the latest regulatory filing, the transaction has been completed in accordance with the agreement and applicable provisions in Ghana. The acquisition was announced in July 2026 with the first tranche involving a cash consideration of up to GHS 45.6 million (approximately ₹38 crore) for the 80% stake. Following the completion, Sunshine Healthcare has become a step-down subsidiary of Dr Lal PathLabs. The acquisition comes as competition has become severe in the diagnostics business in the routine testing segment, making growing a specialized diagnostics portfolio with the aid of acquisitions such as genome testing lab SN Genelab a sound strategy.
Sunshine Healthcare was incorporated in Ghana in September 2010 and operates as a medical imaging and laboratory centre in Accra. As reported by Dr Lal PathLabs, the company reported a turnover of ₹24.4 crore in FY26, compared with ₹24 crore in FY25 and ₹21.7 crore in FY24. The acquisition provides Dr Lal PathLabs with an established presence in Ghana and strengthens its diagnostic business in West Africa. The company operates in the diagnostics space, complementing Dr Lal PathLabs' existing African operations.
Dr Lal PathLabs is acquiring a 70% stake in Gujarat-based SN Genelab for ₹168 crore, with an additional ₹31.5 crore payable if SN Genelab hits certain performance targets. According to Nomura Research, SN Genelab's FY26 revenue was ₹58 crore, which is just 2% of Dr Lal's revenue last year, ruling out an immediate boost to Dr Lal's performance. However, SN Genelab's testing capabilities could gain wider reach through Dr Lal's network over time, potentially boosting growth. The deal helps strengthen Dr Lal's reach in western India, which contributes 14% of the company's revenues. SN Genelab has revenue and EBITDA grown 24% and 31% annually over FY21-FY26 and maintains an EBITDA margin of 26%.
SN Genelab reported revenue of ₹579.6 million in FY26 with an EBITDA margin of around 30%, according to Nomura. This implies an Equity Value/Sales of 4.1x and Equity Value/EBITDA of 13.8x. The company has established capabilities in 'Oncology, Reproductive Health & Gynaecologic Cytogenetics, Infectious diseases, rare genetic conditions etc.' As reported by Business Standard, brokerages believe that the valuation for the acquisition at 16 times FY26 enterprise value to operating profit is reasonable given the robust financial and profitable growth of SN Genelab. The company's 'Oncology, Reproductive Health & Gynaecologic Cytogenetics, Infectious diseases, rare genetic conditions etc.' capabilities provide differentiation among organised players and support the acquisition's strategic value.
Shares of Dr Lal PathLabs Ltd were trading at ₹1,951.85 on the NSE at the time of the latest report, following the acquisition announcements. According to CNBC TV18, the diagnostic chain's revenue grew 16.6% to ₹702.7 crore in the March quarter, but net profit declined 15.2% year-on-year to ₹131.3 crore. Dr Lal PathLabs reported volume growth of 5.2% in FY26, while revenue growth for the full year was around 12.2%, supported by a mix of volume gains and improvements in product and geographic mix. The Hindu BusinessLine has raised the September 2027 target price by 5% to ₹2,100 from ₹2,000, based on DCF method, implying FY28E PER of 48x. The brokerage expects revenue/EBITDA CAGR of 15/16% over FY26-29 (excluding the SN Genelab acquisition), with a buy rating and target price of ₹2,100. Emkay Global Financial Services expects Dr Lal to generate revenue of ₹3,165.5 crore by FY27, up around 15% year-on-year, with EBITDA margin of 28.8% versus 28.3% in FY26.
