Diagnostic Companies Poised for Growth in 2025
Diagnostic companies are expected to experience significant growth in revenue during the 2025 financial year, according to a study by CRISIL. This growth is attributed to a rise in patient volume and an increase in revenue per patient.
Geographic expansion: Established diagnostic players are moving into Tier-II and Tier-III cities, tapping into new patient populations.
Growing demand for these packages is leading to higher revenue per patient.
These packages, which include preventive health checkups, are enabling companies to charge a premium and further increase revenue per patient.
The study also highlights the importance of preventive health checkups. Diagnostic companies have bundled various tests into curated wellness packages tailored for different demographics, making these checkups more accessible and affordable. As a result, the share of preventive health packages is expected to reach around 22-23% of total revenue in the 2025 financial year.
Despite increased brand promotional expenditure, diagnostic companies are expected to maintain steady operating margins due to the rising share of higher-margin health packages. Additionally, healthy internal accruals and modest capital expenditure will keep reliance on external debt low, ensuring strong balance sheets and supporting credit profiles.
The study is based on a sample set of ten diagnostic companies, including five pan-India players. These findings suggest a positive outlook for the diagnostic industry in the coming year, driven by a focus on patient volume, preventive health, and operational efficiency.