Metropolis, Dr Lal PathLabs Shares Fall as Amazon Forays into India’s Diagnostic Market

Shares of leading diagnostic service providers, Metropolis Healthcare and Dr Lal PathLabs, declined by up to 3% on Monday, following news that Amazon has officially entered India’s growing diagnostic market. The e-commerce major’s move is being seen as a potential game-changer that could intensify competition in the healthcare testing space.

Amazon’s entry raises concerns about price disruption, digital convenience, and customer reach—areas where traditional diagnostic firms may face challenges. As a result, investor sentiment turned cautious, leading to a sell-off in diagnostic sector stocks during early trade.

Metropolis Healthcare shares fell over 2.5%, while Dr Lal PathLabs declined by nearly 3% on the NSE. Analysts suggest that while Amazon’s move reflects strong growth prospects in the diagnostics industry, legacy players may need to innovate and digitize further to maintain market share.

The Indian diagnostics market has witnessed steady growth, especially post-pandemic, driven by rising health awareness and demand for home-based testing. Amazon’s vast delivery network and tech-driven services could position it as a formidable new entrant.

Market participants are advised to closely monitor the strategic responses of established players in the coming months, as competition in the sector is set to intensify.