India’s healthcare service provider sector is expanding rapidly, driven by robust demand and significant investments. The corporate healthcare segment is expected to grow 15% year-on-year in FY26, with private hospitals planning to add over 10,000 beds by FY26. The hospital market, valued at $99 billion, is projected to nearly double by 2032, reflecting strong underlying momentum
The Nifty Healthcare Index declined by 49.25 points (0.35%) today, reflecting bearish sentiment in healthcare stocks. This downturn follows Amazon’s entry into India’s $15 billion diagnostics market with home testing services, heightening competition and pressuring established players in the sector.
Recently, Amazon India announced the launch of Amazon Diagnostics, an at-home service that allows customers to book lab tests, schedule and track appointments, and access digital reports via the Amazon app, marking an expansion of its medical offerings beyond online pharmacy and teleconsultations.
Furthermore, Amazon has launched diagnostic services in collaboration with Orange Health Labs across six Indian cities, covering 450+ PIN codes. This move aligns with its global healthcare strategy. Last week, the company announced that it would invest over $233 million in 2025 to boost its India operations.
Moreover, Amazon joins a growing list of digital health players entering the diagnostics space. Competitors like Tata 1mg, Apollo 24/7, Pharmeasy, and Netmeds have already diversified beyond online pharmacy services to offer diagnostic testing, signaling a broader shift in India’s digital healthcare landscape.
“There are three primary revenue streams in the B2C health tech space, teleconsultation, diagnostics, and pharmaceutical distribution. Of these, diagnostics remains the most significant profit pool,” Tarun Sharma, senior fund manager and healthcare and consumer strategy head at 360 ONE Asset, said.
“So, this space continues to attract competition, which means constant pricing risk. At the same time, consumers are becoming increasingly discerning about the accuracy of reports and the overall quality of their experience,” he added.
Here are the healthcare stocks in focus after Amazon’s foray into India’s $15 billion diagnostics market;
| Company Name | CMP | Decreased % |
| Metropolis Healthcare Ltd | 1,700.00 | 1.5 |
| Dr. Lal PathLabs Ltd | 2,819.60 | 3.18 |
| Krsnaa Diagnostics Ltd | 693.65 | 1.92 |
| Thyrocare Technologies Ltd | 1,001.50 | 2 |
| Max Healthcare Institute Ltd | 1,195.30 | 2 |
Written by Abhishek Singh
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