Metropolis Healthcare Announces 3:1 Bonus Share, Q3 Profit Jumps 34%

Introduction

Metropolis Healthcare Ltd announced a significant corporate action on Wednesday, February 4, 2026, as its Board of Directors approved the company's first-ever bonus share issue. The board recommended issuing bonus equity shares in a 3:1 ratio, a move aimed at rewarding shareholders and improving the stock's liquidity. This decision comes on the back of a robust financial performance in the third quarter of the fiscal year 2026, where the company reported strong growth in both revenue and profitability.

Details of the 3:1 Bonus Share Issue

The approved bonus ratio is 3:1, which means eligible shareholders will receive three fully paid-up equity shares of Rs 2 face value for every one fully paid-up equity share they hold. The company has proposed the issuance of 15,54,95,826 new equity shares, aggregating to a total face value of approximately Rs 31.09 crore. These bonus shares will be issued without any cash consideration from the shareholders. The company stated that the record date for determining shareholder eligibility will be announced in due course, pending necessary statutory and regulatory approvals.

Funding and Timelines

The bonus issue will be funded through the company's free reserves, utilizing its Securities Premium Account, General Reserve, and Retained Earnings as per the audited financial statements of March 31, 2025. The company has sufficient reserves to cover the Rs 31.09 crore required for the issue. As of the last audited financials, its reserves included a Securities Premium of Rs 249.27 crore, a General Reserve of Rs 29.87 crore, and Retained Earnings of Rs 947.02 crore. Metropolis Healthcare has estimated that the bonus shares will be credited to eligible shareholders' accounts on or before April 3, 2026.

Impact on Share Capital

The bonus issue will significantly increase the company's paid-up share capital while the authorized share capital remains unchanged. This action enhances the liquidity of the stock in the market, making it more accessible to a wider range of investors. All newly issued bonus shares will rank pari passu with existing equity shares, carrying the same rights to dividends and voting.

Strong Q3 Financial Performance

The announcement of the bonus issue was supported by a strong financial performance in the quarter ending December 31, 2025 (Q3FY26). Metropolis Healthcare reported a 33.7% year-on-year increase in its consolidated profit after tax, which rose to Rs 42 crore from Rs 31 crore in the same quarter of the previous year. Revenue from operations also saw a significant climb of 25.8% YoY, reaching Rs 406 crore compared to Rs 323 crore in Q3FY25.

Operational Excellence and Growth Drivers

The company's operational efficiency improved, with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) jumping 32.4% YoY to Rs 95 crore. The EBITDA margin expanded by 120 basis points to 23.4%. This growth was driven by a 14% increase in patient volumes and a 13% rise in test volumes. The company saw strong performance in its B2C and B2B segments, with revenues growing 19% and 35% respectively. Additionally, the TruHealth and Specialty portfolios recorded impressive growth of 37% and 34%.

Market Reaction and Analyst Outlook

Following the announcement, shares of Metropolis Healthcare gained traction in the market. Analyst A R Ramachandran from Tips2trades noted a bullish sentiment on the daily charts, with strong support for the stock at Rs 1835. According to the analyst, a daily close above the resistance level of Rs 1975 could potentially push the stock towards a target of Rs 2100 in the near term. Investors are advised to consult with licensed financial advisors before making investment decisions.

Conclusion

Metropolis Healthcare's decision to issue its first-ever bonus shares is a positive signal to its investors, reflecting a strong balance sheet and management's confidence in the company's future. The move, backed by solid Q3 financial results and operational growth, is set to enhance shareholder value and increase stock liquidity. Shareholders will now await the announcement of the record date to determine their eligibility for the 3:1 bonus shares.