Metropolis Healthcare Sustains Strong Growth Momentum in Q3 FY26

Metropolis Healthcare Limited, a leading diagnostics chain in India, announced its unaudited consolidated financial results for the quarter ended December 31, 2025 (Q3 FY26), showcasing robust performance driven by strategic execution and strong market demand. The company reported a significant 26% year-on-year (YoY) increase in revenue, reaching ₹406 crore. Profit After Tax (PAT) surged by an impressive 63% YoY, excluding an exceptional item related to the new labor code, underscoring the company's operational efficiency and resilient business model. The Board of Directors also approved a 3:1 bonus issue of equity shares, reflecting confidence in the company's long-term growth prospects and commitment to shareholder value.

The quarter's performance was characterized by strong organic business momentum, with revenue for the MHL Organic segment growing 15% YoY. This growth was fueled by higher patient throughput, increased test volumes, and improved realizations. The company's EBITDA margin expanded to 25.0% for the organic business, an increase of 280 basis points YoY, attributed to operating leverage, productivity gains, and sustained efficiency initiatives. On a consolidated group level, EBITDA margins stood at 23.4%, indicating successful acquisition integration and stable performance from acquired businesses.

Segmental Performance and Strategic Focus

Metropolis demonstrated balanced growth across its B2C and B2B channels, with B2C revenues growing 19% YoY and B2B revenues increasing by approximately 35% YoY. This was driven by network expansion, enhanced service levels, and consistent execution. The TruHealth and Specialty portfolios were key growth drivers, recording strong YoY growth of approximately 37% and 34%, respectively. Revenue per Test (RPT) and Revenue per Patient (RPP) also saw significant increases of 11% and 10% YoY, respectively, supported by brand strength, an improved test mix, and higher adoption of advanced diagnostics.

The company's strategic focus on preventive and wellness health check-ups under its TruHealth brand continued to yield strong results. TruHealth's contribution to overall revenue increased to 19% (from 17% in Q3 FY25), driven by mix upgrades and the adoption of MetAdvisor, an AI-powered recommendation engine. Premium TruHealth packages, including ECG, vitals, and consult bundles, now constitute 24% of the mix, showing a 200 basis points quarter-on-quarter increase. Radiology-integrated wellness offerings grew twofold YoY, and rural TruHealth offerings tripled YoY, supported by new chronic screening packages and hyperlocal micro-marketing strategies.

Innovation and Network Expansion

A significant milestone for Metropolis in Q3 FY26 was the launch of its Centre of Genomics, established in Delhi following the integration of Core Diagnostics. This center serves as the national reference hub for advanced molecular testing and precision diagnostics, supported by CAP-accredited laboratories in Gurgaon and Bombay. The genomics segment is identified as a key strategic growth lever, with over 300 new test additions driving double-digit YoY growth, reflecting rapid clinician adoption. The company also received its first patent from the Patent Office of the Government of India for a system focused on monitoring and managing TB-related infections, underscoring its commitment to scientific research and clinical innovation.

Metropolis continued its aggressive network expansion, adding 110 new centers during the quarter, primarily through the franchisee model. This expanded its presence to approximately 750 towns, leading to consistent volume growth, improved asset utilization, and enhanced operating leverage. The company's focus on Tier 2 and Tier 3 markets continues to yield strong results, with North India's revenue contribution increasing to 17% and Tier III cities registering 16% revenue growth.

Outlook and Management Commentary

Metropolis Healthcare remains confident in achieving its full-year guidance of 12-13% organic growth and expanded margins for FY26. The management highlighted sustained traction across channels, improving productivity, and a better test mix as key factors. Despite a one-time impact of INR 9 crore due to the new Labor Code implementation, the underlying performance remained strong. The company is net debt-free with INR 127 crore in cash reserves, which will be utilized to fund future growth initiatives, with an estimated capex of INR 55-60 crore for the year.

Metropolis is strategically positioned to capitalize on the evolving diagnostics sector in India, which is undergoing a phase of consolidation. The company's emphasis on quality, scientific leadership, and a robust pan-India network reinforces its competitive moat. The successful integration of recent acquisitions and the focus on high-value, specialized testing, including genomics, are expected to drive sustained value creation for all stakeholders.