Metropolis Healthcare Q3FY26: Revenue up 26% as volumes rise

Demand shifts toward organised diagnostics chains

Metropolis Healthcare is seeing stronger demand for preventive healthcare and specialised diagnostics as India’s diagnostics market steadily shifts toward organised chains. Industry executives say organised players are gaining share as consumers increasingly prioritise quality, accuracy, and access to advanced testing. Rising health awareness and a higher incidence of chronic diseases are also supporting sector growth. In this backdrop, Metropolis’ quarterly trends point to sustained demand across both routine and higher-value testing. The company is led by Ameera Shah and is headquartered in Mumbai.

A larger network supports deeper penetration

Metropolis has continued to expand its reach through a wider service footprint. The company operates more than 221 laboratories, over 5,000 patient service centres, and 10,000 touchpoints across more than 750 towns in India. The scale matters because diagnostics demand is increasingly coming from beyond large cities, while patients and doctors expect consistent standards across locations. Management commentary also points to a focus on improving throughput across this network and using operational efficiencies to expand margins.

Volume growth stayed strong in the March quarter

In the March quarter, patient volumes grew 11% year-on-year, while test volumes increased 14% year-on-year. The faster growth in test volumes versus patient volumes indicates that more tests are being conducted per patient, consistent with broader adoption of preventive panels and specialised investigations. The company also reported that revenue per patient improved 11% and revenue per test rose 8% during the quarter. Management attributed the improvement to a better mix and higher contribution from specialised diagnostics.

Preventive and specialty portfolios are expanding faster

Two portfolios stood out in the March quarter performance. Metropolis said its TruHealth preventive healthcare portfolio grew 24% year-on-year, while the specialty diagnostics portfolio expanded 31%. This reflects rising demand for preventive screening and advanced pathology testing, as well as the higher realisations typically associated with specialised diagnostics relative to routine pathology. The company also highlighted its focus on scientific excellence, doctor relationships, and advanced diagnostics as healthcare moves toward preventive and personalised care.

Q3FY26 financial performance and operating efficiency

Metropolis Healthcare reported Q3FY26 results with profit rising 63% year-on-year and revenue increasing 26% to ₹406 crore. The company said growth was supported by higher patient and test volumes and a higher contribution from specialty and wellness diagnostics. It also reported margin improvement in a seasonally softer quarter, aided by operating efficiencies and expansion in Tier II and Tier III markets. In a separate management comment on FY26 execution, Managing Director Surendran Chemmenkotil said growth was driven by healthy patient volumes, improved mix, and stronger realisations, and that there was no price increase in Q4.

What is driving realisations: mix and ticket sizes

In an earnings interaction, the managing director linked better realisations to the mix between preventive and specialty offerings. He cited TruHealth having a ticket size of about ₹2,500, while specialty diagnostics has a ticket size in the ₹1,300 to ₹1,400 range. As these portfolios grow faster, revenue per test and related realisation metrics improve. The company also said specialised diagnostics now accounts for a larger share of revenues, reinforcing the shift toward higher-value tests.

Focus disease areas: oncology, genomics, and neurology

Metropolis has pointed to specific therapy areas driving specialty growth. Management said oncology is showing higher volumes and growth, while genomics is emerging as a high-growth segment, albeit from a low base. Neurology-related tests were also cited as rising. The company’s broader offering includes advanced diagnostics such as genetic, molecular, and cytogenetic testing, along with preventive healthcare packages, corporate wellness screening, and home collection services.

Expansion, acquisitions, and technology priorities

Metropolis has linked future growth to expansion in specialty diagnostics, geographic reach, and digital capabilities. The company acquired a 100% stake in Core Diagnostics in December 2024 for ₹247 crore, a move that it said enhances advanced cancer diagnostics and expands reach in northern and eastern India. Separately, management has discussed “Metropolis 3.0” and later iterations focused on expanding into tier 2 and tier 3 markets, accelerating D2C growth, and embedding artificial intelligence across diagnostics, operations, and customer engagement. The company has also described diagnostics as moving beyond “sick care” toward preventive and predictive healthcare, with diagnostic data supporting early intervention.

Market context: sector growth and Metropolis positioning

The Indian diagnostics sector is projected to reach ₹298,000 crore by FY2030, according to the provided sector estimate. Metropolis was described as India’s second-largest pathology chain, and among the top three diagnostic chains alongside Dr. Lal PathLabs and SRL Diagnostics, which collectively command about 52% of the market. The company’s market capitalisation was stated at about ₹8,594 crore as of March 31, 2025. The overall context supports why organised chains are investing in networks, specialised test menus, and brand trust.

Key metrics snapshot

What the shift means for investors and the industry

The reported mix shift toward preventive and specialty diagnostics is important because these categories typically support higher realisations than routine pathology. Metropolis’ quarterly trends show both volume expansion and improvement in revenue per patient and revenue per test, indicating stronger monetisation without relying on price increases in Q4, as stated by management. The company has also tied margin improvement to operating efficiencies and better utilisation, which is particularly relevant for diagnostics chains with large fixed-cost networks. For the broader industry, the data points align with the view that organised chains may keep gaining share as consumers and doctors lean toward trusted brands and advanced testing capabilities.

Conclusion

Metropolis Healthcare’s recent performance highlights rising demand for preventive screening and specialised diagnostics, backed by expanding reach and operating efficiencies. With a large national footprint and added specialty capabilities from the Core Diagnostics acquisition, the company has indicated it will focus on sustainable growth, higher throughput, and efficiency-led margin expansion as these segments gain traction.