Metropolis Healthcare (METROPOLIS) Q1 25/26 earnings summary

Executive summary

• Achieved 23% year-on-year revenue growth for Q1 FY2026, driven by organic expansion and recent acquisitions, with patient and test volumes rebounding and high-value segments like TruHealth and Specialty showing notable growth.

• Integration of Core Diagnostics, DAPIC Dehradun, and Scientific Pathology Agra is progressing smoothly, with early synergies realized and Core Diagnostics turning EBITDA positive.

• Continued network expansion, digital transformation, and the acquisition of Ambika Pathology Laboratory in Kolhapur for INR 17 crores to strengthen regional presence.

• Strategic focus on specialty diagnostics, preventive health (TruHealth), and expansion into Tier 2/3 cities.

• Approved unaudited standalone and consolidated financial results for Q1 FY26, with statutory auditors issuing unmodified review reports.

Financial highlights

• Group revenue reached INR 386 Cr, up 23.2% year-on-year; organic revenue at INR 355 Cr, up 13.2% year-on-year.

• Group EBITDA at INR 89 Cr (23.1% margin); organic EBITDA at INR 88 Cr (24.7% margin), both improving year-over-year.

• Group PAT at INR 45.2 Cr (11.7% margin); organic PAT at INR 46 Cr (13% margin), up 80 bps year-on-year.

• Standalone revenue for Q1 FY26 was Rs 32,363.24 lakhs; consolidated revenue was Rs 38,606.32 lakhs.

• Revenue per patient grew 6% YoY to INR 1,098; revenue per test up 5% YoY to INR 523.

Outlook and guidance

• Expect continued margin expansion as integration synergies from acquisitions are realized, with Ambika Pathology Laboratory expected to enhance productivity and profitability in Western Maharashtra.

• Targeting B2C revenue share above 60% at group level in coming years and mid-teen revenue CAGR from FY23 to FY26.

• Anticipate further growth in Tier 2/3 markets, specialty diagnostics, and network expansion.

• Q2 and Q4 expected to be stronger quarters seasonally.

• Aims to achieve pre-COVID margin profile and be the fastest-growing diagnostics company among national chains.