Metropolis Healthcare (METROPOLIS) Q2 24/25 earnings summary

Executive summary

• Achieved 13.4% year-over-year revenue growth in Q2 FY25, reaching INR 350 crore, with strong performance in both core and emerging markets.

• PAT increased 31% YoY to INR 47 crore, with margin improvement to 13.4% and EBITDA margin at 26.2%.

• B2C revenue grew 21% YoY, driven by same-store growth, network expansion in tier 3/4 cities, and specialty segment gains.

• Strategic focus on expanding in tier 3/4 cities, deepening B2C and specialty offerings, and digital initiatives.

• Management highlights a strong pipeline for long-term growth, including potential M&A.

Financial highlights

• Q2 FY25 revenue: INR 349.8–350 crore (+13.4% YoY); patient volume growth: 7%; test volume growth: 8%.

• EBITDA: INR 91.5–92 crore (+22.2% YoY); EBITDA margin: 26.2% (+190 bps YoY).

• PAT: INR 46.7–47 crore (+31% YoY); PAT margin: 13.4% (+180 bps YoY).

• B2C revenue: INR 194 crore (+21% YoY); B2B revenue: +12.6%–13% YoY.

• Net cash surplus/cash and equivalents: INR 185 crore as of 30 September 2024.

Outlook and guidance

• Maintains FY25 revenue growth guidance of 13%-15%, targeting mid-teen CAGR through FY26.

• Margins expected to improve as new labs mature and operating leverage increases.

• Long-term aspiration: sustain 26%-27% EBITDA margin with mid-teens revenue growth.

• Focus on expanding market share in core and new geographies, especially in specialized and wellness testing.

• Management expects a long growth runway in a normalized competitive landscape.