Metropolis Healthcare (METROPOLIS) Q3 25/26 earnings summary

Executive summary

• Group revenues grew 26% year-on-year in Q3, with nine-month revenues up 24% year-on-year, driven by balanced volume expansion, improved test mix, and successful integration of recent acquisitions.

• Organic revenue growth was 15% for Q3 and 13% for the nine months, with patient volume up 9% and test volume up 8% year-on-year.

• Specialty diagnostics, preventive healthcare (TruHealth), and complex testing are key growth drivers, with genomics, digital/AI initiatives, and premium offerings as strategic priorities.

• Integration of CORE Diagnostics and other recent acquisitions is progressing well, with synergy benefits expected by year-end.

• Board approved a 3:1 bonus share issue, reflecting strong financials and confidence in long-term growth.

Financial highlights

• Q3FY26 group revenue up 26% YoY to INR 406 Cr; EBITDA up 32% YoY to INR 95 Cr; PAT (excluding exceptional) up 63% YoY to INR 51 Cr.

• Organic EBITDA grew 29% year-on-year, with margins at 25% (up 280 bps); PAT (excluding exception items) grew 52% year-on-year to INR 48 crore.

• Group EBITDA margin was 23.4%, lower than organic due to CORE Diagnostics' margin profile.

• One-time Labor Code implementation cost of INR 9 crore at group level impacted profitability.

• Company remains net debt-free with INR 127 crore in cash reserves.

Outlook and guidance

• Confident of achieving 12%-13% organic revenue growth and expanded margins for FY 2026, aiming for the higher end of the range.

• Q4 expected to be seasonally stronger, with improved gross margins at CORE Diagnostics and continued network expansion.

• Targeting mid-teen revenue CAGR from FY23 to FY26 and aiming to regain pre-COVID margin profile.

• Bonus shares to be issued within two months of board approval, pending shareholder and regulatory nods.

• Medium-term volume growth aspiration remains at 7%-8% per year.