Metropolis Healthcare (METROPOLIS) Q4 24/25 earnings summary

Executive summary

• Achieved double-digit revenue and profit growth in FY25, driven by strong B2C, TruHealth, and Specialty segment performance, and network expansion with 29 new labs and ~400 centers, focusing on Tier II & III cities.

• Accelerated inorganic growth with three acquisitions: Core Diagnostics (oncology/genomics), Scientific Pathology (Agra), and Dr. Ahuja's Pathology & Imaging Centre (Dehradun), strengthening North India presence and expected to raise regional revenue share from 8% to 14-15% in FY26.

• Strategic focus on B2C expansion, operational efficiency, digital transformation, and scientific innovation, including AI-powered diagnostics and new test launches.

• Leadership team strengthened with new independent directors and key management appointments.

• The group operates solely in pathology services, with no segmental reporting.

Financial highlights

• FY25 revenue reached INR 1,331 crore, up 12% year-on-year, with Q4 FY25 revenue at INR 345 crore (+10% YoY); B2C revenue for Q4 at INR 193 crore (+14% YoY), B2B at INR 120 crore (+10% YoY).

• Adjusted EBITDA for FY25 at INR 325 crore (+14% YoY), margin at 24.4%; reported EBITDA impacted by INR 21 crore one-time costs.

• Adjusted PAT for FY25 at INR 161 crore (+26% YoY); PAT margin at 10.9%, normalized PAT margin at 12.1%.

• Consolidated EPS for FY25 was Rs 28.29 (basic), up from Rs 24.95 in FY24.

• Net cash surplus of INR 118 crore as of March 31, 2025.

Outlook and guidance

• Organic revenue growth guidance for FY26 at 12%, with acquired entities expected to add 13-14%, resulting in total revenue growth of 25-26%.

• Patient volume growth expected to improve to 7% in FY26.

• Adjusted EBITDA margin for organic business expected to expand by 100 basis points to 25.4%; Core Diagnostics to reach high single-digit EBITDA margin.

• B2C revenue share to rise by 1-2% in FY26, targeting 56-57% of total revenue.

• Continued focus on digital transformation, scientific innovation, and ESG initiatives.