HSIE Institutional Report: Metropolis Healthcare Feb, 06 2026

In-Line Q3 on Track to Improve Growth and Margin

EBITDA growth (32% YoY; organic growth at 29%) was mainly driven by a 26% YoY increase in sales (+15% YoY organic rise). Patient/test volumes expanded by 14/13% YoY while realization per patient/test improved by 11%. Metropolis expects: (a) its organic business to see 12-13% sales growth with targets to grow patient volume by 7-8% and margin expansion in FY26/27E and (b) Core Diagnostic to see strong growth and high single-digit margin in Q4, and steady improvement in FY27. Key strategies: (1) increase market share in existing markets, (2) expand collection centers (added 326 in 9M), (3) take a balanced B2B:B2C approach for growth, (4) strengthen specialty (launched Center of Genomics in Delhi) and Truhealth (wellness), and (5) enhance clinical outcomes through advanced digital and AI-driven tools. While company has deferred the price increase (to pass-on GST benefits), it believes that the overall market is conducive for a price hike in the near term. Having completed its investment phase (toward lab infra, technology, medical/management personnel), Metropolis is now focusing on execution and margin expansion. Initiatives like network expansion, diversifying test portfolios, promoting wellness packages, pursuing smaller M&As, implementing micro-market strategies, gaining share in focused cities, and boosting B2C presence are expected to drive sales growth, with margin expected to gradually improve. We maintain ADD with revised TP of INR 2,240 (42x Q3FY28E).

Metropolis Healthcare Q3 Highlights

Sales grew 26% YoY to INR 4.05 bn, led by acquired businesses and patient/test volume growth (+14%/ 13% YoY; realization per patient/test up 11/11% YoY). Lower GM at 78.5% (-76 bps YoY) and higher staff/SG&A (+16/27%) led to an EBITDA of INR 948 mn (+32% YoY) and margin of 23.4% (+106 bps). Adjusted for one-offs, PAT^ was at INR 505mn (+61% YoY).

Organic Business

Sales grew 15% YoY to INR 3.71bn, led by patient volume growth of 9% YoY to 3.32mn and test volume growth of 8% YoY to 6.99mn (realization per patient/test +6%). EBITDA stood at INR 930 mn (+29% YoY) and margin was 25.1% (+276 bps). PAT^ stood at INR 480mn (+53% YoY).

Key Takeaways From Con Call

The integration of recent M&As is on track, with portfolio alignment, efficiency improvement, and cost optimization. In Q3FY26, for the organic business, TruHealth revenue (19% of sales) grew by 25% YoY, specialty (38%) grew by 16% YoY, B2C (60%) grew 15%, and B2B (40%) grew 15% YoY. It has launched Center of Genomics in Delhi; targets oncology and CNS testing opportunity which are fast-growing therapies. It has low-end radiology (ECG, Ultrasound, and X-Ray) in several centers and is evaluating high-end radiology. It has closed 4 labs and plans more closure in Q4FY26 as part of integration. As of Dec-25, net cash was at INR 1.27bn.

Metropolis Healthcare Quarterly Financial Summary

Source: HSIE Research (HSIE Results Daily Report – 06 Feb 26 )