Metropolis Healthcare reported robust Q3 FY’26 results, with group revenues growing 26% YoY. Organic revenue growth stood healthy at 15% for the quarter, driven by volume and improved test mix. Key strategic moves included the launch of the Center of Genomics in Delhi and the approval of a 3:1 bonus share issue, signaling strong financial health and management confidence in long-term prospects.
Q3 FY’26 Performance Overview
Metropolis Healthcare delivered a strong performance in the third quarter of FY’26. Group revenues surged by 26% year-on-year, while 9-month revenues increased by 24% YoY. The core organic revenue growth remained healthy at 15% for the quarter, supported by balanced volume expansion, a better test mix, and disciplined execution across business segments.
Key Financial Metrics (MHL Organic)
For the MHL Organic segment (excluding recent acquisitions), key figures were:
- Revenue and EBITDA grew by 15% and 29%, respectively, YoY.
- PAT (excluding exceptional items) grew 52% YoY to INR 48 crores.
- EBITDA margin stood robust at 25%, showing an expansion of 280 basis points YoY.
- Patient volumes grew by 9% YoY to 3.3 million.
MHL Group Results
Including the four recent acquisitions (Core Diagnostics, DAPIC, Scientific Pathology, and Ambika Diagnostics), the MHL Group revenue grew by 26% YoY.
- EBITDA margin for the group stood at 23.4%.
- PAT (excluding exceptional items) grew 63% YoY to INR 51 crores.
An exceptional item impact of INR 9 crores related to the Labor Code implementation affected profitability this quarter.
Strategic Pillars and Innovation
Management highlighted several key areas of strategic focus:
Genomics Expansion
A major milestone was the launch of the Centre of Genomics in Delhi, integrating Core Diagnostics as the national reference hub for molecular testing. Management views genomics as a critical, high-value growth lever for the next decade, focusing on oncology and neurology applications. They emphasized their positioning in this space is focused on diagnostic, high-quality reporting rather than high-volume, commoditized screening.
Digital and AI Journey
The company continues its measured progress on AI integration, focusing on targeted high-impact use cases like enhanced test interpretation and quality monitoring. Furthermore, Metropolis achieved a significant milestone with the grant of its first patent by the Government of India for a system focused on monitoring TB-related infections.
Network and Operational Focus
Operational momentum was sustained despite Q3’s typical seasonality. The strategic pivot towards building a high-quality B2B/institutional business has started yielding results. The company added 110 new centers this quarter, strengthening its presence across 750 towns. Management confirmed that organic test volume growth was 8% for the quarter.
Shareholder Value Creation
In a significant announcement reinforcing financial strength and shareholder reward, the Board of Directors approved the issue of bonus shares in the ratio of 3:1 (three fully paid-up equity shares for every one existing share).
Outlook and Capex
The company remains confident in achieving its guidance of 12% to 13% organic growth for FY’26. Estimated capex for the full year is set between INR 55 crores to INR 60 crores, directed towards network expansion and upgrading high-end testing capabilities. The company remains net debt-free with current cash reserves of INR 127 crores.
Source: BSE
