Metropolis Healthcare shares gained over 4.60% to ₹2,021.40 on Monday following the company's positive third quarter business update. The diagnostic services provider delivered impressive consolidated revenue growth of 26% year-on-year for the quarter ended December 31, demonstrating robust operational performance across its healthcare portfolio.

Stock Performance and Market Reaction

The market responded positively to the company's strong quarterly performance, with shares trading significantly higher during morning sessions. The stock price appreciation reflects investor confidence in the company's growth trajectory and successful execution of its expansion strategy.

Consolidated Performance Highlights

The company's consolidated performance reflects strong execution across multiple business verticals and successful integration of recent acquisitions. The 26% consolidated revenue growth was driven by sustained momentum in preventive healthcare and specialty testing segments.

The consolidated growth includes contributions from Core Diagnostics, Scientific Pathology, Dr. Ahuja's Pathology & Imaging Center, and Dr. RS Patil's Ambika Pathology Laboratory. The integration of all acquisitions is progressing well, with synergies delivering operational efficiencies and strengthening operating leverage.

Standalone Business Performance

On a standalone basis, Metropolis Healthcare achieved solid growth metrics across key business segments, with overall revenue growth of approximately 15% year-on-year driven by increased patient and test volumes.

The growth was largely attributed to increased patient and test volumes, along with a favorable shift in product mix and realizations across the company's diversified revenue streams.

Operational Excellence and Margin Expansion

Despite the third quarter being a seasonally weaker period for the diagnostic industry, EBITDA margins expanded year-on-year, highlighting the resilience of operations and strength of the business model. The company has successfully scaled its specialty business across its pan-India network, supported by an expanded test menu for high-end specialty testing and continuous in-house innovation.

The B2B revenue growth of 37% was supported by increased wallet share among customers, especially in the specialty segment, and higher contribution from Core Diagnostics. Recent acquisitions including DAPIC, Scientific, and Ambika continue to outperform the company's average margins, indicating successful integration and operational synergies.

Metropolis Healthcare Limited , a leading diagnostic services provider, has announced robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth and improved profitability.

Key Financial Highlights

• Group revenue grew by 23% year-over-year in Q2 FY26
• Organic business achieved 12% revenue growth
• EBITDA margins improved to 26.8% from 26.2% in the previous year
• Patient volumes reached 3.6 million, growing 6% year-over-year
• Test volumes stood at 7.4 million, also growing 6% year-over-year

Segment Performance

Operational Highlights

• Core Diagnostics, a recent acquisition, showed margin improvement from breakeven in March to high-single-digit margins
• Added approximately 200 collection centres in the first half of FY26
• Plans to add another 300 collection centres in the second half

Strategic Initiatives

1. Network Expansion: Focus on Tier 2 and Tier 3 cities, with plans to add 300 more collection centres in H2 FY26
2. Specialized Testing: Enhancing capabilities in AI-based allergy testing, diagnostics, and genomics
3. TruHealth Portfolio: Strengthening offerings through science-led bundling and integrated approach with basic radiology
4. Digital Integration: Implementing AI-driven tools to enhance service quality and operational efficiency

Management Commentary

Surendran Chemmenkotil, Managing Director of Metropolis Healthcare, stated, "We are pleased to report that Group revenue for quarter 2 and H1 of financial year '26 grew by 23% year-on-year. Metropolis revenues on an organic basis grew by 12% in quarter 2 and margins stood at 26.8% as compared to 26.2% in quarter 2 last year, an improvement of 60 bps in line with our guidance."

Ameera Shah, Chairperson & Whole-Time Director, added, "It's an exciting time for us at Metropolis as we continue to deliver strong broad-based growth of 23% year-over-year, accompanied by sustained margin expansion. This consistent trajectory reinforces the strength of our strategy, the resilience of our business model and the disciplined execution by our teams across the country."

Outlook

Metropolis Healthcare maintains its full-year guidance and confirms no new acquisitions are planned for the next 6-9 months as they focus on organic growth and integration of recent acquisitions. The company remains confident in its ability to meet stated estimates in H2 FY26 and further build its leadership position nationwide.

As Metropolis continues to strengthen its market position through strategic initiatives and operational excellence, investors can expect sustained growth and improved profitability in the coming quarters.