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.

Metropolis Healthcare , a leading diagnostic services provider, has reaffirmed its commitment to organic business growth and provided updates on its recent acquisition during a conference call. The company has set a target of 70-100 basis points (bps) for organic business growth in the fiscal year 2026 (FY26) and expects volume growth of 10-11% for the year.

Core Diagnostics Integration Progress

Metropolis Healthcare is making progress with the integration of Core Diagnostics, which it acquired for Rs 247 crore. The company has outlined an ambitious plan for improving Core Diagnostics' profitability:

• Breakeven expected in Q4FY25
• Low single-digit margins projected for Q1FY26
• High single-digit margins anticipated in Q2FY26
• Double-digit margins targeted by the end of FY26

Managing Director Surendran Chemmenkotil stated that Core Diagnostics' margins should align with Metropolis' overall margins within three years of acquisition. This acquisition was strategically aimed at strengthening the company's cancer diagnostics portfolio and expanding its presence in Northern and Eastern India.

Recent Financial Performance

Metropolis reported strong quarterly results:

The company's TruHealth segment is showing 20% growth, indicating positive momentum in this area.

Growth Strategy and Outlook

The confirmation of the organic business growth target highlights Metropolis Healthcare's focus on expanding its core diagnostic services. The 10-11% volume growth expectation for the year indicates a strong outlook for service demand, supporting the company's multi-faceted approach to expansion in the diagnostic services market.

Upcoming Earnings Call

Metropolis Healthcare has scheduled its earnings conference call for the quarter and half-year ended September 30, 2025, on November 6, 2025. The call timing has been revised to 10:30 AM (IST) from the previously announced 10:00 AM.

Management Participation

Key management personnel participating in the earnings call will include:

• Ms. Ameera Shah, Chairperson & Whole-Time Director
• Mr. Surendran Chemmenkotil, Managing Director
• Mr. Sameer Patel, Chief Financial Officer
• Mr. Avadhut Joshi, Chief Business Development Officer

Investor Implications

For investors and market analysts, Metropolis Healthcare's reaffirmation of its organic growth target, volume growth expectations, and the progress update on Core Diagnostics integration provides clear benchmarks for evaluating the company's performance. The targeted growth range for organic business, combined with the volume growth expectation and the strategic acquisition, suggests that the company is pursuing a robust expansion strategy.

As the diagnostic services sector continues to evolve, Metropolis Healthcare's growth targets and strategies will be closely watched by industry observers and stakeholders alike. Investors and interested parties are encouraged to participate in the upcoming earnings call for a more comprehensive understanding of Metropolis Healthcare's financial position and future outlook.