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.

Metropolis Healthcare Limited , India's second-largest diagnostic chain, has reported a robust 23% year-on-year revenue growth to ₹429.00 crore for the quarter ended September 30, 2025 (Q2 FY26). The company's EBITDA grew by 19% to ₹109.00 crore, while profit after tax (PAT) increased by 13% to ₹53.00 crore compared to the same quarter last year.

Key Financial Highlights

Business Segment Performance

The company's growth was driven by strong performance across its business segments:

• B2C Revenue: ₹240.00 crore (+16% YoY)
• B2B Revenue: ₹189.00 crore (+33% YoY)
• TruHealth (wellness) Revenue: +24% YoY
• Specialty Testing Revenue: +33% YoY

Geographical Expansion and Acquisitions

Metropolis Healthcare has been actively expanding its presence across India:

• Revenue contribution from North India increased to 19% (from 17% in Q1 FY26)
• Tier III cities registered 13% revenue growth

The company's recent acquisitions have started showing positive results:

• Core Diagnostics achieved positive PAT and high single-digit EBITDA margins within two quarters of acquisition
• DAPIC (Dehradun) and Scientific Pathology (Agra) continue to outperform the company's average margin levels

Strategic Initiatives

Metropolis Healthcare is focusing on several key areas to drive growth:

1. Expanding its test menu, with a focus on high-value specialty and preventive health tests
2. Strengthening its presence in Tier II and Tier III markets
3. Enhancing digital capabilities to improve customer experience and operational efficiency
4. Pursuing strategic acquisitions to enter new geographies and expand service offerings

Management Commentary

Ameera Shah, Promoter and Executive Chairperson of Metropolis Healthcare, stated, "We've demonstrated that consistent growth and quality can go hand in hand. The swift turnaround of Core Diagnostics and the strong performance of our recent acquisitions in Dehradun and Agra reaffirm the strength of our integration strategy and our ability to create sustainable value through local excellence."

Surendran Chemmenkotil, Managing Director, added, "We delivered consistent results this quarter, in line with our guidance, even as lower incidence of vector-borne diseases impacted seasonal demand. Our focus on execution excellence, productivity enhancement, and operational optimization helped sustain growth momentum and deliver year-on-year margin expansion in H1."

Dividend Declaration

The Board of Directors has approved an interim dividend of ₹4.00 per equity share (face value of ₹2.00 each) for the financial year 2025-26.

Outlook

Metropolis Healthcare remains confident in achieving its stated growth and profitability targets for the rest of the year. The company continues to focus on deepening its presence across 750+ towns, with sharper penetration in Tier 2 and Tier 3 markets, supported by a strong product portfolio and productivity-enhancing initiatives in the network.

As Metropolis Healthcare continues to expand its footprint and enhance its service offerings, it is well-positioned to capitalize on the growing demand for quality diagnostic services in India.