Metropolis Healthcare Limited (BSE: 542650 / NSE: METROPOLIS) reported higher revenue and profitability in the quarter ended December 31, 2025, supported by rising patient and test volumes, stronger B2C and B2B traction, and an improved mix toward specialty and TruHealth offerings.
For Q3 FY26 (MHL Group), revenue increased 26% year-on-year to ₹406 crore. EBITDA rose 32% to ₹95 crore, while profit after tax (excluding the exceptional impact of the new labour code) increased 63% to ₹51 crore.
Business overview
Metropolis Healthcare is India’s second-largest diagnostic chain, operating a network of 219 laboratories and over 4,800 patient service centres across more than 750 towns. The company offers over 4,100 tests and profiles, including advanced diagnostics in oncology, genomics, neurology and infectious diseases.
The company operates through both organic (MHL Organic) and group (MHL Group) reporting structures, with the latter including acquisitions of Core Diagnostics, DAPIC (Dehradun), Scientific Pathology (Agra) and Ambika Pathology (Kolhapur).
Financial performance — Q3 FY26
On a Group basis, revenue rose to ₹406 crore from ₹323 crore a year earlier. EBITDA margin expanded to 23.4%, up 120 basis points year-on-year, supported by stable performance at Core Diagnostics and higher-margin contributions from acquired businesses.
PAT (excluding exceptional items) increased to ₹51 crore from ₹31 crore in Q3 FY25. The exceptional item related to the impact of the new labour code was ₹9 crore.
On an Organic basis (excluding recent acquisitions), revenue grew 15% year-on-year to ₹371 crore. EBITDA margin expanded to 25.0%, up 280 basis points, reflecting operating leverage and productivity gains.
Nine-month performance (9M FY26)
For 9M FY26 (Group), revenue increased 24% to ₹1,221 crore. EBITDA rose 21% to ₹293 crore, while PAT (excluding exceptional items) increased 28% to ₹149 crore.
On an Organic basis, 9M FY26 revenue rose 13% to ₹1,118 crore, with EBITDA margin improving to 25.5% from 24.5% in 9M FY25.
Operating metrics
Patient and test volumes grew 14% and 13% year-on-year, respectively, driven by deeper penetration in Tier II and Tier III markets and a favourable shift toward complex testing.
Revenue per Test (RPT) increased 11% to ₹557, while Revenue per Patient (RPP) rose 10% to ₹1,165.
B2C revenue grew 19% year-on-year to ₹232 crore, while B2B revenue increased 35% to ₹174 crore. TruHealth and Specialty portfolios recorded growth of approximately 37% and 34%, respectively.
Revenue mix and geography
In Q3 FY26, Specialty contributed 38% of segment revenue, TruHealth 17%, Semi-Special 26% and Routine 19%. North India contributed 17% of revenue, while Tier III cities grew 16% year-on-year and accounted for 24% of overall revenue.
Network expansion and acquisitions
The company added two laboratories and 112 service centres in Q3 FY26, while closing four labs for consolidation. Its footprint expanded from around 300 towns in FY23 to approximately 750 towns.
Recent acquisitions were integrated as planned, with stable margins at Core Diagnostics and continued outperformance from Scientific Pathology (Agra), DAPIC (Dehradun) and Ambika Pathology (Kolhapur).
Key developments
Metropolis launched a Centre of Genomics in partnership with Illumina to scale NGS-based testing and added over 300 new tests. It also expanded AI-enabled diagnostics, including AI-driven Allergy CRD and AI-verified prostate biopsy tests.
The Board approved a 3:1 bonus issue of equity shares.
Risks and constraints
Performance remains sensitive to demand trends in preventive healthcare, pricing dynamics in diagnostics, integration of acquisitions, manpower and consumable costs, and regulatory changes including labour codes and quality standards.
Outlook and commentary
Management stated that growth was supported by higher specialty mix, digital channel scaling, and continued expansion in Tier II and Tier III markets, while maintaining focus on productivity an