Metropolis Healthcare Q1 FY27 Results: Revenue Rises 17%, EBITDA Margin Expands to 25.2%; Company Targets 14-15% Growth

BY ADMIN • FILED 10 Aug 2026, 4:05 PM

Metropolis Healthcare Q1 FY27 Results: Metropolis Healthcare Limited reported a strong start to FY2026-27, with revenue growing 17% year-on-year to ₹450 crore in Q1 FY27. The diagnostics company delivered broad-based growth across patient volumes, business channels, geographies and test categories, while operating leverage and productivity initiatives helped expand profitability.

The company’s EBITDA increased 27% year-on-year to ₹113 crore, while EBITDA margin improved by 210 basis points to 25.2%. Profit after tax (PAT) stood at ₹57 crore, up 26% year-on-year, with PAT margin improving to 12.6%.

Management said it remains confident about sustaining 14%-15% revenue growth over the medium term, primarily driven by patient volume growth and a richer product mix.

Metropolis Healthcare Q1 FY27 Financial Highlights

Metropolis Healthcare delivered strong financial performance during the June 2026 quarter.

Particulars	Q1 FY27	YoY Growth
Revenue	₹450 crore	17%
EBITDA	₹113 crore	27%
EBITDA Margin	25.2%	+210 bps
PAT	₹57 crore	26%
PAT Margin	12.6%	+90 bps
Patient Volume	—	10%
Test Volume	—	11%
B2C Revenue	—	18%
B2B Revenue	—	15%
Specialty Revenue	—	17%
TruHealth Revenue	—	22%

The company highlighted that Q1 is traditionally not its strongest quarter. Despite this, revenue increased approximately 6% sequentially, reflecting healthy demand, network expansion and operating leverage.

Volume Growth Remains the Key Driver

One of the most important takeaways from the earnings call was that Metropolis’ Q1 growth was largely volume-led.

Patient volumes increased 10% year-on-year, while test volumes rose 11%. B2C patient volumes grew around 13.5%, while B2B patient volumes increased approximately 6%.

Management also pointed out that the company has not taken a broad-based price increase since January 2025. Therefore, the 17% revenue growth was primarily supported by volume growth and a better mix of higher-value tests.

The company expects patient volume growth of around 9%-10% to remain an important component of its medium-term growth strategy.

B2C and B2B Businesses Both Grow Strongly

Metropolis Healthcare reported healthy growth across both major channels.

B2C Revenue Grows 18%

B2C revenue increased 18% year-on-year during Q1 FY27.

Growth was supported by:

Higher productivity from mature centers
Ramp-up of newly added centers
Stronger presence in Tier-2 and Tier-3 markets
Local micro-marketing initiatives
Digital customer engagement
Clinician engagement
Higher Specialty testing
Expansion of TruHealth offerings

Specialty revenue within the B2C business grew 21%.

The company’s rural centers also performed strongly, recording 36% revenue growth during the quarter.

B2B Revenue Rises 15%

B2B revenue increased 15% year-on-year.

The company is focusing on hospitals, clinicians, smaller laboratories and organized institutional customers where Metropolis can leverage its Specialty Diagnostics portfolio, scientific capabilities and nationwide network.

Management indicated that a significant portion of its B2B business is linked to Specialty Diagnostics because hospitals and higher-end laboratories tend to outsource more complex tests.

Specialty Diagnostics Remains a Major Growth Engine

Specialty Diagnostics continues to be one of Metropolis Healthcare’s key strategic growth areas.

Specialty revenue grew 17% year-on-year in Q1 FY27 and accounted for approximately 40% of total revenue.

The company has a portfolio of more than 2,200 Specialty tests covering areas such as:

Oncology
Neurology
Nephrology
Gastroenterology
Autoimmunity
Allergy
Chronic diseases
Genomics and other advanced diagnostics

Metropolis added 36 new tests during Q1 FY27, following 347 additions during FY26.

Management intends to increase the contribution of Specialty Diagnostics from around 40% currently to 45% over time.

The company believes Specialty Diagnostics can also generate additional Routine and allied testing as patients increasingly use Metropolis for multiple diagnostic requirements.

TruHealth Revenue Jumps 22%

TruHealth continues to emerge as another important growth engine for Metropolis Healthcare.

TruHealth revenue increased 22% year-on-year in Q1 FY27 and contributed around 18% of quarterly revenue.

The company has expanded TruHealth beyond traditional pathology testing to include services such as:

Basic radiology
Vital health checks
ECG
Consultations
Preventive health packages
Body vital assessments

Radiology-integrated wellness packages grew more than 40%, while premium TruHealth packages increased more than 50%.

Management said the current TruHealth ticket size is approximately ₹2,500, with margins broadly in line with the company’s overall business.

The company is also developing the broader TruHealth Mind and Body concept, aimed at offering consumers a more comprehensive health screening experience.

Metropolis currently does not include predictive genomics as a standard wellness offering, with management noting that predictive genomics for wellness is not yet sufficiently validated in India.

Network Expansion: 500 Net New Centers Planned

Network expansion remains central to Metropolis Healthcare’s growth strategy.

Over the last 12 months, the company added more than 500 service centers, including around 300 centers during Q1 FY27.

The company currently operates across approximately 750 towns.

Management said it plans to add around 500 net centers during FY27, with a particular focus on strengthening its presence in Tier-2 and Tier-3 towns.

The company has also improved its center-to-laboratory ratio from approximately 1:21 a year ago to 1:24 in Q1 FY27. It is targeting a ratio of around 1:30 by the end of FY27.

This should help improve laboratory utilization and operating leverage as sample volumes increase.

Network Rationalization Continues

Although around 300 centers were added during Q1, Metropolis also rationalized approximately 300 low-productivity centers.

Management clarified that this is a periodic exercise undertaken roughly every 18-24 months to remove locations that are not productive or do not meet quality requirements.

The company said the 500-center expansion target is a net addition target, meaning the planned expansion is after taking such rationalization into account.

North India Emerges as a Fast-Growing Region

North India has become an increasingly important growth market for Metropolis.

Revenue from North India increased 19% year-on-year, with the region now contributing approximately 18% of total company revenue.

The growth has been supported by the integration of:

Core Diagnostics
Scientific Pathology, Agra
DAPIC, Dehradun

Management described North India as the fastest-growing region in the company’s network.

Metropolis intends to continue expanding its B2B presence in North India, particularly through relationships with hospitals and specialists, while selectively developing its B2C business in markets such as Delhi, Punjab and Uttar Pradesh.

Core Diagnostics Integration Nears Completion

The integration of Core Diagnostics is in its final phase.

Metropolis acquired Core Diagnostics with the objective of building a stronger genomics and Specialty Diagnostics platform, strengthening its North India presence and creating shareholder value through a disciplined acquisition.

Management said the genomics portfolio has doubled over the past year and has become one of the fastest-growing segments within the Specialty business.

The company is also leveraging its nationwide network to distribute Core’s Super Specialty testing portfolio to existing customers and clinicians.

Core Diagnostics Margin Improvement

Core Diagnostics was acquired as a distressed, loss-making business. Metropolis had previously indicated an objective of taking Core’s EBITDA margin to approximately 25% within three to four years.

Management said Core’s margin was around 8% at the end of the previous quarter, with further improvement expected as integration and operating leverage progress.

The company expects Core to become increasingly accretive to revenue and EBITDA as its test portfolio gains access to the wider Metropolis network.

Strong Margin Expansion

Metropolis Healthcare’s profitability improved significantly during Q1 FY27.

EBITDA increased 27% year-on-year to ₹113 crore, while EBITDA margin expanded by 210 basis points to 25.2%.

Management attributed the improvement to:

Higher volumes
Operating leverage
Cost optimization
Laboratory transformation
Vendor consolidation
Automation
Procurement efficiencies
Improved laboratory utilization
Higher throughput
Productivity initiatives

The company is targeting a 100-150 basis point improvement in EBITDA margin during FY27.

Over FY27 and FY28, management continues to target an EBITDA margin in the 27%-28% range.

Importantly, the company said the Tier-2 and Tier-3 markets do not necessarily carry inferior economics compared with metropolitan markets. Strong branded markets can generate attractive margins as volumes and utilization improve.

Technology and AI to Support Productivity

Technology remains an important component of Metropolis Healthcare’s long-term strategy.

The company is implementing automation and digital transformation across:

Laboratories
Customer engagement
Vendor management
Commercial operations
Finance
Procurement
Support functions
Inventory management

Within laboratories, automation and standardization are being used to improve throughput, quality and turnaround times.

AI and automation are also being deployed to improve workflows, decision-making, customer engagement and back-office efficiency.

Metropolis said data governance and DPDP-compliant handling of patient information remain important elements of its digital transformation program.

No Immediate Price Increase Planned

Metropolis has not taken a broad-based price increase since January 2025.

Management said it is not currently contemplating a price increase in the near term.

However, the company expects that part of future inflationary costs may eventually need to be passed on to consumers when market conditions are appropriate.

Management also noted that GST-related benefits were passed on to customers rather than being used as a reason to increase prices.

CAPEX Expected Around ₹65 Crore

Metropolis Healthcare spent approximately ₹65 crore on CAPEX during the previous financial year.

For FY27, management expects CAPEX to remain at a similar level for the group, including acquired businesses.

The company has also paused the laboratory expansion program that had been underway during the previous several quarters. The focus is now on improving utilization of the existing laboratory infrastructure while expanding the collection-center network.

International Business Continues to Perform Well

Metropolis Healthcare’s international business continued to deliver healthy revenue and EBITDA growth.

The company operates across five international markets and said it is the market leader in two of those countries while ranking among the top three players across all five markets.

The international model includes specialized testing being referred to Metropolis’ reference laboratories in India.

Management remains optimistic about the long-term potential of its international operations.

Disciplined Acquisition Strategy Continues

Metropolis Healthcare continues to evaluate inorganic growth opportunities.

Management said it remains open to:

Smaller bolt-on acquisitions
Strong regional diagnostic brands
Specialty capabilities
Attractive geographic opportunities
Larger strategic acquisitions where shareholder value can be created

The company is looking for businesses with strong consumer brands, ethical practices, scientific capabilities, positive unit economics and credible management teams.

However, management emphasized that acquisitions will be pursued at disciplined valuations and only when they can create long-term shareholder value.

Five Key Strategic Priorities for FY27

Under its Metropolis 3.0 strategy, the company has identified five key priorities:

1. Accelerate Network Expansion

Metropolis plans to deepen its presence in Tier-2 and Tier-3 markets and add approximately 500 net centers during FY27.

2. Expand Specialty Diagnostics

The company wants to increase Specialty Diagnostics’ contribution from around 40% to 45%, supported by new tests, clinician engagement and the wider Core Diagnostics portfolio.

3. Scale TruHealth

The company plans to expand preventive healthcare offerings, including pathology, basic radiology, vital checks and consultations.

4. Leverage Technology and AI

Automation, AI and digital platforms will be used to improve customer experience, laboratory efficiency, doctor engagement and operating productivity.

5. Pursue Disciplined Acquisitions

Metropolis will continue to search for strategically aligned acquisition opportunities while maintaining a focus on valuation and shareholder returns.

Management Maintains 14%-15% Growth Outlook

Despite the stronger-than-expected 17% revenue growth in Q1 FY27, management has maintained its medium-term growth guidance at 14%-15%.

The company expects approximately 9%-10% growth to come from patient volumes, with the remaining growth coming largely from product mix and realization.

Specialty Diagnostics and TruHealth are expected to play an important role in improving the overall mix.

Management also cautioned that diagnostics can be affected by weather and disease patterns, making quarter-to-quarter performance difficult to predict. Therefore, it remains focused on achieving the 14%-15% growth target over the full year rather than extrapolating Q1 performance.

Key Takeaways for Investors

Metropolis Healthcare’s Q1 FY27 performance points to a combination of volume-led growth and improving operating leverage.

The major positives from the earnings call include:

17% revenue growth to ₹450 crore
10% patient volume growth
11% test volume growth
27% EBITDA growth
EBITDA margin expansion to 25.2%
26% PAT growth to ₹57 crore
Strong B2C and B2B growth
22% growth in TruHealth
17% growth in Specialty Diagnostics
Strong 19% growth in North India
More than 750 towns covered
Around 500 net center additions planned for FY27
Core Diagnostics integration nearing completion
Continued focus on AI, automation and productivity
Medium-term revenue growth guidance of 14%-15%
Medium-term EBITDA margin target of 27%-28%
FY27 CAPEX expected around ₹65 crore

Outlook

Metropolis Healthcare enters FY27 with strong momentum across its core business, Specialty Diagnostics, TruHealth and regional expansion.

The company’s strategy is increasingly focused on generating profitable growth rather than simply expanding its footprint. Network deepening, higher laboratory utilization, Specialty Diagnostics, preventive healthcare, technology-led productivity and disciplined acquisitions are expected to remain the key drivers.

The biggest factors to watch going forward will be patient volume growth, center productivity, Specialty Diagnostics expansion, Core Diagnostics integration, TruHealth growth and EBITDA margin improvement.

While Q1 FY27 growth was ahead of guidance, management has retained its 14%-15% growth outlook for the year, indicating a measured approach to forecasting despite the strong start.

Disclaimer: This article is based on the Q1 FY27 earnings conference call transcript and information provided by Metropolis Healthcare Limited. It is intended for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.