Metropolis Healthcare Capex & Future Plans: 1,000 Centres, Specialty Diagnostics and 27–28% Margin Target

Metropolis Healthcare Limited Hosted its Investor & Analyst Meet 2026, releasing a detailed investor presentation that highlights three years of broad-based, profitable growth alongside a strategic roadmap focused on strengthening its core diagnostic business and expanding adjacent opportunities.

Metropolis Healthcare is following a capital-light growth strategy, with the company indicating that capex will be maintained at around 4% of revenue over the coming period. Rather than relying heavily on new capital expenditure, the company plans to generate higher revenue and profitability by improving utilisation of its existing laboratories, collection centres and other infrastructure. The strategy is focused on increasing asset turns, controlling fixed costs and improving ROCE, while maintaining regular dividend payouts.

Expansion to 1,000 Own Centres

A key part of Metropolis Healthcare’s plan is to expand its own-centre network from around 750 centres to 1,000 centres by FY29. The company also plans to develop approximately 100 mini-hubs, including 50 upgrades and 50 new builds. These mini-hubs are expected to expand the range of services available at existing locations, including radiology, consultations and other healthcare offerings.

Growth Without Heavy Fixed-Cost Expansion

Metropolis intends to generate more revenue from its existing network rather than relying solely on large-scale infrastructure investments. The company plans to improve the centre-to-lab ratio from around 24:1 to 35:1, allowing more collection points and centres to utilise the same laboratory infrastructure. This network-led approach is expected to support operating leverage and improve profitability without a significant step-up in the fixed-cost base.

Investment in Specialty Diagnostics

The company plans to increase the contribution of specialty diagnostics from around 40% of revenue in Q1 FY27 to approximately 45% over the next three years. Investment will focus on advanced testing areas such as oncology, genomics, neurology, and molecular diagnostics. Metropolis also plans to expand its specialty test menu and take advanced tests to a larger national network.

TruHealth and Healthcare Adjacencies

Metropolis plans to expand beyond traditional pathology through TruHealth and other healthcare adjacencies. The company aims to increase TruHealth’s contribution from around 18% to more than 25% of revenue over three years. The strategy combines pathology, radiology, preventive healthcare, consultations, vitals and nutrition services, allowing the company to increase revenue per patient while leveraging its existing infrastructure.

Technology, AI and Automation Investments

Technology will remain an important area of investment. Metropolis plans to deploy AI, automation and digital platforms across laboratories, customer service, supply chains and its partner network. The objective is to reduce manual processes, improve turnaround times, control inventory, lower cost per test and increase operational productivity. The company sees AI primarily as a productivity and efficiency enabler rather than an immediate replacement for clinical expertise.

Selective M&A as a Growth Driver

While organic expansion remains the core strategy, Metropolis Healthcare also plans to pursue selective acquisitions. The company intends to use its established M&A playbook to enter underrepresented geographies, add specialised capabilities and expand into healthcare adjacencies. Future acquisitions are expected to follow strict criteria around regional brand strength, scientific quality, positive unit economics and disciplined valuations, with funding primarily from internal accruals and cash.

Focus on Margin Expansion

The company’s plan also includes improving EBITDA margins from 24.4% in FY26 toward 27–28% over three years. Management expects this improvement to come from higher specialty and digital mix, better laboratory and centre utilisation, automation, platform standardisation, cost efficiencies, and improved margins from acquired businesses. For FY27, the company has guided for 100–150 basis points of EBITDA margin improvement.

Working Capital and ROCE Improvement

Metropolis is also targeting better capital efficiency through automated receivables, digitalised supply-chain processes and greater use of digital and cash collections. The company aims to bring working-capital days into the single-digit range and increase asset turns. With capex maintained at approximately 4% of revenue, management expects higher utilisation and stronger cash generation to support ROCE improvement.

Overall Future Strategy

Overall, Metropolis Healthcare’s future plan is based on growing faster without significantly increasing its capital intensity. The company plans to expand its network to 1,000 own centres, deepen specialty diagnostics, scale TruHealth, invest in AI and automation, selectively pursue acquisitions and improve utilisation of its existing assets. The combination of volume growth, higher specialty mix, better utilisation, disciplined capex and operating leverage is expected to drive revenue growth, margin expansion and stronger shareholder returns over the next three years.

Disclaimer

This article is based solely on information provided in Metropolis Healthcare Limited’s Investor & Analyst Meet 2026 presentation dated August 27, 2026. The company’s presentation contains forward-looking statements, assumptions, and directional ambitions that are subject to risks and uncertainties. Actual results may differ materially from these expectations. This article is for informational and educational purposes only and should not be considered investment advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult a qualified financial adviser before making investment decisions.