Metropolis Healthcare Posts Strong Q3 Results, Revenue Surges 26%

HEALTHCAREBIOTECH
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Author Aarav Shah | Published at:
Metropolis Healthcare Posts Strong Q3 Results, Revenue Surges 26%
Overview

Metropolis Healthcare delivered a robust Q3 FY26, with consolidated Group revenue escalating 26% year-on-year to ₹1,221 crore. The 'MHL Organic' segment also demonstrated strong performance, posting a 15% YoY revenue increase to ₹1,118 crore, driven by higher patient throughput and test volumes. Both organic and group segments experienced significant EBITDA margin expansion, underscoring operational efficiencies and successful integration of recent acquisitions. The company's strategic initiatives under Metropolis 3.0 continue to fuel growth across key segments like specialty testing and Tru Health.

📉 The Financial Deep Dive

Metropolis Healthcare Limited has announced its financial results for the quarter and nine months ended December 31, 2025 (Q3 FY26), showcasing a notable performance driven by both organic growth and strategic acquisitions.

The Numbers:

For the third quarter of FY26:

  • MHL Organic (excluding recent acquisitions) reported a revenue of ₹1,118 crore, marking a significant 15% year-on-year (YoY) increase. EBITDA surged by 29% YoY to ₹93 crore, and the EBITDA margin expanded by an impressive 280 basis points (bps) YoY to 25.0%. This expansion is attributed to operating leverage and efficiency initiatives.

  • The MHL Group (including acquisitions like Core Diagnostics, DAPIC, Scientific Pathology, and Ambika Pathology) posted a consolidated revenue of ₹1,221 crore, a strong 26% YoY growth. Group EBITDA rose 32% YoY to ₹95 crore, with EBITDA margins at 23.4%, demonstrating an upward trajectory.

For the nine months ended FY26 (9MFY26):
  • MHL Organic revenue grew 13.4% YoY to ₹1118 Cr, with EBITDA increasing 18.1% YoY to ₹285 Cr, and margins expanding by 100 bps to 25.5%.

  • MHL Group revenue increased 23.9% YoY to ₹1221 Cr, and EBITDA grew 21.4% YoY to ₹293 Cr, with margins at 24.0%.

The Quality:

Performance was volume-led, with MHL Organic seeing patient volumes up 9% YoY and test volumes up 8% YoY in Q3FY26. Both B2C and B2B segments exhibited balanced momentum, each growing 15% YoY. Specialty testing and the Tru Health business were significant contributors, with Tru Health revenue up 25% YoY and Specialty revenue up 16% YoY for MHL Organic. The margin expansion in the organic business points to successful cost management and operational efficiencies, while the group's performance indicates effective integration of acquired entities.

🚩 Risks & Outlook

The company's strategic direction, Metropolis 3.0, remains a key focus. This strategy involves strengthening the core business via market share gains, expanding into adjacencies like radiology and primary healthcare, and driving new initiatives in genomics. The company has set ambitious targets, aiming for a revenue Compound Annual Growth Rate (CAGR) of mid-teen from FY23 to FY26 and striving to achieve its pre-Covid margin profile. Digital transformation is a core enabler across various platforms, and the company has outlined ESG goals for emissions, water, waste, and employee well-being. Investors will watch for the sustained execution of this strategy and the continued successful integration of acquisitions to meet these growth and profitability objectives.

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