<h1>Metropolis Healthcare: FY26 Growth and Margin Expansion Ahead</h1>

Ashwin Thakker

— 2 min read
  • FY26 Group Revenue Growth Outlook: 10-11%. Organic volume growth targeted at 7-8%.
  • EBITDA Margin Outlook: Expected uptrend from Q2 FY26 with a 'margin bump'. Core Diagnostics aiming for high single-digit EBITDA margin by FY26 end through cost synergies.
  • Strategic Focus Areas: Expanding into specialty diagnostics (e.g., oncology COE), strengthening preventive health (TruHealth), and significant geographic expansion (400+ new collection centers this year in Tier 2/3 towns).
  • Acquisitions & Integration: Recent acquisitions (Core, DAPIC, Scientific Pathology) are integrating smoothly, set to unlock cost synergies. Ambika Diagnostics acquisition is expected to be highly accretive.

Metropolis Healthcare anticipates a strong financial year 2026, targeting significant revenue and margin growth. Following its Q1 FY26 earnings call, the company outlined a robust forward-looking strategy. Key initiatives include the successful integration of recent acquisitions, strategic geographic expansion, and enhancing operational efficiencies. These efforts are all aimed at reinforcing Metropolis's market leadership and delivering sustained profitability and shareholder value.

Metropolis Eyes Robust Revenue and Margin Growth

Metropolis Healthcare is poised for healthy top-line growth in FY26, with management guiding for continued momentum. For the organic business, the company expects to maintain a 7-8% volume growth rate. At a group level, including recent acquisitions, the revenue growth outlook stands at 10-11% for the current fiscal year. This growth is supported by a broad-based recovery and strategic levers. On the profitability front, Metropolis expects a significant margin improvement. The company stated,

“we will certainly see a margin bump EBITDA expansion. You will start seeing it obviously from Q2 itself.”

This upturn is driven by various productivity initiatives and efficiency gains. Core Diagnostics, a key acquisition, is on track to achieve a high single-digit EBITDA margin by the end of FY26, primarily through cost synergies, despite initially dragging consolidated margins.

Strategic Focus on Specialty, Expansion, and Efficiency

Metropolis Healthcare's strategy for sustainable growth rests on several pillars. The company is actively building a center of excellence in oncology diagnostics, centralizing expertise in genomics, histopathology, and molecular oncology. Preventive health, championed by the 'TruHealth' portfolio, continues to be a major contributor to patient footfall and test volume. Geographic expansion remains a priority, with plans to add

“approximately 400-plus collection centers across various regions this year, with a strong focus on tier-2 and tier-3 towns.”

Digital platforms and micro-marketing strategies are enhancing customer engagement and operational efficiency. The ongoing integration of acquisitions, including the recently announced Ambika Diagnostics, is designed to unlock significant synergies and accelerate revenue growth in subsequent years, positioning Metropolis as a trusted, science-led diagnostic leader.

Metropolis Healthcare is strategically positioned for a pivotal FY26, focusing on profitable growth through organic expansion and successful acquisition integration. The company expects improved margins from Q2, continued market share gains within the organized sector, and enhanced operational efficiency driven by automation and scale. This clear roadmap for sustained value creation reinforces Metropolis’s commitment to leadership in the diagnostic industry, promising a year of significant progress and positive financial outcomes.

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