How Metropolis Healthcare achieved a stunning revenue growth in Q1 FY25

Metropolis Healthcare Limited (NSE: METROPOLIS | BSE: 542650), a leading diagnostic chain in India, has announced a significant financial milestone with a 13.1% year-on-year increase in revenue for the first quarter of the fiscal year 2025. The company achieved a revenue of INR 313.4 crores, surpassing the industry average growth rate.

Strong Financial Performance

For Q1 FY25, Metropolis Healthcare reported robust financial results. The revenue from operations surged to INR 313.4 crores, reflecting a 13.1% increase compared to the same period last year. This growth is aligned with the company’s guidance range of 13-15%. Notably, patient volumes and test volumes grew by 7% and 10%, respectively. Additionally, revenue per patient increased by 6%, showcasing improved efficiency and service quality.

The company’s EBITDA for the quarter reached INR 78.2 crores, marking a 21.2% rise year-on-year. The profit after tax (PAT) stood at INR 38.1 crores, representing a substantial 31.3% increase from the previous year. PAT margins also improved to 12.2%, up from 10.5% in Q1 FY24, reflecting a 170 basis point increase.

Leadership Insights

Ameera Shah, Executive Chairperson and Whole-time Director of Metropolis Healthcare Limited, expressed satisfaction with the company’s performance. Shah highlighted the significant 13.1% growth rate, which exceeds the industry average. She attributed this success to the company’s expanding patient volume and its TruHealth segment, which saw a 28% growth. Shah remains optimistic about sustaining this momentum through network expansion, increased footfalls, and an improved test mix.

Surendran Chemmenkotil, Chief Executive Officer of Metropolis Healthcare Limited, emphasised that the company’s EBITDA and PAT growth have surpassed revenue growth. Chemmenkotil noted that the focus on TruHealth wellness and bundling packages, along with network expansion, has been pivotal. B2C revenue grew by 18.4%, now constituting 54% of total revenues. The expansion into Tier III markets has contributed to an 18% revenue increase from these areas. Metropolis Healthcare operates in over 650 towns across India and plans to further leverage its brand strength, digital and AI initiatives, and partnerships to drive future growth.

Established in 1981, Metropolis Healthcare Limited is a prominent diagnostics provider in India. The company operates across 22 states, three Union Territories, and more than 650 towns. Metropolis offers over 4,000 tests and profiles, including advanced diagnostics for cancer, neurological disorders, infectious diseases, and genetic abnormalities. With a network of 204 labs, 4,216 service centres, and over 10,000 touchpoints, the company maintains a high standard of quality, evidenced by its consistent CAP proficiency score of over 98% over the past decade, placing it among the top 1% of laboratories worldwide for quality assurance.