Metropolis Healthcare’s Q2 profits skyrocket 31% – is this the start of unstoppable growth?

Metropolis Healthcare Limited, one of India’s prominent diagnostic chains, has reported a significant year-on-year profit growth of 31.0% in Q2 FY2024-25. This sharp increase is attributed to rising patient volumes, boosted revenue per patient, and robust operational performance. The financial highlights reveal that the company’s revenue from operations reached INR 350 crores, marking a 13.4% year-on-year growth. Metropolis Healthcare, known for its quality and scientific excellence, continues to strengthen its foothold in India’s diagnostic landscape, showing impressive figures across revenue, EBITDA, and PAT margins.

In a press release to the BSE and NSE, Metropolis reported a 7% increase in patient volumes and an 8% rise in test volumes, underpinned by a 6% growth in revenue per patient. The reported EBITDA for the quarter stood at INR 92 crores, reflecting a 22.2% year-on-year surge, with EBITDA margins improving from 24.3% to 26.2%. Profit after tax (PAT) reached INR 47 crores, with margins up by 180 basis points, increasing from 11.6% to 13.4%.

Key Financial Milestones in Q2 FY2024-25

Metropolis’ Q2 results showcase consistent performance, attributed to a strategic focus on patient and test volume growth. CEO Surendran Chemmenkotil credited this growth to a 21% year-on-year increase in B2C revenue, expanding Tier 3 city operations, and an enhanced average revenue per patient. This performance underlines the company’s commitment to scaling its footprint and developing new service segments.

Executive Chairperson Ameera Shah expressed optimism for future growth, citing the strength of Metropolis’ differentiated offerings. She highlighted that the company is focused on sustaining growth through increased patient volumes and potential mergers and acquisitions, aiming to solidify its market position amid rising competition.

Focus on Specialty and TruHealth Segments Boosts Performance

The company’s specialty testing and TruHealth offerings have played a pivotal role in the strong financial results, according to Chemmenkotil. These high-demand segments, coupled with strategic B2B and B2C growth, underline Metropolis’ approach to broadening its reach. The company also emphasized its commitment to expanding in Tier 3 cities, which has significantly bolstered revenue in a competitive landscape.

Expert Insights on Metropolis’ Financial Strategy and Market Position

Financial analysts observe that Metropolis’ strategic expansion into Tier 3 markets and focus on high-margin specialty tests are key to its growth trajectory. By investing in patient-centric services and maintaining quality benchmarks, the company has strengthened its competitive position. Experts believe that with a robust pipeline of potential acquisitions, Metropolis is well-positioned to maintain sustainable, long-term growth.

About Metropolis Healthcare Limited

Founded in 1981, Metropolis Healthcare operates across 22 states and 3 Union Territories in India, with over 200 labs, 4,336 service centers, and a comprehensive test range. Known for quality diagnostics, the company’s proficiency score consistently exceeds 98%, placing it among the top 1% globally.

The financial performance in Q2 FY2024-25 reflects Metropolis Healthcare’s adaptability and strategic foresight in a dynamic market, reinforcing its standing as a leader in India’s diagnostics sector.