Metropolis Expands in Kolhapur with Ambika Pathology Buy

The integration process for Ambika will include upgrading equipment, adopting Metropolis’ digital systems, and leveraging its quality assurance protocols.

Metropolis Healthcare has completed the acquisition of Ambika Pathology Laboratory, a Kolhapur-based diagnostic chain, in a deal valued at INR 17 Cr.

Reportedly, this deal is a targeted approach to consolidating diagnostic services in tier-two and tier-three cities.

The integration process for Ambika will include upgrading equipment, adopting Metropolis’ digital systems, and leveraging its quality assurance protocols. The company expects the lab to support productivity and profitability across its existing patient service network in the region.

Ambika Pathology, founded in 1995 and run by Dr Rajendra Sadashiv Patil, operates a central laboratory, along with 12 patient touchpoints across Kolhapur.

The laboratory is accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL). A majority of its business, about 75 percent, comes from walk-in patients, giving Metropolis a stronger foothold in the business-to-consumer segment in western Maharashtra.

Financially, Ambika reported a turnover of INR 7.96 Cr in FY25, compared to INR 7.09 Cr in FY24 and INR 6.69 Cr in FY23.

The transaction, executed through a Business Transfer Agreement, marks the fourth acquisition by the company in less than a year and underlines its strategy of building regional clusters to drive growth.

According to the company’s filing with the stock exchanges, the acquisition involves a deferred component of INR 1.7 Cr. The deal transfers Ambika’s operations to Metropolis as a going concern on a slump-sale basis.

Metropolis said it will convert Ambika into a mini regional reference lab, enabling faster access to advanced and specialty diagnostics across Kolhapur and nearby districts such as Sangli, Satara, and Solapur.

“Maharashtra continues to be a key growth market for Metropolis, contributing nearly 40 percent of our total revenues,” the company stated in its exchange communication. “This acquisition strengthens our Western Maharashtra cluster, enhances B2C presence, and allows us to extend our specialty test portfolio to underserved markets.”

The move is part of Metropolis’ broader “String of Pearls” strategy to strengthen its hub-and-spoke model. By developing localized reference laboratories, the company aims to boost volumes, improve turnaround times, and reduce dependence on larger city-based labs for complex testing.

The Ambika acquisition follows a series of regional deals by Metropolis. Earlier this year, the company acquired Agra’s Scientific Pathology and Dehradun’s Dr. Ahuja’s Pathology & Imaging Centre (DAPIC), both of which were structured as business transfer agreements.

These bolt-on acquisitions are designed to create strong local networks while steadily expanding Metropolis’ national footprint.

Shares of Metropolis Healthcare were largely stable following the announcement, reflecting investor expectations that the acquisition, though modest in size, aligns with the company’s longer-term cluster-building strategy.

With Ambika now part of its network, Metropolis Healthcare has further strengthened its presence in Maharashtra, consolidating its position as one of the country’s leading diagnostic service providers.

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