Metropolis Healthcare Bets on Acquisitions, Genomics & Speciality Diagnostics to Drive Next Growth Phase

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Speciality diagnostics currently contribute nearly 38-39% of Metropolis Healthcare’s business mix, and it aims to move closer to 45% in the coming years.

Metropolis Healthcare has outlined a multi-pronged growth strategy focused on acquisitions, genomics, speciality diagnostics and deeper market penetration as the diagnostics chain looks to strengthen its position in India’s evolving healthcare and digital diagnostics sector.

The diagnostics chain has said it remains open to four to five strategic acquisitions over the next three years, provided valuations remain reasonable and aligned with long-term business value.

Founded in 1980 and headquartered in Mumbai, Metropolis Healthcare operates one of India’s largest diagnostic networks with laboratories and collection centres spread across hundreds of cities.

Over the years, the company has strengthened its presence through a mix of organic expansion and acquisitions, including the acquisition of Core Diagnostics in 2021 to strengthen its oncology and advanced diagnostics capabilities.

Executive Chairperson Ameera Shah said the company sees three major opportunities for future growth. These include strengthening existing operations, expanding deeper into markets where it already has a presence, and pursuing strategic acquisitions.

“We would like to do four to five acquisitions over the next three years if the right assets become available,” Shah said.

“We are also very clear that we will not do deals at massive valuations. They have to be sensible deals with sensible people and high-quality businesses,” she added.

According to Shah, growing demand in oncology and neurology is increasing the need for advanced diagnostic technologies that support therapy selection and disease management.

Speciality diagnostics currently contribute nearly 38-39% of Metropolis Healthcare’s business mix and are growing faster than routine pathology. The company expects this contribution to move closer to 45% in the coming years.

Commenting on rising competition from digital-first healthcare and diagnostics platforms, Shah said scientific expertise and diagnostic accuracy remain key differentiators in the industry.

“You still have to earn doctors' trust. Accuracy and scientific expertise are critical,” she said.

Managing Director Surendran Chemmenkotil said the company’s operational focus is now shifting towards improving productivity and throughput across its existing network rather than rapid geographic expansion.

Metropolis Healthcare has expanded from operations in around 300 cities to nearly 750 cities over the last three years and added close to 80 laboratories during this period.

The company is also targeting higher growth in preventive healthcare, which currently contributes around 20% of its portfolio.

Metropolis aims to increase this share to nearly 25% over the next few years while sustaining organic growth of 14-15% and maintaining EBITDA margins in the 27-28% range.

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