'Core Diagnostics' Margins In Double Digits By FY26-End': Metropolis Positive On Latest Acquisition

Metropolis Healthcare Ltd. is on track to scale the profitability of its recent acquisition, Core Diagnostics, with the company targeting alignment to the company's blended margins as a whole within three years.

The integration is already yielding significant results, according to Surendran Chemmenkotil, Managing Director of Metropolis Healthcare, who pointed out the road ahead for the entity's margin going forward.

Metropolis Healthcare acquired Delhi-NCR-based Core Diagnostics in late 2024 for a total consideration of Rs 247 crore, a move that was seen as a strategic play to bolster the company's portfolio in high-end cancer diagnostics and expand its footprint in Northern and Eastern India.

"When we acquired Core Diagnostics, we were at a breakeven [in] Q4FY25. First quarter of FY26, we got low single-digit margins, and in Q2 we got high single-digit margins. By the time we exit [this] year, we expect to close to a double-digit margin," Chemmenkotil told NDTV Profit.

He further confirmed that for the full fiscal year (FY26), Core Diagnostics' margin "should come close to a two-digit number - very high single digit." The long-term plan is to fully integrate Core's profitability into the parent company's structure.

"In about three years from acquisition, we will bring the margin for core diagnostics close to Metropolis’ margin as a whole," Chemmenkotil said. "On the margin front, overall for the next two quarters you will see improvement in Core Diagnostic's margin and that will contribute to Metropolis’ margin," he added.

This is expected to be a key contributor to Metropolis's overall financial health, but until then, the company's TruHealth segment is showing strong growth at 20%.