Mumbai: Crisil Ratings has upgraded the outlook on Metropolis Healthcare Limited’s long-term bank facilities and non-convertible debentures to “positive” from “stable”, while reaffirming its credit rating at “Crisil AA-”.
The agency retained its “Crisil A1+” rating on the company’s short-term bank facilities.
Crisil said the positive outlook reflects expectations of stronger organic revenue growth, improved profitability and higher cash accruals. A meaningful turnaround at acquired Core Diagnostics Private Limited is expected to support the company’s credit profile.
Expanded Laboratory Network Supports Margins
Higher utilisation of Metropolis Healthcare’s expanded laboratory network, a favourable mix of diagnostic tests and improving profitability at Core Diagnostics could sustain healthy operating margins over the medium term.
Recent acquisitions have strengthened the company’s presence in north India. The region’s contribution to domestic revenue increased to 17 per cent from 9 per cent.
Revenue Grows 24 Per Cent In FY26
Metropolis Healthcare’s revenue climbed 24 per cent to ₹1,646 crore in FY26, supported by increased patient volumes and demand for specialised diagnostic and wellness tests offered under its TruHealth brand.
Growth remained healthy during the first quarter of FY27, with revenue rising 16.6 per cent.
Financial Risk Profile Remains Strong
Crisil described the company’s financial risk profile as robust, backed by healthy liquidity. Adjusted net worth stood at ₹1,335 crore as of March 31, 2026, compared with total debt of around ₹232 crore.
Debt primarily comprised lease liabilities, while reliance on bank borrowings remained limited.
Annual cash accruals are projected at ₹330–₹370 crore. Combined with liquid surpluses, these funds are expected to cover capital expenditure of ₹65–₹85 crore over the near-to-medium term.
Crisil said the ratings continue to reflect Metropolis Healthcare’s leading diagnostics-market position, operating efficiency and experienced promoters. However, intense competition and moderate entry barriers remain key constraints for the company.
