Ameera Shah, promoter and executive chairperson of Metropolis Healthcare, has said the diagnostics chain is open to pursuing four to five acquisitions over the next three years provided the targets are available at “sensible valuations” and align strategically with the company’s long-term growth plans. As per media reports, Shah said Metropolis will continue to focus primarily on organic growth while selectively evaluating acquisition opportunities in the diagnostics and specialty healthcare space.“We are open to four-five acquisitions in the next three years, but only at sensible valuations,” Shah said adding that the company is not interested in chasing deals merely for scale.
The company plans to deepen its presence in existing markets while expanding aggressively in specialty diagnostics, genomics, oncology and neurology-linked testing services. Shah noted that specialty diagnostics currently contribute nearly 38-39 per cent of Metropolis’ overall business and are expected to account for about 45 per cent over the next few years. According to Shah, the company is particularly interested in acquiring regional leaders, scientifically strong laboratories and distressed assets with long-term growth potential. However, she stressed that Metropolis would avoid overpaying for acquisitions despite increasing competition in the diagnostics industry.
Over the past few years, Metropolis has acquired several regional players including Core Diagnostics in Delhi-NCR, Scientific Pathology in Agra and Dr Ahuja’s Pathology and Imaging Centre in Dehradun strengthening its footprint in northern India. The company is also expanding beyond traditional pathology services. Shah said Metropolis has already piloted services such as X-rays, ECGs, sonography and preventive health check-up offerings at selected company-operated centres and intends to scale these services further.
On the growing competition from digital-first healthcare startups and online diagnostic platforms, Shah said established diagnostic brands continue to enjoy a strong advantage because the sector relies heavily on scientific expertise, doctor trust and operational accuracy.“Technology and funding alone are not enough in diagnostics. Scientific credibility and operational execution are extremely important,” she said.
Managing Director Surendran Chemmenkotil said Metropolis has significantly expanded its reach over the last three years growing from operations in around 300 cities to nearly 750 cities while adding about 75-80 laboratories across the country. Going forward, the company plans to focus on improving productivity and throughput from its existing network while continuing to strengthen its preventive healthcare and digital offerings. Metropolis is targeting sustained organic revenue growth of 14-15 per cent and aims to improve its EBITDA margins to 27-28 per cent in the coming years as demand for advanced diagnostics and preventive healthcare continues to rise in India.
