Crisil Revises Metropolis Healthcare Outlook To 'Positive'; Reaffirms 'AA-' Rating

The rating agency also reaffirmed its short-term bank facility rating at 'Crisil A1+', according to a note from Crisil Ratings.

PTI

Published At: 23 September 2026 11:29 am

Crisil Revises Metropolis Healthcare Outlook To 'Positive'; Reaffirms 'AA-' Rating

Crisil Ratings has revised its outlook on the long-term bank facilities and non-convertible debentures of Metropolis Healthcare Ltd (MHL) to 'positive' from 'stable', while reaffirming its rating at 'Crisil AA-'.

The rating agency also reaffirmed its short-term bank facility rating at 'Crisil A1+', according to a note from Crisil Ratings. Crisil said the outlook revision reflects the expected improvement in organic revenue growth, profitability, and cash accruals, along with a meaningful turnaround in its recent acquisition, Core Diagnostics Pvt Ltd.

Higher utilisation of the expanded laboratory network, a favourable test mix, and better profitability at Core Diagnostics are expected to support healthy operating margins over the medium term, the agency noted.

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According to the rating agency, MHL's revenue increased 24% to ₹1,646 crore in FY26, driven by higher patient volumes and specialised diagnostic and wellness tests under the 'TruHealth' brand.

Revenue growth continued at a healthy 16.6% in the first quarter of FY27. Recent acquisitions also expanded the company's footprint in north India, raising its contribution to domestic revenue to 17% from 9%, it said.

Crisil stated that the company's financial risk profile remains robust, supported by strong liquidity. As on March 31, 2026, adjusted net worth stood around ₹1,335 crore against a total debt of about ₹232 crore, which primarily comprises lease liabilities as bank borrowings remained limited.

Annual cash accruals are projected at ₹330-370 crore, which alongside liquid surpluses will be sufficient to cover regular capital expenditure of ₹65-85 crore over the near-to-medium term, Crisil added.

The ratings continue to reflect Metropolis Healthcare's leading position in India's diagnostic services industry, healthy operating efficiency, and a proven promoter track record. These strengths, Crisil noted, are partially offset by intense competition and moderate entry barriers in the diagnostics sector.