New Delhi: 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.
According to the rating agency, MHL’s revenue increased 24 per cent to Rs 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 per cent 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 per cent from 9 per cent, 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 Rs 1,335 crore against a total debt of about Rs 232 crore, which primarily comprises lease liabilities as bank borrowings remained limited.
Annual cash accruals are projected at Rs 330-370 crore, which alongside liquid surpluses will be sufficient to cover regular capital expenditure of Rs 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.
