Why is Metropolis Healthcare on an acquisition spree?

Metropolis Healthcare has accelerated its acquisition strategy, completing four deals in just ten months, the latest being Kolhapur’s Ambika Pathology Laboratory. 

The move aims to strengthen its presence in Western Maharashtra and broaden its reach across India’s growing diagnostics sector. According to Ameera Shah, promoter and executive chairperson of Metropolis, the strategy is designed to consolidate market leadership while creating regional hubs that improve efficiency and patient access. “In Maharashtra, we are already the leading player in most districts. Kolhapur was the only place where we were number two. Ambika Pathology Lab, led by Dr Patel, is a high-quality, technically strong lab. Merging it with Metropolis makes us the clear leader in the region,” she said. Dr Patel will continue as chief of the lab, ensuring technical continuity and excellence.

Metropolis’ approach varies depending on the acquisition. In North India, the acquisitions in Dehradun and Agra have created regional clusters for efficient sample collection and testing, while Core Diagnostics, the country’s largest cancer testing platform, was acquired to turn around a growing but unprofitable business. “Some acquisitions, like Core Diagnostics, are turnaround opportunities, while others, like Kolhapur, are already profitable B2C businesses that accelerate revenue growth,” Shah explained.

The company is also tapping into India’s largely unorganised diagnostics market, where 85–90% of pathology testing remains outside formal chains. Shah emphasised that Metropolis seeks labs that are ethically built, scientifically rigorous, and enjoy strong local trust, rather than expanding merely for scale.

Acquisitions are also helping Metropolis strengthen its presence in tier 2 and tier 3 cities. “When we acquire local labs, we maintain a partnership approach. The existing management continues to lead operations, while we integrate them into the larger Metropolis ecosystem. It’s about combining local credibility with national standards,” Shah said. 

Beyond consolidation, the company is promoting wellness and bundled testing services, offering patients scientifically appropriate packages alongside standard tests. These recorded the highest revenue growth at 32% in Q1 FY 26, reflecting the growing importance of preventive healthcare.

The Kolhapur acquisition adds a NABL-accredited laboratory founded in 1995 by Dr Rajendra Sadashiv Patil, which operates a central lab with 12 patient touchpoints and derives nearly 75% of its revenue from B2C walk-in patients. Shah said, “Maharashtra continues to be a key growth market for Metropolis, contributing nearly 40% of our total revenues. The acquisition of Ambika Pathology further strengthens our Western Maharashtra cluster and supports our ambition to make high-quality diagnostics accessible to more communities.” 

Surendran Chemmenkotil, managing director, further said that Ambika’s facility will be developed into a mini regional reference lab, strengthening the company's specialised diagnostics capabilities in the region.”