Metropolis Healt Q1 FY27 Results (NSE: METROPOLIS)
Signal: Margin expansion
The read
Q1FY27 delivered a steady 16.6% revenue growth and 25.8% PAT growth, with EBITDA margin expanding 110bps YoY to 25.8% — the third consecutive year of YoY margin expansion (Q3FY26 +100bps, Q4FY26 +700bps, Q1FY27 +110bps). The sequential margin dip from Q4's 27.4% is typical seasonality (Q4 includes year-end adjustments). Standalone margin of 26.6% shows subsidiaries are slightly dilutive. No exceptional items; EPS tracks PAT cleanly. The trajectory supports the positive run of four straight quarters of YoY margin expansion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹450.22 Cr | 16.6% | 6.0% |
| EBIT | ₹83.89 Cr | 30.2% | |
| Net profit | ₹56.67 Cr | 25.8% | |
| EPS | ₹2.73 | 25.8% | |
| EBIT margin | 18.6% |
P&L walk
Revenue grew 16.6% YoY to ₹450.2 Cr, led by volume and mix improvement; EBITDA margin expanded 110bps to 25.8% as input cost % of revenue declined slightly. PAT grew 25.8% YoY at ₹56.7 Cr, with EPS tracking perfectly. Sequential margin dip from Q4's 27.4% is typical seasonality.
Key positives
- Revenue growth 16.6% YoY to ₹450.2 Cr, in line with the ~16% sales_update guidance.
- PAT growth of 25.8% YoY outpaced revenue, aided by EBITDA margin expansion to 25.8% (+110bps YoY).
- Fourth consecutive quarter of YoY EBITDA margin expansion (Q4FY26 +700bps, Q1FY27 +110bps).
- EPS grew 25.8% YoY to ₹2.73, tracking PAT exactly after bonus adjustment.
Key concerns
- Sequential EBITDA margin contraction from 27.4% in Q4FY27 to 25.8%, though partly seasonal.
- Finance cost surged 93% YoY to ₹6.18 Cr, reflecting borrowing for three acquisitions (DAPIC, Scientific, Ambika).
- Subsidiaries contributed ₹38 Cr PAT but dragged overall margin (~25.8% vs standalone 26.6%).
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