Metropolis Healthcare Expands Northern Footprint With Strategic Acquisition of Agra's Scientific Pathology
In a significant move to strengthen its presence in North India, Metropolis Healthcare has announced the acquisition of Agra-based Scientific Pathology, marking its second acquisition in the northern region within just three months.
Strategic Expansion Into Western Uttar Pradesh
The acquisition, valued between Rs 55 crore and Rs 83 crore, represents a calculated step by Metropolis Healthcare to establish a stronger foothold in Western Uttar Pradesh and expand its diagnostic services portfolio in the northern markets.
Ameera Shah, Promoter and Executive Chairperson of Metropolis Healthcare, highlighted the strategic importance of this acquisition in a recent statement: "We felt that by partnering with the leader from Western UP, which is Scientific Pathology in Agra, it would create a great entry point for us but also great access for all people of UP for 4,000 varieties of tests that we offer."
Acquisition Details and Valuation
The acquisition price has been determined at 12.2 times the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) over a pre-defined period, according to a stock exchange filing dated March 3, 2025.
Addressing the notable gap between the lower and upper limits of the acquisition price range, Shah explained that the deal involves a convertible structure. While the agreement has been signed, the transaction is expected to be completed before the end of March 2025.
At closing, Metropolis anticipates Scientific Pathology to be valued at approximately Rs 63 crore, with potential for this figure to increase to Rs 83 crore based on the company's audited financial performance through June 2025.
Scientific Pathology's Market Position
Scientific Pathology has established itself as the leading diagnostic chain in Agra, with projected revenue of Rs 26 crore for FY 2024-25. The company operates as a profitable entity with margins reportedly higher than Metropolis Healthcare's current profile.
While the immediate revenue impact may not be substantial, Shah emphasized the acquisition's role as a strategic entry point: "It's the leading chain in Agra. Its revenue is about Rs 26 crore in FY24-25 and it's a profitable entity. So, it will be a little bit higher than the Metropolis margin profile and that will get fully added into the FY25-26 number."
Growth Strategy and Regional Expansion
The acquisition aligns with Metropolis Healthcare's proven expansion strategy. "We've done this many times before, where we've acquired the leading player in a city and then we've really grown them out in a significant way over five to 10 years across the entire region and we're hoping to do the same thing with Scientific Technology," Shah noted.
This approach has allowed Metropolis to successfully penetrate new markets by leveraging established local operators and subsequently expanding their service offerings and geographical reach.
Second Northern India Acquisition in Three Months
This latest move follows Metropolis Healthcare's acquisition of Delhi-based cancer testing specialist Core Diagnostics for Rs 247 crore in December 2024. That transaction was structured as a combination of cash and stock, further demonstrating the company's commitment to expanding its northern India operations.
With these strategic acquisitions, Metropolis is systematically building a comprehensive diagnostic network across North India:
- Already established strong presence in Punjab
- Recent entry into Delhi through Core Diagnostics acquisition
- New foothold in Western UP through Scientific Pathology
- Actively exploring entry points in Haryana, Rajasthan, and Uttarakhand
Market Response and Outlook
The market has responded positively to Metropolis Healthcare's expansion strategy. Following the announcement, shares of the company closed 1.7% higher at Rs 1,656 apiece on the NSE on March 9, 2025, outperforming the benchmark Nifty50, which settled 0.93% higher at 22,544.7.
For investors, this acquisition represents Metropolis Healthcare's continued execution of its strategic growth plan, particularly its focus on expanding geographical presence through targeted acquisitions of market-leading regional diagnostic chains.
The company's systematic approach to building its northern India presence suggests a long-term commitment to becoming a dominant player in India's rapidly growing diagnostic services market.
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