Metropolis Healthcare expands footprint in North with Dapic acquisition

With its third acquisition in recent times, Metropolis' Ameera Shah said the firm will make another deal this financial year

Mumbai-headquartered Metropolis Healthcare said on Monday that it is set to acquire Dehradun’s leading diagnostic chain Dr Ahuja’s Pathology and Imaging Centre (Dapic) in an all-cash deal valued at ₹35 crore. This will mark Metropolis’ third acquisition in North India in recent months after Core Diagnostics (Delhi-NCR) and Scientific Pathology (Agra) as it eyes the second position in the North market.

 

Having announced two acquisitions in 2024-25 (FY25) and now one at the beginning of 2025-26 (FY26), Metropolis is on the lookout for more inorganic opportunities.

 

Ameera Shah, promoter and executive chairperson, Metropolis Healthcare, told Business Standard that she is hopeful that the company will make another acquisition this financial year. She did not wish to comment on timelines.

 

 

She elaborated that the company keeps around 20 per cent of the cash flow it generates every year for working capital and another 20 per cent for dividends.

 

“That leaves us with 50-60 per cent for potential acquisitions. The idea is to keep generating cash from profitability through improved working capital and then to re-invest that into strategic markets where we believe we can buy well-priced acquisitions,” she said.

 

On whether she is scaling up the business to sell a part of promoters’ shareholding or bringing in a strategic investor, Shah said, “If our interest was to sell the business, we would be maximising profits and not re-investing in labs and acquisitions.”

 

Founded in 1990 by Dr Alok Ahuja and Dr Alka Ahuja, Dapic operates two labs, 11 patient service centres, and nine hospital-based centres. It offers both pathology and radiology tests.

 

It posted a revenue of ₹11.5 crore in FY25, with pathology services contributing 73 per cent and radiology services 27 per cent. The company draws almost 80 per cent of its revenue from walk-in patients. To ensure a seamless transition, the Ahujas will continue their association with the business post acquisition.

 

Shah said Metropolis Healthcare is building a regionally diverse diagnostic network across North India. “These strategic moves have expanded the North India contribution to our overall revenue from 8 per cent to an estimated 14-15 per cent. Building on this momentum, we aim to accelerate our expansion across Uttar Pradesh and Uttarakhand — two high-growth markets with significant potential,” she said.

 

She said that the company sees itself as a challenger in the North where they feature among the top four players. “We want to move closer to being the Number 2 player across the North and so we have organically started building labs in Tier-III and -IV cities in the North. Around 15-17 labs and several collection centres have been opened. On top of that, these acquisitions will help cement our position further in the North,” she said. Currently, Dr Lal Pathlabs leads the North India market.

 

Uttarakhand is one of the fastest growing diagnostic markets in North India valued at around ₹500 crore. “With the combined strength of Dapic and Metropolis’ existing network, we are now the second-largest diagnostic chain in Uttarakhand,” said Surendran Chemmenkotil, chief executive officer, Metropolis Healthcare.