Concall AI

Artemis Medicare Services Limited — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

Artemis Medicare reported strong financial performance for Q2 and H1 FY26, driven by robust revenue growth and improved EBITDA margins. The company highlighted strategic capacity expansions, including new operation theatres and upcoming facilities in Raipur and South Delhi, alongside advancements in technology and clinical offerings. Management expressed confidence in sustaining volume growth, improving ARPOB, and achieving mid-20s EBITDA margins with increased scale.

Highlights

Consolidated revenue for Q2 FY26 was INR 274.7 crores, reflecting a 13.8% Y-o-Y growth.
Consolidated EBITDA for Q2 FY26 stood at INR 58.3 crores, with a margin of 21.2%, up from 20.6% in Q2 FY25.
Profit after tax before exceptional items for Q2 FY26 was INR 30 crores, increasing by 35.6% Y-o-Y.
H1 FY26 consolidated revenues reached INR 529.7 crores, a 14% Y-o-Y increase.
H1 FY26 EBITDA was INR 106.6 crores, with a margin of 20.1%.
Net profit for H1 FY26 was INR 51.2 crores, compared to INR 38.7 crores in H1 FY25.
Occupancy levels at the flagship Gurugram facility were 64.1%, with ARPOB at INR 81,248.
International business contributed approximately 32% of revenues, maintaining leadership in medical value travel.

Key financials

2 periods

Headline

Revenue
₹274.7 Cr
YoY +13.8%
EBITDA
₹58.3 Cr
EBITDA Margin
21.2%
PAT (before exceptional)
₹30 Cr
YoY +35.6%
Occupancy Rate
64.1%
ARPOB
₹81,248
Debt-to-Equity Ratio
1.16

H1

Revenue
₹529.7 Cr
YoY +14%
EBITDA
₹106.6 Cr
EBITDA Margin
20.1%
Net Profit
₹51.2 Cr

What they filed

Q1 FY27: revenue up 12.5%, net profit up 47.6% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	241	232	240	255	275 +14%	272 +17%	279 +16%	287 +13%
Expenses	199	195	204	214	224	228	228	231
EBITDA	42	37	36	41	51 +21%	45 +22%	52 +44%	56 +37%
Margin	18%	16%	15%	16%	18%	16%	18%	20%
Other income	7	9	12	7	8	4	8	5
Interest	8	8	8	7	7	7	6	6
Depreciation	11	11	12	11	12	12	13	13
Profit before tax	31	27	29	30	39 +26%	30 +11%	40 +38%	43 +43%
Tax rate	28%	23%	20%	29%	24%	25%	25%	26%
Net profit	22	21	23	21	30 +36%	22 +5%	30 +30%	31 +48%
EPS	1.62	1.50	1.67	1.53	2.16	1.41	1.90	1.98

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Volume

Y-o-Y Volume Growth Volume · Ongoing · High confidence Sustain

Yes. We have taken multiple steps, including hiring of new doctors, focus and trust on our international business. So, we are looking to sustain this Y-o-Y volume growth.

— Devlina Chakravarty, Managing Director

ARPOB

ARPOB Y-o-Y Growth ARPOB · All quarters · High confidence 6%-8%

And we look at a Y-o-Y growth of 6%-8% on our ARPOBs in all the quarters.

— Devlina Chakravarty, Managing Director
Raipur Initial ARPOB ARPOB · To start with · High confidence 35,000-38,000

So, the expected ARPOB to start with would be in the range of 35,000 to 38,000 to start with.

— Devlina Chakravarty, Managing Director
Raipur ARPOB Ramp-up ARPOB · Gradually · Medium confidence 45,000-60,000

But yes, we don't want to overprice ourselves when we start and then we would gradually build it up to 45,000 and then going up to 60,000.

— Devlina Chakravarty, Managing Director

Pricing

Pricing Trend Pricing · Ongoing · Medium confidence 1.5%-2%

Pricing is insignificant. I would say between 1.5%-2% because it is a competitive market and we want to keep our competitive edge.

— Devlina Chakravarty, Managing Director

Capacity

Gurgaon Bed Capacity Capacity · Next 1.5 years · High confidence 850-1,000 beds

So the thing is, in-situ, which is in Gurgaon, we have got 15% more FAR and now the government has also opened the rule to buy more FAR. So, our ambition is the Gurgaon Facility should be anywhere between 850 to 1,000 beds in the next one and a half years.

— Devlina Chakravarty, Managing Director
Raipur Facility Bed Capacity Capacity · Starting March 2026 · High confidence 300 beds

We are looking at 300 facility in Raipur starting March of 2026.

— Devlina Chakravarty, Managing Director
South Delhi Facility Bed Capacity Capacity · 1.5-2 years down the line · High confidence 650 beds

one and a half, two years down the line, we are looking at 650 beds facility in South Delhi.

— Devlina Chakravarty, Managing Director
Total Bed Commitment Capacity · 2-3 years · High confidence 2,000 beds plus

So, our commitment of 2,000 beds plus in two to three years stance may be more.

— Devlina Chakravarty, Managing Director

Occupancy

Occupancy Rate Occupancy · Going forward · High confidence 70% or more

Occupancy going forward will be upwards of 70%, if not more.

— Devlina Chakravarty, Managing Director

Revenue

International Patient Revenue Contribution Revenue · Ongoing · High confidence 30% or more

30% has been a number, or a percentage we have maintained over a period of time, and we intend to better it.

— Devlina Chakravarty, Managing Director

Profitability

Raipur Breakeven Profitability · Post operational · High confidence 1 to 1.5 years

We are looking at 1 to 1.5 years to kind of breakeven, which is what we have kept as a target, but our internal targets are shorter than that.

— Devlina Chakravarty, Managing Director
Small Center Losses Profitability · By December, January of current financial year · High confidence Over

first all our small centre losses are going to be over by December, January of the current financial year.

— Devlina Chakravarty, Managing Director

Commissioning

Raipur Hospital Go-Live Commissioning · FY26 · High confidence March 2026

The current status of the Raipur hospital is the building is almost ready. The interiors are about to start. I am visiting it next month. So, we are on track to start it in March of 2026.

— Devlina Chakravarty, Managing Director

Capex

Raipur EBITDA Loss (pre-breakeven) Capex · Till breakeven · High confidence 15-18 crores

So, in between 15 crores to 18 crores, till we break even.

— Devlina Chakravarty, Managing Director
Cost per bed (Gurgaon 100 beds) Capex · Expansion · High confidence 70 lakhs per bed

for adding another 100 beds in our current Gurgaon facility, the cost per bed would be around 70 lakhs per bed.

— Devlina Chakravarty, Managing Director
Raipur Facility Investment Capex · Overall · High confidence 100-110 crores

So, the Raipur, our overall investment in Raipur facility would be around 100 crores to 110 crores.

— Devlina Chakravarty, Managing Director

Debt

Peak Debt Debt · Ongoing · High confidence INR 350 crores

And peak debt, even at the peak debt, will be INR 350 crores.

— Devlina Chakravarty, Managing Director
Debt-to-Equity Ratio Debt · Ongoing · High confidence Less than 1.8

So, the ratios will be less than 1.8 as my CFO points out.

— Devlina Chakravarty, Managing Director

EPS

EPS Growth EPS · By end of the year · High confidence Grow from 5.5 to 6.5

Previously 5.5 → Grow from 5.5 to 6.5

Your EPS is going to, we have moved from 5.5 to 6.5 and it will continuously grow and be better by the end of the year.

— Devlina Chakravarty, Managing Director

Margin

EBITDA Margins Margin · Future · High confidence Mid-20s

but definitely mid-20s is a fairly doable target in terms of EBITDA margins.

— Devlina Chakravarty, Managing Director

Risks & concerns

Short-term Occupancy Rate Dip
medium

Occupancy rate declined to 64.1% in H1 FY26 due to a 20% increase in operational beds, which management expects to catch up.

Analyst acknowledged
Initial Losses from New Facilities
medium

The Raipur facility is expected to incur operating losses of 15-18 crores before reaching breakeven in 1 to 1.5 years.

Management acknowledged
Lack of Specifics on South Delhi Project Funding
low

Management deferred disclosing the capex structure and funding mix for the 650-bed South Delhi project until the binding contract is signed by end of December.

Analyst deflected

Areas of evasion (1)

Specific capex structure and funding mix for the South Delhi project.

Q&A highlights

3 direct

Occupancy Rate Decline Explanation Direct

Between Y-o-Y, we have added 20% more beds. So, in real terms, while the number of bed occupancy has increased, but in terms of percentage, it shows a dip. It is a very marginal and transient thing, and we are hopeful that we will be catching up in terms of percentage sooner than later.

Clarifies that the reported occupancy rate dip is a strategic outcome of increased bed capacity, not a demand issue, and is expected to normalize.

Asked by Sanskar

Raipur Facility Breakeven and Profitability Direct

We are looking at 1 to 1.5 years to kind of breakeven, which is what we have kept as a target, but our internal targets are shorter than that. And the losses are not going to be big. The operating losses are going to be small and marginal.

Provides specific timelines and financial expectations for the new Raipur facility, indicating a controlled ramp-up and limited initial losses.

Asked by Sanskar

EBITDA Margin Comparison to Peers and Future Targets Direct

So, typically as hospitals grow and the number of beds increase, efficiencies come in. Both in terms of costs... And we are totally aware of it and all I can tell you, we will be, as we grow in numbers, as we reach our targets of closer to 2,000 beds, you will see us second to none in terms of our margins.

Addresses a key investor concern about margins relative to peers, explaining the impact of scale and outlining a clear path to achieving higher, competitive EBITDA margins with expansion.

Asked by Vedant Rane

3 min read 6 chapters

Detailed narrative

Q2 & H1 FY26 Financial Performance Overview

Artemis Medicare Services Ltd. reported a consolidated revenue of INR 274.7 crores for Q2 FY26, marking a 13.8% Y-o-Y growth. EBITDA for the quarter stood at INR 58.3 crores, translating to a margin of 21.2%, an improvement from 20.6% in Q2 FY25. Profit after tax before exceptional items increased by 35.6% Y-o-Y to INR 30 crores. For H1 FY26, consolidated revenues were INR 529.7 crores (up 14% Y-o-Y), with EBITDA at INR 106.6 crores (20.1% margin) and net profit at INR 51.2 crores, up from INR 38.7 crores in H1 FY25.

Operational Highlights and Gurugram Facility Performance

The flagship Gurugram facility demonstrated healthy growth, supported by an increase in international patients and capacity additions. Occupancy levels were reported at 64.1%, while Average Revenue Per Occupied Bed (ARPOB) reached INR 81,248, reflecting an enhanced case and payer mix. International business contributed approximately 32% of total revenues. The company also added five new operation theatres and expanded capacity in nephrology, bone marrow transplant, and gastroenterology units, expected to contribute meaningfully in H2 FY26.

Strategic Expansion and New Facilities

Artemis is on track to commission its 300-bed Raipur facility by March 2026, which is expected to be the first tertiary and quaternary healthcare hospital in the region. A binding MoU for a 650-bed facility in South Delhi has also been signed, with operations anticipated in 1.5 to 2 years. The company aims for a total bed capacity of over 2,000 beds within the next two to three years. The Raipur facility is projected to breakeven within 1 to 1.5 years, with initial ARPOB targets of INR 35,000-38,000, gradually increasing to INR 45,000-60,000.

Balance Sheet and Funding Strategy

The balance sheet remains strong with a debt-to-equity ratio of 1.16 as of September 30, 2025. Management indicated that peak debt would not exceed INR 350 crores, maintaining a debt-to-equity ratio below 1.8. The cost for adding 100 beds in the existing Gurugram facility is estimated at around INR 70 lakhs per bed, leveraging existing infrastructure. The overall investment for the Raipur facility is projected to be INR 100-110 crores, with an expected operating loss of INR 15-18 crores before breakeven.

Technology and Clinical Innovation

Artemis is investing in technology, deploying AI-assisted triage systems and integrated CRM tools to enhance operational efficiency and patient experience. Advanced data analytics are being used for decision-making and optimizing patient pathways. Digital transformation efforts include a new hospital information system and 5G-enabled ambulances. Clinically, India's first private geriatrics and longevity department was launched, and a partnership with KIMS Hyderabad for advanced Heart & Lung Transplants was established.

Margin Improvement and Future Outlook

The company expects to sustain Y-o-Y volume growth and achieve 6%-8% Y-o-Y ARPOB growth. EBITDA margins are targeted to reach the mid-20s as the company scales up to 1,000+ beds in Gurugram and expands its footprint with new hospitals. Management noted that small center losses are expected to cease by December/January of the current financial year, contributing to overall profitability. EPS is projected to grow from 5.5-6.5 by the end of the year.

This is an AI-generated summary of a publicly available earnings call transcript.

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