Artemis Medicare

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 item^📎s 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.

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.

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.

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.

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.

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.