Artemis Medicare delivered a strong Q3 FY26 performance with robust revenue and PAT growth, driven by core specialties and international patient volumes. The company is actively pursuing significant capacity expansions, including the imminent commissioning of the Raipur hospital and plans for a large South Delhi facility, supported by a recently approved INR 700 crores fundraise. Management is focused on operational efficiencies and optimizing payer mix, despite some current cost pressures from new projects.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Revenue (Q3 FY26) | ₹272 Cr | +17.2% YoY |
| EBITDA (Q3 FY26) | ₹52 Cr | — |
| EBITDA Margin (Q3 FY26) | 19.1% | — |
| PAT (Q3 FY26) | ₹22 Cr | +7.9% YoY |
| Revenue (9M FY26) | ₹802 Cr | +15.1% YoY |
| EBITDA (9M FY26) | ₹159 Cr | — |
| Category | Headline | |
|---|---|---|
Capex | ₹1,800 crores mix of INR 700 crores fundraise (QIP/preferential basis), internal accruals, and debt | |
Debt | Debt disclosed |
| Category | Target | Priority |
|---|---|---|
| Capacity | Total bed capacity→2,000-2,300 beds | High |
| Commissioning | Raipur hospital operations start→April-May 2026 | High |
| ARPOB | Raipur hospital initial ARPOB→INR 30,000-35,000 | High |
| ARPOB | Raipur hospital ARPOB ramp-up→INR 40,000-55,000 | Medium |
| ARPOB | ARPOB growth (long-term sustenance)→4-6% | High |
| Breakeven | Raipur hospital breakeven→18-24 months | High |
| Breakeven | Daffodils breakeven→Breakeven | High |
| Contract Signing | South Delhi facility definitive management services contract→Signed | High |
| Fundraise | Fundraise details disclosure→Details shared | High |
| Occupancy | Overall occupancy rate→68%-70% | High |
| Investment | Total investment→INR 1,800-1,900 crores | High |
| South Delhi Hospital | South Delhi hospital operational beds in FY29→450 beds | High |
| Raipur Hospital | Raipur hospital operational beds→200 beds initially, ramping to 300 beds | High |
| # | Metric | |
|---|---|---|
| 01 | Occupancy rate at Gurugram facility | |
| 02 | Raipur hospital commissioning | |
| 03 | South Delhi hospital definitive management services contract | |
| 04 | Fundraise details disclosure | |
| 05 | Daffodils breakeven |
| Severity | Risk |
|---|---|
medium | Challenging market environment Despite a challenging market environment, Artemis Medicare has managed to maintain a steady growth trajectory. Management |
medium | Impact of new project costs on current margins Costs associated with new towers and the Raipur facility are currently sitting on the books, impacting margins, but are expected to spread out as occupancy increases and projects become operational. Management |
medium | High manpower cost for new high-end quaternary departments The introduction of high-end quaternary departments like heart-lung transplants and robotics incurs expensive manpower costs, but strong response and ramp-up in case numbers are expected to bring efficiencies. Management |
Artemis Medicare reported a robust Q3 FY26, with consolidated revenue from operations growing 17.2% year-on-year to INR 272 crores. The company achieved an EBITDA of INR 52 crores for the quarter, translating to a calculated EBITDA margin of 19.1%. Profit after tax (PAT) for Q3 FY26 increased by 7.9% YoY to INR 22 crores. For the nine-month period of FY26, consolidated revenues stood at INR 802 crores, up 15.1% YoY, with EBITDA at INR 159 crores (19.8% margin) and net profit at INR 73 crores, a significant increase from INR 59 crores in 9M FY25.
The flagship Gurugram facility maintained a strong operational footing with a 62% occupancy rate during Q3 FY26, reflecting sustained demand and a shift towards more complex, high-value procedures. This was further evidenced by a 10% year-on-year increase in Average Revenue Per Occupied Bed (ARPOB) to INR 84,100. International patient revenue demonstrated exceptional growth of 34.9% YoY, now contributing 34% to the total revenue, with international patient volumes also growing by 35% YoY, underscoring the company's leadership in medical tourism.
Artemis Medicare is on an aggressive expansion path, aiming to increase its bed capacity from the current 700-800 to 2,000-2,300 by 2029. Key projects include the 300-bed super specialty hospital in Raipur, expected to commence operations in April-May 2026, with an initial ARPOB target of INR 30,000-35,000. Additionally, plans are firming up for a 650-bed super specialty hospital in South Delhi, with construction slated to begin by end of April/beginning of May (next financial year) and operations by 2029, at an estimated capex of INR 70-75 lakhs per bed.
To fuel its ambitious expansion plans, the board has approved a fundraise of INR 700 crores, which will be a mix of QIP and preferential basis. This capital will be deployed towards additional beds at VIMHANS, new greenfield and brownfield projects, and other inorganic growth initiatives. The company projects a total investment of INR 1,800-1,900 crores over the next 5-7 years, to be financed through a combination of this fundraise, internal accruals, and debt, with a commitment to keep maximum debt below INR 300 crores.
The company is strategically investing in high-end quaternary care services, such as heart-lung transplants and advanced robotic surgeries, which, despite initial higher manpower costs, are expected to drive future efficiencies and enhance service offerings. Management highlighted the significant tailwinds from government support for medical value tourism, including reduced medical visa costs and direct patient log-in platforms, positioning Artemis as a preferred destination for international patients from over 50 countries, contributing to its global brand recognition.
Artemis is actively pursuing operational efficiencies and disciplined cost management, which contributed to the improved EBITDA margin. Efforts are underway to refine the payer mix by reducing exposure to lower-ticket government business. The reported decline in Daffodils revenue was clarified as a strategic decision to consolidate Daffodil Gurgaon operations into the main Artemis Gurugram facility, aiming for improved utilization and profitability, with breakeven targeted by the end of the current financial year.