Artemis Medicare

Artemis Medicare delivered robust financial results, with FY26 consolidated revenue reaching INR 1,081 crores, a 15.4% YoY increase, and Q4 FY26 revenue at INR 279 crores, up 16.4% YoY. The company's EBITDA for FY26 stood at INR 218 crores (20.2% margin), improving to INR 59 crores (21.3% margin) in Q4. Profit After Tax for FY26 was INR 104 crores, a 26.2% increase, with Q4 PAT growing 32.1% to INR 30 crores, reflecting strong operational efficiencies and disciplined cost management.

The revenue growth was primarily fueled by strong performance in core specialties such as cardiology, oncology, and orthopaedics, coupled with an improved payer mix and an increase in high-complexity procedures. The average revenue per occupied bed (ARPOB) for Q4 FY26 was INR 84,571, a 7.3% increase from Q4 FY25, driven by enhanced case mix and higher-paying patients. Management expects ARPOB to continue growing at 7-8% year-on-year.

The company is on an aggressive growth trajectory, planning to expand its bed capacity from 800 to 2,000 beds by 2029. Key milestones include the 300-bed super specialty hospital in Raipur, on track to commence operations in Q1 FY27, with 150 beds operational initially and all 300 within two quarters. Additionally, the 650-bed facility in South Delhi is expected to be commissioned by FY29, with major capex for interiors and equipment anticipated in mid-FY28.

The flagship Gurugram hospital continues to perform strongly, with an occupancy level of 64.6% in Q4. Management aims to increase this to 70-75% by Q2 FY27. The facility also received Platinum Green Building certification, allowing a 15% increase in FAR and the potential addition of 100 beds, a decision on which is expected in the coming weeks. Gurugram's EBITDA margin is projected to be north of 20% in the coming years, driven by high-end patient mix and operational efficiency.

Despite global conflicts, the international patient segment demonstrated resilience, growing 26.9% in FY26. While a 15-18% dip was observed in March, recovery is strong, with volumes nearly back to 90% by May. The company aims to maintain 30-31% of its revenue from international patients, actively diversifying its reach to new countries in Africa, CIS, Canada, and Nordic nations, reducing reliance on any single region.

The Board has approved a fundraising initiative of up to INR 700 crores to support expansion efforts, particularly for new projects beyond the currently planned Raipur and South Delhi facilities, and for deposits. The total capex for the South Delhi facility is estimated at INR 500 crores (INR 75-80 lakhs per bed), and for Raipur, INR 110-120 crores. The company targets a Return on Capital Employed (ROCE) of 16-18% in the next 3-4 years for new projects, with a payback period within 5-6 years.

Artemis Medicare is committed to enhancing patient care and operational efficiency through technology. They have implemented AI-assisted triage systems to reduce wait times and improve patient flow and are expanding data analytics for clinical decision-making. The company also focuses on sustainability, with energy-efficient systems and waste reduction programs, contributing to its Platinum Green Building certification.

Raipur is identified as a high-potential market, with Artemis aiming to establish itself as a central referral hospital for Chhattisgarh, where 60% of patients currently travel to other cities for treatment. The company has secured its manpower needs, with all department heads and nurses hired and joining by early June, leveraging local medical and nursing colleges. Initial losses of INR 18-20 crores are expected in FY27 for Raipur, but these are anticipated to be offset by growth in Gurugram.