Artemis Medicare Services Limited — Q4 FY26 earnings call

Call held 11 May 2026

Management summary

Artemis Medicare Services reported a strong Q4 and FY26, with consolidated revenue growing 16.4% and 15.4% respectively, driven by high-margin specialties and improved ARPOB. Profit after tax saw significant increases of 32.1% in Q4 and 26.2% for the full year, supported by operational efficiencies and a robust EBITDA margin of 21.3% in Q4. The company is actively pursuing ambitious expansion plans, including new hospitals in Raipur and South Delhi, and aims to significantly increase bed capacity by 2029, backed by a recently approved fundraising initiative.

Highlights

  • Consolidated revenue from operations for FY26 grew 15.4% YoY to INR 1,081 crores.

  • Q4 FY26 consolidated revenue from operations grew 16.4% YoY to INR 279 crores.

  • FY26 Profit After Tax increased 26.2% YoY to INR 104 crores.

  • Q4 FY26 Profit After Tax increased 32.1% YoY to INR 30 crores.

  • Q4 FY26 EBITDA margin improved to 21.3% from 20.2% for FY26.

  • Average revenue per occupied bed (ARPOB) for Q4 increased 7.3% YoY to INR 84,571.

  • Received Platinum Green Building certification, enabling a 15% increase in FAR for Gurugram facility, allowing 100 additional beds.

Concerns

  • Raipur facility expected to incur INR 18-20 crores in losses in FY27, potentially lowering overall EBITDA margin by 1-1.5%.

  • Government policies and tariff adjustments introduced certain short-term challenges in the healthcare sector.

  • International patient volumes saw a 15-18% dip in March, though recovery is underway.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹279 Cr
    YoY +16.4%
  • EBITDA
    ₹59 Cr
  • EBITDA Margin
    21.3%
  • PAT
    ₹30 Cr
    YoY +32.1%
  • ARPOB
    ₹84,571
    YoY +7.3%
  • Gurugram Occupancy
    64.6%

FY26

  • Revenue
    ₹1,081 Cr
    YoY +15.4%
  • EBITDA
    ₹218 Cr
  • EBITDA Margin
    20.2%
  • PAT
    ₹104 Cr
    YoY +26.2%

What they filed

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

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue241 232 240 255 275 +14%272 +17%279 +16%287 +13%
EBITDA42 37 36 41 51 +21%45 +22%52 +44%56 +37%
Net profit22 21 23 21 30 +36%22 +5%30 +30%31 +48%
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.

Capital allocation

high confidence
  • Capex ₹100 Cr
    • South Delhi (VIMHANS) 650-bed facility (interiors and equipment) ₹500 Cr
    • Raipur 300-bed facility ₹110 Cr
    • Gurgaon replacement capex and Raipur fitting (for FY27) ₹100 Cr
    For the first one, the project highlight I can give you that we are in the process of admitting our drawings, our plans to the MCD, post which the demolition of the old structure is going to start. We are pretty much online in terms of timelines for these actions. But in terms of capex, so it's a 650 bedded facility which will start in two phases of 450 and 200. But the capex and other details, I hand over to Rudra to reply to. Hi Aditya, Rudra this side. For the capex portion Aditya, there is two parts to it. The first part for around 450 beds, the capex would be to the tune of INR 350 crores. And for the second 200 beds, it would be another INR 150 crores to INR 160 crores. Total would be INR 500 crores for 650 beds, which will be close to INR 75 lakhs to 80 lakhs per bed. So that is on the capex part of this Aditya. Any questions regarding this? So land and building is owned by the trust. We have in our portion we had the interiors and the equipment. These include the interiors and the equipment. So it will be between INR 110 to INR 120 crores is the capex for a 300 bed facility. Only the replacement capex of Gurgaon and fitting of Raipur because 50%, 60% we have already spent out of INR 110 crores, so rest INR 50 crores to INR60 crores. So total would be close to INR 100 crores maybe.
  • Debt Debt disclosed
    So for the Raipur and including the 650 beds of Delhi, the maximum peak debt would be close to INR 350 crores that we will have to take. And currently it is close to around INR 260 crores.
  • Liquidity Liquidity disclosed Board approved fundraising initiative up to INR 700 crores to support expansion efforts and new projects.
    With the Board's approval for a fundraising initiative up to INR 700 crores, we are well positioned to support our expansion efforts and continue to deliver value to all our stakeholders. So basically what is happening is we need the fundraise because in some of these new projects, we also have to give them a deposit. So the deposit is cannot be funded through debt. And these are some of the projects which are in pipeline. So as closer to the time of finalization. So we have a pipeline which has some brown and greenfield projects and we are looking at the next four to six weeks to finalize at least one of them and then go for the raise because this would probably be required for this finalization of this new project.

Guidance & targets

Capacity

  • Total bed capacity Capacity · by 2029 · High confidence 2,000 beds
    We remain focused on increasing our bed capacity with plans to expand from our current capacity of 800 beds to 2,000 beds by 2029.

    — Devlina Chakravarty

  • Raipur operational beds (Phase 1) Capacity · Q1 FY27 · High confidence 150 beds
    For the 200 beds which we are starting in Q1 of FY27 in Raipur, the first phase will see 150 beds operational

    — Devlina Chakravarty

  • Raipur total operational beds Capacity · Within 2 quarters · High confidence 300 beds
    and within 3 to 4 months we will be adding 50 more beds because we are looking at it as a high volume market and so I think in two quarters you can expect all 300 beds operational.

    — Devlina Chakravarty

Operations

  • Raipur 300-bed super specialty hospital operations start Operations · Q1 FY27 · High confidence Q1 FY27
    Our 300-bed super specialty hospital in Raipur is on track to commence operations in Q1 of FY27, marking a key milestone in our growth journey.

    — Devlina Chakravarty

  • South Delhi 650-bed facility commissioning Operations · FY29 · High confidence FY29
    we are advancing our plans for the 650-bed facility in South Delhi, which is expected to be commissioned in FY29

    — Devlina Chakravarty

  • Raipur facility breakeven Operations · 18-20 months · High confidence 18-20 months
    After that, once the Raipur starts break-evening within 18 to 20 months when it is break-even and everything starts flowing off in a neutral manner, it will add up to the EBITDA.

    — Rudra Acharjee

Revenue

  • Revenue from international patients Revenue · Ongoing · High confidence 30-31%
    So our endeavour would be to remain at the same 30%, 31% of revenue coming from international patients, irrespective of where we are and how our top line moves.

    — Devlina Chakravarty

  • Revenue growth from flagship hospitals Revenue · Next 3-4 years · High confidence 15-17%
    from our flagship hospitals if you see, we would be adding beds and over a period of three to four years you can take at least 15% to 17% growth on the revenue front.

    — Rudra Acharjee

Volume

  • ARPOB growth Volume · Year-on-year · High confidence 7-8%
    But we have been growing 7% to 8% year-on-year on our ARPOB. So that will be the trend if not more.

    — Devlina Chakravarty

  • Gurugram occupancy rate Volume · Q2 FY27 · High confidence 70-75%
    So we are looking definitely by Q2 of the current financial year, we're looking it to move to touch 70 if not exceed it. And because we have the numbers, we know that it will be reaching at that and our endeavour would be at 70%-75%, which is optimum for us.

    — Devlina Chakravarty

Profitability

  • Gurugram facility EBITDA margin Profitability · Coming years · High confidence >20%
    So Gurugram facility will see EBITDA northwards of 20% if not more in the coming years.

    — Devlina Chakravarty

  • Raipur facility losses Profitability · FY27 · High confidence INR 18-20 crores
    there would be close to INR 18 crores to INR 20 crores of losses from Raipur.

    — Rudra Acharjee

  • Overall EBITDA margin impact from Raipur Profitability · FY27 (first year) · High confidence 1-1.5% lower
    So that overall mix will be putting the EBITDA maybe a 1% to 1.5% lower because of these losses.

    — Rudra Acharjee

  • EBITDA flow-down from added revenue Profitability · Ongoing · High confidence At least 30%
    And whatever numbers, whatever revenue that gets added to the top line, at least 30% will flow down to the EBITDA.

    — Rudra Acharjee

  • Return on Capital Employed (ROCE) Profitability · Next 3-4 years · High confidence 16-18%

    Previously 14.5% → 16-18%

    Currently our ROCE is around 14.5% and going forward we are expecting in the range of 16% to 18% in next three to four years' time frame.

    — Sanjeev Kothari

  • Payback period for new projects Profitability · Within 5-6 years · High confidence Within 5-6 years
    we look at the payback period and we see to it that the payback period is within five to six years of the time.

    — Rudra Acharjee

Capex

  • Capex Capex · FY27 · High confidence INR 100 crores
    No, only the replacement capex of Gurgaon and fitting of Raipur because 50%, 60% we have already spent out of INR 110 crores, so rest INR 50 crores to INR60 crores. So total would be close to INR 100 crores maybe.

    — Rudra Narayan

What to watch in Q1 FY27

Raipur 300-bed hospital operations commencement

Q1 FY27
Current On track for Q1 FY27
Target Commercial operations commenced

Why it matters

Key milestone for growth strategy and new revenue stream, impacting overall financial performance.

Our 300-bed super specialty hospital in Raipur is on track to commence operations in Q1 of FY27, marking a key milestone in our growth journey.

Risks & concerns

  • Government policies and tariff adjustments

    medium

    Government policies and tariff adjustments introduced certain short-term challenges in the healthcare sector, though management believes they can navigate these.

    Management acknowledged

  • Initial losses from Raipur facility

    medium

    Raipur facility is expected to incur INR 18-20 crores in losses in FY27, which will cause a 1-1.5% drag on overall EBITDA margin in the first year.

    Management acknowledged

  • International patient volume dip due to geopolitical events

    low

    A 15-18% dip in international patient volumes was observed in March due to the West Asia war, but recovery is strong, with volumes nearly 90% by May.

    Management acknowledged but recovering

  • Potential government caps on medical device margins

    low

    An analyst inquired about potential government caps on medical device margins, but management stated no concrete information or notification has been received.

    Analyst not addressed

Q&A highlights

7 direct
Critical Care Capability Direct
So, critical care, I would divide into two types. One is a strong emergency care and the second is the in-house critical care. So as you are aware that Artemis is known for our critical care in Haryana. We are not only treating our own patients, but we are the referral center for a large number of critical care patients from across Haryana. So we have 1:3 critical care beds and we have a great network of transports which delivers patients from secondary, primary, and other tertiary care facilities to our hospital.

Details the company's strong positioning and advanced capabilities in a high-value segment, highlighting competitive advantages.

Asked by Sanjay Shah

International Patient Growth and Diversification Direct
So our endeavour would be to remain at the same 30%, 31% of revenue coming from international patients, irrespective of where we are and how our top line moves. So every year we add more countries to our list, we increase our MOUs with various international governments. So we have a full strategy and we have a separate international team who works only towards that. So our strategy will continue to have 30% to 31% of revenue from the international like we have today.

Clarifies the company's strategy for maintaining and growing international patient revenue despite geopolitical challenges, emphasizing diversification.

Asked by Sanjay Shah

ARPOB in South Delhi vs. Gurugram Direct
No, we are in NCR and we have the highest ARPOB in NCR. We are higher than even Delhi. But we have been growing 7% to 8% year-on-year on our ARPOB. So that will be the trend if not more. Definitely South Delhi is a higher ARPOB area, but in Gurgaon we beat even the South Delhi ARPOB because of our mix of patients, our high-end surgeries and our efficiencies of the bed turnaround time. And we will continue to do so and increase like how we are doing 7% to 8% year-on-year.

Corrects a misconception about ARPOB leadership, highlighting Gurugram's strong performance and the drivers behind it, including efficiency and case mix.

Asked by Sanjay Shah

Mauritius Hospital Performance Direct
So the first hospital has broken even and is making a profit. The second hospital has just started. So we are already beginning to get the fee for the second hospital. So we are on a monthly fee for running and giving our expertise to these hospitals and we are pretty much on track with the first hospital and with the second hospital which has just started in April.

Provides an update on the company's international ventures, indicating successful operations and revenue generation from management fees.

Asked by Sanjay Shah

Raipur Project Impact on EBITDA Direct
For the second question, there will be certain some losses in Raipur, but if you look at our projections our increase in EBITDA will continue because our occupancy in the Gurgaon hospital is increasing, our mix of cases is becoming better, the new towers are reaching their maturity. So the EBITDA growth will continue in the coming financial year despite losses in Raipur.

Addresses concerns about the initial losses from the new Raipur facility, reassuring that Gurugram's growth will offset these, maintaining overall EBITDA growth.

Asked by Aditya Chheda

VIMHANS (South Delhi) Capex Details Direct
For the capex portion Aditya, there is two parts to it. The first part for around 450 beds, the capex would be to the tune of INR 350 crores. And for the second 200 beds, it would be another INR 150 crores to INR 160 crores. Total would be INR 500 crores for 650 beds, which will be close to INR 75 lakhs to 80 lakhs per bed. So that is on the capex part of this Aditya. So land and building is owned by the trust. We have in our portion we had the interiors and the equipment. These include the interiors and the equipment.

Provides specific financial details and scope of the significant upcoming South Delhi project, clarifying investment requirements and timing.

Asked by Aditya Chheda

Gurugram Additional FAR Utilization Partial
So we are basically looking at both all the options. We have a little pipeline with some other opportunities. And we have this option of 100 bed facility here. So we are kind of taking that call whether to start this 100-bed facility in the current financial year or to take up another, if possible, take up another brownfield or a greenfield project if that's available. So that we will clear in the next few weeks and you'll hear it from us very soon.

Indicates strategic flexibility in utilizing new capacity in Gurugram, suggesting potential for further expansion beyond the existing facility.

Asked by Aditya Chheda

Impact of Government Tariffs Direct
So they have revised for private sectors to taking government patients because there was a large number of rejections from various hospitals. So they have revised it for the better. That's what I wanted to say.

Clarifies that recent government tariff adjustments, particularly for CGHS and private sector government patients, have become beneficial for hospitals, mitigating a potential concern.

Asked by Anshul Agarwal

3 min read 8 chapters

Detailed narrative

Strong Financial Performance in Q4 and FY26

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.

Growth Driven by High-Margin Specialties and ARPOB Improvement

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.

Strategic Capacity Expansion and New Projects

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.

Gurugram Facility Performance and Future Plans

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.

International Patient Segment Resilience and Diversification

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.

Capital Allocation and Fundraising for Growth

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.

Operational Excellence and Digital Transformation

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 Market Strategy and Manpower

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.

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