GPT Healthcare

GPT Healthcare reported a revenue from operations of INR107 crores for Q1 FY26, marking a 9.5% year-on-year growth. The EBITDA for the quarter stood at INR18.9 crores, translating to an EBITDA margin of 17.9%. Profit after tax was INR7.7 crores, with a corresponding margin of 7.7%. These figures were impacted by initial losses of approximately INR4.5 crores from the newly commissioned Raipur hospital, which also led to higher depreciation and interest costs.

The company achieved a significant milestone by commissioning a new 158-bed facility in Raipur on May 2, 2025, bringing its total operational beds to 719 across five multi-specialty hospitals. This new facility is expected to achieve EBITDA breakeven within 12-15 months. Additionally, GPT Healthcare has signed an MoU for a 150-bed hospital in Jamshedpur with an investment outlay of INR60 crores, targeting commissioning by Q3 FY27. The company remains committed to its goal of becoming a 1,000-bed hospital chain within the next two to two-and-a-half years.

The new Raipur hospital, despite being operational for only 1.5 months, recorded an occupancy of 7% (running at 15% month-on-month) and an ARPOB of INR39,180. ILS Hospital Salt Lake demonstrated strong performance with its ARPOB increasing to INR42,313 from INR39,200 last year, and occupancy improving by 200 basis points to 60-odd percent. Agartala hospital's occupancy rose to 52% from 46%, with its ARPOB increasing to INR35,600 from INR33,700. Dum Dum hospital reported stable revenue of INR36 crores and an ARPOB of INR42,684, with occupancy at 60% and ALOS at 4.59 days. Howrah hospital's ARPOB was INR35,600, with 12 robotic knee surgeries performed in Q1 FY26.

Overall bed occupancy at the network level stood at 42%, influenced by the new Raipur facility. Management expects Agartala's occupancy to reach 60% by March, Howrah to hit 50%, and Salt Lake and Dum Dum to reach 65% by year-end. Raipur's occupancy is projected to be closer to 20% by March. The company aims for an overall revenue growth of 15% plus for the full year, with core hospitals (ex-Raipur) growing at about 10%. ARPOB is anticipated to increase by 4-4.5% due to case mix changes, and occupancy for existing assets is expected to grow by 8-10%.

GPT Healthcare's existing four older hospitals are fully owned, except for land at Salt Lake and Agartala which are on long-term leases. The shift towards an asset-light rental model for new expansions like Jamshedpur is driven by the challenge of acquiring land in densely populated areas. The company confirmed it has sufficient internal accruals and cash on its balance sheet to fund future expansions, whether through asset-light rental models or organic opportunities requiring higher capex (up to INR100 crores).

The EBITDA margin for the four older assets is expected to be around 22.5-23%. The company anticipates a full-year loss of approximately INR8 crores for the Raipur hospital. Doctor fees, currently at 26-28% of revenue, are expected to stabilize around 24-25% as new hospitals mature. Bad debt, which increased from 0.5% to 1.5% of revenue over the last three years, is projected to stabilize around 1%, aligning with industry peers. Management is also evaluating tax benefits for new hospitals to optimize financial outcomes.

Agartala hospital's oncology department, with medical oncology starting in March and radiation oncology in May, is expected to generate INR10-15 crores in revenue for the full year with a 20%+ EBITDA margin. This initiative addresses the high incidence of oral cancer in the region and reduces the need for patients to travel for treatment. The company is also consciously diversifying specialties at Dum Dum to reduce over-reliance on kidney transplants, aiming to fill the gap with other growing specialties.