GPT Healthcare

GPT Healthcare reported a revenue from operations of INR 118.9 crores for Q2 FY26, marking a 12.5% year-on-year growth. The EBITDA for the quarter stood at INR 24.1 crores, resulting in a 20% EBITDA margin. However, EBITDA experienced a 10% year-on-year drop, and Profit After Tax was INR 10.6 crores with an 8.8% margin, primarily due to initial losses from the new Raipur hospital.

The new Raipur hospital significantly impacted Q2 profitability, incurring an estimated INR 4.5 crores in losses for the quarter, and an overall INR 7.2 crores loss for the first half of FY26. Management expects the full-year EBITDA loss for Raipur to be around INR 10 crores. The hospital's occupancy was 12% in Q2, with an ARPOB of INR 40,869. The company anticipates Raipur to reach 25% occupancy by the end of FY26, aiming for monthly breakeven within 12-15 months.

GPT Healthcare is progressing towards its goal of becoming a 1,000-bedded hospital chain within the next two years. A significant step includes signing an MOU for a 150-bed hospital in Jamshedpur, with an estimated investment outlay of INR 70 crores, expected to be commissioned by the end of Q3 FY27. The company is also actively evaluating multiple cities in Eastern India for both greenfield and asset-light inorganic growth opportunities, acknowledging challenges in finding quality assets that meet its standards.

The company's average length of stay improved to 3.49 days as of September 30, 2025, reflecting efforts to optimize case mix. The average revenue per occupied bed (ARPOB) stood at INR 38,376. Hospital-specific ARPOB and occupancy rates showed varied performance: Salt Lake at 64% occupancy and INR 41,062 ARPOB, Agartala at 54% occupancy and INR 35,000 ARPOB, Dum Dum at 69% occupancy and INR 42,000 ARPOB, and Howrah at 45% occupancy and INR 34,900 ARPOB.

GPT Healthcare is strategically enhancing its service offerings and case mix across its facilities. At Salt Lake, increased bed capacity to 62% and a changing case mix are expected to drive future performance. Agartala has commenced comprehensive oncology services, and Dum Dum is undergoing department mix realignment to divest long-stay departments for short-stay ones, which has impacted revenue but is expected to improve efficiency. Howrah has also commenced robotic knee surgeries, with 34 procedures performed to date.

For FY26, the company expects an overall EBITDA margin of 20-21%, inclusive of the initial losses from the Raipur hospital. Management aims for an average ARPOB growth of 5-6% for the year, driven by incremental mix, rate revisions, and case mix changes. The long-term growth rate for the consolidated entity, with the addition of new hospitals, is projected to be around 15%, with mature hospitals growing at 6-8%.