Jupiter Life Lin

The new 500-bed Dombivli hospital, constructed with a capex of INR 425 crores, was completed ahead of schedule and within budget. It is slated for inauguration on February 15, 2026, and will commence full clinical operations thereafter, initially with 200 beds in Phase 1. Management anticipates an EBITDA drag of INR 2-3 crores per month for the first year and expects the hospital to achieve EBITDA breakeven by the end of its second year of operation. A significantly higher depreciation load on consolidated numbers is also expected starting next quarter.

For Q3 FY26, Jupiter Life Line Hospitals reported a total income of INR 365.3 crores, marking a 9.8% YoY increase, with EBITDA growing 9.2% YoY to INR 83.4 crores, resulting in a 22.8% margin. However, PAT decreased 18.7% YoY to INR 42.5 crores, primarily due to a one-time^📎 provision of INR 6.4 crores related to the new Labor Code. For the nine months ended December 31, 2025, total income rose 15.1% YoY to INR 1,111.9 crores, and EBITDA increased 15.2% YoY to INR 254 crores (22.8% margin), while PAT saw a modest decline of 3.1% YoY to INR 143.9 crores.

The company's ARPOB for Q3 FY26 stood at 68,000, representing an approximate 15% growth from the previous year's 59,000+. The 9-month ARPOB was 66,800, with an average length of stay (ALOS) of 3.85 days and an average occupancy rate of 61.9%. Management confirmed that the majority of the 10% revenue growth in Q3 was driven by ARPOB improvement, indicating a favorable case mix or pricing power. For mature hospitals, ARPOB is expected to grow in line with inflation, while newer facilities like Indore are projected to see faster-than-inflation growth for the next couple of years.

Beyond the Dombivli project, the Pune Bibvewadi project has commenced basement construction, with an incurred capex of INR 45 crores to date, targeting completion by calendar year 2028. The Mira Road project is currently undergoing regulatory approval. The company remains committed to its long-term strategy of expanding in large cities across Western India, focusing on micro-markets with high resident populations and underserved tertiary care needs. Discussions are ongoing for a potential seventh hospital, reinforcing the company's growth ambitions.

Addressing concerns about the availability of medical professionals, management acknowledged nurse availability as a national challenge but stated that attracting good doctors is not an issue in their large city locations. Doctor costs typically range between 20-25% of the top line, and Jupiter maintains a mix of exclusive and visiting practitioners to ensure comprehensive care delivery. The company reported minimal doctor attrition, with only one full-time doctor moving, indicating stable talent retention.

For the nine-month period, Jupiter's payer mix consisted of 55.7% from insurance, 43.2% from self-payers, and a minimal 1.1% from government schemes. Management clarified that the company has no CGHS exposure on its P&L, thus the recent CGHS price hikes will not impact Jupiter. The company participates in government schemes only for specific treatments like radiation for cancer and congenital heart diseases for children, viewing this as a social contribution with no meaningful financial impact.