Jeena Sikho — Q2 FY26 earnings call

Call held 7 Nov 2025

Management summary

Jeena Sikho reported a strong Q2 FY26, with significant year-on-year and quarter-on-quarter growth across revenue, PAT, and EBITDA. The company expanded its bed capacity to 2,802, nearing its year-end target, and saw robust growth in both product and services segments. Strategic initiatives like the Chandan Diagnostic tie-up and a new franchise model are expected to drive future growth, despite some caution regarding government business and Q3 seasonality.

Highlights

  • Revenue from operations for Q2 FY26 stood at Rs. 190 crores.

  • Revenue grew by 66% year-on-year and 9% quarter-over-quarter.

  • PAT for Q2 FY26 was Rs. 59 crores, registering a 121% YoY and 15% QoQ increase.

  • EBITDA for Q2 FY26 grew to Rs. 92 crores, a 129% YoY and 17% QoQ increase.

  • EBITDA margin for Q2 FY26 was 48%.

  • Total bed capacity increased to 2,802, with occupancy at 57%.

  • Product segment grew approximately 78% YoY, and services segment contributed 50% of revenue.

  • OTC business generated Rs. 2.25 crores in online sales last month.

Key financials

  1. Revenue ₹190 Cr +66%YoY
  2. PAT ₹59 Cr +121%YoY
  3. EBITDA ₹92 Cr +129%YoY
  4. EBITDA Margin 48%
  5. Total Bed Count 2,802 beds
  6. Bed Occupancy 57%

What they filed

Q1 FY27: revenue up 28.7%, net profit up 29.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue114 116 139 174 190 +67%222 +91%216 +55%224 +29%
EBITDA40 30 46 79 92 +130%101 +237%78 +70%92 +16%
Net profit27 13 25 51 59 +119%67 +415%45 +80%66 +29%
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.

Segment breakdown

  • Product Segment
    78% Revenue Growth
  • Services Segment
    50% Revenue Contribution

Guidance & targets

Profitability

  • PAT Margin Profitability · next one to three years · High confidence 20% to 25%
    No, sir. In every conference call I tell about my target. 20% to 25% margin is a healthy margin, and we have to maintain that and this extra which is coming is good and happy news for us.

    — Manish Grover

  • PAT (FY26) Profitability · future · High confidence Rs. 125 crores, Rs. 130 crores
    And as I said, the profit according to that comes up to Rs. 125 crores, Rs. 130 crores. So, in front of you, we are just over-delivering what we are saying.

    — Manish Grover

  • OTC PAT Margin Profitability · High confidence Between 18% to 22%
    It will be the same margin. Between 18% to 22%.

    — Manish Grover

Capacity

  • Total Bed Count Capacity · three to five years · High confidence 7,000 to 10,000 beds
    Our main focus is to increase the number of beds because I said that in three to five years, I will do 7,000 to 10,000 beds.

    — Manish Grover

  • Bed Count (FY26 year-end) Capacity · year end · High confidence 2,850

    From 2,850 today

    And in the conference call of 31st March 2025, I told that we will do 2,850 in the year end and we have done 2,802 beds in six months only.

    — Manish Grover

  • Total Bed Count (FY26) Capacity · this year · High confidence around 3000, 3100
    For this year it is 3000.

    — Manish Grover

  • New Beds Added Capacity · next six months · High confidence 200, 300 more
    In the next six months, I will increase it by 200, 300 more.

    — Manish Grover

Capacity Utilization

  • Bed Occupancy Rate Capacity Utilization · next six to eight months · High confidence 80%

    From 57% today

    Because according to the last quarter, bed occupancy is 57%. So, we have to increase it to 80% from 57%.

    — Manish Grover

Product Pipeline

  • New Product Launches Product Pipeline · next six to twelve months · High confidence 15 to 20 products
    No, sir. We are going to launch at least 15 to 20 products, and we are also in talks with a big distributor network.

    — Manish Grover

  • New Product Launches (FY26 end) Product Pipeline · By the end of this year · High confidence 10 products
    By the end of this year, 10 products will be launched.

    — Manish Grover

Revenue

  • Turnover (FY26) Revenue · this year · Medium confidence Rs. 650 crores, Rs. 700 crores

    Previously Rs. 650 crores, Rs. 720 crores → Rs. 650 crores, Rs. 700 crores

    I will maintain the same old target that I said, between Rs. 650 crores, Rs. 700 crores, we will close this year.

    — Manish Grover

  • OTC & Product Marketing Turnover Revenue · next one, two years · Medium confidence Rs. 300 crores, Rs. 500 crores
    I had told you last year that in the next one, two years, my plan is to bring turnover of Rs. 300 crores, Rs. 500 crores from OTC, online marketing, and products.

    — Manish Grover

Network Expansion

  • New Franchise Hospitals Network Expansion · next month · High confidence at least 50
    We are going to open 50 new franchises. Which we will launch next month.

    — Manish Grover

Risks & concerns

  • Seasonality impacting Q3 performance

    medium

    Management noted that the third quarter is typically weak due to cold weather in November-December, affecting patient footfall.

    Management acknowledged

  • Government payment delays and portal issues for Ayushman Yojana

    medium

    Concerns about long turnaround times (2.5 months) for payments from the government portal are causing management to prioritize private and health insurance business.

    Management acknowledged

  • Regulatory and operational hurdles for college tie-ups (NGOs/Trusts)

    medium

    Government formalities, NOCs, and the non-profit nature of trusts/NGOs are slowing down the operationalization of college tie-ups, leading to a pause in further expansion until current ones are efficient.

    Management acknowledged

  • Past doubts about company's profitability and authenticity

    low

    Management stated that the involvement of Grant Thornton as auditors and migration to Ind-AS has helped address previous doubts about the company's financial credibility.

    Management acknowledged

Q&A highlights

3 direct
Synergies and benefits of Chandan Diagnostic tie-up Direct
When we tie-up with Chandan, they had existing 40 lakh Chandan privilege card holders and now they will avail cash benefits from us... And they have given us the offer that they will do the first basic blood test like ESR, uric acid, CBC, lipid profile, LFT, RFT, and thyroid profile for free.

Reveals a key strategic partnership aimed at increasing footfall, improving diagnostics, and leveraging a large existing customer base for mutual benefit, impacting both product sales and hospital admissions.

Asked by Abhishek

Strategy regarding government business (RGHS/CGHS) and private sector focus Direct
Sir, actually there is no point of raising outstanding in the books... I increased the focus on the private sector, on health insurance... Sir, the problem is that I had a discussion with the government last month. I had a discussion with the ministry. So, they are making a new portal. In that portal, the TAT is of two and a half months. So, as soon as the portal launches, I will do a trial.

Explains management's cautious approach to government business due to payment delays and outstanding issues, prioritizing private and health insurance segments for better cash flow and operational efficiency.

Asked by Ashok Parekh

Bed capacity expansion, operational beds, and future targets Direct
Sir, I have slowed the speed of the bed. First, I will fill this. In the next six months, I will increase it by 200, 300 more. But first, I will increase its occupancy rate... For this year it is 3000. In three to five years, my target is of 7,000 to 10,000 beds.

Clarifies the current operational bed count (2,200 out of 2,802 total), the strategy to prioritize occupancy over rapid expansion in the short term, and reiterates ambitious long-term bed targets.

Asked by Deepak Poddar

3 min read 7 chapters

Detailed narrative

Strong Q2 FY26 Financial Performance

Jeena Sikho reported robust Q2 FY26 results, with revenue from operations reaching Rs. 190 crores, marking a 66% year-on-year and 9% quarter-on-quarter growth. PAT surged to Rs. 59 crores, up 121% YoY and 15% QoQ, while EBITDA grew by 129% YoY and 17% QoQ to Rs. 92 crores, achieving a healthy 48% margin. Management highlighted over-delivery on previous commitments and strong performance in both product (78% YoY growth) and services segments.

Aggressive Bed Capacity Expansion and Utilization Focus

The company rapidly expanded its total bed capacity to 2,802, achieving its FY26 year-end target of 2,850 beds within six months. Currently, 2,200 beds are operational, an increase of 600 beds in six months. Management aims to increase bed occupancy from the current 57% to 80% within the next six to eight months, and plans to add another 200-300 beds in the next six months, targeting 3,000-3,100 beds by FY26 end. The long-term vision is to reach 7,000-10,000 beds in three to five years.

Product Portfolio Expansion and OTC Business Growth

Jeena Sikho is aggressively expanding its product pipeline, planning to launch 15 to 20 new products in the next six to twelve months, with 10 products specifically targeted for launch by the end of FY26. The OTC business has shown promising early trends, generating Rs. 2.25 crores in online sales last month. The company is in talks with a large distributor network (Entero, with 1 lakh pharmacies) to expand reach, targeting Rs. 300-500 crores in OTC and product marketing turnover in the next one to two years, with a PAT margin target of 18-22% for OTC products.

Strategic Partnership with Chandan Diagnostic

A significant tie-up with Chandan Diagnostic is expected to drive footfall and enhance services. Chandan, with 40 lakh privilege card holders, will offer free basic blood tests (ESR, uric acid, CBC, lipid profile, LFT, RFT, thyroid) to Jeena Sikho's customers, and their NABL-accredited labs will support health insurance claims. Jeena Sikho will offer up to 30% cashback to patients on medicines and hospital admissions, leveraging Chandan's network and diagnostic capabilities. Chandan is investing Rs. 10 crores and more into setting up diagnostic centers, including full-fledged VIP centers with advanced imaging.

Cautious Approach to Government Business

Management expressed a cautious stance on expanding government business (RGHS/CGHS) due to concerns about payment delays and a lengthy TAT (turnaround time) of two and a half months with the current government portal. The focus remains on the private sector and health insurance segments, which offer better cash flow and operational efficiency. A trial will be conducted once a new government portal is launched to assess payment timelines before aggressive expansion.

International Expansion and Franchise Model

Jeena Sikho has initiated international expansion, with operations already profitable in Nepal and Dubai (Abu Dhabi). The company is also planning to launch a franchise model for hospitals, aiming to open at least 50 new franchise hospitals next month without direct investment, focusing on a revenue-sharing model. This strategy is intended to accelerate growth and market penetration across India and internationally.

Accounting Changes and Credibility

The company migrated to Ind-AS and engaged Grant Thornton for accounting, leading to some restatements and adjustments in financial reporting. Management emphasized that this move, along with the GT stamp, addresses previous doubts about the company's profitability and reinforces its authenticity as a genuine company.

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