Jeena Sikho — Q4 FY25 earnings call

Call held 20 May 2025

Management summary

Jeena Sikho Lifecare delivered strong financial and operational performance in FY25, driven by robust growth in its service vertical and significant bed capacity expansion. The company is strategically shifting to an asset-light model through college tie-ups for future bed additions and is preparing to launch new OTC products. Management addressed concerns regarding government receivables and non-operational beds, outlining steps to mitigate risks and enhance transparency.

Highlights

  • Full Year FY25 Revenue grew 45% YoY to INR 469 crores.

  • H2 FY25 Revenue increased 53% YoY to INR 255 crores.

  • Full Year FY25 EBITDA grew 34% YoY to INR 124.88 crores, with a 27% margin.

  • Full Year FY25 PAT rose 31% YoY to INR 90.73 crores.

  • Service vertical revenue surged 84% YoY to INR 254 crores in FY25.

  • Total bed count reached 2173 by March 31, 2025, with 573 beds added in H2 FY25.

  • Occupancy rate for FY25 stood at 53%.

  • ROE was 39% and ROCE was 63% for FY25.

Key financials

3 periods

H2 FY25

  • Revenue
    ₹255 Cr
    YoY +53%

FY25

  • Revenue
    ₹469 Cr
    YoY +45%
  • EBITDA
    ₹124.88 Cr
    YoY +34%
  • EBITDA Margin
    27%
  • PAT
    ₹90.73 Cr
    YoY +31%
  • Occupancy Rate
    53%
  • Capex
    ₹42 Cr

FY25 end

  • Total Beds
    2,173 beds

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

Share of Revenue (FY25)
₹469 Cr Total
  • Service Vertical ₹254 Cr 54.2%
  • Product Vertical ₹215 Cr 45.8%

Guidance & targets

Capacity

  • Total Beds Capacity · FY26 end · High confidence 2800
    By the end of this year, it will be around 2800.

    — Manish Grover, Managing Director

  • Total Beds Capacity · March 31, 2027 · High confidence 3000+
    By 31st March, it will be 3000+.

    — Manish Grover, Managing Director

  • Total Beds Capacity · next 5 years · High confidence 10,000
    In the next 5 years, my plan is to reach 10,000 beds.

    — Manish Grover, Managing Director

  • Beds from College Tie-ups Capacity · within 3 to 6 months · Medium confidence 300
    Within 3 to 6 months, we will have about 300 beds added.

    — Manish Grover, Managing Director

  • Occupancy Rate Capacity · next year · Medium confidence 70-80%
    Sir, I want it to be 70-80.

    — Manish Grover, Managing Director

Revenue

  • Annual Sales Revenue · FY26 · High confidence INR 720 crores
    Sir, the way I have sold INR60 crores in April, If I hold this running, then INR720 crores will be the minimum, right?

    — Manish Grover, Managing Director

Profitability

  • PAT Margin Profitability · next year · Medium confidence 23-25%
    I hope that I will get a margin of 23%-25%.

    — Manish Grover, Managing Director

Product Launch

  • OTC Business Launch Product Launch · next 2-3 months · High confidence 2-3 months
    It will start in 2-3 months.

    — Manish Grover, Managing Director

International Expansion

  • Total International Centers International Expansion · future · High confidence 6
    We have planned to make a total of six.

    — Manish Grover, Managing Director

Receivables

  • Government Receivables Recovery Receivables · 3, 6 months · Medium confidence maximum recovery
    So, we hope that there will be a maximum recovery in 3, 6 months.

    — Manish Grover, Managing Director

Risks & concerns

  • Delays in government payments leading to high trade receivables

    medium

    INR 82 crores in government receivables as of March 31, 2025, with a 3-6 month payment cycle, impacting cash flow.

    Analyst acknowledged

  • Pending regulatory approvals for newly added beds hindering operational capacity

    medium

    Out of 2173 total beds, only 1600 were operational due to pending clinical certificates, NABH, and other registrations.

    Analyst acknowledged

  • Temporary reduction in margins due to recent investments and increased expenses

    low

    A slight 1.5% difference in margin is temporary due to increased business and 500 beds added, with expenses incurred before revenue generation.

    Management acknowledged

Q&A highlights

3 direct
Occupancy rate and operational vs. total beds Direct
By 31st March, we have increased the total number of beds by 2200. But, some of them did not get the clinical certificate. Some did not get the NABH. So, I could not take the patient there. Like, the one in Gurgaon was opened on 15th May... my operational beds were 1600.

Clarifies the discrepancy between reported total beds and actual operational capacity, highlighting regulatory hurdles and management's plan for clearer reporting.

Asked by Agastya Dev

New asset-light business model with Ayurvedic colleges and its impact on capex/ROI Direct
We have come up with a new idea. In India, there are a total of 600 Ayurvedic colleges... We have started talking to them. I have been finalized in three places. Within 3 to 6 months, we will have about 300 beds added. But our expenses will not be incurred in that. We will take over the entire college hospital. We will run it. It will cost them money.

Reveals a significant strategic shift towards an asset-light expansion model, potentially boosting capital efficiency and allowing for broader reach with lower price points.

Asked by Abhishek

Increase in government receivables and strategy to manage them Direct
Sir, the government business that we used to do, I have reduced it since April... I have put an email everywhere that if you give the previous money first, we will work later. The email reply came from 3 places that you don't stop the work, we are giving the payment... I have made up my mind that I will do business according to the monthly payment.

Addresses a key working capital concern, demonstrating management's proactive measures to reduce dependency on government payments and improve cash flow.

Asked by Keshav Lahoti

2 min read 5 chapters

Detailed narrative

Robust Financial Performance in FY25

Jeena Sikho Lifecare demonstrated strong financial growth in FY25. The company reported a 45% YoY increase in full-year revenue to INR 469 crores, with H2 FY25 revenue growing 53% YoY to INR 255 crores. EBITDA for FY25 stood at INR 124.88 crores, up 34% YoY, maintaining a healthy 27% margin. Net profit for the full year reached INR 90.73 crores, reflecting a 31% YoY growth. The company also highlighted a strong balance sheet with INR 26 crores in net cash equivalent, and achieved an ROE of 39% and ROCE of 63%.

Aggressive Bed Capacity Expansion and Occupancy Management

The company significantly expanded its bed capacity, adding 573 beds in H2 FY25 to reach a total of 2173 beds by March 31, 2025, up from 1277 in FY24. However, only 1600 of these beds were operational due to pending regulatory approvals, resulting in an overall occupancy rate of 53% for FY25. Management aims to improve occupancy to 70-80% in FY26 and targets 2800 beds by the end of FY26, with a long-term vision of 10,000 beds within the next five years.

Strategic Shift to Asset-Light Expansion Model

Jeena Sikho is implementing a new business model focused on tying up with Ayurvedic colleges to expand bed capacity without incurring significant capital expenditure. This strategy is expected to add approximately 300 beds within 3-6 months from initial agreements with Saraswati College and Sanskriti University. This approach leverages existing college infrastructure and staff, allowing the company to offer services at a lower price point (INR 6,000-7,000 per day) compared to its own hospitals (INR 9,000-10,000 per day), thereby enhancing ROI and market reach.

Service Vertical Drives Growth; Product Innovation and OTC Launch Planned

The service vertical was the primary growth engine, with revenue soaring 84% YoY to INR 254 crores in FY25, while the product vertical grew 16% to INR 215 crores. Management emphasized the higher margins and faster patient recovery in services. The company is also preparing to launch 10-15 new OTC products in the next 2-3 months, adopting a 'kit' model for products like Pet Saffa. The recently launched INJK Water device has already achieved sales of INR 1.5 crores per month, indicating strong product traction.

Managing Government Receivables and International Expansion

The company reported INR 82 crores in government receivables as of March 31, 2025, acknowledging a 3-6 month payment cycle. Management has taken proactive steps to reduce dependency on government business, including demanding prior payments and temporarily halting admissions for non-payment, expecting maximum recovery within 3-6 months. Concurrently, Jeena Sikho is pursuing international expansion, with one center already operational in Dubai and plans to open another within two months, aiming for a total of six international centers.

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