Global Health Limited — Q1 FY26 earnings call

Call held 8 Aug 2025

Management summary

Global Health reported a strong Q1 FY26, with robust revenue and EBITDA growth driven by increased patient volumes and improved realizations across both mature and developing hospitals. The company is actively expanding its network with the operationalization of the Ranchi hospital and the upcoming launch of the Noida facility. While new unit costs and scheme patient mix impacted some metrics, management remains focused on clinical excellence and strategic capacity expansion.

Highlights

  • Total income grew 19% YoY to ₹1,051.3 crores in Q1 FY26, driven by sustained patient volumes and improved realizations.

  • EBITDA increased 23% YoY to ₹255.3 crores, with an improved EBITDA margin of 24.3% for the quarter.

  • Profit after tax (PAT) surged 50% YoY to ₹159.0 crores, with PAT margins improving to 15.1% from 12% in the prior year, partly due to a non-recurring exceptional income of ₹19.6 crores.

  • Overall inpatient and outpatient volumes increased by 14% and 13% YoY respectively, contributing to a 13% rise in average occupied bed days and 63% occupancy.

  • The new 110-bed hospital in Ranchi was operationalized in July 2025, and the 550-bed Medanta Noida facility is poised to commence operations in the coming weeks, enhancing capacity and regional presence.

Concerns

  • Noida operational costs of approximately ₹3.0 crores were incurred in Q1 FY26 without corresponding revenue, impacting overall profitability in the developing hospitals segment.

  • Lucknow ARPOB declined by 11% YoY due to a 17% increase in ALOS, primarily driven by a higher share of scheme patients.

  • Margin reduction in Matured Hospitals was largely attributed to salary increments in Q1, a typical seasonal impact.

Key financials

  1. Total Income ₹1,051.3 Cr +19%YoY
  2. EBITDA ₹255.3 Cr +23%YoY
  3. EBITDA Margin 24.3%
  4. PAT ₹159 Cr +50%YoY
  5. PAT Margin 15.1%
  6. ARPOB (Overall) ₹66,584 +4%YoY

What they filed

Q1 FY27: revenue up 26.5%, net profit down 1.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue957 943 931 1,031 1,099 +15%1,121 +19%1,159 +24%1,304 +26%
EBITDA228 238 225 247 231 +1%217 −9%244 +8%287 +16%
Net profit131 143 101 159 158 +21%95 −34%142 +41%157 −1%
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 Total Income
₹1,022.5 Cr Total
  • Matured Hospitals ₹700.6 Cr 68.5%
  • Developing Hospitals ₹321.9 Cr 31.5%

Capital allocation

high confidence
  • Capex Capex disclosed
    • Noida facility commissioning (550 beds)
    • Ranchi new hospital operationalization (110 beds)
    • Interior fit-out and commissioning for Tower B in Patna
    • Interior fit-out and commissioning for two floors in Lucknow
    • Broader expansion pipeline (2,000 beds over 3-4 years, 1,000 beds over near term)
    Furthermore, we look forward to commissioning of our 550-bed Medanta Noida facility, which is poised to commence operation in the coming weeks. This landmark addition to our network will significantly enhance our capacity, strengthen our presence in the National Capital Region and further our mission of delivering world-class healthcare to a broader community. As a result of our focus on delivering the highest standard of quality care, we have been able to deliver strong financials and operational performances during this quarter. In July 2025, we successfully operationalised our 110-bed hospital in Ranchi, further deepening our presence in the eastern region of India and enabling access to high-quality healthcare in an underserved market. Interior fit-out and commissioning for Tower B in Patna and two floors in Lucknow is in progress, which will add additional capacity in these locations. Our broader expansion pipeline now includes 2,000 beds over the course of three to four years. These projects are in various stages from design to execution and are aligned with our strategy to scale in high-demand markets. Over the near term, we aim to add 1,000 beds supported by the development of advanced medical technology and expansion of clinical teams.
  • Liquidity Liquidity disclosed Company has a good amount of cash on books, which will be used for investments in latest technology and build-out of existing four hospitals (two in Delhi, Mumbai, Guwahati), in addition to potential acquisitions.
    So, we are very much open to acquisitions, and I will just qualify that to confirm that acquisitions of every kind of variety, the pure typical M&A which we are maybe more used to in the financial world but also acquisitions in the nature of O&M contracts, asset-light models, etcetera, that we've seen gain popularity in this industry. So, absolutely looking into the appropriate acquisitions... The second use for the cash, which we have on hand, would be to continue to double down on our investments in the latest technology. And also, let's not forget, we do still have a good amount of cash to be spent as we think about the build-out of the existing four hospitals, that's two hospitals in Delhi, Mumbai, as well as then Guwahati.

Guidance & targets

Capacity

  • Total Bed Expansion Capacity · three to four years · High confidence 2,000 beds
    Our broader expansion pipeline now includes 2,000 beds over the course of three to four years.

    — Pankaj Sahni

  • Near-Term Bed Expansion Capacity · near term · High confidence 1,000 beds
    Over the near term, we aim to add 1,000 beds supported by the development of advanced medical technology and expansion of clinical teams.

    — Pankaj Sahni

  • Noida Initial Operational Beds Capacity · initial · High confidence 300 beds
    As we have told earlier will start from 300 beds, as and when demand increase will go upto 550.

    — Pankaj Sahni

  • Noida Full Operational Beds Capacity · as demand increases · Medium confidence 550 beds

    — Pankaj Sahni

Operational Timeline

  • Noida Facility Operationalization Operational Timeline · coming weeks · High confidence operational in coming weeks
    We are excited about the upcoming launch of our 550-bed Medanta Noida facility, which is expected to be operational in the coming weeks.

    — Pankaj Sahni

  • Expansion Projects Build-out (South Delhi, Mumbai, Pitampura) Operational Timeline · overall level · Medium confidence 3-4 years
    As far as timelines, I would say that at the overall level, just like with our Noida project, things typically take in the range of three to four years to get built out.

    — Pankaj Sahni

ARPOB Growth

  • Annualized ARPOB Growth ARPOB Growth · annualized · Medium confidence 3-7%
    But when we look at this on an annualized basis, we do see typically anywhere in the range of at least in the Medanta ecosystem, maybe 3% to 7% is our normal.

    — Pankaj Sahni

Revenue Mix

  • International Business Contribution (Gurgaon) Revenue Mix · current · High confidence 11-12%
    Then to answer your question that approximately I would say 11% to 12% of our business in Gurgaon comes from international.

    — Pankaj Sahni

Patient Mix

  • PPP Business Share (Patna) Patient Mix · future · Medium confidence 25%

    From 15-17% today

    So, just to clarify on the PPP first, our PPP business in Patna is somewhere in the range of about 15% to 17% of our total volumes. So, to answer your question, have we reached the maximum of 25%? The answer is no.

    — Pankaj Sahni

Cost

  • Noida Operational Cost Cost · Q1 FY26 · High confidence ₹3.0 crores
    So, Noida operational cost right now only includes about INR3 crores of cost in Q1 as EBITDA expenses, basically.

    — Pankaj Sahni

What to watch in Q2 FY26

Noida Facility Operationalization & Bed Ramp-up

next quarter
Current Expected in coming weeks, initial 300 beds planned
Target Commercial operations commenced, initial 300 beds active and scaling

Why it matters

Noida is a significant new capacity addition, and its successful ramp-up is crucial for future growth and revenue contribution.

We are excited about the upcoming launch of our 550-bed Medanta Noida facility, which is expected to be operational in the coming weeks.

Risks & concerns

  • Seasonality impact on occupancy

    medium

    Seasonality typically impacts Q2 and Q3, not significantly Q1.

    Management acknowledged

  • Challenges in international business

    medium

    Challenges in Afghanistan, Iraq, and Bangladesh have impacted international business, though offset by growth from other areas like Africa and CIS countries.

    Management acknowledged

  • Infrastructure limitations in older facilities

    low

    Old Ranchi building had infrastructure challenges, which the new facility helps address by allowing specialization and renovation.

    Management addressed by new facility

Q&A highlights

6 direct
Operational cost of Noida and Ranchi Direct
So, Noida operational cost right now only includes about INR3 crores of cost in Q1 as EBITDA expenses, basically. There's no revenue there. As we move forward, Tushar, it really depends on how we scale up the unit. Ranchi, on the other hand, will be mostly supported by the existing unit as far as the administrative and overhead costs go. So most of the costs in the new unit at Ranchi will only really be for the clinical nursing teams.

Provides initial cost impact for new facilities and clarifies the cost structure for Ranchi's new unit.

Asked by Tushar Manudhane

Deployment of newly onboarded doctors Direct
Yes, so I would say that the majority of the 150 doctors is actually for our existing units. That includes almost all the units, Gurgaon, Lucknow, Patna, even some additions in Indore and Ranchi. The addition for the new unit in Ranchi will be very negligible. And in Noida, it will be hardly about 15 to 20 doctors. So most of the 150 doctors that you see are actually all for the existing units.

Clarifies that the majority of new doctor hires are strengthening existing operations, with fewer allocated to new units initially.

Asked by Tushar Manudhane

ARPOB and margin reduction in Matured Hospitals Partial
So, I think that the margin reduction is largely the impact of the salary increments which come in typically in quarter one... Yes. So ARPOB has seen actually a good amount of growth. What we've seen is that across many of the specialties in Gurgaon, we've seen some amount of realization growth. And then of course, as with the country and the industry as a whole, a lot of work moving towards oncology in terms of the sales mix. So, that has a natural growth towards ARPOB. Also, certain efforts have been made on ALOS management, which we continue to do.

Explains the drivers behind margin changes (salary increments) and ARPOB growth (realization, specialty mix, ALOS management) in mature units.

Asked by Tushar Manudhane

Reason for depreciation and amortization cost reduction Direct
There are certain assets which have completed their life, like computers, etc. When they complete their life, their current depreciation becomes zero. And plus building life, which was taken as 30 years, has been revised now in the industry standard to 60 years, but that impact is very minimal.

Clarifies that the reduction is due to asset lifecycle completion and a minor accounting change, not a fundamental shift in asset base.

Asked by Bino Pathiparampil

Noida Hospital bed operationalization strategy Direct
So, for operationalizing any hospital, you need basically three, four of the key areas to be operational. Of course, we need the ward beds, we need the ICU beds, but more importantly than that, we need the operation theatres and the cath labs and the basic support systems beyond beds to be operational. So, we are currently planning to operationalize with approximately five OTs in the next few days and then two cath labs... we had mentioned that we would start out with 300 beds... we will continue to build that out over the next months... will just continue the buildout over the next few months and hopefully complete it as soon as possible.

Provides detailed insight into the phased operationalization strategy for Noida, focusing on critical infrastructure first and then scaling beds.

Asked by Damayanti Kerai

Plans for tariff hikes Partial
Yes, maybe. We will possibly look at some amount of tariff hike in Gurgaon as we come into the two years from our last tariff hike, especially with respect to the insurance companies, etcetera. Those contracts will need to get renewed. We've also never taken a tariff increase in Lucknow or Patna. And we may consider a tariff increase there. But these are also maybe not, it is not like it may be blanket, it may be in certain specialties, certain areas.

Indicates potential for future tariff hikes in Gurgaon, Lucknow, and Patna, which could drive ARPOB growth.

Asked by Damayanti Kerai

Ranchi Hospital operation strategy (independent vs unified campus) Direct
this hospital is very near to our existing hospital and we do intend to operate them both as one kind of unified campus. So we will not be looking at them as completely independent. We will operate them as a unified campus. We will also look at, which are the specialties, which will move to the new hospital, which one will remain in the older hospital.

Clarifies the strategy for the new Ranchi hospital as an integrated part of the existing campus, allowing for specialization and renovation of older facilities.

Asked by Harith Ahamed

Capital allocation for cash on books (acquisitions vs organic growth) Direct
So, we are very much open to acquisitions, and I will just qualify that to confirm that acquisitions of every kind of variety, the pure typical M&A which we are maybe more used to in the financial world but also acquisitions in the nature of O&M contracts, asset-light models, etcetera, that we've seen gain popularity in this industry. So, absolutely looking into the appropriate acquisitions... The second use for the cash, which we have on hand, would be to continue to double down on our investments in the latest technology. And also, let's not forget, we do still have a good amount of cash to be spent as we think about the build-out of the existing four hospitals, that's two hospitals in Delhi, Mumbai, as well as then Guwahati.

Outlines the company's capital allocation priorities, balancing inorganic growth (acquisitions) with organic expansion and technology investments.

Asked by Amey Chalke

2 min read 6 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

Global Health reported a strong start to FY26 with total income reaching ₹1,051.3 crores, a 19% year-on-year growth. EBITDA increased 23% year-on-year to ₹255.3 crores, achieving an improved margin of 24.3%. Profit after tax (PAT) surged 50% year-on-year to ₹159.0 crores, with PAT margins improving to 15.1% from 12% in the prior year, partly due to a non-recurring exceptional income of ₹19.6 crores.

Operational Growth and Patient Volumes

The company experienced sustained growth in patient volumes, with inpatient volumes increasing by 14% and outpatient volumes by 13% year-on-year. Average occupied bed days rose by 13%, leading to an overall occupancy of approximately 63% on increased bed capacity. Average revenue per occupied bed (ARPOB) grew by 4% year-on-year to ₹66,584, primarily driven by higher realizations in Gurugram and a favorable specialty mix. Revenue from international patients also saw a significant 34% increase to ₹63.6 crores.

Matured Hospitals Performance

Matured hospitals, primarily Gurugram, delivered an 11% year-on-year growth in total income to ₹700.6 crores. EBITDA for this segment grew by 7% to ₹164.0 crores, with a margin of 23.4%. Inpatient volume growth was 6% year-on-year, and ARPOB improved by 9% to ₹73,256, supported by increased realizations and efforts in ALOS management, which saw a 4% decline. Margin reduction was attributed to typical Q1 salary increments.

Developing Hospitals Momentum and Expansion

The developing hospitals segment, including Lucknow and Patna, demonstrated robust growth, with total income up 36% year-on-year to ₹321.9 crores and EBITDA soaring by 60% to ₹94.2 crores, maintaining strong margins at 29.3%. Average occupied bed days increased by 39%, resulting in 64% occupancy. While Lucknow's ARPOB declined by 11% due to increased scheme patients and ALOS, Patna's ARPOB improved by 8% due to ALOS reduction. The new 110-bed Ranchi hospital became operational in July 2025, and 20 beds were added in Patna.

Noida Facility Commissioning and Ramp-up

The 550-bed Medanta Noida facility is expected to commence operations in the coming weeks. The company has already onboarded over 230 employees, including 15-20 doctors for Noida, with plans to start with 300 beds and scale up to 550 based on demand. Initial operational costs for Noida in Q1 FY26 were approximately ₹3.0 crores. The facility will be operationalized in phases, starting with critical areas like operation theatres and cath labs, with continuous build-out over several months.

Strategic Expansion and Capital Allocation Outlook

Global Health's broader expansion pipeline includes adding 2,000 beds over the next three to four years, with 1,000 beds targeted in the near term. This includes ongoing interior fit-out for Tower B in Patna and two floors in Lucknow. The company is actively exploring acquisitions, including asset-light models, that align with its ecosystem, geographical strategy, and quality of care. Capital will also be deployed for investments in advanced medical technology and the build-out of existing projects in Delhi, Mumbai, and Guwahati.

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