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    Global Health

    MEDANTA
    Healthcare·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

    5

    • 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

    3

    • 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.

    What Changed2

    vs Q2 FY26

    Guidance items4 → 10 (+6)Q&A highlights3 → 8 (+5)

    Key financials

    Single quarter

    06 metrics
    1. 01Total Income₹1,051.3 Cr+19%YoY
    2. 02EBITDA₹255.3 Cr+23%YoY
    3. 03EBITDA Margin24.3%
    4. 04PAT₹159 Cr+50%YoY
    5. 05PAT Margin15.1%

    Segment breakdown

    • Matured Hospitals₹700.6 Cr68.5%
    • Developing Hospitals₹321.9 Cr31.5%
    Donut· Share of Total Income

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    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.

    Guidance & targets

    10
    CategoryTargetPriority
    Capacity
    Total Bed Expansion
    2,000 beds
    		High
    Capacity
    Near-Term Bed Expansion
    1,000 beds
    		High
    Capacity
    Noida Initial Operational Beds
    300 beds
    		High
    Capacity
    Noida Full Operational Beds
    550 beds
    		Medium
    Operational Timeline
    Noida Facility Operationalization
    operational in coming weeks
    		High
    Operational Timeline
    Expansion Projects Build-out (South Delhi, Mumbai, Pitampura)
    3-4 years
    		Medium
    ARPOB Growth
    Annualized ARPOB Growth
    3-7%
    		Medium
    Revenue Mix
    International Business Contribution (Gurgaon)
    11-12%
    		High
    Patient Mix
    PPP Business Share (Patna)
    25%
    		Medium
    Cost
    Noida Operational Cost
    ₹3.0 crores
    		High

    Noida Facility Operationalization & Bed Ramp-up

    next quarter
    CurrentExpected in coming weeks, initial 300 beds planned
    TargetCommercial 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.

    How to verify

    detailed_narrative[title='Noida Facility Commissioning and Ramp-up']

    Risks & concerns

    3
    RiskSeverity

    Seasonality impact on occupancy

    Seasonality typically impacts Q2 and Q3, not significantly Q1. — Management acknowledged

    medium

    Challenges in international business

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

    medium

    Infrastructure limitations in older facilities

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

    low

    Q&A highlights

    8

    “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

    2 min read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.