Global Health Limited — Q2 FY26 earnings call

Call held 10 Nov 2025

Management summary

Global Health delivered a robust Q2 FY26 performance characterized by double-digit revenue and profit growth despite the initial drag from the newly launched Noida facility. The company is aggressively expanding its footprint, notably increasing its Mumbai project capacity by 50% and commencing construction in Guwahati. Management remains focused on high-complexity clinical work, which is driving ARPOB improvements across both mature and developing units.

Highlights

  • Consolidated Total Income reached ₹11,189 million, representing a strong 15% YoY growth.

  • Profit After Tax (PAT) grew 21% YoY to ₹1,584 million, with PAT margins improving to 14.2%.

  • Medanta Noida commenced operations in September 2025 with 226 operational beds; reported initial EBITDA loss of ₹197 million.

  • Consolidated ARPOB increased by 6% YoY to ₹65,570, driven by a 10% ARPOB growth in mature hospitals.

  • International patient revenue surged 49% YoY to ₹762 million, fueled by increased patient volumes.

  • Mumbai project capacity expanded from 500 to 750 beds following additional FSI approval, with a revised project cost of ₹15,300 million.

  • Developing hospitals (Lucknow, Patna, Noida) delivered 30% YoY revenue growth, with Lucknow seeing 30% IP volume growth.

Concerns

  • Government Payor Receivables

Key financials

  1. Total Income 11,189 Mn +15%YoY
  2. EBITDA (including Noida) 2,607 Mn +6%YoY
  3. EBITDA Margin (including Noida) 23.3%
  4. PAT 1,584 Mn +21%YoY
  5. ARPOB (Consolidated) ₹65,570 +6%YoY
  6. Occupancy Rate 64%

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 Revenue
10,770 Mn Total
  • Matured Hospitals (Gurugram, Indore, Ranchi) 7,200 Mn 66.9%
  • Developing Hospitals (Lucknow, Patna, Noida) 3,570 Mn 33.1%

Guidance & targets

Capacity

  • Mumbai (Oshiwara) Bed Count Capacity · by completion · High confidence 750

    Previously 500 → 750

    We are pleased to share that we have received additional FSI approval, enabling us to expand our plans from a 500 to 750-bed super specialty hospital.

    — Dr. Naresh Trehan, Chairman and Managing Director

  • Guwahati Hospital Bed Count Capacity · by completion · High confidence 400+
    We also announced plans to establish a 400+ bed super specialty hospital in Guwahati to serve the entire Northeast region.

    — Dr. Naresh Trehan, Chairman and Managing Director

Capex

  • Mumbai Project Cost Capex · by completion · High confidence ₹15,300 million
    The Board has approved a new project cost of INR 15,300 million to cater to the increased bed count of 750 beds.

    — Pankaj Sahni, Group CEO

Profitability

  • Noida Operational Breakeven Profitability · next 12 to 18 months · Medium confidence within 12-18 months
    But I think in the next, let's say, 12 to 18 months, we should see a good kind of performance coming out of here from our quality of work.

    — Pankaj Sahni, Group CEO

Risks & concerns

  • Government Payor Receivables

    high

    Debtor days for CGHS/ECHS are 7-9 months compared to 80-90 days for the general credit business, impacting working capital.

    Both acknowledged

  • Noida Ramp-up Drag

    medium

    Noida reported a ₹197 million EBITDA loss in its first month; management expects continued costs as more beds and OTs are operationalized.

    Management acknowledged

  • Competitive Intensity in NCR

    medium

    Management claims no significant attrition in Gurugram despite competition and believes Medanta's brand recall in NCR will aid Noida's success.

    Analyst downplayed

Areas of evasion (2)

  • Specific quantitative impact of CGHS revisions on total revenue.
  • Exact timeline for Noida breakeven.

Q&A highlights

1 direct
Mature Hospital EBITDA Growth Direct
Ranchi is part of the mature group that includes about 110 beds of new facilities. So there is some amount of expenses, which go into the launching of that new facility.

Explains why mature hospital EBITDA growth (2.2%) lagged revenue growth due to expansion costs and a high base from the previous year's vector-borne disease season.

Asked by Tushar Manudhane, Motilal Oswal

CGHS Rate Revision Impact Partial
In some of the bigger departments like Cardiology or Cancer, we've seen maybe 5% to 10% growth in different procedures... the biggest challenge, frankly, with this business remains the payments and the collections.

Highlights that while rate revisions are positive, the financial benefit is tempered by chronic payment delays (7-9 months) from government payors.

Asked by Amit Thawani, Clear Blue Capital

Noida Breakeven and Cost Structure Partial
In Noida, I think a lot of the doctors have come in sooner within the first month itself... And that is part of the reason why you're looking at some of that cost.

Reveals that Noida's initial high costs are due to front-loading senior clinical talent, which management believes will lead to a faster ramp-up.

Asked by Damayanti Kerai, HSBC

2 min read 5 chapters

Detailed narrative

Noida Launch: Front-Loading Talent for Faster Ramp-up

Medanta Noida commenced operations in September 2025, marking a major milestone as the group's sixth facility. Unlike previous launches where hiring was staggered, Noida onboarded over 150 doctors, including 30 senior directors, in its first month. This strategy resulted in an initial EBITDA loss of ₹197 million on revenue of ₹39 million, but management expects this 'firepower' to accelerate the ramp-up of its 226 currently operational beds. The facility is equipped with high-end tech like the Da Vinci Xi robot and a 3 Tesla MRI, aiming for a 12-18 month breakeven trajectory.

Mumbai Expansion: Capitalizing on FSI Approvals

The Mumbai (Oshiwara) project has seen a significant scope increase from 500 to 750 beds following additional FSI approvals. This expansion has raised the approved project cost to ₹15,300 million, which includes land, construction, and medical equipment. Management is focused on creating one of Western India's most advanced facilities, with construction activities expected to commence shortly after recent FSI payments. This project represents a major capital commitment and a strategic pivot to higher-ARPOB metro markets.

Mature Hospital Dynamics and Pharmacy Restructuring

Mature hospitals reported 5% YoY revenue growth, which improves to 7.9% when adjusting for the transfer of the Gurugram OPD pharmacy business to a subsidiary. ARPOB in this segment grew a healthy 10% to ₹73,447, driven by a favorable change in specialty mix. However, EBITDA growth was muted at 2.2% due to expansion costs at the Ranchi unit (110 new beds) and a high base effect from unseasonably high vector-borne disease volumes in Indore during the previous year.

Developing Portfolio: Strong Volume Momentum

The developing hospital segment (Lucknow and Patna) continues to be a growth engine, with revenue up 28% YoY (excluding Noida). Lucknow achieved a remarkable 30% growth in inpatient volumes with occupancy reaching 67% on an expanded bed base. Patna added 37 new beds in Q2, bringing the H1 total to 57. Management highlighted that these units are successfully transitioning to more complex work, evidenced by the introduction of robotic surgery in Patna and oncology services in Lucknow.

Payor Mix and CGHS Revision Realities

While the government recently revised CGHS rates, management cautioned that the impact is nuanced and varies by procedure (5-10% in major departments). The primary concern remains the 'debtor days' for government business, which stretch to 7-9 months compared to the 80-90 day average for private credit business. Despite these delays, Medanta remains committed to the 11-12% revenue contribution from CGHS/ECHS, viewing it as a social commitment supported by their large-scale operational model.

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