Global Health

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.

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 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.

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.

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.