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    Global Health

    MEDANTAGood
    Healthcare·5 Feb 2026
    Management Summary

    Global Health (Medanta) delivered a strong operational performance in Q3 FY26, characterized by double-digit revenue growth and significant traction in international business. While consolidated margins were temporarily compressed by the initial ramp-up losses at the new Noida facility and a one-time labor code impact, the core mature and developing clusters continue to show high operating leverage. Management remains focused on brownfield expansions and specialized clinical programs to drive long-term value.

    Highlights

    7

    • Total income reached ₹11,428 million, representing a robust 19% YoY growth.

    • EBITDA (excluding Noida) grew 11% YoY to ₹2,814 million with a healthy margin of 25.4%.

    • Noida facility completed its first full quarter, generating ₹343 million in revenue with an EBITDA loss of ₹320 million.

    • ARPOB increased by 10% YoY to ₹67,361, driven by improved case mix and ALOS reduction to 3.02 days.

    • International patient revenue saw strong momentum, growing 30% YoY to ₹703 million.

    • Consolidated PAT stood at ₹950 million, impacted by a one-time statutory labor code cost of ₹366 million; adjusted PAT was ₹1,224 million.

    • Net cash position remains strong at approximately ₹600 crores (Cash >₹1,200 crores vs Debt ~₹600 crores).

    Key financials

    Single quarter

    06 metrics
    1. 01Total Income11,428 Mn+19%YoY
    2. 02EBITDA (incl. Noida)2,494 Mn
    3. 03EBITDA Margin (excl. Noida)25.4%
    4. 04Adjusted PAT1,224 Mn
    5. 05ARPOB₹67,361+10%YoY

    Segment breakdown

    • Mature Hospitals (Gurugram, Indore, Ranchi)7,020 Mn63.7%
    • Developing Hospitals (Lucknow, Patna - excl. Noida)3,651 Mn33.1%
    • Noida Hospital343 Mn3.1%
    Donut· Share of Revenue

    Guidance & targets

    5
    CategoryTargetPriority
    Margin
    Mature Hospital EBITDA Margin Band
    22-25%
    		High
    Revenue
    ARPOB Growth
    5-7%
    		Medium
    Capex
    FY27 Capex Outlay
    < ₹500 crores
    		Medium
    Capacity
    Noida Bed Addition
    200+ beds
    		High
    Capacity
    Brownfield Expansion Potential
    496 beds
    		High

    Risks & concerns

    4
    RiskSeverity

    War for Clinical Talent

    Management noted a 'war for talent' in the industry, which could lead to higher employee costs and retention challenges over the next 3-4 years. — Both acknowledged

    medium

    Regulatory and Approval Delays

    Specific projects like Pitampura and certain machines in Noida (Radiation Oncology) are awaiting final regulatory/AERB approvals. — Management acknowledged

    low

    Statutory Labor Code Implementation

    A one-time impact of ₹366 million was recorded this quarter; while one-time, it highlights regulatory compliance risks. — Management acknowledged

    medium

    Areas of Evasion(1)

    • Specific timeline for Noida EBITDA breakeven (cited policy against guiding on future earnings).

    Q&A highlights

    3

    “I hope so that we have seen the peak of the losses... we are seeing now, especially December and as we move into January, a better run rate trajectory on the revenue.”

    Investors were concerned about the drag from the new Noida facility; management suggests the worst of the operational losses is likely over.

    asked by Bansi Desai, J.P. Morgan

    2 min read5 chapters

    Detailed Narrative

    01

    Noida Hospital Operationalization and Ramp-up

    Medanta Noida completed its first full quarter of operations in Q3 FY26, generating ₹343 million in revenue. The facility reported an EBITDA loss of ₹320 million, which management believes represents the 'peak' loss period as clinical onboarding and infrastructure activation stabilize. The hospital added 102 beds during the quarter, bringing the total to 328 beds, with plans to add another 200+ beds over the next year. Management noted that Noida's ARPOB is currently higher than the Gurgaon flagship, though this is expected to normalize as the payer mix balances out with more insurance and panel contracts.

    02

    Financial Performance and One-time Statutory Impacts

    Consolidated revenue grew 19% YoY to ₹11,428 million, driven by strong inpatient volumes (up 14%) and outpatient volumes (up 20%). However, PAT was significantly impacted by a one-time📎 statutory charge of ₹366 million related to the implementation of new labor codes. Excluding this exceptional item📎, PAT would have been ₹1,224 million. The company maintains a very healthy balance sheet with a net cash position of approximately ₹600 crores, providing significant headroom for its ₹3,000 crore five-year expansion plan.

    03

    Network Expansion and Project Pipeline

    The company is aggressively pursuing both brownfield and greenfield expansions. In Guwahati, barricading is complete and drawings are submitted for approval, while land acquisition is finalized for the Mumbai project. Construction is underway in South Delhi following site surveys. Management highlighted a meaningful headroom for growth within the existing network, with the potential to add 496 beds through brownfield expansions at Lucknow, Patna, and Noida with minimal incremental CAPEX.

    04

    Operational Efficiency and Case Mix Improvements

    Operational metrics showed significant improvement, with ARPOB rising 10% YoY to ₹67,361. This was supported by a 7% reduction in Average Length of Stay (ALOS) to 3.02 days and an increasing mix of complex procedures, including robotics and oncology. The international patient segment also performed exceptionally well, growing 30% YoY to ₹703 million. Management expects ARPOB growth to stabilize in the 5-7% range annually going forward⏳, moving away from the high double-digit growth seen in the immediate post-COVID period.

    05

    Mature vs. Developing Hospital Dynamics

    The 'Developing' cluster (Lucknow and Patna) continues to outperform, recording 22% revenue growth and superior EBITDA margins of 31.7%. In contrast, 'Mature' units (Gurugram, Indore, Ranchi) reported a 23.9% margin. Management clarified that mature margins are optically lower because the entire group's corporate costs are loaded onto the Gurugram unit. If these costs were allocated across the network, the margin profile between mature and developing units would be more balanced. Management targets a long-term margin band of 22-25% for mature facilities.

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