Global Health Limited — Q3 FY26 earnings call

Call held 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

  • 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

  1. Total Income 11,428 Mn +19%YoY
  2. EBITDA (incl. Noida) 2,494 Mn
  3. EBITDA Margin (excl. Noida) 25.4%
  4. Adjusted PAT 1,224 Mn
  5. ARPOB ₹67,361 +10%YoY
  6. Occupancy Rate 59%

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
11,014 Mn Total
  • Mature Hospitals (Gurugram, Indore, Ranchi) 7,020 Mn 63.7%
  • Developing Hospitals (Lucknow, Patna - excl. Noida) 3,651 Mn 33.1%
  • Noida Hospital 343 Mn 3.1%

Guidance & targets

Margin

  • Mature Hospital EBITDA Margin Band Margin · Long-term · High confidence 22-25%
    I have maintained for a long time that anything in the range of 22% to 25% is very strong performance for a system like this.

    — Pankaj Sahni, Group CEO

Revenue

  • ARPOB Growth Revenue · Annual · Medium confidence 5-7%
    we have always maintained that ARPOB's growth is 5% - 7% a year as opposed to what we have seen maybe in the last three, four years where we have seen much higher growth.

    — Pankaj Sahni, Group CEO

Capex

  • FY27 Capex Outlay Capex · FY27 · Medium confidence < ₹500 crores
    next year CAPEX is probably, below Rs.500 crores would be our estimate.

    — Pankaj Sahni, Group CEO

Capacity

  • Noida Bed Addition Capacity · Next 1 year · High confidence 200+ beds
    given the fact that we are expected to add another 200+ beds here over the next one year

    — Pankaj Sahni, Group CEO

  • Brownfield Expansion Potential Capacity · Medium-term · High confidence 496 beds
    potential to add 496 beds through Brownfield expansions, including 193 beds at Lucknow, 81 beds at Patna and 222 beds at Noida.

    — Pankaj Sahni, Group CEO

Risks & concerns

  • War for Clinical Talent

    medium

    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

  • Statutory Labor Code Implementation

    medium

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

    Management acknowledged

  • Regulatory and Approval Delays

    low

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

    Management acknowledged

Areas of evasion (1)

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

Q&A highlights

3 direct
Noida EBITDA Loss Trajectory Direct
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

Relationship with Insurers and Pricing Power Direct
Neither can we survive without the insurance companies, neither can the insurance companies survive without the providers... we have been successful in closing out many of these contracts and many of these negotiations.

Addresses sector-wide concerns regarding hospital-insurer friction and confirms Medanta's ability to renegotiate tariffs successfully.

Asked by Nitin Agarwal, DAM Capital

Mature Hospital Margin Compression Direct
what you see as the margin of the individual units is a little bit deflated because of the corporate costs... all our corporate costs are loaded in our Gurgaon unit.

Explains the apparent margin gap between mature and developing units, revealing that mature unit profitability is structurally higher than reported due to cost allocation.

Asked by Naman Bagrecha, IIFL Capital Service

2 min read 5 chapters

Detailed narrative

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.

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.

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.

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.

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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