Global Health Limited — Q4 FY25 earnings call

Call held 16 May 2025

Management summary

Global Health (Medanta) delivered a steady FY25 performance characterized by double-digit revenue growth and strong margins in its developing units. The company is entering an aggressive growth phase, planning to double its bed capacity to ~6,000 beds via a ₹4,000 crore capex program. Management remains confident in the ramp-up of new facilities like Noida and Ranchi while maintaining healthy cash surpluses to fund expansion.

Highlights

  • FY25 Consolidated Income reached ₹37,714 million, a 13% YoY growth.

  • FY25 EBITDA stood at ₹9,562 million with a margin of 25.4%.

  • Q4 FY25 EBITDA margin expanded to 26.0% from 24.7% in the previous year.

  • Adjusted PAT for FY25 was ₹5,186 million, up 9% YoY, after excluding merger-related costs.

  • Announced a massive expansion plan to add ~3,000 beds over the next 3-4 years with a ₹4,000 crore outlay.

  • Noida facility (550 beds) is on track to become operational in Q2 FY26.

  • Board recommended the first-ever dividend of 25% (₹0.5 per share).

  • Developing hospitals (Lucknow and Patna) registered a 30% EBITDA margin for the full year.

Key financials

  1. Total Income 37,714 Mn +13%YoY
  2. EBITDA Margin 25.4%
  3. Adjusted PAT 5,186 Mn +9%YoY
  4. ARPOB ₹62,722 +1.3%YoY
  5. Occupancy Rate 62%
  6. Net Cash Surplus 8,123 Mn

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
37,059 Mn Total
  • Mature Hospitals 26,119 Mn 70.5%
  • Developing Hospitals (Lucknow & Patna) 10,940 Mn 29.5%

Guidance & targets

Capacity

  • Bed Additions Capacity · next 2 years · High confidence 1,000 beds
    As we look ahead, we plan to add approximately 1,000 beds over the next 2 years

    — Dr. Naresh Trehan, Chairman

  • Noida Facility Operationalization Capacity · Q2 FY26 · High confidence 550 beds
    our Noida facility with a capacity of 550 beds is set to become operational in Q2 FY26.

    — Dr. Naresh Trehan, Chairman

  • Ranchi O&M Hospital Capacity · Q1 FY26 · High confidence 110 beds
    we expect to operationalize this in the first quarter of FY26. This is in addition to our existing 200-bed hospital in Ranchi.

    — Pankaj Sahni, Group CEO

  • Guwahati Project Cost Capacity · next 3 years · Medium confidence ₹500 crores
    the total cost is approximately about INR 500 crores. And like with most greenfields that should take us about 3 years or so to get going.

    — Pankaj Sahni, Group CEO

Capex

  • Total Expansion Outlay Capex · next 3 to 4 years · High confidence ₹4,000 crores
    We have earmarked the total capital outlay of around INR 4,000 crores for this expansion, which includes both the capacity addition and ancillary support services

    — Yogesh Gupta, CFO

Pricing

  • Tariff Hikes Pricing · FY26 · Medium confidence Nominal/Inflation-linked
    we will be taking some tariff hikes... referring to maybe stick to numbers which are near about maybe the routine inflation.

    — Pankaj Sahni, Group CEO

Risks & concerns

  • ARPOB Dilution from Payer Mix

    medium

    Increased share of PPP and government scheme patients in Patna and Lucknow has led to a 4% YoY decline in ARPOB for developing units.

    Both acknowledged

  • Project Execution Timelines

    medium

    Greenfield projects like Mumbai and Pitampura have long lead times (~3 years), making near-term growth dependent on existing facility ramp-ups.

    Management acknowledged

  • Competitive Intensity in NCR and Lucknow

    low

    Management believes the 'rising tide lifts all boats' and that these regions are becoming medical hubs, absorbing new capacity.

    Analyst downplayed

Areas of evasion (1)

  • Specific transplant volume numbers were not available off-hand during the call.

Q&A highlights

3 direct
Capex and Bed Expansion Clarification Direct
Yes, I said INR 4,000 crores.

Confirms the massive scale of investment intended to double the company's capacity, a key driver for long-term valuation.

Asked by Vinayak Mohta, Axia Asset

ARPOB Growth Trajectory Direct
Typically... we did see it in the single-digit maybe mid-level single-digit time, which is broadly in sync with how it moves globally, a little bit more than inflation.

Sets expectations for organic revenue growth per bed, indicating that volume and case mix will be more significant drivers than aggressive pricing.

Asked by Damayanti Kerai, HSBC

Status of Indore Project Direct
I said that it was more appropriate to say that we just put it on the back burner from a disclosure point of view... because we don't have a very clear time line on the legal case.

Reveals a strategic pivot/delay in a previously announced project due to legal uncertainties, providing clarity on the current capex pipeline.

Asked by Alankar Garude, Kotak Institutional Equities

2 min read 5 chapters

Detailed narrative

Aggressive Capacity Expansion Roadmap

Medanta is embarking on a significant expansion phase, aiming to double its current bed capacity by adding approximately 3,000 beds over the next 3 to 4 years. This growth is backed by a ₹4,000 crore capital outlay, which includes ₹450 crores for maintenance capex. Key projects include a 550-bed facility in Noida, a 500+ bed hospital in Mumbai, and a 750-bed super specialty hospital in Pitampura, Delhi.

Operational Performance of Mature vs. Developing Units

Mature hospitals saw revenue growth of 11% in FY25, reaching ₹26,119 million with a steady 25% EBITDA margin. Developing units (Lucknow and Patna) registered 10% revenue growth to ₹10,940 million and achieved a superior EBITDA margin of 30%. However, ARPOB in developing units declined by 4% to ₹54,303, primarily due to a higher mix of PPP and government scheme patients in Patna and Lucknow.

Strategic Entry into Noida and Guwahati

The Noida facility is a major upcoming milestone, set to operationalize 550 beds in Q2 FY26. Management highlighted that Noida has historically been underserved in terms of quality hospital beds despite a dense population. Additionally, the board approved a new 400-bed project in Guwahati with an estimated cost of ₹500 crores, aiming to serve the entire Northeastern region of India.

Financial Strength and Capital Allocation

The company ended FY25 with a strong net cash surplus of ₹8,123 million, providing a solid foundation for its expansion plans. Total consolidated income grew 13% to ₹37,714 million, while adjusted PAT rose 9% to ₹5,186 million. Reflecting this financial health, the board recommended its first-ever dividend of 25%, amounting to ₹0.5 per share.

Clinical Milestones and Technology Investment

Medanta continues to invest in high-end clinical capabilities, having performed over 100 robotic procedures in Lucknow within six months. The group also achieved milestones in CAR-T cell therapies and secured a patent for a brachytherapy device (MAOLO) for cervical cancer. International patient revenue grew by 8% YoY to ₹2,086 million, contributing roughly 6% of total revenue.

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