Global Health Q4 FY26 earnings call

Global Health reported a strong Q4 FY26, with total income growing 25% year-on-year to INR 11,958 million. EBITDA, excluding Noida, increased by 27% year-on-year to INR 3,142 million, achieving margins of 27.5%. Profit after tax saw a significant 40% year-on-year growth, reaching INR 1,417 million, with the PAT margin improving to 11.8% from 10.6% in Q4 FY25. For the full year FY26, total income grew 20% to INR 45,089 million, and PAT increased 15.1% to INR 5,541 million, reflecting robust operational and financial performance across the network.

The 550-bed Noida facility, formally inaugurated in November 2025, continues its ramp-up, operationalizing 382 beds, 98 ICU beds, and 14 operating theaters. It achieved NABH accreditation within 6 months of operations and secured CGHS empanelment in May 2026. Financially, Noida reported a revenue of INR 525 million in Q4 FY26, with its EBITDA loss reducing to INR 236 million from INR 320 million in Q3 FY26, indicating steady operational improvement. Management expects the unit to break even in the second half of FY27, underscoring its strategic importance as a key asset.

Medanta significantly expanded its bed capacity by 20.5% year-on-year in FY26, adding 623 beds across Noida, Patna, and Ranchi. The company plans to add approximately 500 beds across existing hospitals in the short-term with minimum capex. Long-term expansion includes adding around 2,700 beds through 5 greenfield projects over the next 3-4 years, with a total project capex of INR 45,000 million over the next five years. Key projects include a 400-bed hospital in Varanasi, land acquisition for a 400-bed hospital in Guwahati, and progress on South Delhi, Mumbai, and Pitampura projects.

Operational performance remained robust, with inpatient count increasing by 16% and outpatient count by 19% year-on-year for FY26. Average Revenue Per Occupied Bed (ARPOB) grew 6.1% to INR 66,550, driven by improvements in Average Length of Stay (ALOS), which improved by 4% to 3.04 days. International patient revenue grew 33% year-on-year to INR 2,780 million for FY26, now contributing 7% to consolidated revenue. The company also onboarded over 550 doctors during FY26, including 200 senior clinicians, to enhance institutional capabilities and patient care delivery standards.

The company maintains a strong balance sheet with a net cash position of INR 5,906 million as of March 31, 2026, and generated operating cash flow of INR 7,144 million during FY26. Capex for FY27 is projected at INR 800-900 crores, reducing to INR 600-700 crores in FY28. Medanta recently acquired an 80-bed hospital in Indore, expected to be operational in Q2 FY27, to strengthen its oncology capabilities. The company continues to explore various M&A and O&M opportunities, guided by a philosophy of clinical excellence and strategic fit, ensuring disciplined growth.

Mature hospitals (Gurugram, Indore, Ranchi) delivered a 9% revenue growth and 7% EBITDA growth for FY26, with margins of 24.4%, slightly down due to employee costs but expected to stabilize in the 24-25% range. Developing hospitals (excluding Noida) showed strong performance, with 29% revenue growth and 35% EBITDA growth for FY26, improving margins to 31.5%. Management emphasized growth drivers beyond beds, including adding services, procedural capacity (e.g., 5-10 new procedural rooms in Gurgaon), and new therapies like robotic-assisted procedures, ensuring sustained growth across the network.