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    Nephrocare Health Services Q1 FY27 earnings call

    NEPHROPLUS
    Healthcare·12 Aug 2026
    Management Summary

    Nephrocare Health Services Limited reported a strong Q1 FY27, with revenue growing 23.7% to INR282 crores and Adjusted EBITDA increasing 30.7% to INR65 crores, driven by robust patient growth and international expansion. Margins expanded significantly, with Adjusted EBITDA margin at 23.1% and PAT margin at 13.1%. The company continued its network expansion, adding 26 new clinics, and focused on operational efficiencies and technology adoption, though Saudi Arabia remains an investment-heavy market with uncertain timelines.

    Highlights

    5

    • Revenue grew 23.7% YoY to INR282 crores, driven by higher treatment volumes and international expansion.

    • Adjusted EBITDA grew 30.7% YoY to INR65 crores, with margins expanding 120 bps to 23.1% due to operating leverage and increased international business share.

    • Adjusted PAT grew 41.7% YoY to INR37 crores, with PAT margin improving to 13.1% from 11.4% in Q1 FY26.

    • Active patient count (guests) increased 13% to 38,262, and total treatments grew 13.3% to 10.3 lakhs.

    • Successfully added 26 new clinics (19 in India, 7 in Philippines), expanding global footprint to 550 clinics in 357 cities across 5 countries.

    Concerns

    3

    • Saudi Arabia operations are in an investment phase, with no clear visibility on tender timelines, implying potential for continued losses for 3-4 quarters.

    • Depreciation increased due to goodwill amortization from recent acquisitions in the Philippines.

    • Other expenses increased YoY due to costs associated with becoming a public company (audit, legal fees) and upfront investments in international business development.

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue₹282 Cr+23.7%YoY
    2. 02Adjusted EBITDA₹65 Cr+30.7%YoY
    3. 03Adjusted EBITDA Margin23.1%
    4. 04Adjusted PAT₹37 Cr+41.7%YoY
    5. 05Adjusted PAT Margin13.1%

    Segment breakdown

    International Operations
    45% Revenue Contribution
    List

    Capital allocation

    5
    high confidence
    CategoryHeadline
    Capex

    ₹44 crores

    Debt

    Debt disclosed

    M&A

    Philippines clinics

    acquisition · closed

    M&A

    India private clinics

    acquisition · closed

    M&A

    Uttarakhand PPP clinics

    divestment · closed

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue
    Medium-term growth guidance
    15-20%
    		High
    Revenue
    International revenue contribution
    inch up slowly
    		Medium
    Capacity
    New clinics in India
    40-50 clinics
    		High
    Capacity
    New clinics in Philippines
    10-15 clinics
    		High
    Market Expansion
    New international market entry
    1 new market
    		High
    Profitability
    Saudi Arabia operations profitability
    realize benefits
    		Low

    What to watch in Q2 FY27

    4

    Saudi Arabia tender progress and visibility

    next 3-4 quarters
    CurrentInvestment phase, 3-4 quarters away from clear visibility
    TargetClearer timelines for tendering process and potential for securing a cluster

    Why it matters

    Winning the Saudi tender is a binary event crucial for realizing returns on current investments and future growth in the region.

    So, it's, and given the volatile situation there also in that region right now, I think we are three to four quarters away from realizing any benefits or having a clear visibility, but I think this will be a journey or tendering process will go to next few quarters to come.

    Risks & concerns

    3
    RiskSeverity

    Uncertainty in Saudi Arabia tender process

    The Saudi market is tender-driven, and the timelines for the tendering process are not fully within the company's control, leading to uncertainty in realizing benefits. — Management acknowledged

    medium

    High working capital requirements

    The dialysis business structurally requires high working capital due to government payment cycles extending 3-4 months, though AR days have improved. — Management acknowledged

    low

    Upfront investment for international expansion

    Entering new international markets requires upfront investment in building capabilities and foundational activities before market operations begin. — Management acknowledged

    low

    Q&A highlights

    8

    “On the depreciation front, first of all, I just want to highlight our depreciation as a percentage of revenue has remained flat year-on-year, which is around 8.6% to 8.7%. To answer your question, we depreciate our machines anywhere between 7 to 10 years, depending on the country and the local regulatory requirement. ... in markets like Philippines, we have done seven acquisitions in the last quarter. For these acquisitions, we typically pay a goodwill which results in a, which we then split into intangibles which result in a slightly higher amortization, which result in a slightly higher depreciation, which then sort of dilutes over a period of time as we amortize it over a period of five to seven years, the goodwill amount.”

    Clarified the company's depreciation policy, asset life, and the impact of recent acquisitions on amortization.

    asked by Akshay Thakur

    3 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Financial Performance Highlights

    Nephrocare Health Services Limited commenced FY27 with robust financial performance. Revenue for Q1 FY27 grew by 23.7% year-on-year to INR282 crores, up from INR228 crores in Q1 FY26. This growth was primarily fueled by higher treatment volumes and the expanding international business. Adjusted EBITDA saw a significant increase of 30.7% to INR65 crores, leading to a 120 basis point expansion in the Adjusted EBITDA margin, reaching 23.1%. Adjusted PAT also surged by 41.7% to INR37 crores, with the PAT margin improving to 13.1% from 11.4% in the prior year.

    02

    Strategic Pillars: Quality, Accessibility, and Affordability

    The company's growth is underpinned by its commitment to three core pillars: quality of care, accessibility, and affordability. Quality is paramount, with a dedicated team reporting directly to the Chief Medical Officer, conducting monthly clinical audits across all clinics. Accessibility is addressed through consistent expansion beyond metro cities, with 17 new cities in India and 5 in the Philippines added this quarter. Affordability is ensured by a reimbursement-led business model, working closely with government health schemes and other payers to mitigate financial barriers for patients.

    03

    International Expansion and Market Dynamics

    International operations now contribute approximately 45% of the company's total revenue, up from 30% a year and a half ago, and this share is expected to continue growing. The Philippines market has been a strong validation of the NephroPlus India model, with 7 new clinics added this quarter, reaching 50 clinics across 39 cities in just 6 years. The company also incorporated a subsidiary in Kazakhstan to explore Central Asian opportunities. Revenue per treatment (RPT) increased by 9.2% to INR2,733, largely driven by the higher realizations in international markets, including a 55-60% price increase in the Philippines in October 2024.

    04

    Operational Efficiency and Technology Adoption

    NephroPlus is leveraging technology and AI to enhance operational efficiency and clinical outcomes. The company has deployed RFID technology to track fixed assets and machines, leading to more disciplined capital allocation and reduced depreciation costs in India. On the clinical front, the 'reform.ai' application uses CCTV and AI algorithms to ensure adherence to clinical protocols, with alerts generated for managers. The company is also working on a second attempt to predict adverse events proactively using clinical data, aiming to further reduce mortality.

    05

    Capital Allocation and IPO Proceeds Utilization

    The company continues to strategically deploy its IPO proceeds. As of June 2026, 68% (INR207 crores) of the fresh issue proceeds have been utilized for network expansion, center acquisitions, and repayment of term loans. Capital expenditure for Q1 FY27 amounted to INR44 crores, directed towards center acquisitions and growth. The company aims to open 40-50 clinics annually in India and 10-15 in the Philippines, alongside entering a new international market every 12-18 months.

    06

    PPP Model and Hospital Partnerships

    NephroPlus continues to engage in Public-Private Partnerships (PPP), deepening its footprint in Bihar and signing a new contract in Tamil Nadu. The company also divested two value-dilutive clinics under the Uttarakhand PPP. Hospitals partner with NephroPlus because the company offers scale and focus, allowing hospitals to free up operating bandwidth, avoid upfront capex, and ensure world-class quality dialysis, which is not a primary profit driver for them. The company's model allows it to run operations profitably where hospitals cannot, due to its specialized focus and scale.

    This is an AI-generated summary of a publicly available earnings call transcript.