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    PARKHOSPS

    PARKHOSPS
    Healthcare·13 May 2026
    Management Summary

    Park Medi World Limited delivered a strong Q4 and full-year FY26, achieving its highest-ever revenue and profit with significant capacity expansion. The company added 610 beds, including new units in Bathinda and Agra, and completed the acquisition of a 200-bed hospital in Narela. Financial performance was robust, marked by improved margins, occupancy rates, and a notable reduction in debtor days, while maintaining a strong balance sheet with minimal debt.

    Highlights

    6

    • FY26 Revenue of ₹1,679 crores, up 0.21 YoY

    • FY26 EBITDA of ₹444 crores, up 0.20 YoY, with 26% margin

    • FY26 PAT of ₹274 crores, up 0.27 YoY, with 16% margin

    • Bed capacity grew by 0.20 in FY26, adding 610 beds to reach 3,610

    • Q4 FY26 Network occupancy at 62.5%, up from 59.4% in Q4 FY25

    • Debtor days reduced significantly from 161 days in FY25 to 129 days in FY26

    Concerns

    2

    • ROCE (18%) and ROE (20%) were partly moderated by IPO-related equity infusion into the company

    • Standalone numbers dropped Q-o-Q due to Bathinda hospital becoming an independent subsidiary in January 2026

    Key financials

    Metrics

    22

    Periods

    2

    Q4 FY26

    9
    • Revenue
      ₹460 Cr
      YoY+30%
    • Operating EBITDA
      ₹127 Cr
      YoY+44%
    • Operating EBITDA Margin
      28%
    • PAT
      ₹77 Cr
      YoY+47%
    • PAT Margin
      17%

    FY26

    13
    • Revenue
      ₹1,679 Cr
      YoY+21%
    • EBITDA
      ₹444 Cr
      YoY+20%
    • EBITDA Margin
      26%
    • PAT
      ₹274 Cr
      YoY+27%
    • PAT Margin
      16%

    Capital allocation

    5
    high confidence
    CategoryHeadline
    Capex

    ₹430 crores

    Debt

    Gross ₹28 crores

    M&A

    200-bedded hospital in Narela

    acquisition · announced

    M&A

    Bathinda hospital

    acquisition · integrated

    Liquidity

    Cash ₹352 crores

    Bank balance increased from INR269 crores in FY'25 to INR352 crores, including FDs of INR314 crores in the current financial year. Close to INR100 crores in bank account.

    Guidance & targets

    15
    CategoryTargetPriority
    Capacity
    Total Bed Capacity
    5,460 beds
    		High
    Capacity
    Total Bed Capacity
    10,000+ beds
    		Medium
    Capacity
    Beds under execution operational
    1,500 beds
    		High
    Capacity
    Expansion in current financial year (FY27)
    850 beds
    		High
    Capacity
    Expansion in FY28
    1,000 beds
    		High
    Commissioning
    Panchkula Greenfield
    Commissioned
    		High
    Commissioning
    Narela Hospital
    Commissioned
    		High
    Commissioning
    Rohtak Hospital
    Commissioning
    		High
    Revenue
    CGHS Rate Hike Impact
    7-7.5% appreciation
    		Medium
    Revenue
    CGHS Rate Hike Impact (Total Revenue)
    5-6%
    		Medium
    Payor Mix
    Government Insurance vs. Private
    70% government, 30% private
    		Medium
    Break-even
    Greenfield Break-even
    12-15 months
    		Medium
    Recovery
    Greenfield Recovery
    3-4 years
    		Medium
    Profitability
    Agra Hospital EBITDA
    EBITDA positive
    		High
    Debtor Days
    Debtor Days
    below 100 days
    		Medium

    CGHS rate hike impact on Q1 FY27 revenue

    next quarter (Q1 FY27 results)
    CurrentExpected 7-7.5% appreciation for 9 months in FY27
    TargetRealized revenue appreciation in Q1 FY27

    Why it matters

    This is a significant tailwind, and its actual realization will confirm management's projections.

    Yes, some flowing of that rate has come in, but actual impact probably will be seen after the Q1 FY'27, to be honest, in the complete format.

    How to verify

    key_financials.metrics[label='Revenue (Q1 FY27)'].yoy_growth

    Risks & concerns

    1
    RiskSeverity

    Receivable cycle for government insurance schemes

    Historically, government payments took longer, but improved collection discipline and government push are reducing debtor days from 161 to 129, with a target below 100 days. — Both acknowledged

    medium

    Q&A highlights

    8

    “Yes, Dikshant, this is mainly because of high occupancy. Because the addition, if I talk about the expansion, the hospital that we added, we added Bathinda, we added Agra in the last year. So Agra we just started from Feb, and Bathinda we started only from May. So this is mainly, that the existing hospital that is running, and we have a better occupancy, that led to higher margin.”

    Clarifies that existing hospitals' higher occupancy, rather than new additions, drove Q4 margin improvement.

    asked by Dikshant Gupta

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Financial Performance in FY26

    Park Medi World Limited achieved its highest-ever financial performance in FY26, with revenue reaching INR1,679 crores, a 21% year-on-year growth. Operating EBITDA stood at INR444 crores, up 20% YoY, with a margin of 26%. PAT grew by 27% to INR274 crores, translating to a 16% margin. The company also reported robust ROCE of 18% and ROE of 20%, partly moderated by IPO-related equity infusion.

    02

    Significant Capacity Expansion and Network Growth

    FY26 was a defining year for capacity expansion, with 610 new beds added, representing over 20% growth and bringing the total network to 3,610 beds. This included a 250-bed facility in Bathinda and a 360-bed unit in Agra. The company also completed the acquisition of a 200-bedded hospital in Narela and commissioned its largest Greenfield facility in Panchkula (350 beds) in April 2026.

    03

    Operational Excellence and Patient Volume Growth

    The company demonstrated strong operational metrics, with network occupancy for Q4 FY26 at 62.5%, an improvement from 59.4% in Q4 FY25. Full-year occupancy reached 64.1%, a 244 basis points increase year-on-year. IPD volumes grew by 18% to 95,525 patients, and OPD volumes increased by 22% to 7.78 lakh patients, serving a total of 8.7 lakh patients in FY26. ARPOB also improved to INR29,725 in Q4 FY26 and INR28,000 for the full year.

    04

    Capital Efficiency and Debt Management

    Park Medi World maintains a strong balance sheet, with gross term loan outstanding significantly reduced to INR28 crores as of March 31, 2026, from INR450 crores in FY25, with plans to repay the remaining debt in the current quarter. The company generated INR329 crores in operating cash flow and holds substantial liquidity with bank balances of INR352 crores, including INR314 crores in FDs. Capex for FY26 was INR430 crores, with future capex for the next two years projected at INR500 crores, funded primarily through internal accruals.

    05

    Strategic Expansion and Payor Mix Evolution

    The company is strategically expanding its presence, particularly in Uttar Pradesh, aiming for 5,460 beds by March 2028 and over 10,000 beds by FY33. Management noted strong demand in Tier-2/3 cities, validating their cluster-based expansion model. The payor mix is gradually shifting, with a target of 70% government insurance and 30% private insurance within 12-18 months, supported by strong collection efficiency that reduced debtor days from 161 to 129. The recent CGHS rate hike is expected to boost FY27 revenue by 7-7.5% for nine months.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.