Sat Kartar — Q4 FY26 earnings call

Call held 7 May 2026

Management summary

Sat Kartar Life Limited reported a strong FY26, with revenue exceeding ₹200 crores and significant growth in EBITDA and PAT. The company is strategically expanding into the hospital segment, with its first 30-bed facility operational and ambitious targets for bed count and revenue. While facing initial working capital challenges and pending regulatory approvals for its US subsidiary, management remains confident in achieving aggressive growth and margin expansion through product diversification, AI integration, and strategic collaborations.

Highlights

  • Revenue for FY26 crossed ₹200 crores, marking a 23% YoY growth.

  • EBITDA increased by 73% and PAT by 74%, reaching ₹17 crores for FY26.

  • Ambitious product revenue targets set at ₹300 crores for FY27 and ₹500 crores for FY28.

  • Successfully operationalized the first 30-bed Ayurveda hospital in Delhi, with plans to expand to 300 beds by end of 2026.

  • AI integration has already yielded a 4-5% improvement in ROI, enhancing efficiency.

Concerns

  • Cash inflow for FY26 was less than PAT, and working capital was impacted in H1 due to transitional activities.

  • The current 30-bed hospital is not yet at break-even, operating at ₹50,000/day against a target of ₹100,000/day, pending certifications and insurance tie-ups.

  • RBI approval for the US subsidiary is still pending, though operations can commence without it.

Key financials

  1. Revenue ₹200 Cr +23%YoY
  2. EBITDA Growth 73% +73%YoY
  3. PAT Growth 74% +74%YoY
  4. PAT ₹17 Cr
  5. Subsidiary Revenue ₹1.2 Cr

What they filed

Q4 FY26: revenue up 48.0%, net profit up 150.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue75 76 87 90 111 +48%
EBITDA6 6 9 10 15 +150%
Net profit4 4 6 7 10 +150%
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.

Capital allocation

high confidence
  • Capex ₹40 Cr Internal accruals from product and hospital businesses, with debt as a fallback option.
    • 1000-bed hospital expansion ₹40 Cr
    • Factory for capsule production ₹1.25 Cr
    Presently, the first hospital which we made was with a CAPEX requirement of 7-8 Lakhs per bed. But when I say 7-8 Lakhs per bed, I always take that even the gestation period till the hospital starts running, the pre-operative expenses through which it comes to 7-8 Lakhs per bed, but a facility can get operational with 3-4 Lakhs of bed cost. So taking, if I take benchmark as 4L and rest, I take it as a working capital, the 4L into 1000 would be the capex required, 40 crores.
  • Debt Debt disclosed
    Eventually, if at all, if there is a shortfall in the working capital that would be funded from presently, the plan is from a debt. Presently, the plan to further dilute the company and raise the fund is not there.
  • M&A Plantomed Acquisition · Closed

    100% Plantomed being taken into the fold, US operations. Product range has been set, and various accounts into the marketplace are underway to roll out the sales in US.

    The subsidiary acquisition is now complete, with the 100% Plantomed being taken into the fold, US operations.
  • Liquidity Cash ₹45 Cr 45 crores raised for the first phase of hospital development.
    we raised a capital we would be with another 45 crores into the bank, which would help us build up the first phase of hospitals.

Guidance & targets

Revenue

  • Product Revenue Revenue · FY27 · High confidence ₹300 crores
    Numbers, you must have had a look. It has been a nice year, 2026 with the revenue growing 23% crossing the 200 mark, which was our first vision for the first year after IPO. EBITDA by 73% and PAT by 74% and this eventually gives a benchmark for our next two years, numbers, which I've been always saying, is crossing 300 and crossing 500 in the next and the following year.

    — Manprit Singh Chadha

  • Product Revenue Revenue · FY28 · High confidence ₹500 crores

    — Manprit Singh Chadha

  • Subsidiary Revenue Revenue · FY27 · High confidence ₹25-30 crores
    Between 25 to 30 crores.

    — Manprit Singh Chadha

Capacity

  • Hospital Bed Count Capacity · end of 2026 · High confidence 300 beds
    June is the time, or the last few days of May, when we hope to break even this and then move to our second phase of moving to the 300 beds which we are actually envisaging by the end of this year.

    — Manprit Singh Chadha

  • Hospital Bed Count Capacity · long term · Medium confidence 1000 beds
    If we see the total beds in Ayurveda, probably Jeena Sikho maybe has 2800 beds, KRM Ayurveda has close to 200 beds, we have 30 for the time being, but 300 and then 1000 is not far.

    — Manprit Singh Chadha

  • Hospital Bed Count (collaboration) Capacity · FY27 · High confidence 150-200 beds
    definitely 150 to 200 in this year would be something in collaboration with them.

    — Manprit Singh Chadha

Profitability

  • Hospital Break-even Revenue (30-bed hospital) Profitability · end of May/June · High confidence ₹100,000 per day
    the break-even for that hospital is around a revenue of 1L a day. We are already at around Rs. 50,000 today.

    — Manprit Singh Chadha

Margin

  • Hospital Margin (60% occupancy) Margin · long term · High confidence 30-35%
    Hospital business at a occupancy of 60% should give us margin ranging from 30 to 35%

    — Manprit Singh Chadha

  • Blended PAT Margin Margin · H1 FY28 · High confidence 18-20%
    the blended rate, including the hospital revenue in the first half of 2028 we should be crossing 18 to 20%.

    — Manprit Singh Chadha

  • Product PAT Margin (200-300 Cr revenue) Margin · current · High confidence 11-12%
    In those 30% we are targeting anywhere between 11 to 12%.

    — Manprit Singh Chadha

Efficiency

  • Advertisement Spend % of Revenue Efficiency · current · High confidence 38%

    Previously 40-42% → 38%

    This is not going to reduce. This is going to remain around 40. The best benchmark could be 38.

    — Manprit Singh Chadha

ARPOB

  • Average Revenue Per Occupied Bed (ARPOB) ARPOB · current · High confidence ₹10,000+ per bed per day
    our budgeting is an all our projections are on Rs. 10,000 plus per bed per day.

    — Manprit Singh Chadha

What to watch in Q1 FY27

30-bed Hospital Break-even

end of May/June
Current ₹50,000 per day
Target ₹100,000 per day

Why it matters

Achieving break-even for the first hospital is crucial for validating the hospital business model and future expansion plans.

June is the time, or the last few days of May, when we hope to break even this and then move to our second phase of moving to the 300 beds which we are actually envisaging by the end of this year.

Risks & concerns

  • Cash inflow less than PAT

    medium

    Cash inflow was less than PAT in FY26, attributed to H1 working capital impact from transitional activities like hospital setup and acquisitions.

    Management acknowledged

  • Delay in RBI approval for US subsidiary

    low

    RBI approval for the US subsidiary is pending, which is a time-consuming activity, but it does not prevent the company from starting operations in the US.

    Management acknowledged

  • 30-bed hospital not yet at break-even

    low

    The newly operational 30-bed hospital is currently at ₹50,000/day revenue, below the ₹100,000/day break-even target, pending certifications and insurance tie-ups.

    Management acknowledged

Q&A highlights

7 direct
Business model and stake in Ajooni Wellness vs. Ajooni Life Sciences Direct
Ajooni Wellness does nothing. It just holds a shares of Sat Kartar Shopping. That's promoters company. It doesn't do any business. Ajooni Life Sciences is actually 100% subsidiary of Sat Kartar Life and Ajooni Life Sciences is a company; Sat Kartar Life has been into the product segment with a high ticket size, into the primarily diseases for de-addiction, men's wellness, ortho, piles, into these diseases and diabetes, but Ajooni Life Sciences is more into nutraceuticals in which we have a different range by the Veda bay with the ticket size ranging from 900 to 1200.

Clarifies the distinction between a promoter holding company and a 100% subsidiary, and their respective business focuses.

Asked by Mitansh Chheda

Capital required for 1000-bed hospital expansion Direct
taking, if I take benchmark as 4L and rest, I take it as a working capital, the 4L into 1000 would be the capex required, 40 crores.

Provides a specific capex figure for the ambitious 1000-bed hospital expansion plan.

Asked by Mitansh Chheda

Revenue recognition from Jeena Sikho collaboration vs. own hospitals Partial
Yes, true. I would, instead of 100% I would recognize 15% but try to understand that this 15% would have not been with me for the next two years. Today, after two years, if I open if this year, I open 300 beds, those would become operational, say, after seven months, and 300 beds would not cater to complete North India of my data. So why not I help grow through those 3000 beds? That's a dead revenue for me.

Analyst questions the lower revenue share (15%) from collaboration, management justifies it as incremental revenue from a larger existing network.

Asked by Divy Agrawal

Working capital and cash flow challenges in FY26 H1 Direct
in H1 we actually with the kind of a transition, our numbers, our inventory buildup, and working capital cycles and cash generations got a hit because of the hospital coming up, the factory coming up, the Plantomed acquisition going on. Now, if you see, these things have stabilized in most of the most of the parameters and ratios. And in fact, they have started improving. Apart from inventory days, which has marginally increased by 12 to 15 days, all other parameters of the working capital have actually improved on H1 to H2 basis.

Acknowledges a specific financial challenge (cash flow/working capital) and explains the reasons, indicating improvement in H2.

Asked by Vansh Saini

Funding strategy for future hospital expansion (1000 beds) Direct
we raised a capital we would be with another 45 crores into the bank, which would help us build up the first phase of hospitals. And the cash generation in the hospitals, plus the cash generation coming from this company, will help in rebuilding the second phase of hospitals. Eventually, if at all, if there is a shortfall in the working capital that would be funded from presently, the plan is from a debt. Presently, the plan to further dilute the company and raise the fund is not there.

Clarifies the funding sources for future expansion, emphasizing internal accruals and debt over equity dilution.

Asked by Darshil Jhaveri

RBI approval status for US subsidiary Direct
Yeah, RBI approval is not there for the subsidiary, which, so it's actually not a subsidiary yet. But yes, the RBI, all documentation has been done for the direct investment overseas direct investment. We are waiting for the approval, but that approval is more of a like there's no red flag in that approval. It's just that it's a time consuming activity. But that does not stop us from actually starting operations in that company in US.

Highlights a pending regulatory approval that could delay the formal integration of the US subsidiary, though operations can proceed.

Asked by Shruti Malpani

ROI improvement from AI usage Direct
Yeah, with the current trial, we are getting a better ROI today by another 4 to 5% but as we scale, this ROI will further improve.

Quantifies the positive impact of AI on the company's efficiency and profitability.

Asked by Shruti Malpani

Subsidiary revenue contribution and targets Direct
26 would be not the right number to quote as these are growing companies, but as of March 26 the revenue which poured in from these subsidiaries was 1.2 crores, Between 25 to 30 crores.

Provides current and future revenue expectations from the company's growing subsidiary businesses.

Asked by Bhaskar Kanrar

3 min read 7 chapters

Detailed narrative

Strong FY26 Performance and Ambitious Growth Targets

Sat Kartar Life Limited delivered a robust performance in FY26, with revenue crossing ₹200 crores, marking a 23% year-on-year growth. This was complemented by significant improvements in profitability, with EBITDA increasing by 73% and PAT by 74% to reach ₹17 crores. Building on this momentum, management has set aggressive product revenue targets of ₹300 crores for FY27 and ₹500 crores for FY28, driven by existing business growth, new subsidiary contributions, US market entry, and efficiency gains from AI.

Strategic Entry into the Hospital Segment

The company has made a strategic entry into the healthcare services sector by operationalizing its first 30-bed Ayurveda hospital in Delhi. This facility is currently generating ₹50,000 per day and aims to reach a break-even revenue of ₹100,000 per day by the end of May or June 2026, pending crucial government empanelment and insurance tie-ups. Sat Kartar plans to rapidly scale its hospital footprint to 300 beds by the end of 2026 and further to 1000 beds in the long term, with an estimated capex of ₹40 crores for the 1000-bed expansion.

Collaboration with Jeena Sikho for Market Penetration

Sat Kartar has forged a non-exclusive collaboration with Jeena Sikho, a prominent player with 2800 Ayurveda beds in North India. This partnership aims to leverage Jeena Sikho's clinical expertise and customer base to drive patient flow to Sat Kartar's clinical outlets. While Jeena Sikho will charge a management fee for this, Sat Kartar retains customer data in the South and plans to open its own branded hospitals in South India (Tamil Nadu, Karnataka, Andhra Pradesh), with 150-200 beds expected in collaboration with Jeena Sikho in FY27.

Product Portfolio Diversification and Margin Expansion

The company is actively diversifying its product portfolio through its 100% subsidiary, Ajooni Life Sciences, which focuses on nutraceuticals with a ticket size of ₹900-₹1200. The acquisition of Plantomed, focusing on low-ticket diabetes products, is complete, and an in-house factory for capsule production is operational. Management targets a blended PAT margin of 18-20% by H1 FY28, with product business margins expected to be 11-12% and hospital margins at 30-35% at 60% occupancy, a significant improvement from the current 8.5-9% PAT margin.

Capital Allocation and Funding Strategy

Sat Kartar has secured ₹45 crores in the bank to fund the initial phase of its hospital expansion. The company's strategy for future capital requirements emphasizes internal accruals generated from both its product and hospital businesses. While debt remains an option to cover any potential working capital shortfalls, management explicitly stated there are no current plans for further equity dilution, indicating a focus on sustainable, self-funded growth.

Operational Efficiency and AI Integration

The company is leveraging technology to enhance operational efficiency, with AI integration already yielding a 4-5% improvement in ROI. This focus on efficiency is expected to further improve as AI scales. Additionally, the establishment of an in-house factory for capsule production and the completion of the Plantomed acquisition underscore the company's efforts to strengthen its backward integration and product capabilities.

Working Capital Management and Subsidiary Growth

Working capital and cash flow experienced a temporary hit in H1 FY26 due to significant transitional activities, including hospital setup and acquisitions, but management noted improvements in H2. Receivables for hospital services are anticipated to be 30-40 days for insurance and potentially longer for government clients. The company's subsidiaries contributed ₹1.2 crores in FY26, with an ambitious target to grow this to ₹25-30 crores in FY27, highlighting their increasing importance to overall revenue.

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