Unihealth Hosp

Unihealth Hospitals Limited delivered a very strong financial performance in H1 FY26. Consolidated total income grew by 55% to INR70 crore, with EBITDA more than doubling to INR35 crore. This led to a significant expansion in EBITDA margin by 1,212 basis points, reaching 49.76%. The consolidated net profit more than tripled to INR28.6 crores, and profit attributable to equity shareholders increased from INR5.12 crores to INR15.1 crores, resulting in an improved EPS of INR9.8. This robust performance is attributed to rising patient volumes, broader specialty coverage, and steady execution across India and Africa.

The company's India expansion is progressing as planned with an asset-light model. The 52-bed facility in Navi Mumbai was commissioned in October 2025, following minor delays due to statutory approvals. For FY26, Navi Mumbai is targeted to achieve an annualized revenue of over INR30 crores with 60-70% occupancy. The upcoming 200-bed Nashik hospital, equipped with advanced medical infrastructure, is expected to be commissioned early next calendar year (Jan/Feb 2026), targeting an annualized revenue of INR100 crores with 50% occupancy in its first full year. Combined, these Indian facilities are targeted to achieve INR125 crores in top line for the next financial year, with an initial EBITDA margin of 15-18%.

Africa remains a strong pillar of performance, with Uganda contributing the largest share of growth. The Uganda unit achieved an ARPOB of over 40,000+ in H1 FY26, significantly up from 24,000-25,000 last year, with an occupancy rate of approximately 72% on its 120 beds. This growth was driven by the addition of super specialties like IVF, ICU beds, and increased frequency of Indian doctors conducting surgical camps. Furthermore, the Uganda business benefits from a 10-year income tax holiday effective July 1, 2024, which is a significant tax saving for the company. The company aims for Uganda's ARPOB to reach 55,000-60,000 in the next 12 months.

Consolidated receivables stood at INR112 crores as of September 30, 2025, with a major portion (INR82.08 crores) from the Uganda People's Defense Forces, which has a payment cycle of 9-13 months. However, the company notes that these payments are eventually from the Government of Uganda and have historically been reliable. With the expansion in India, the company plans to focus on cash and insurance patients, expecting receivable days to be within 30-45 days. In Tanzania, payments from the National Health Insurance Fund (NHIF) are expected within 75-100 days. These changes are anticipated to reduce the consolidated trade receivable days going forward^⏳.

Beyond Uganda, Unihealth is expanding its African footprint. A new secondary care hospital in Mwanza, Tanzania, is expected to be operational by the end of this financial year. The company is also in advanced stages of discussions to take over the operational management of a 100-bed tertiary care specialty hospital in Tanzania, aiming for it to be effective from April 1, 2026. Overall, Unihealth plans to add another 400+ beds in Africa over the next two to three years. The company's integrated India-Africa model aims for a 1,000-bed platform by the end of calendar year 2027 (FY27-28).

The consultancy vertical continues to be a strong contributor, currently managing over 1,300 beds across India and Africa. This segment adds high-margin revenue, strengthens institutional partnerships, and expands the project pipeline. The company is in discussions for an additional 600-650 beds in terms of total project size, awaiting financial closure from investors. Unihealth is also involved in a large project in Pune (14 acres, 1.2 million sqft) as a project management consultant, with commissioning expected in 3.5-5 years. Pune is also targeted for a 125+ bed tertiary care facility expansion in the next financial year.