Unihealth Hosp

Unihealth Hospitals Limited delivered a strong FY26, with consolidated total income increasing by 34.6% to INR137 crores. This growth was accompanied by a nearly 49% rise in EBITDA to INR58.8 crores, leading to an EBITDA margin expansion of over 400 basis points to 42.9%. Profit attributable to shareholders also saw a significant increase of approximately 83% to INR25.8 crores, reflecting robust operational performance and effective execution across the organization.

In FY26, Unihealth achieved significant expansion milestones, including the commissioning of its Navi Mumbai hospital, finalizing the lease for a 200-bed facility in Nashik, and acquiring UMC Hospital in Entebbe, Uganda. These initiatives collectively doubled the company's overall bed capacity from approximately 200 beds at the beginning of FY26 to around 400 beds today. The company aims to further expand to 1,000 commissioned beds by calendar year 2028, with approximately 600 beds expected to be operational by the end of FY27.

The company's Uganda operations experienced a dip in H2 FY26, with revenue declining by approximately 17% and PBT by almost 46%. This underperformance was primarily attributed to the extended Christmas holiday period (December 10 to mid-January) and the country's general elections on January 5th, which reduced elective patient volumes. Additionally, significant infrastructural expansion and maintenance expenses incurred during H2 contributed to the PBT decline, as fixed costs remained constant despite lower revenue.

The Navi Mumbai facility, soft-launched in October 2025, became fully operational in mid-February 2026 after receiving critical ICU licenses. It is targeted to achieve operational breakeven by the end of Q2 FY27 (September 30, 2026), with an anticipated ARPOB of INR32,000-35,000, revised upwards from earlier estimates. The Nashik facility is expected to receive its hospital registration license within 5-10 days and commence commissioning by the first week of July 2026, aiming for operational breakeven within 12 months of its commissioning.

Unihealth projects a top line of INR250-300 crores for FY27, aiming to double its revenue. While FY26 saw a high EBITDA margin of 42.9%, future consolidated EBITDA margins are expected to normalize to the early 30s as new, initially loss-making facilities ramp up. PAT margins are also projected to be around 12-odd percent in the future, down from FY26 levels, primarily due to increased finance costs and depreciation associated with new investments and leasehold assets.

In India, Unihealth is focusing on 50-200 bed multi-specialty tertiary care facilities, differentiating itself from larger players by offering agility and flexibility. The strategy involves providing state-of-the-art infrastructure comparable to larger hospitals, competitive pricing, and daily/weekly payment settlements for doctors. This approach aims to attract doctors in the 35-50 age bracket and patients seeking quality, cost-effective care, leveraging the founders' medical network to build brand equity and ensure sustainable growth.

The company is actively working to reduce its receivable days, which were impacted by delays in government payments in Q4 FY26 due to general elections. Unihealth expects to receive INR9-10 crores in payments soon, with a larger chunk anticipated in July. The strategy involves new ventures like Navi Mumbai, Nashik, and Tanzania having lower receivable days, which is expected to strengthen the consolidated balance sheet and cash flows over the next 4-6 quarters, reducing Uganda's current 80-85% contribution to total revenue.