MEDANTA - Global Health Limited Share Price

In the Q1 FY26 earnings conference call, management provided a positive outlook for Global Health Limited "“ Medanta, emphasizing robust growth and significant expansions. Key forward-looking points included:

1. Operational Capacity Expansion: A new 110-bedded hospital in Ranchi commenced operations in July 2025 under a long-term lease. The significantly anticipated 550-bed Medanta Noida facility will start operations in the coming weeks, enhancing service in the National Capital Region.

2. Growth in Financial Performance: Total income for Q1 FY26 was INR 10,513 million, up 19% from INR 8,830 million in the same quarter of the previous year. EBITDA rose 23% to INR 2,553 million with a margin of 24.3%, while profit after tax increased by 50% to INR 1,590 million, supported by an exceptional income of INR 196 million.

3. Patient Volume Growth: Inpatient volumes increased by 14% and outpatient volumes by 13% year-on-year. Average occupied bed days rose 13%, with bed occupancy at approximately 63%.

4. Financial Health: The matured hospitals segment reported a 11% growth in total income, while developing hospitals saw a robust 36% increase. Over one quarter, the international patient segment generated INR 636 million, a 34% uplift year-on-year.

5. Strategic Development Pipeline: Management outlined an ambitious expansion plan aiming for 2,000 additional beds over the next three to four years, focusing on high-demand markets and technology advancements to support sustainable growth.

This proactive strategy reinforces their commitment to enhancing healthcare accessibility and operational excellence, with a balanced approach towards profitability and patient care.

1. Question: "Sir, do you have any expansion plan of 500-550 beds in Noida Hospital?"
Answer: "As of now, we have only planned for 550 beds in Medanta Noida. We'll start with 300 beds, and as demand increases, we'll scale it up to 550."

2. Question: "With respect to the additional operational cost of Noida and Ranchi, how much should we factor for a full year?"
Answer: "Currently, Noida incurs approximately INR 3 crores of operational cost for Q1 as EBITDA expenses, with no revenue yet. Ranchi's costs will be largely covered by existing units, primarily for clinical teams."

3. Question: "There's been a reasonable increase in ARPOB year-over-year in Matured Hospital. What's the reason for the reduction in margins?"
Answer: "The margin reduction is mainly due to salary increments, which are common in Q1. While ARPOB saw growth from specialist work and efficiencies, employee costs have affected margin performance."

4. Question: "How do you open beds in the Noida Hospital? What occupancy level triggers the opening of further beds?"
Answer: "We'll start with 300 operational beds immediately. We need several key areas operational, such as OTs and ICUs. The occupancy level will dictate future expansion, but we won't pause construction and will maintain growth momentum."

5. Question: "In the developing hospital segment, why did we see a decline in ARPOB?"
Answer: "In Lucknow, ARPOB fell about 11% due to increased scheme patient admissions, resulting in longer ALOS. Conversely, Patna's ARPOB grew by 8%, driven by efficiency improvements and shorter stays."

6. Question: "What are the timelines for new hospital projects in South Delhi, Mumbai, and Pitampura?"
Answer: "No specific timelines yet. Typically, projects take 3-4 years for completion. We are progressing on approvals in these locations, but I cannot provide exact dates for commissioning."

7. Question: "What is the current cash position and how will you utilize it going forward?"
Answer: "We are open to acquisitions and will focus on adding appropriate assets. Additionally, we plan to invest in new technologies and expand our existing hospitals, ensuring a robust approach to growth."