MEDANTA - Global Health Limited Share Price

The management of Global Health Limited (Medanta) expressed a positive outlook during the Q4 FY26 Earnings Conference Call, highlighting impressive growth and advancements. Total income for FY26 reached INR 45,089 million, marking a 20% year-on-year increase. This included a 33% growth in international revenue, which amounted to INR 2,780 million. Key highlights include EBITDA margins improving to 25.7%, with profit after tax up by 15.1% to INR 5,541 million.

Notable future-focused points emphasized by management included the operational ramp-up of the Noida facility, which has 382 operational beds and is expected to break even in the second half of FY27. Management indicated that the Noida facility delivered revenues of INR 906 million with an EBITDA loss of INR 783 million in FY26, although losses decreased in Q4.

The organization plans to add approximately 500 beds across existing facilities and expand through five greenfield projects, collectively worth around INR 45,000 million in capital expenditure over the next five years. Additionally, management noted upcoming expansions in Indore and Varanasi, consolidating their presence in crucial regions.

Operational improvements were evidenced by a 16% increase in inpatient volumes and a 19% rise in outpatient counts year-on-year. The average revenue per occupied bed (ARPOB) experienced a 6.1% growth to INR 66,550. The management also committed to enhancing procedural capacity with the addition of operation theaters across various units, positioning the company for sustained growth in the coming years.

Q&A Summary from Medanta's Q4 FY26 Earnings Call

Question: "Is it possible to give what was the occupancy for the Noida unit? And do you expect this unit to break even by Q2 of next year?"

Answer: We expect the Noida unit to break even in the second half of this financial year, but not by Q2. Currently, the occupancy is around 30%, which is increasing as we ramp up operations and finalize any pending empanelments.

Question: "Can you provide occupancy for the Lucknow and Patna units? Will there be bed expansion in the first half of next year?"

Answer: The occupancy stood at 68% during the quarter, with Patna closer to 70%. We expect to add ICU and critical care beds in both units in the first half, alongside expansion of operational rooms to support procedural capacity.

Question: "Do you think the new hospitals in Gurgaon will affect demand and talent retention?"

Answer: Historically, new hospitals do not impact our demand negatively. Our clinicians are currently satisfied, and we continue to attract talent while expanding our services, ensuring we maintain competitive patient inflow.

Question: "Could you share the ARPOB range for Noida?"

Answer: The ARPOB for Noida is currently around INR 70,000 to INR 80,000, but caution must be taken as this is based on a small patient volume and predominantly cash payments. It should normalize closer to levels of Gurgaon.

Question: "How do you see growth levers for the next 2-3 years?"

Answer: Growth will come from adding specialized services, expanding bed and procedural capacity, improving lengths of stay, and increasing operational efficiency. We're also targeting international markets for expansion.

Question: "What is your capex outlook for FY27 and FY28?"

Answer: For FY27, we project overall capex between INR 800 to 900 crores, while FY28 is expected to be around INR 600 to 700 crores, depending on project timelines and operational needs.

Question: "Are there any pending insurance empanelments for Noida?"

Answer: Most major empanelments are completed or will be finalized within the next week. This will enhance occupancy and revenue throughput going forward.

This summary captures the essential responses provided by the management team during the call while adhering to the character limit and precision required for clarity.