Financial Performance Highlights

Consolidated Results:

  • Revenue: INR 2,545 crores, up 17.5% YoY
  • Operating EBITDA pre-ESOP: INR 568 crores, up 15.8% YoY
  • Operating EBITDA margin: 22.3% vs 22.6% in Q1 FY26
  • PAT before exceptional items: INR 263 crores, up 4% YoY
  • Net debt: INR 2,233 crores as of June 30, 2026
  • Net debt-to-EBITDA ratio: 1.01x vs 0.92x on June 30, 2025

Hospital Business:

  • Revenue: INR 2,187 crores, up 19% YoY
  • Operating EBITDA: INR 471 crores
  • Operating EBITDA margin: 21.5% vs 22.1% in Q1 FY26
  • Like-to-like operating EBITDA margin (excluding recent acquisitions): 22%
  • Occupancy: 69% (steady YoY)
  • Occupied beds: 3,418 beds, up 17% YoY
  • ARPOB: INR 2.71 crores per annum, up 2.6%

Diagnostics Business (Agilus):

  • Gross revenue: INR 407 crores, up 10.2% YoY
  • Operating EBITDA margin: 23.9% vs 23.0% in Q1 FY26
  • Tests processed: 10.5 million in Q1
  • Customer touch points: 4,493 as of June 30, 2026
  • B2C:B2B revenue mix: 53:47 vs 51:49 in Q1 FY26
  • Preventive portfolio contribution: 14% vs 12% in Q1 FY26
  • Specialized portfolio contribution: 35% vs 34% in Q1 FY26

Operational Highlights

Hospital Business Performance:

  • 14 facilities reported operating EBITDA above 20%, contributing 70% to hospital revenues
  • Key specialties growth: Renal sciences (28% YoY), Neurosciences (27% YoY), Orthopedics (23% YoY)
  • Facilities showing margin expansion: Jaipur, Noida, Faridabad, Mulund
  • Facilities with >20% revenue growth: Mulund, Faridabad
  • International business revenue: INR 174 crores, up 13.3% YoY (8% of total revenue)

Expansion and Capex:

  • Added 100 operational beds in Q1 through brownfield expansion (Noida, Amritsar, Jalandhar)
  • Plans to add 400 more beds in remaining FY27 quarters
  • FMRI facility awaiting occupancy certificate for 200 additional beds
  • Entered O&M agreement for 300-bed greenfield hospital in Cuttack (entry into Odisha)
  • Board approved proton facility installation at Gurgaon flagship hospital (Capex: INR 252 crores)
  • Advanced robotic capabilities expanded: Da Vinci Xi robots at Faridabad, FEHI Okhla; Ortho robots at Jalandhar and Faridabad

Diagnostics Business Updates:

  • Added over 200 customer touch points in Q1
  • Completed over 1,000 whole exome sequencing tests on NovaSeq X platform
  • Focus on improving B2C ratio from 53% to 55-58%

ESOP Program Details

  • ESOPs rolled out from April 23, 2026
  • Broad-based scheme across network (not limited to Delhi NCR)
  • Approximately 55-60% allocation to doctors and administrative staff
  • Expected ESOP charges: ~INR 40 crore per quarter initially, reducing to ~INR 30 crore and then ~INR 25 crore in third year
  • Philosophy: Align clinician interests with company performance and control consumption

Margin Guidance and Levers

  • Maintaining 25% EBITDA margin guidance for FY28 (including ESOP costs)
  • Key margin improvement levers: Ramp-up of new units (Manesar, Greater Noida, Yeshwanthpur), reduction in legal costs, improved collections from government payors/TPAs, occupancy improvement in low-occupancy facilities (BG Road, Mulund)
  • New units currently contributing -0.4% to overall EBITDA margin, expected to turn positive
  • Oncology business impacted by chemo drug pricing mechanisms (30% discount on MRP for ECHS/CGHS beneficiaries), growth expected at 10-12% vs previous 23-24%

Management Commentary

  • Confident in sustaining growth momentum across both businesses
  • Continuing to evaluate inorganic growth opportunities aligned with cluster strategy (Bengaluru, Delhi NCR, Punjab, Mumbai metropolitan region, Kolkata)
  • Gleneagles O&M generating ~INR 6 crores management fees in Q1 (3% of revenue)
  • Expect diagnostics business revenue growth of 12-13% and EBITDA margin of 24-25% going forward
  • Capex guidance: ~50% of EBITDA allocated to brownfield expansion excluding acquisitions