Financial Performance Highlights

H1 FY27 Performance (Consolidated)

  • Revenue from operations: INR72.4 crores, up 157% year-on-year from INR28.2 crores in H1 FY26
  • EBITDA: INR18.6 crores, up 35% year-on-year
  • EBITDA margin: 25.7%
  • PAT: INR11.9 crores, up 44% year-on-year
  • PAT margin: 16.5%

Q2 FY27 Performance (Consolidated)

  • Revenue: INR38.1 crores, up 11% quarter-on-quarter and 195% year-on-year
  • EBITDA: INR10.2 crores, up 22% quarter-on-quarter
  • EBITDA margin: 26.8% (up from 24.4% in Q1 FY27)
  • PAT: INR6.6 crores, up 24% quarter-on-quarter and 129% year-on-year

Historical Comparison (FY26)

  • FY26 consolidated revenue: INR80 crores, up 104% from INR40.2 crores in FY25
  • FY26 EBITDA: approximately INR27 crores, growing 63%
  • FY26 PAT: approximately INR17 crores, growing 77%
  • FY26 EBITDA margin: 32.8%
  • FY26 PAT margin: 20.05%
  • Average bed occupancy: approximately 65%
  • Average revenue per occupied bed: approximately INR9,221 per day

Business Overview and Strategy

The company operates as a specialized healthcare provider with:

  • 11 hospitals and 10 pharmacies across 9 cities
  • Core strength in renal science and urology at Gujarat Kidney Hospital
  • Expanded capabilities into cardiology, oncology, orthopedic, OB-GYN, and general surgery
  • Asset-light, acquisition-led business model focusing on controlling stakes in established hospitals

Recent Acquisitions and Expansion

  • Acquired 51% stake in an established polyclinic in Dubai with existing revenue base of approximately INR20 crores
  • The Dubai acquisition provides access to international patients and creates potential medical tourism gateway
  • Company is in discussion to acquire remaining 49% stake in Dubai entity
  • Three existing subsidiaries where company holds 51% stake: Globally Hospital (Dubai), Raj Farm (Bharuch), Patel Multispecialty (Ankleshwar)

Balance Sheet Position (as of September 30, 2026)

  • Net worth: INR263.6 crores
  • Cash and bank balance: INR32.2 crores
  • Borrowings: INR17.3 crores (net cash positive position)
  • Capital deployment in H1: approximately INR16.7 crores towards acquisitions and INR6.2 crores in capital expenditure
  • Operating cash flow turned positive in H1

Management Priorities and Outlook

Key Focus Areas:

1. Upgrading existing hospitals (ongoing and pipeline)

2. Pursuing selective inorganic opportunities

3. Capturing larger share of patient journey (OPD, diagnostic, IPD, ICU, surgery, pharmacies, follow-up)

Operational Metrics:

  • Current bed occupancy of 65% provides meaningful headroom for growth within existing capacity
  • Focus on improving utilization, strengthening specialty capabilities, and enhancing case mix
  • Targeting direct case patients to improve margins (vs. insurance/TPA referrals which require discounts)

Q&A Session Key Points

ARPOB (Average Revenue Per Occupated Bed)

  • Consolidated ARPOB at INR9,221 per day
  • Management acknowledges it's relatively low compared to major hospitals
  • Internal committee formed to develop strategic plan to increase ARPOB
  • Only 2% of revenue comes from government schemes

Margin Guidance

  • Management declined to provide specific margin guidance for FY27
  • Emphasized focus on cost control, hiring full-time reputed doctors, and preventing leakages in acquired hospitals
  • Margin may fluctuate quarter-to-quarter due to seasonal factors (festivals, doctor availability) but average should remain consistent

Acquisition Strategy

  • Focus first on acquiring remaining stakes in existing subsidiaries
  • Acquisition criteria: hospitals run by doctors with minimum 15 years history, good reputation, no litigations, 7-year commitment from doctors
  • Preference for acquisition over greenfield projects
  • 2 greenfield projects in pipeline: expansion of Ahmedabad hospital and Bharuch hospital

Receivables Management

  • Receivables accumulated but management implementing stricter controls from April 1
  • No receivables older than 102-115 days currently
  • Recovery efforts ongoing for accumulated receivables
  • Government payments can take 6+ months with query processes causing delays

Dubai Acquisition Rationale

  • Blue Tree polyclinic in Dubai acquired for margin improvement and medical tourism gateway
  • Run by Dr. Ahmed, a renowned doctor with good profitability over last 5 years
  • Different hospitals have different strategic purposes within the network

Employee Cost Increase

  • Employee cost increased to 41% in Q1 from INR5-7 crores
  • Primarily due to Dubai acquisition where employee costs are higher
  • Management scrutinizing high employee cost areas