Mixed quarter: reported EBITDA margin dipped 161bps to 23.4%, but adjusted (ex-new hospitals) stood at 30.4%; revenue grew 47% YoY, yet PAT growth lagged at +15% due to depreciation (+133%) and finance cost surge (+422%). quarter Investor Presentation One-Pager? Mar 2026

Revenue

₹341.6 Cr

+47% YoY, driven by new hospitals (22% of Q4 revenue) and 29% growth in existing assets.

EBITDA Margin

23.4%

-161bps YoY; adjusted margin (ex-3 new hospitals) stronger at 30.4%, showing underlying operating leverage.

PAT

₹44.7 Cr

+15% YoY, margin fell 353bps to 13.1% as D&A rose 133% and finance costs surged 422% from acquisition-related borrowing.

Occupancy

71%

+10pp YoY; ARPOB ₹33,283 (+5% YoY); bed capacity 2,555 (+950 beds YoY).

What Went Right

Revenue grew 47% YoY to ₹341.6 Cr, with new hospitals contributing 22% (₹75.3 Cr) and existing assets still growing 29% YoY.
Adjusted EBITDA margin (ex-New Delhi, Faridabad Sec-20, Agra) was 30.4% in Q4, confirming core profitability remains healthy despite dilution.
Occupancy jumped 10pp YoY to 71% and ARPOB rose 5% to ₹33,283, reflecting mix improvement and price revisions in government business.
Operating cash flow for FY26 nearly doubled to ₹286.6 Cr (conversion ratio 98% vs 70% last year), and net debt was only ₹116 Cr despite aggressive capex.
New Delhi and Faridabad hospitals are already generating monthly revenue of ₹8-9 Cr and ~₹6 Cr respectively, with full cash/TPA mix and high ARPOB (~₹38k-40k).

What to Watch

Reported EBITDA margin contracted 161bps to 23.4%, as ramp-up costs for three new hospitals weighed on group profitability (combined loss not quantified).
PAT growth lagged at +15% YoY despite 47% revenue growth, due to D&A spiking 133% (₹30 Cr vs ₹12.9 Cr) and finance costs exploding 422% (₹5.1 Cr vs ₹1.0 Cr) from borrowings for acquisitions.
ROCE declined to 16% from 19% in FY25, temporarily pressured by fund raise, capex, and acquisitions (gross block doubled to ₹1,807 Cr).
Debt surged to ₹253.3 Cr from ₹4.1 Cr a year ago, though net debt remains low at ₹116 Cr; interest cover will be a key monitor as borrowings scale further.
Depreciation run-rate jumped materially (₹30 Cr in Q4 vs ₹12.9 Cr in Q4FY25), suggesting that even after ramp-up, earnings will face a higher fixed charge burden.

Management Guidance

Management targets ~5,000 bed capacity in ~3 years (current 2,555 operational + 200-250 brownfield expansions at Greater Noida & Noida Extension + 250 Gurugram bed planned by Apr 2027).

Investor Lens

The thesis of scaling via cluster-based, high-value hospital acquisitions remains intact, with adjusted EBITDA margin of 30.4% demonstrating underlying earning power. However, the dramatic rise in D&A and finance costs — together consuming ~35% of revenue in Q4 vs 18% a year ago — is compressing PAT growth and reported margins. The market will need to see accelerated EBITDA growth from the 4 new hospitals (Delhi, Faridabad, Agra) to offset the fixed charges and improve ROCE back toward 20%+. Next quarter, focus on: (1) monthly revenue trajectory of Delhi and Faridabad, (2) any further debt addition for the Gurugram outlay (~₹200 Cr), and (3) trajectory of reported EBITDA margin — a sustained 23-24% range would confirm the ramp is on track.

From investor presentation · AI-generated analysis · Not investment advice

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📈 STRONG Revenue jumps 47% YoY to ₹342 Cr, PAT up 15%

Revenue

Revenue grew 47.4% YoY to ₹342 Cr, driven by strong operational performance. Sequentially, revenue rose 6.9% from ₹320 Cr in Dec 2025, indicating sustained demand.

Profitability

Net profit increased 15.4% YoY to ₹45 Cr, with EPS improving to ₹4.93 from ₹4.02. Profit growth lagged revenue growth due to margin compression, but profit quality remains healthy.

Margins

Operating profit margin (OPM) stood at 23%, down from 25% in Mar 2025 but unchanged from Dec 2025. Margin pressure stems from higher costs, though stable QoQ suggests some cost control.

Cash Flow

Cash flow data was not disclosed for this quarter, limiting insight into cash generation quality. Operating cash flow trends could not be assessed.

Balance Sheet

Borrowings are low at ₹264 Cr against reserves of ₹1,684 Cr, resulting in a negligible debt-to-equity ratio of 0.02. Total assets of ₹2,282 Cr indicate a solid capital base.

Key Risks

Margins compressed YoY due to rising costs; a high PE of 49.2 suggests elevated expectations; competitive healthcare sector may pressure pricing and occupancy.

Outlook

With strong revenue momentum and a low-debt balance sheet, the company is well-positioned to invest in capacity expansion. However, margin restoration will be critical for sustaining earnings growth.

Generated by AI · Mar 2026 results · Not investment advice

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