Medanta Q2 FY27: consolidated PAT +38% YoY (~54% adjusted), revenue +34%, margins widen

Global Health (Medanta) reported consolidated revenue of ₹1,469.0 Cr for Q2 FY27 (quarter ended 30 September 2026), up 33.6% YoY from ₹1,099.2 Cr and up 12.6% QoQ from ₹1,304.1 Cr. Consolidated PAT came in at ₹219.1 Cr, up 38.3% YoY (reported) and 39.4% QoQ; basic EPS was ₹8.21 against ₹5.89 a year ago and ₹5.91 last quarter. Consolidated figures are the primary basis here; standalone (parent-only) revenue was ₹1,208.1 Cr (+30.4% YoY) and PAT ₹181.3 Cr (+29.3% YoY) — the gap versus consolidated growth shows the hospital subsidiaries outside the standalone entity scaling faster than the parent. The reported 38.3% YoY PAT growth actually understates the underlying trend: the year-ago quarter (Sep-2025) carried a ₹16.0 Cr one-off pre-tax gain (reversal of a stamp-duty provision tied to the Medanta Holdings merger, note 6) that inflated that base, and this quarter has no exceptional items. Stripping the prior-year one-off out, adjusted YoY PAT growth is closer to ~54%. Net margin (PAT/total income) expanded to 14.7%, up from 14.2% a year ago and 11.9% last quarter, even as finance costs rose 64.1% YoY to ₹280.9 Cr and depreciation rose 42.4% YoY to ₹708.0 Cr — both a direct consequence of the capacity build-out. Margins expanding despite a heavier interest and depreciation load points to occupancy/ARPOB-led operating leverage more than offsetting the capex-related cost drag this quarter. The print came in ahead of the expectations we flagged pre-result: our preview had pegged Q2 revenue at roughly ₹1,385–1,420 Cr and net margin at 13–15%; actual revenue (₹1,469.0 Cr) and NPM (14.7%) both land at or above that band — a beat. Sell-side sentiment stayed constructive going in (13 of 15 analysts Buy/Strong Buy, median target ₹1,419) and FY27 consensus EPS growth (+23.2%) is tracking below this quarter's actual EPS growth. On guidance, management had issued no quantitative revenue/margin target, only a qualitative call that the Noida hospital would hit EBITDA breakeven earlier than its earlier H2 FY27 guidance — this filing carries no segment-level disclosure (healthcare services is reported as a single CODM segment), so that claim stays unverified here, and there was no separate management press commentary beyond the board-outcome letter. The quarter's other corporate actions — the Board approving a ₹997 Cr project (including land) for a new 500-bed Ghaziabad hospital on the Siddharth Vihar parcel bought for ₹165.82 Cr in September, plus a CRISIL ESG rating of 64 — point to continued capex intensity; two mid-level management exits (a Senior VP and a hospital director, late October/early November) were disclosed alongside but carry no operational commentary in this filing. Going into Q3 FY27, the markers to watch are whether margin expansion holds as finance costs and depreciation keep climbing with the capex ramp (the new ₹997 Cr Ghaziabad approval adds to the already-disclosed ₹4,850 Cr/3,350-bed and ₹9,700 Cr Guwahati pipelines), whether management discloses enough to confirm the Noida breakeven claim, and whether the standalone-versus-consolidated growth gap narrows as newer hospitals mature.