Medanta Q1: revenue +26% YoY, consolidated PAT flat at Rs157 Cr as Noida ramp squeezes margins

Global Health (Medanta) opened FY27 with strong volume-led growth but a flat bottom line on a reported basis. Consolidated revenue from operations rose 26.5% YoY to Rs1,304 Cr (+12.5% QoQ), yet consolidated PAT was Rs157.3 Cr, down 1.1% YoY and up 11% QoQ. The optics understate the underlying trend: the year-ago Q1FY26 profit carried a one-off Rs19.6 Cr EPCG interest-reversal gain, and stripping it out lifts adjusted PAT growth to ~+13% YoY — steady, but well behind the topline.

The gap between revenue and profit growth sits on the cost lines tied to the new-hospital ramp. Depreciation jumped ~53% YoY to Rs69 Cr and finance costs nearly doubled (+93%) to Rs26.7 Cr as the Noida facility and greenfield capex feed through — exactly the drag management flagged, having guided Noida to breakeven only in H2 FY27. Net margin fell to 12.1% (vs ~13.5% adjusted a year ago), and EBITDA margin eased to ~22.0% from 23.9% YoY, though it firmed sequentially from ~21% in Q4. So the print confirms rather than contradicts the last concall: strong revenue ramp, margins temporarily diluted by immature capacity, on an optimistic long-term stance.

The stock went into the print at ₹1,423, up 7.2% over the past month of trading.

For context: PAT has now risen for 2 consecutive quarters; revenue is at a 6-quarter high.

Against prior guidance the quarter is broadly on-track — management projected continued strong growth with FY27 capex of Rs800-900 Cr and phased bed additions, and this print delivers the growth while the margin dilution is the pre-breakeven Noida cost it had signalled; no formal quarterly PAT guidance is given. Standalone told a similar story (revenue Rs1,078.7 Cr, PAT Rs137.3 Cr). Concurrent board actions reinforce the expansion narrative: the Guwahati project was enlarged from 400 to 650 beds at ~Rs970 Cr over 3-4 years, existing capacity stands at 3,737 beds across six cities, a Chief Digital Officer was appointed, and a Rs0.50/share FY26 final dividend was set (record date Aug 14). We could not source a firm Street consensus for the quarter, so vs-street is left unknown rather than inferred.