Revenue growth masks 15.6% PAT decline; margin pressure persists

PAT contracted 15.6% YoY to ₹414.4 Cr despite 20% revenue growth

Revenue grew 20.3% to ₹2569.2 Cr YoY

H1 EBITDA grew 17% YoY; Q2 margin flat at 26.8% despite 14% bed capacity growth

Occupancy held flat at 77% YoY amid capacity ramp

Saket ramp created EBITDA drag in Q2; management expects normalization by Q3-Q4

Management guided ₹40–50 Cr EBITDA loss at Gurgaon Sector 56 greenfield, down from earlier ₹30–35 Cr; Dwarka saw ₹30 Cr loss at 300-bed ramp

CGHS chemo drug discontinuation is a recurring ₹100 Cr/yr headwind; offset by ₹200 Cr CGHS rate revision in Q2, but mix shift persists

₹140 Cr FY27 CGHS target held; Q2 contribution ~₹38.8 Cr; de-empanelment strategy (old hospitals) underway to optimize institutional mix

₹415 Cr capex approved for 209 brownfield beds (Noida, Vaishali, BLK); 3000+ beds in 18–24m pipeline reaffirmed, but phased commissioning acknowledged

BLK de-empanelled for CGHS/Railways; older hospitals shedding institutional to boost ARPOB; newer brownfields will re-empanel once mature.

Greenfields typically break even within first quarter; Saket ramp-up drag is 1-quarter impact; by Q3-Q4 normalization expected as occupancy ramps from 50 beds to 250.

No intention to reduce institutional exposure. Reactive shift: new capacities take institutional; mature hospitals shift to higher-ARPP private. As capacity expands, institutional will regain.

Phased rollout: start 150–200, ramp to 500. Similar to Dwarka trajectory (₹30–35 Cr EBITDA loss initially). Full ramp should yield operating leverage.

Zirakpur drag ~₹30 Cr; Mohill likely lower. Pre-opening expenses and ramp timing drive it. Will provide precise figures later as teams onboard.

CGHS impact already reflected (₹100 Cr loss, ₹200 Cr gain net positive). Matter under court review; position varies by stakeholder.

Bundled services; ~20–30% pharmacy in packages depending on customer. Cannot unbundle from P&L.

Seasonal; cardiology peaks in winter. YoY comparison was off lower base due to CGHS impact. No structural slowdown; 16% YoY growth achieved.

Part of same 500-bed complex. Currently 400 operational; adding 85 to activated capacity. Separate 700-bed phase follows.

Growing 20–25% CAGR; will remain smaller % of overall revenue but profitable and strategic. Core hospital business will drive growth.

Renovation 12m timeline. Phase 1 (OTs/beds) in 3m; full commissioning in 12–15m. Employee/clinician onboarding will drive occupancy profile.

Based on bed capacity growth (6200 beds, +20% YoY) and ARPP gains; brownfield expansion will be phased drag

Q2 at 26.8%, flat YoY; new capacity drag expected to ease within 1–2 quarters; operating leverage will kick in

Q2 NPM 15.9% vs historical 16–17%; CGHS chemo drug impact ~₹100 Cr/yr recurring headwind

3000+ beds in pipeline: Sector 56 (500), Bhubaneswar (250), Pune (450), Zirakpur (400), Nagpur (100), others

Chemo drug discontinuation from CGHS formulary created ₹100 Cr/yr loss; court case ongoing on MRP controls. CGHS rate revisions are recurring risk.

Large greenfield/brownfield portfolio (3000+ beds) with phased rollouts. Max Smart, Saket, Dwarka, Gurgaon Sector 56 creating near-term EBITDA drag. Gurgaon expected ₹40–50 Cr drag.

Institutional patients declined as share from 23.5% to 18.5% of healthcare revenue. BLK de-empanelled from CGHS. If de-empanelment accelerates, payor mix pressure could offset private ARPP gains.

Tausif Shaikh (BNP) flagged competitor hospital commissioning in Gurgaon without attracting star clinicians. Max expanding aggressively (Sector 56, Max Smart) in same region; talent competition could inflate payroll costs.

PAT fell 15.6% YoY despite 20% revenue growth—acute margin compression. Employee costs rising; oncology mix shift to lower-margin services; brownfield preoperative expenses ongoing.