Summary
Artemis Medicare Services Limited - Q3 FY26 Earnings Call Summary Tuesday, February 3, 2026, 11:00 AM IST
Event Participants
Executives 4 Dr. Devlina Chakravarty (MD), Dr. Vishal Arora (CBO), Mr. Rudra Narayan (Head IR), Mr. Sanjiv Kumar Kothari (CFO)
Analysts 8 Aadesh Gosalia, Deepika Murarka (Moderator), Henil Bagadia, Himanshu Binani, Jaiprakash Toshniwal, Raman KV, Ritika Khandelwal, Shanskar, Sumit Gupta, Vedant Nilekar, Yogansh Jeswani
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹272 crores | +17.2% YoY; Driven by strong core specialty performance and improved payer mix. |
| EBITDA | ₹52 crores | Improved in absolute terms YoY; Driven by higher complexity procedures and international patient contribution. |
| EBITDA Margin | 19.1% | Significant improvement YoY; Impacted by operational efficiencies and disciplined cost management. |
| Profit After Tax (PAT) | ₹22 crores | +7.9% YoY; Reflects efficient scaling and financial discipline. |
| ARPOB (Q3) | ₹84,100 | +10% YoY; Driven by improved case mix of complex/high-value procedures and premium payers. |
| Occupancy Rate | 62% | Stability at Gurugram flagship; Management targets 68-70% by the end of FY26. |
| International Revenue | ₹89 crores | +34.9% YoY; Now contributes 34% of total revenues from 52 countries. |
| Net Debt | ₹250 - ₹280 crores | Management guided for a peak debt reduction following the proposed fundraise. |
Geographic & Segment Commentary
- Gurugram Flagship: Maintained 62% occupancy with operational beds at 544; future expansion of 100-125 beds enabled by Platinum Green Building certification and 15% FAR increase.
- Raipur (New Facility): 300-bed super specialty hospital on track for April-May 2026 commissioning with ₹100 crore capex; starting with 200 operational beds at ₹30k-35k ARPOB.
- South Delhi (VIMHANS): Expansion revised to 650 beds (from 450) across two towers; construction to start April-May 2026 with a 2.5-year completion timeline and ~₹75-80 lakh cost per bed.
- Daffodils & Lite: Segment saw a technical decline in reported revenue as the Gurugram unit was consolidated into the main hospital; management expects segment breakeven by end of FY26.
Company-Specific & Strategic Commentary
- Capacity Expansion: Strategic roadmap to move from ~750 current beds to 2,100-2,300 beds by 2029 through a mix of organic growth and new green/brownfield projects.
- Fundraise: Board approved ₹700 crore fundraise via QIP/preferential issue to fund inorganic expansion and specific project deposits; promoter intends to maintain >50% holding.
- Clinical Advancement: Launched high-end heart-lung transplant programs and AI-assisted triage systems to enhance quaternary care positioning and operational flow.
- Medical Value Travel (MVT): Expanding reach to 52 countries; leveraging government “Treat in India” initiatives and reduced medical visa turnaround times.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Bed Capacity | 2,100 - 2,300 beds by 2029 | Scaling from current ~750 beds through announced Raipur, South Delhi, and two upcoming funnel projects. |
| ARPOB Growth | 4% - 6% YoY | Expected sustainable growth driven by services mix and high-end specialized treatments. |
| Occupancy | 68% - 70% by Q4 FY26 | Target threshold required before phased activation of additional organic bed capacity in Gurugram. |
| New Project Details | June 2026 | Management will disclose details of two additional funnel projects (one greenfield, one brownfield) post-fundraise. |
Risks & Constraints
| Risk | Context |
|---|---|
| Manpower Cost Pressure | Recent peak in employee costs due to hiring for new specialties (heart-lung/robotics) and Raipur pre-operating teams; expected to stabilize as revenue scales. |
| Execution Delay | Raipur commissioning shifted slightly from March to April/May 2026 due to equipment installation lags (e.g., PET scanner). |
| Equity Dilution | The ₹700 crore fundraise will lead to equity dilution, potentially creating a drag on earnings per share during the 2-3 year construction phase of new assets. |
| Payer Mix Volatility | Reliance on international patients (34%) makes revenue sensitive to global mobility and regional stability in the Middle East and CIS. |
Q&A Highlights
Expansion Strategy
- Question: What is the rationale for the ₹700 crore fundraise given existing cash flows? (Jaiprakash Toshniwal)
- Answer: Total investment over 5-7 years will reach ₹1,800-1,900 crores. Equity is required for trust land deposits in Delhi where debt cannot be used (Devlina Chakravarty).
Margin Drivers
- Question: Why have margins not improved despite strong top-line growth? (Shanskar)
- Answer: Current margins absorb pre-operating costs for Raipur and high-end manpower for transplants. Margins will improve as occupancy hits 70% and costs are allocated to new units (Devlina Chakravarty).
Raipur Economics
- Question: What are the expectations for the Raipur facility? (Raman KV)
- Answer: ₹100 crore capex for 300 beds. Expecting 18-24 month breakeven with starting ARPOB of ₹30k-35k, filling a gap in local quaternary care (Devlina Chakravarty).
International Business
- Question: How sustainable is the international revenue growth? (Himanshu Binani)
- Answer: We actively choose high-complexity international cases (34% of revenue). Government support on medical visas and duties on life-saving drugs are significant tailwinds (Devlina Chakravarty).
Key Takeaway
Artemis Medicare delivered a resilient Q3 FY26 with 17.2% revenue growth, underpinned by a 10% increase in ARPOB to ₹84,100 and a 35% surge in international patient revenue. The company is transitioning from a single-location flagship to a multi-hub network, targeting 2,100-2,300 beds by 2029. This growth is supported by a planned ₹700 crore fundraise to finance a 650-bed South Delhi project and two additional funnel projects. While margins were momentarily suppressed by pre-operating costs for the Raipur launch (April 2026) and investments in quaternary specialties like heart-lung transplants, management anticipates significant operating leverage as occupancy nears the 70% threshold. The strategic focus remains on high-margin international medical tourism and specialized Delhi-NCR tertiary care, positioning the firm for a multi-year scaling phase despite short-term equity dilution risks.
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