Summary
Global Health Limited - Q3 FY26 Earnings Call Summary Thursday, February 05, 2026 2:00 PM
Event Participants
Executives 4 Dr. Naresh Trehan (CMD), Mr. Pankaj Sahni (Group CEO & Director), Mr. Yogesh Kumar Gupta (CFO), Mr. Ravi Gothwal (Head IR)
Analysts 10 Abin Benny (JM Financial), Amey Chalke (JM Financial), Ashutosh Nemani (JM Financial), Bansi Desai (J.P. Morgan), Chirag Gupta (Allegro Capital), Damayanti Kerai (HSBC), Devarsh Shah (Sunidhi Securities), Manish Poddar (Invesco AMC), Naman Bagrecha (IIFL), Tushar (Motilal Oswal)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income | ₹1,142.8 crores | +19% YoY; driven by sustained momentum across network and improved operating metrics. |
| EBITDA (Excl. Noida) | ₹281.4 crores | +11% YoY; healthy margins of 25.4% reflecting operating leverage in the balanced portfolio. |
| EBITDA (Consolidated) | ₹249.4 crores | Margin of 21.8%; reflects expected drag from early-stage operating losses at the new Noida facility. |
| Adjusted PAT | ₹122.4 crores | Adjusted for ₹36.6 crore one-time statutory impact from new labor codes; reported PAT was ₹95 crores. |
| ARPOB | ₹67,361 | +10% YoY; supported by case mix improvements and a 7% reduction in ALOS. |
| ALOS | 3.02 days | -7% YoY; driven by increased daycare procedures in oncology and operational efficiencies. |
| Occupancy | 59% | Calculated on expanded bed capacity; developing hospitals (excl. Noida) saw 62% occupancy. |
| Net Cash | ₹600 crores | Total cash of ₹1,200 crores against gross debt of ₹600 crores. |
Geographic & Segment Commentary
- Mature Hospitals (Gurugram, Indore, Ranchi): Revenue grew 9% YoY to ₹702 crores with EBITDA margins at 23.9%. Performance was impacted by increased employee costs and one-time repairs/maintenance for equipment coming out of warranty.
- Developing Hospitals (Lucknow, Patna): Revenue grew 22% YoY (excl. Noida) to ₹365.1 crores with robust margins of 31.7%. Lucknow achieved JCI accreditation and saw a 150 bps margin expansion over the nine-month period.
- Medanta Noida: Generated ₹34.3 crores in revenue with an EBITDA loss of ₹32.0 crores in its first full quarter. Bed capacity was ramped up to 328 beds, and 9 new OTs were commissioned during the period.
Company-Specific & Strategic Commentary
- Clinical Expansion: Commissioned a 5th Radiation Oncology machine at Gurugram and launched large-scale cancer awareness programs for breast and prostate cancers.
- Noida Ramp-up strategy: Onboarded 220+ doctors and added 102 beds; however, high-end departments like Liver Transplant, Pediatrics, and Obstetrics are yet to be activated.
- Digital and Quality Milestones: Lucknow became the first hospital in its region to receive JCI accreditation, validating global clinical standards in Uttar Pradesh.
- International & Pharmacy Growth: International patient revenue grew 30% YoY to ₹70.3 crores, while OPD pharmacy business also grew 30% to ₹46.5 crores.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| ARPOB Growth | 5% - 7% Target | Measured outlook as high double-digit post-COVID growth stabilizes; focus remains on volume over pricing. |
| FY27 Capex | < ₹500 crores | Lower outlay expected as Noida project phase concludes and new projects (Mumbai, South Delhi) remain in early construction. |
| Bed Expansion | 496 Brownfield beds | Headroom available across Lucknow (193), Patna (81), and Noida (222) with minimal incremental capex. |
Risks & Constraints
| Risk | Context |
|---|---|
| War for Talent | Management noted a nationwide scarcity of super-specialists and rising employee costs as hospitals compete for clinical talent. |
| Payor Relations | Ongoing commercial negotiations with insurance companies regarding tariff resets and institutional discount structures remain a friction point. |
| Early Stage Losses | Medanta Noida currently acts as a margin drag; while losses are expected to narrow, the timing of EBITDA breakeven remains unspecified. |
Q&A Highlights
Noida Performance & Breakeven
- Question: When will Noida reach EBITDA breakeven and what is the current occupancy? (Rahul Jeewani)
- Answer: Breakeven typically occurs at 40%+ occupancy for Medanta’s fixed-cost model. December/January showed improved run rates, and the quarter’s ₹32 crore loss is likely the peak (Pankaj Sahni).
Pricing and Payor Mix
- Question: What is the impact of the CGHS rate revision and insurance renegotiations? (Damayanti Kerai)
- Answer: CGHS revision had a ₹7-10 crore positive impact in 9M FY26. Insurance contracts are being renewed at 2025 tariff lists, though full impact will only be visible by mid-FY27 (Pankaj Sahni).
Margin Drivers
- Question: Why are mature hospital margins lower than developing units? (Chirag Gupta)
- Answer: Mature margins are deflated because 100% of corporate/group costs are loaded onto the Gurugram unit. Additionally, Lucknow and Patna have high operating leverage from recent bed additions (Pankaj Sahni).
Key Takeaway
Global Health (Medanta) delivered a steady Q3 FY26 with a 19% revenue growth, although consolidated margins were compressed to 21.8% due to the first full quarter of operation at the Noida facility. The core portfolio remains resilient, with mature hospitals growing at 9% and developing units (Lucknow and Patna) outperforming with 31.7% EBITDA margins. Structurally, the company is shifting toward higher-complexity daycare procedures, evidenced by a 7% reduction in ALOS and 10% ARPOB growth. Management is executing a major 1,000+ bed expansion across Noida, Mumbai, and Delhi while maintaining a strong net cash position of ₹600 crores. While Noida remains an immediate margin drag and the “war for talent” pressures employee costs, the firm is well-positioned to leverage its brand to capture rising tertiary care demand in North India. Forward growth will be driven by the Noida ramp-up and brownfield additions in Lucknow and Patna.
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