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Key Conference Call Highlights
Operational Highlights
* Initiated phased commissioning of more than 20% additional brownfield capacity across Mohali, Mumbai and Delhi, with the balance beds expected to become operational in the next two to three months
* Network occupancy remained above 75% despite the addition of new beds, reflecting a strong demand across key hospitals and continued traction in newly-commissioned facilities
* Oncology revenue contribution declined to 21% in Q4FY26 due to the discontinuation of select high-value chemotherapy drugs for institutional patients
* Doctor cost increased across the network due to simultaneous capacity addition and clinician hiring in multiple hospitals.
* Newly-added brownfield capacities are already contributing positively to EBITDA, with management expecting stronger operating leverage over the next few quarters as occupancy ramps up further across phased bed addition.
* The management highlighted a strong traction at newer facilities, such as Noida and Dwarka, with Noida occupancy improving to ~64–65% and Dwarka operating at 80–85% occupancy, supporting confidence in brownfield expansion opportunities.
Expansion
* The Board approved INR 1,400 Cr investment for a new 700-bed greenfield hospital at Shaheed Path, Lucknow, which is projected to be developed in the next three years
* Targeting commissioning of its 500-bed Gurgaon greenfield hospital by year-end, while expanding the existing Lucknow facility, from 426 beds to 570 beds, in the next two quarters.
* Additional projects in the pipeline include 100 beds at Nagpur and 400 beds at Mohali (both, by FY28), 260 beds at Dwarka and 200 beds at Vaishali within 24 months of approvals and 400 beds at Patparganj targeted by FY29
* Completed the acquisition of a controlling stake in Kalinga Hospital in Bhubaneswar, which offers a 250-bed platform for entry into eastern India and brownfield expansion
* Management plans a cluster-based strategy in Lucknow, targeting multi-location expansion with long-term potential of scaling the region to more than 2,000 beds over the next decade, reflecting strong confidence in the market opportunity.
* Kalinga Hospital acquisition provides an entry platform into eastern India with significant brownfield expansion potential, while management has already initiated plans to revamp clinical programs and infrastructure at the facility.
Guidance and Outlook
* Expecting meaningful operating leverage benefits over FY27 as the recently-commissioned brownfield capacities mature and occupancy levels improve across new towers and facilities.
* CGHS rate revision has already started flowing through. The management is estimating a net annualised benefit of INR 140 Cr, while an additional INR 30–40 Cr benefit from super-specialty rate is yet to be realised
* The new Gurgaon greenfield project is anticipated to break even in FY28E
* The management expects the oncology revenue share to stabilise around 21–22% on a permanent basis, as the discontinued chemotherapy drugs will not be reinstated
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