Buy Global Health Ltd for the Target Rs. 1,460 by Choice Institutional Equities
Key Conference Call Highlights
Operational Updates
* Added 623 beds in FY26, including 382 beds at Noida, 131 beds at Patna and 110 beds at Ranchi
* Onboarded more than 550 doctors in FY26 ? Average length of stay improved, from 3.17 days in FY25 to 3.04 days in FY26, highlighting improving operational efficiency and patient throughput
* Major insurance and government empanelment for Noida are largely complete; it is anticipated to accelerate occupancy and revenue growth, going forward
* Noida hospital performed over 1,600 surgeries and 5,000 cath lab procedures, while also launching advanced therapies, such as CAR-T cell therapy, bone marrow transplant and kidney transplants
* Strong growth momentum to continue across developing hospitals, particularly Lucknow and Patna, supported by specialty expansion, procedural capacity addition and increasing doctor bandwidth.
* Noida hospital is expected to witness accelerated ramp-up with commencement of additional specialties, such as liver transplant, obstetrics and advanced paediatric services, improving case mix and profitability over time.
Expansion Pipeline
* Indore Cancer Unit: Addition of an 80-bed cancer hospital under business transfer agreement, announced in April 2026, to be operationalised in Q2FY27
* 490 beds to be added in FY27E at existing hospitals and 2700 beds to be added through 5 greenfield projects in the next 3 to 4 years
* The management highlighted that Patna is near 70% occupancy and Lucknow around the high 60s, with added operating theatres likely to support growth
* South Delhi, Mumbai and Pitampura projects are progressing through various stages of approvals and construction activity
Outlook
* Capex of INR 8,000-9,000 Mn guided for FY27 and INR 6,000- 7,000 Mn in FY28
* The newly-launched Noida hospital is anticipated to break even in the second half of FY27, at present running at approximately 30% occupancy with 382 beds operationalised
* International patient revenue grew 33% YoY in FY26; the management identified growth opportunities in Africa, Southeast Asia and CIS regions to offset near-term challenges in the Middle East and Bangladesh markets
* Mature hospital margin is expected to remain stable in the 24%– 25% range
* MEDANTA remains actively open to inorganic opportunities, including acquisitions, O&M partnerships and bolt-on assets, alongside the ongoing greenfield expansion strategy.
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