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Focussed specialty portfolio driving growth:

PARASHLT’s growth will be driven by expansion of its CONGO-R specialties, rising occupancy and improved utilisation of existing hospitals. Capacity is expected to exceed 3,000 beds by FY28, supported by the Gurugram and Ludhiana projects. Increasing patient throughput, maturation of newer facilities and a higher share of complex procedures is forecast to drive revenue growth and operating leverage, supporting long-term margin in the mid-20s

Revenue & EBITDA beat estimate; margin expansion strong

* Revenue grew by 22.8% YoY and 8.6% QoQ at INR 5,109 Mn (vs CIE estimate of INR 5,000 Mn).

* EBITDA grew 47% YoY and 14.4% QoQ at INR 1,202 Mn, with margin improving 388 bps YoY and 119 bps QoQ at 23.5% (vs CIE estimate of 23%)

* PAT grew significantly 225.7% YoY and de-grew 18.8% QoQ to INR 404 Mn (vs CIE of INR 395 Mn).

CONGO-R specialty mix driving high-value growth and profitability:

PARASHLT’s six core specialties (CONGO-R) contributed ~74% to H1FY27 revenue, reinforcing its focus on high-value tertiary and quaternary care. Going forward, improving occupancy, higher patient throughput and a greater share of complex procedures are expected to drive revenue productivity. Its presence across underserved North India markets offers significant growth headroom, while better utilisation of existing infrastructure and deeper clinical capabilities are anticipated to support sustainable growth, improve operating leverage and strengthen earnings resilience over the medium term.

First-mover Advantage:

Building Leadership in Underserved Healthcare Markets: PARASHLT’s established presence across North and East India provides strong brand recognition, clinical capabilities and patient acquisition advantages. Improving occupancy and ramp-up of newer hospitals highlight the scalability of its regional model. With operational beds expected to reach ~1,800 in the near term and total capacity exceeding 3,000 beds by FY28, the planned 300-bed Gurugram and 500-bed Ludhiana hospitals offer significant growth potential. Its cluster-led expansion strategy is likely to strengthen regional penetration and drive sustainable growth

Operating Leverage Driving Accelerating Growth and Stronger Profitability:

PARASHLT is poised to improve profitability, driven by rising occupancy and the maturation of newer hospitals. While mature facilities provide a stable earnings base, emerging hospitals offer scope for higher utilisation and fixed-cost absorption. The company targets long-term EBITDA margin in the mid-20s, with EBITDA estimated at ~INR 4,274 Mn in FY27 and ~INR 4,975 Mn in FY28. Planned expansion in Gurugram and Ludhiana provide further growth potential, subject to execution and disciplined capital allocation.

View and valuation:

We maintain Revenue/EBITDA/PAT to expand at a CAGR of 21.9%/29.4%/99.1% over FY26–29E. By valuing the company on DCF (refer exhibit 1), we retain our ‘BUY’ rating and a target price of INR 900, with an implied EV/EBITDA of 19.5x on FY28E and 14.3x on FY29E.

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SEBI Registration no.: INZ 000160131