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Growth runway backed by disciplined execution:

PARKHOSP is wellpositioned for a sustained long-term growth, supported by its 10,000-bed expansion vision, cluster-based expansion strategy, improving patient mix with higher private-pay contribution and accelerating ARPOB growth. Combined with a disciplined capital allocation and deepening penetration across Tier-2 and Tier-3 markets, provide strong visibility for revenue growth and margin expansion. We have considered in one more acquisition in FY27 of ~300 beds and expect Revenue/EBITDA/PAT to expand at a CAGR of 35.3%/35.3%/42.2% over FY26–29E.

View and valuation:

We value the company at 18x EV/EBITDA (maintained) on FY28E and maintain our ‘BUY’ rating with a target price of INR 350

Results in line with estimate, achieved highest-ever quarterly revenue

* Revenue came in at INR 4.8 Bn (vs. CIE estimate: INR 4.8 Bn), up 19.3% YoY and 3.3% QoQ.

* EBITDA came in at INR 1.3 Bn (vs. CIE estimate: INR 1.3 Bn), up by 20.2% YoY and down 1% QoQ. EBITDA margin at 26.5% (vs. CIE estimate of 27%), improving by 20 bps YoY and contracted 116 bps QoQ.

* PAT came in at INR 0.8 Bn (vs. CIE estimate: INR 0.7 Bn), up 42.6% YoY and 16.4% QoQ, with a PAT margin of 17.3%.

Aggressive capacity expansion backed by industry-leading capital efficiency

PARKHOSP is executing one of India's most capital-efficient hospital expansion strategies, with the capacity set to increase from 3,960 beds in Q1FY27 to over 6,000 beds by FY28 and further scale up to over 10,000 beds by FY33. The expansion is expected to be funded through internal accruals, eliminating the need for equity dilution while preserving shareholder value. Leveraging its cluster-led expansion model, the company delivers industryleading capital-efficiency with capex of ~INR 36 lakh per bed, significantly lower than the INR 80–100 lakh per bed typically required for greenfield hospitals. This highly-visible expansion pipeline positions PARKHOSP to drive a sustained revenue growth, operating leverage and market share gains while strengthening its presence across high-growth Tier-2 and Tier-3 markets

Structural shift towards higher-margin, premium case mix and payer mix:

This quarter, high-end tertiary/quaternary specialties rose to 62% of revenue (up 440bps YoY, from 57% a year earlier), with ARPOB up 12% YoY to 30,444 and ALS improving 8% to 5.9 days, reflecting scaling up of transplant, interventional cardiology and robotic joint-replacement programs. Looking ahead, the management guided for ARPOB growth of ~10% annually and a gradual payer-mix shift, from the current 77% government-scheme dependency towards a 70:30 government-to-cash/TPA split, over 12–18 months, supporting a sustained realisation and margin quality improvement.

Disciplined, capital-efficient acquisition strategy with fast ramp-up: Recent acquisitions are already tracking well:

Rudrapur is guided to generate INR 100 Cr revenue in year one (EBITDA INR 20–22 Cr, PAT INR12–13 Cr) scaling up to INR 140 Cr next year, while Zirakpur targets INR 70–75 Cr revenue at 25–26% EBITDA margin in its first full year.

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