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Performance broadly in line

* In 2QFY26, sales grew 15% YoY to INR11b (vs our est: INR10.1b).

* EBITDA margin was largely stable at 21% YoY (our est: 23.5%).

* Medanta’s EBITDA declined 1.5% YoY to INR2.3b (in line).

* The company had a one-time gain of INR160m on account of reversed stamp duty payable to the Government of Delhi NCR due to the merger of Medanta Holding Private Limited and the Holding Company.

* Adjusting for the same, PAT grew 11.4% YoY to INR1.5b (in line)

Key operating metrics

* Mature hospital revenue (67% of total revenue) grew 5.4% YoY to INR7.2b. EBITDA stood at INR1.7b for the quarter, and margins contracted 120bp YoY to 23.5%.

* Developing hospital revenue (33% of total revenue) grew 29.7% YoY to INR3.6b. EBITDA stood at INR915m for the quarter, with margins contracting 450bp YoY to 25.6%.

* ARPOB grew by 5.5% YoY to INR65,570 in 2QFY26. The matured hospitals segment witnessed YoY ARPOB growth of 9.6%, and the developing hospitals segment witnessed YoY ARPOB growth of 2.3% for 2QFY26.

* Both IPD/OPD volumes increased 13%/15% YoY for the quarter.

* Occupancy levels were 63.7% (vs. 64.3% in 2QFY25) and 63.2% in 1QFY26.

* ALOS stood at 3.06 days (vs. 3.20/3.03 days in 2QFY25/1QFY26).

* OPD Pharmacy revenue increased 23.9% YoY to INR456m.

* International Patients revenue increased 48.5% YoY to INR762m.

* Heart/cancer/digestive/neuro/urology contributed ~65% of the revenue in 2QFY26.

Capex plans

* Medanta incurred INR4.3b of capex in 1HFY26.

* Maintenance capex is estimated at INR4.5b to be incurred over the next three years.

* The total project capex, estimated at INR 36.7b for the next five years, will be funded by a combination of debt funding and internal accruals.

* Medanta has added 393 beds in 1HFY26 and plans to add 647 more beds by the end of FY27.

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