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* In 3QFY26, sales grew 18.8% YoY to INR11.2b (vs. our est: INR10.7b).

* EBITDA margin dipped 620bp YoY to 19.4% YoY (our est: 22.4%), due to increased opex (partly on account of the commencement of Noida hospital). Employee costs/other expenses rose 330bp/440bp YoY as % of revenue.

* Medanta’s EBITDA declined 9.9% YoY to INR2.2b (vs our est: INR2.4b).

* Medanta had a one-time expense of INR366m on account of the incremental charge relating to gratuity and compensated absences due to the new labor code.

* Adjusted for the same, PAT dipped 13.2% YoY to INR1.2b (vs. our est: INR1.5b).

* Its 9MFY26 revenue/EBITDA/PAT grew 18%/1%/9% YoY.

Key operating metrics

* Mature hospitals' revenue (66% of total revenue) grew 8.6% YoY to INR7b. EBITDA stood at INR1.7b for the quarter, and margin contracted 110bp YoY to 23.9%.

* Developing hospitals’ revenue (34% of total revenue) grew 21.5% YoY to INR3.7b. EBITDA stood at INR1.2b for the quarter, with margins contracting 210bp YoY to 31.7%.

* Noida hospital had revenue of INR343m with an opex loss of INR320m in 3QFY26.

* ARPOB grew by 10% YoY to INR67,361 in 3QFY26. The matured hospitals segment witnessed a YoY ARPOB growth of 13.5%. The developing hospitals segment witnessed a YoY ARPOB growth of 8.3% for 3QFY26.

* Both IPD/OPD volumes rose 14%/19.6% YoY for the quarter.

* Occupancy levels were 59% (vs. 63.6% in 3QFY25) and 63.7% in 2QFY26.

* ALOS stood at 3.02 days (vs. 3.23/3.06 days in 3QFY25/2QFY26).

* OPD Pharmacy revenue increased 30.3% YoY to INR465m.

* International Patients revenue increased 30% YoY to INR703m.

* Heart/cancer/digestive/neuro/urology contributed ~65.8% of the revenue in 3QFY26.

Capex plans

* Medanta incurred INR6.2b of capex in 9MFY26.

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

* Total project capex estimated at INR 34.5b for the next five years will be funded by a combination of debt funding and internal accruals.

* Medanta has added 537 beds in 9MFY26 and plans to add 496 more beds by the end of FY27.

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