Medanta's Q2 FY26: Robust Growth and Strategic Expansion Drive Healthcare Forward

Global Health Limited, operating under the Medanta brand, has delivered a strong performance in the second quarter of Fiscal Year 2026, showcasing significant growth across its operations and strategic advancements in its network. The company, a leading multi-specialty tertiary care provider in India, reported a consolidated total income of INR 1,118.9 crore, marking a substantial 14.8% year-on-year increase. This impressive top-line growth was complemented by a 21.1% surge in Profit After Tax (PAT), which reached INR 158.4 crore, with PAT margins improving to 14.2% from 13.4% in Q2 FY25. EBITDA, excluding the newly operational Noida facility, grew by 13.7% year-on-year to INR 280.4 crore, maintaining healthy margins of 25.2%.

The growth was primarily fueled by an increase in patient volumes and realization, with inpatient count rising by 12.7% and outpatient count by 14.9% year-on-year. Occupied bed days increased by 7.7%, reflecting a healthy occupancy rate of approximately 64% on increased bed capacity. The average revenue per occupied bed (ARPOB) grew by 5.5% to INR 65,570, driven by an improved realization and a favorable shift in the specialty mix, notably with an increasing contribution from cancer treatments. International patient revenue also saw a significant boost, growing by 48.5% year-on-year to INR 76.2 crore, indicating Medanta's expanding global appeal.

Strategic Initiatives and Network Expansion

Medanta's strategic vision for growth is evident in its ongoing expansion projects and commitment to advanced medical technology. A major milestone in Q2 FY26 was the commencement of operations at Medanta Noida in September 2025. This 550-bed state-of-the-art facility, Medanta's sixth hospital, is currently operational with 226 beds, including over 80 ICU beds, and is equipped with cutting-edge medical technologies such as the Da Vinci Xi surgical robot and advanced imaging systems. While the Noida facility generated INR 3.9 crore in revenue and an EBITDA loss of INR 19.7 crore in its initial month, this is in line with the expected ramp-up phase for new hospitals.

Further solidifying its presence, Medanta announced plans for a 400+ bed super-specialty hospital in Guwahati, marking a significant foray into the underserved Northeast region. The Bhoomi Pujan ceremony for this project was held on October 31, 2025, following the acquisition of a 3.5-acre land parcel. This initiative aims to bring world-class healthcare to over 50 million people and is expected to create 5,000-7,000 direct and indirect jobs. In Mumbai, the company received additional FSI approval, allowing it to expand its planned hospital capacity from 500 to 750 beds, with an estimated project cost of INR 15,300 million. These projects, along with others in South Delhi and Pitampura, underscore Medanta's disciplined capital allocation strategy and its commitment to expanding its network.

Financial Health and Future Outlook

Medanta maintains a robust financial position, with operating cash flows for H1 FY26 standing at INR 329.5 crore. The company ended September 2025 with a net cash surplus of INR 708.2 crore, demonstrating a well-capitalized balance sheet capable of supporting future expansion plans. While gross debt increased due to loan drawdowns for the Noida project, the overall liquidity remains strong. The company's total project capex for the next five years is estimated at INR 3,670 crore, to be funded through a combination of debt and internal accruals, with an additional INR 450 crore allocated for maintenance capex over the next three years.

Management highlighted that the EBITDA growth in the coming quarters is expected to align more closely with revenue growth. They also acknowledged the increase in manpower costs, particularly in mature hospitals and new units like Ranchi, as part of ongoing investments to strengthen the core and support new facilities. Despite challenges such as payment collection issues from government schemes, Medanta's patient-centric approach and focus on clinical excellence, compassion, and trust continue to drive its strategic objectives. The company's ability to attract and retain high-quality clinical talent, coupled with its continuous investment in advanced technology, positions it well for sustained growth and leadership in the Indian healthcare sector.