GPT Healthcare Navigates H1 FY26 with Strategic Expansion and Operational Focus

GPT Healthcare Limited, a key player in Eastern India's healthcare landscape, reported a mixed performance for the second quarter and half-year ended September 30, 2025. While the company demonstrated robust revenue growth, profitability metrics faced headwinds primarily due to strategic investments in new facilities. The management remains steadfast in its long-term vision of expanding its footprint and enhancing service offerings across underserved regions.

For Q2 FY26, GPT Healthcare's revenue from operations grew by 12.5% year-on-year, reaching INR 118.9 crore. The total income for the half-year (H1 FY26) stood at INR 228.9 crore. However, EBITDA for Q2 FY26 was INR 24.1 crore, marking an 8.2% decline year-on-year, with H1 FY26 EBITDA at INR 43.0 crore, down 7.4% from the previous year. This resulted in a contraction of EBITDA margins by 420 basis points in Q2 and 340 basis points in H1. Profit After Tax (PAT) for Q2 FY26 was INR 10.6 crore, with a margin of 8.8%, and for H1 FY26, it was INR 18.3 crore. The primary driver for the margin pressure was the initial losses incurred by the newly commissioned Raipur hospital, amounting to approximately INR 7.2 crore for H1 FY26. Additionally, finance costs saw a significant increase, rising by 192.3% in Q2 and 137.2% in H1 year-on-year.

Operational Highlights and Strategic Initiatives

Despite the short-term profitability challenges, GPT Healthcare showcased strong operational improvements and continued its strategic growth trajectory. The average length of stay (ALOS) improved to 3.49 days as of September 30, 2025, reflecting optimized case mix and enhanced throughput. The average revenue per occupied bed (ARPOB) stood at INR 38,376, aligning with the company's focus on the middle to high-income segment. A notable green flag is the company's robust payor mix, with approximately 92% of its business derived from cash and insurance patients, underscoring the strength of its neighborhood tertiary care model.

The company's expansion strategy is well underway, with a clear goal to become a 1,000-bedded hospital chain within the next two years. A significant milestone is the signing of an MOU for a new 150-bed hospital in Jamshedpur, Jharkhand, with an estimated investment of INR 70 crore, expected to be commissioned by the end of Q3 FY27. This project exemplifies GPT Healthcare's asset-light expansion model, where land and building investments are borne by owners/developers in return for periodic rent payments. The company is also actively exploring opportunities in other Tier I and Tier II cities across Eastern India, including Varanasi, Patna, and Cuttack.

Existing hospitals are also undergoing enhancements. Howrah Hospital has commenced robotic knee surgeries, performing 34 such procedures in H1 FY26, while Salt Lake Hospital has successfully completed over 700 robotic surgeries. Agartala Hospital has launched a comprehensive Cancer Care Department, including PET scan and LA in Radiation Oncology, making it the only such unit in Tripura. The company is focused on ramping up occupancy at Agartala and Howrah hospitals to an optimal 70-75% from the current ~55%. Digital initiatives like the ILS-MyHealth mobile app and the Hospital Management Information System (HMIS) are being implemented to streamline patient services and internal operations.

Financial Summary (INR Crore)

Leadership and Outlook

The Board of Directors also announced key leadership elevations, with Dr. Om Tantia appointed as Chairman and Managing Director, and Mr. Shree Gopal Tantia as Vice Chairman, effective November 8, 2025. This move signals a stable and planned leadership transition, reinforcing confidence in the company's strategic direction.

Looking ahead, GPT Healthcare's management has provided a positive outlook. They anticipate an ARPOB growth of 5-6% for the full year and expect to maintain an EBITDA margin of 20-21% for FY26, despite the initial drag from the Raipur facility. The Raipur hospital is projected to achieve EBITDA breakeven within 12-15 months at approximately 25% occupancy. For FY27, the Raipur unit is expected to contribute an EBITDA profit of 8-10% at 35% occupancy. The company also declared an interim dividend of 10% (₹1 per equity share) for FY26, payable by December 7, 2025, demonstrating a commitment to shareholder returns.

GPT Healthcare's H1 FY26 performance reflects a period of strategic investment and operational fine-tuning. While new hospital ramp-ups have temporarily impacted margins, the underlying growth in revenue, operational efficiencies, and aggressive expansion plans, particularly through the asset-light model and technological upgrades, position the company for sustained long-term growth in the dynamic Eastern Indian healthcare market. The leadership's transparent communication and clear strategic roadmap instill confidence in its ability to deliver on its vision.