Artemis Medicare Services: Q2 FY26 Performance and Ambitious Growth Trajectory

Artemis Medicare Services Ltd. has once again demonstrated robust financial health, reporting impressive results for the second quarter and first half of the financial year 2025-26. The company, a prominent player in India's healthcare sector, showcased significant growth across key financial metrics, driven by strategic operational enhancements and a disciplined expansion roadmap. For Q2 FY26, Artemis recorded a consolidated revenue from operations of INR 274.70 crore, marking a substantial 13.8% year-on-year increase. This strong top-line performance translated into an EBITDA of INR 58.27 crore, up 17.2% YoY, with the EBITDA margin improving to 21.2% from 20.6% in Q2 FY25. The net profit after tax (PAT) surged by an impressive 35.6% YoY to INR 30 crore, underscoring the company's enhanced profitability.

The first half of FY26 also painted a picture of sustained growth, with consolidated revenues reaching INR 529.70 crore, a 14% increase over H1 FY25. EBITDA for H1 FY26 stood at INR 106.60 crore, with a margin of 20.1%, and PAT grew by 32.5% to INR 51.20 crore. These figures reflect Artemis's consistent momentum and effective execution of its strategic priorities. The company's flagship Gurugram facility was a primary driver of this performance, with its revenue from operations growing by 16.4% to INR 260.59 crore in Q2 FY26. The average revenue per occupied bed (ARPOB) at this facility reached INR 81,248, a 7.4% increase, indicating a favorable case mix and a higher proportion of complex medical procedures. Despite a slight dip in occupancy rate to 64.1% in Q2 FY26 (62.7% in H1 FY26) compared to the previous year, management attributed this to the strategic addition of new beds, a move aimed at preventing patient refusal and accommodating future growth.

Strategic Expansion and Operational Excellence

Artemis Medicare Services is not just focused on current performance but is also aggressively pursuing a well-defined expansion strategy. The company's balance sheet remains strong, with a healthy debt-to-equity ratio of 1.16 as of September 30, 2025, ensuring ample liquidity for its growth initiatives. A significant part of this strategy involves expanding its bed capacity across multiple locations. The Gurugram facility, already at 700 beds, is set to increase to 850-1,000 beds within the next one and a half years. This expansion is facilitated by a Platinum Green Building Certification, which grants a 15% increase in Floor Area Ratio (FAR) at no additional cost, and further plans to purchase additional FAR for approximately 200 more beds.

Beyond Gurugram, Artemis is making strategic inroads into new geographies. The company announced a 300-bed super speciality hospital in Raipur, Chhattisgarh, which is on track for commissioning by the end of FY26 (March 2026). This facility is poised to be the first tertiary and quaternary healthcare hospital in Raipur, leveraging partnerships with well-known local doctors to ensure quick empanelment and patient traction. Management anticipates an initial ARPOB of INR 35,000-38,000, gradually increasing to INR 45,000-60,000, with a breakeven timeline of 1 to 1.5 years. Furthermore, a binding Memorandum of Understanding (MOU) has been signed for a 650-bed super speciality hospital in a prime South Delhi location. This project is expected to be operational in 1.5 to 2 years after the binding contract is finalized by the end of December, with the company securing land on a 35-year contract to keep the cost per bed significantly lower.

Financial Summary Table (Consolidated - INR Crore)

International Footprint and Technological Edge

Artemis's international business continues to be a significant growth driver, contributing approximately 32% of total revenues. The company maintains its leadership in the medical value travel segment, with revenue from overseas patients increasing by 30.1% in Q2 FY26. Beyond India, Artemis has an overseas presence in Mauritius, operating an 80-bed 'Artemis Curepipe Hospital' since FY24. Plans are underway to add two more hospitals, totaling 200 beds, under operations and management arrangements in international locations, further expanding its global footprint. This strategy not only generates monthly fees but also refers high-end surgeries to Artemis in India, creating a synergistic growth model.

On the clinical and technology fronts, Artemis is committed to innovation. The company launched India's first private geriatrics and longevity department and partnered with KIMS Hyderabad for advanced Heart & Lung Transplants, reinforcing its commitment to patient-centric care. Technologically, Artemis is deploying AI-assisted triage systems, integrated CRM tools, and investing in advanced data analytics to enhance operational efficiency and patient experience. The rollout of a new hospital information system and 5G-enabled ambulances for real-time emergency care further highlights its focus on digital transformation.

Outlook and Investor Confidence

Artemis Medicare Services is poised for continued growth, with management projecting a total bed capacity of over 2,000 beds within the next two to three years. The company's disciplined expansion, coupled with a focus on operational excellence and clinical depth, is expected to drive sustained revenue growth and improved margins. Management anticipates EBITDA margins to reach the mid-20s, benefiting from economies of scale as the company expands. The strategic decision to stop losses from smaller centers by December-January of the current financial year will further bolster profitability. The company's robust financial performance, strategic expansions, and commitment to technological and clinical advancements underscore its position as a trusted and forward-looking healthcare institution, instilling confidence among investors for its long-term value creation.