UniHealth Hospitals: A Stellar H1 FY26 Performance Driven by India-Africa Synergy

UniHealth Hospitals Limited (NSE: UNIHEALTH), a rapidly growing global healthcare provider headquartered in Mumbai, has reported a remarkable performance for the first half of fiscal year 2026 (H1 FY26). The company, with extensive operations across India and Africa, delivered a robust financial showing, underscoring the success of its integrated healthcare model. Consolidated total income surged to INR69.56 crore, marking an impressive 55.14% year-on-year growth. This strong top-line expansion was complemented by a significant improvement in profitability, with EBITDA more than doubling to INR34.62 crore, and EBITDA margins expanding by 1,212 basis points to a healthy 49.76%. The consolidated net profit for the period more than tripled to INR28.6 crore, reflecting the company's operational discipline and strategic execution.

Segmental Performance and Growth Drivers

The company's diverse business verticals, including medical centers and hospitals, export and distribution of pharmaceuticals and medical consumables, and consultancy services, all contributed to this stellar performance. For H1 FY26, Medical Centres & Hospital remained the dominant segment, accounting for 89.72% of the total income, translating to INR62.42 crore. The Export & Distribution of Pharmaceuticals & Medical Consumables contributed 4.11% (INR2.86 crore), while Consultancy Services added 2.01% (INR1.40 crore). Other Income accounted for 4.15% (INR2.89 crore). This balanced mix, particularly the strong hospital operations and allied businesses, fueled the healthy traction. The company's strategic focus on high-demand super-specialty areas and rising patient volumes across its network were key growth drivers.

Strategic Expansion and Operational Excellence

UniHealth's H1 FY26 was marked by meaningful progress on several strategic fronts. In India, the company successfully commissioned its first UMC Hospital facility in Navi Mumbai, a 52-bedded multi-specialty tertiary care hospital. This facility, equipped with modular theatres, a cardiac catheterization lab, and state-of-the-art Intensive Care Units (ICUs), is a major step in strengthening UniHealth's India presence. Looking ahead, the upcoming 200-bedded tertiary care hospital in Nashik, featuring advanced ICUs, robotic OTs, and comprehensive diagnostics, is progressing well for commissioning early next calendar year. These Indian facilities are expected to contribute significantly to the company's top line, with Navi Mumbai targeting over INR30 crore and Nashik aiming for INR100 crore in their first full year of operations, with combined EBITDA margins of 15-18%.

Africa continues to be a strong pillar of UniHealth's performance. The Ugandan unit of the Group achieved a significant milestone by repaying all its outstanding loans as of September 30, 2025, becoming a debt-free entity. This provides the company with financial agility to expand aggressively in the coming years, scaling IVF and fertility services and opening new clinics. Furthermore, UniHealth Holdings Limited, Mauritius, a wholly-owned subsidiary, acquired 53.33% equity in Biohealth Limited, Tanzania. This restructuring enhances governance and operational oversight, aligning the international holding structure to support Africa's expansion strategy more effectively. The new secondary care hospital in Mwanza, Tanzania, is expected to be operational by the end of the current financial year, with plans to add another 400 plus beds across Africa in the next two to three years.

The company's asset-light and partnership-driven model ensures flexibility and sustainable growth, focusing on leased hospital properties and a Design-Build-Operate (DBO) model. This approach allows UniHealth to earn revenues from planning and operating hospitals without large upfront capital investments. The re-energization of the Medical Value Travel segment, leveraging the new Indian facilities to attract international patients from its African network, is also expected to drive significant revenue and margin accretion, as these patients are typically charged higher without referral fees.

Outlook and Vision

UniHealth Hospitals Limited is steadily moving towards its medium-term vision of a 1,000-bed integrated India-Africa healthcare platform by the end of calendar year 2027 (FY27-28). The company remains committed to disciplined and steady expansion, focusing on improving operational efficiency, enhancing patient care, and expanding through its asset-light model. Management anticipates better cash flows and a reduction in trade receivable days on a consolidated basis in the coming quarters, especially with the increasing contribution from Indian operations, which primarily cater to cash and insurance patients. The company's strategic positioning in high-growth, underserved markets in both India and Africa, coupled with its strong promoter and professional leadership, positions it well to deliver sustainable value and strengthen its position as a trusted cross-border healthcare provider.

UniHealth's H1 FY26 performance reflects strategic clarity and disciplined execution, setting a strong foundation for continued growth and market leadership in the evolving global healthcare landscape.