Artemis Medicare FY26: Strong Core Performance, Expansion Cycle Begins

Artemis Medicare Services Limited closed FY26 with steady growth across revenue and profits, supported by operating leverage at its flagship Gurugram hospital. Consolidated revenue from operations rose to INR 1,081.24 crore, up 15.4% year on year. EBITDA increased to INR 218.01 crore, up 18.0%, and margin improved to 20.2% from 19.7% in FY25. PAT grew faster than operating profit, rising 26.2% to INR 103.72 crore.

Q4 FY26 continued the same trend. Consolidated revenue from operations was INR 279.23 crore, up 16.4% year on year, while EBITDA grew 23.1% to INR 59.38 crore. The quarter’s EBITDA margin improved to 21.3% from 20.1% a year ago. PAT came in at INR 30.28 crore, up 32.1%, with diluted EPS at INR 1.90.

A key operational anchor remained Gurugram. In Q4, occupancy stood at 64.6% and ARPOB was INR 84,571, up 7.3% year on year. Management attributed ARPOB improvement to case mix upgrades and efficiency gains rather than pricing-led growth, noting that insurer and government pricing structures limit headline tariff increases.

FY26 financial snapshot

What drove performance in Gurugram

Operationally, Gurugram delivered growth through higher patient volumes and improving monetisation. Q4 inpatient volumes were 8,712, up 9.2% year on year. For FY26, inpatient volumes were 34,428, up 9.6%. ARPOB for FY26 was INR 82,435, up 7.8%.

The company’s payor mix highlights its differentiated positioning in medical value travel and higher-complexity care. For Q4 FY26 in Gurugram, international patients and government schemes were each shown at 31% of revenue, insured patients at 22%, and domestic cash at 16%. For FY26, international patients were 32%, insured 30%, domestic cash 20%, and government schemes 18%.

Management also acknowledged short-term volatility in international flows, citing a 15% to 18% dip in March linked to the West Asia situation, followed by recovery in April and May. However, the stated strategic intent is to keep international contribution around 30% to 31% of revenue, supported by outreach beyond the Middle East into Africa, CIS, SAARC, and selected new markets.

Expansion: Raipur first, South Delhi next

Artemis is entering a heavier expansion phase. The near-term milestone is the 300+ bed super-speciality hospital in Raipur. The investor presentation indicated an expected operational date of May or June 2026, while management said it is on track to commence operations in Q1 FY27. The project’s capex was discussed at INR 110 to 120 crore for a 300-bed facility.

Management was explicit that Raipur will dilute margins in the early phase. Expected losses from Raipur were guided at around INR 18 to 20 crore in the first year, with a breakeven indicated around 18 months. The plan is to start with 150 operational beds, add 50 beds in three to four months, and reach full 300 operational beds within about two quarters.

The second large project is a 650+ bed super-speciality hospital in South Delhi, expected to be commissioned in FY29. The project sits on approximately 3.5 acres of leased land with about 7,00,000 sq ft built-up area under a long-term 30-year agreement. Management clarified that land and building are owned by the trust, while Artemis’ capex is for interiors and equipment. The capex estimate provided was about INR 350 crore for around 450 beds plus INR 150 to 160 crore for the remaining 200 beds, totalling about INR 500 crore. The company indicated Artemis’ capex spend for this facility would begin around mid FY28.

Capital allocation, funding, and what to track

Alongside announced projects, the company stated it proposes to raise around INR 700 crore, subject to shareholder approval. On the concall, management clarified that announced projects can be funded through internal accruals and incremental debt, while the fundraise is intended for additional pipeline projects that require deposits not fundable through debt.

On capital allocation, management cited the use of IRR and ROCE in project evaluation, with an expected ROCE range of 16% to 18% over three to five years for new capital deployment, and payback expectations of five to six years.

For investors, the next 12 to 18 months are likely to be defined by three execution markers: Gurugram occupancy improvement toward the stated 70% to 75% range, the pace and loss envelope of the Raipur ramp-up, and clarity on additional projects linked to the proposed fundraise. FY26 shows the core franchise is growing with improving margins. FY27 will test whether the expansion cycle can be absorbed without compromising that base performance.