Medanta Cluster 2 operating EBITDA more than doubles in Q2 FY27

Medanta Cluster 2, comprising the Lucknow, Patna and Noida hospitals, increased operating EBITDA by 110.0% year on year to Rs 183.7 crore in Q2 FY27, while revenue from operations rose 63.2% to Rs 579 crore and its operating EBITDA margin reached 31.7%, up from 24.7%.

How fast did Medanta Cluster 2 grow in Q2 FY27?

Medanta Cluster 2 delivered 63.2% revenue growth and 110.0% operating EBITDA growth in Q2 FY27 compared with Q2 FY26. Revenue from operations increased by Rs 224.3 crore to Rs 579 crore, while operating EBITDA rose by Rs 96.2 crore to Rs 183.7 crore. The operating EBITDA margin was 31.7%, compared with 24.7% a year earlier, an increase of 7.0 percentage points.

Medanta Cluster 2 also reported a higher quarterly margin than its H1 FY27 aggregate. H1 FY27 revenue from operations was Rs 1,076 crore, up 59.6% from Rs 674.4 crore in H1 FY26, while operating EBITDA rose 73.2% to Rs 308.6 crore. The H1 FY27 operating EBITDA margin was 28.7%, 3.0 percentage points below the Q2 FY27 margin.

What drove Medanta Cluster 2’s revenue and EBITDA increase?

Medanta Cluster 2 attributed its Q2 FY27 growth to a 51.6% increase in inpatient volume and a 7.6% increase in average revenue per patient, or ARPP. Inpatient volume rose from 20,000 in Q2 FY26 to 30,000 in Q2 FY27. ARPP increased from Rs 1.75 lakh to Rs 1.88 lakh.

Medanta Cluster 2 calculates ARPP as hospital revenue excluding outpatient pharmacy and other income divided by inpatient volumes. Its occupied bed days increased 43.2% to 91,187 from 63,692, and occupancy rose to 67% from 62%. Average length of stay, or ALOS, declined 5.5% to 3.00 days from 3.17 days during the same period.

The combination of higher patient volume, higher ARPP and greater occupancy accompanied the increase in revenue from operations to Rs 579 crore. The 43.2% increase in occupied bed days was lower than the 51.6% rise in inpatient volume, while ALOS fell by 0.17 days. These reported movements show that Medanta Cluster 2 handled more inpatient cases over a shorter average stay.

How did Medanta Cluster 2 compare with Medanta Cluster 1 in Q2 FY27?

Medanta Cluster 2 grew faster than Medanta Cluster 1 in revenue, operating EBITDA and reported operating EBITDA margin in Q2 FY27. Medanta Cluster 1, comprising Gurugram, Indore and Ranchi, reported revenue growth of 17.8% to Rs 822.9 crore and operating EBITDA growth of 29.1% to Rs 181 crore. Medanta Cluster 2 had lower revenue by Rs 243.9 crore but higher operating EBITDA by Rs 2.7 crore.

Medanta Cluster 2’s operating EBITDA margin exceeded Medanta Cluster 1’s by 9.7 percentage points, based on their reported margins of 31.7% and 22.0%. Medanta Cluster 1 recorded inpatient volume growth of 15.2% to 36,000, compared with Medanta Cluster 2’s 51.6% increase to 30,000. Medanta Cluster 1’s ARPP rose 2.2% to Rs 2.24 lakh, while Medanta Cluster 2’s ARPP increased 7.6% to Rs 1.88 lakh.

What does H1 FY27 indicate for Medanta Cluster 2 and Medanta’s wider operations?

Medanta Cluster 2 generated Rs 308.6 crore of operating EBITDA in H1 FY27 at a 28.7% margin, compared with Rs 178.2 crore at a 26.4% margin in H1 FY26. This was a 73.2% increase in operating EBITDA and a 2.3-percentage-point increase in margin. The Q2 FY27 margin of 31.7% was above the H1 FY27 aggregate margin.

Across Medanta, average census beds increased 22.4% year on year to 3,115 in Q2 FY27, while occupied beds increased 17.2% to 2,072 and occupancy reached 67%. Total inpatient volume rose 29.5% to 66,000, and outpatient encounters increased 37.9% to 12.29 lakh. Group-wide ALOS declined to 2.89 days from 3.06 days, while overall ARPP rose 2.7% to Rs 2.06 lakh.

Medanta reported that operating EBITDA excludes other income and accounts for employee stock option plan, or ESOP, expenses. At 30 September 2026, Medanta reported net cash of Rs 781.5 crore, after gross debt of Rs 694.9 crore and cash and cash equivalents of Rs 1,476.5 crore. It also reported capital expenditure of Rs 338.5 crore during H1 FY27.

Conclusion

Medanta Cluster 2’s Q2 FY27 result combined faster revenue growth, faster operating EBITDA growth and a higher reported margin than Medanta Cluster 1. Inpatient volume growth of 51.6%, ARPP growth of 7.6%, a 43.2% increase in occupied bed days and occupancy of 67% accompanied the 110.0% increase in operating EBITDA.

The next reported issue to watch is how Medanta uses capital for its disclosed future expansion plans and whether Medanta Cluster 2 sustains its utilisation and margin levels. Medanta incurred Rs 338.5 crore of capital expenditure in H1 FY27 and reported Rs 781.5 crore of net cash as of 30 September 2026, while stating that its balance sheet would support future expansion and growth.