Medanta Q1 FY27: Volumes lead, Noida narrows losses, capex pipeline stays large

Global Health Limited, which operates hospitals under the Medanta brand, started FY27 with strong operating momentum. For Q1 FY27, consolidated total income rose to INR 13,262 million, up 26.2% year on year. EBITDA came in at INR 3,153 million, a 23.5% year on year increase, with EBITDA margin at 23.8%. Profit after tax was INR 1,573 million, slightly lower than INR 1,590 million in Q1 FY26, largely because the base quarter included a non-recurring exceptional income of INR 196 million.

The quarter’s story was volume-led growth across the network, improving realization and a sharp reduction in losses at the newly commissioned Noida hospital. Inpatient volumes rose 27.7% year on year to 60,214 and outpatient volumes increased 34.5% to 1,100,928. Occupied bed days increased 21.1% to 173,064, while network occupancy stayed healthy at around 63% despite higher installed capacity.

Volumes drive growth while realizations remain stable

Medanta’s growth remained broad-based. ARPOB increased 5.5% year on year to INR 70,244, supported by a shorter average length of stay and changes in case mix. ALOS improved to 2.87 days from 3.03 in Q1 FY26. The company also disclosed ARPP for the first time, with Q1 FY27 ARPP at INR 201,891, broadly similar to the prior year.

Revenue mix metrics suggested the core inpatient business continues to dominate, with IPD at 82% and OPD at 18%. Domestic revenue remained the bulk at 94%, while international revenue was 6%. International patients revenue still grew 23.0% year on year to INR 782 million, despite management referencing geopolitical tensions.

OPD pharmacy, including hospital and retail pharmacy, was another strong growth pocket. Revenue from this business rose 50.9% year on year to INR 609 million, supported by the hospital network and the expanding retail pharmacy footprint.

Financial summary (consolidated)

Noida’s ramp-up is progressing faster than expected

Noida remains the key variable in consolidated margins, and management commentary indicated that the hospital’s ramp-up is ahead of internal expectations. Noida generated total income of INR 855 million in Q1 FY27, compared to INR 525 million in Q4 FY26. More importantly, EBITDA loss narrowed sharply to INR 49 million in Q1 FY27, compared with an EBITDA loss of INR 236 million in Q4 FY26.

Operationally, Noida ended June 2026 with 433 operational beds against planned capacity of over 550 beds. During Q1 FY27, 51 beds were added. The investor presentation also highlighted that LINAC and brachytherapy were operationalised and that all major insurance and PSU empanelments were completed. The company disclosed that it performed over 5,000 procedures in Q1 FY27.

In the concall, management indicated Noida’s occupancy was around 30% to 40%, but cautioned that the number fluctuates as beds are added in phases. The tone on the call suggested that the next improvement will come from operating leverage rather than major new fixed cost additions, with management stating there is no significant additional cost expected to come into Noida and that it should benefit as losses move toward breakeven.

Cluster performance shows a clear growth split

The company has re-labeled hospital clusters. Cluster 1 includes Gurugram, Indore, and Ranchi. Cluster 2 includes Lucknow, Patna, and Noida. The composition remains unchanged, but the naming is intended to improve reporting clarity.

Cluster 1 delivered total income of INR 7,715 million in Q1 FY27, up 10.1% year on year. EBITDA rose to INR 1,858 million and margins improved to 24.1% from 23.4%. Occupancy for Cluster 1 remained at 63%, and ARPOB increased 6.7% to INR 78,172.

Cluster 2 remained the growth engine. Including Noida, Cluster 2 total income increased 54.8% year on year to INR 4,983 million, while EBITDA grew 35.0% to INR 1,272 million. Excluding Noida, Cluster 2 delivered 28.2% revenue growth and 40.2% EBITDA growth, with an EBITDA margin of 32%. Management also clarified that corporate overheads are largely loaded in Gurugram within Cluster 1, making margin comparisons across clusters less straightforward.

Capacity expansion and five-year capex plan stay central

Medanta continues to position bed expansion, talent acquisition, and technology investments as core levers of growth. During Q1 FY27, the company added 72 beds across the network, with 21 beds added in Lucknow and 51 beds in Noida. It also onboarded over 70 doctors, including more than 50 senior clinicians, across specialties including cardiac, cancer, neurosciences, urology, and orthopaedics.

The capex plan disclosed in the investor presentation indicates total planned capex of INR 48,582 million over the next five years. The company stated this will be funded through a combination of debt and internal accruals. In Q1 FY27, capex incurred was INR 1,610 million.

A notable project update was the scale-up of the Guwahati hospital plan to 650 beds following revisions in building bylaws and the National Building Code. The investor presentation noted Guwahati capex would be INR 9,700 million due to the expansion. The pipeline described in the presentation includes South Delhi (400 beds in partnership with DLF, construction in progress), Pitampura in Delhi (~750 beds, building plan under preparation), Mumbai (land acquired, approvals pending including MHADA and environmental clearance), and Varanasi (400-bed project under built-to-suit and lease arrangement, building plans under preparation).

What to watch from here

The quarter reinforced two themes. First, the existing network continues to grow mainly through patient volumes and improving efficiency, reflected in rising occupied bed days, higher ARPOB, and reduced ALOS. Second, Noida is moving through its ramp-up curve with a visible reduction in losses, which can meaningfully lift consolidated margins as it approaches EBITDA breakeven.

The medium-term question is execution. The company has disclosed a large five-year capex pipeline and multiple projects that require approvals and construction execution. The concall commentary emphasized strong cash flow generation and low leverage, but the scale of investment suggests that discipline on timelines, funding mix, and ramp-up will remain central to investor confidence.