Global Health Q2 FY27 Results (NSE: MEDANTA)
Signal: Margin expansion
The read
The trajectory inflected sharply positive after three consecutive quarters of YoY OPM contraction: Q2FY27 margin expanded 418bps to 25.2% as 33.6% revenue growth, 29.5% inpatient growth, 67% occupancy and Noida breakeven converted capacity additions into operating leverage; the key test is whether this margin step-up persists while the company funds over 3,450 new beds.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,469 Cr | 33.6% | +12.6% |
| Net profit | ₹219.1 Cr | 38.3% | |
| EBIT margin | 25.2% |
P&L walk
Revenue rose 33.6% YoY to INR 14,690 million as patient volumes and capacity increased; operating EBITDA grew 60.3% to INR 3,701 million and margin expanded 418bps to 25.2%, while PAT rose 38.3% to INR 2,191 million despite higher depreciation, finance costs and tax.
Segments
Cluster 2 was the main earnings driver: revenue grew 63.2% YoY to INR 5,790 million and operating EBITDA rose 110.0% to INR 1,837 million, helped by Noida revenue of INR 1,059 million and EBITDA of INR 86 million versus a INR 199 million loss; Cluster 1 grew revenue 17.8% and EBITDA 29.1%.
Key positives
- Revenue rose 33.6% YoY to INR 14,690 million, with in-patient count up 29.5% and out-patient count up 37.9%, indicating volume-led growth rather than only pricing.
- Operating EBITDA grew 60.3% YoY to INR 3,701 million and margin expanded 418bps to 25.2%; employee costs grew 29.1% and other expenses 25.4%, both slower than revenue growth.
- Noida reached EBITDA breakeven in Q2FY27 at INR 86 million versus a INR 199 million EBITDA loss in Q2FY26, while revenue increased to INR 1,059 million from INR 37 million.
- Occupancy improved to 67% from 64% YoY despite census beds rising 17.2% to 3,115, supporting the absorption of recent capacity.
- Net cash increased to INR 7,815 million from INR 5,906 million at 31 March 2026, with approximately 86% H1FY27 EBITDA-to-cash-flow conversion.
Key concerns
- Depreciation rose 42.4% YoY to INR 708 million and finance costs rose 64.1% to INR 281 million, creating a rising below-EBITDA burden as the network expands.
- The company has committed to approximately INR 9,970 million of Ghaziabad capex and over 3,450 beds across six greenfield projects, increasing execution and ramp-up requirements despite current net cash.
- ARPP increased only 2.7% YoY to INR 2.06 lakh while revenue grew 33.6%, so the current growth engine remains primarily volume and capacity-led.
Research and educational content only. Not investment advice.