Global Health Limited, operating under the renowned "Medanta" brand, is a premier private multi-specialty tertiary care provider in India, with a commanding presence in the North and East regions. Founded by the distinguished cardiovascular surgeon Dr. Naresh Trehan, the institution is built on the guiding philosophy of ‘Har Ek Jaan Anmol’ (Every Life is Invaluable). This principle translates into a patient-first model of healthcare that emphasizes an integrated, team-based approach to treatment, ensuring that super-specialist doctors collaborate to deliver customized care. Medanta has established itself as a leader in complex medical specialties, including cardiac sciences, neurosciences, oncology, and organ transplants.

From its flagship 1,440-bed Medanta-The Medicity campus in Gurugram, the largest single-location private hospital in India, the company has expanded its network to six hospitals across key cities like Lucknow, Patna, Indore, Ranchi, and the newly operational facility in Noida. This network serves a population of over 400 million people, making Medanta the largest private hospital provider by bed capacity in Delhi (NCR), Uttar Pradesh, and Bihar. The institution's commitment to excellence is reflected in its world-class infrastructure, deployment of state-of-the-art medical technology, and a strong focus on attracting and retaining top-tier clinical talent. The Medanta model is designed not just to treat illness but to provide compassionate care within a safe and healing environment, positioning it as a pivotal player in India's healthcare landscape.

Official Website: https://www.medanta.org/

• Q3 FY2026 Performance:

• Total Income: Grew by 19.1% year-over-year (YoY) to INR 11,428 million. This growth was driven primarily by a 14.3% increase in in-patient volumes and a 9.9% increase in Average Revenue Per Occupied Bed (ARPOB).

• EBITDA: Reported EBITDA stood at INR 2,494 million, a slight decline of 1.7% YoY. This figure was significantly impacted by the newly operational Noida hospital, which incurred an EBITDA loss of INR 320 million. Excluding the Noida facility, EBITDA grew by a healthy 10.9% YoY to INR 2,814 million.

• Profit After Tax (PAT): Reported PAT was INR 950 million, a 33.5% decrease YoY. The decline is attributable to three main factors: initial operating losses from the Noida hospital, higher depreciation and finance costs associated with the new facility, and a one-time non-recurring exceptional expense of INR 366 million related to new Labour Codes. Adjusted for this exceptional item, PAT was INR 1,224 million.

• Nine-Month (9M) FY2026 Performance:

• Total Income: Increased by 17.6% YoY to INR 33,131 million. Excluding the new Noida unit, income grew by 16.2%.

• EBITDA: Grew by 8.0% YoY to INR 7,654 million. Excluding Noida's impact, EBITDA growth was a robust 15.7% YoY.

• Profit After Tax (PAT): Rose by 8.5% YoY to INR 4,124 million.

• Revenue Mix:

• Payor Profile (Q3 FY26): The revenue stream is well-diversified, with cash-paying patients contributing the largest share at 56%, followed by TPAs (26%), PSUs & Corporates (12%), and government schemes (CGHS/ECHS) at 5%.

• Patient Geography (Q3 FY26): Domestic patients account for 93% of revenue, while international patients contribute the remaining 7%. Revenue from international patients grew by a strong 29.9% YoY.

The company's core operations remain strong, with revenue and underlying profitability showing healthy growth, though reported net profit is temporarily diluted by strategic expansion costs and a one-time statutory charge.

• Integrated, Super-Specialty Model: Medanta operates on a "patient-centric" model where teams of super-specialist doctors collaborate on complex cases. This integrated approach is a key differentiator, particularly in high-acuity specialties.

• Focus on Complex Procedures: The revenue mix is heavily weighted towards complex, high-margin specialties. In Q3 FY26, key contributors included Heart (20.1%), Liver Transplant (14.6%), Orthopedics (11.4%), and Kidney & Urology (11.5%). This focus not only drives higher revenue per patient but also builds a strong clinical reputation.

• Matured and Developing Hospital Strategy: The company effectively balances its portfolio between "Matured" hospitals (operational for over 6 years) and "Developing" hospitals. Matured facilities provide stable cash flows and steady growth (9.4% YoY revenue growth), while developing units (ex-Noida) deliver high growth (21.5% YoY revenue growth), creating a balanced engine for expansion.

• Clinical Talent Magnet: A core part of the Medanta model is its ability to attract and retain leading clinical talent. In Q3 FY26 alone, the company onboarded 110 doctors, with over 70 joining the new Noida facility, underscoring its reputation as a preferred institution for top medical professionals.

• Investment in High-End Technology: The company consistently deploys advanced medical technology to support its clinical teams. The new Noida hospital, for instance, is equipped with state-of-the-art systems like the Da Vinci Xi Robotic System, O-arm Surgical Imaging, and a 3T MRI, reinforcing its position at the cutting edge of medical care.

Medanta's unique combination of a doctor-led, super-specialty focus, a balanced portfolio strategy, and investment in technology creates a strong competitive moat in the healthcare sector.

• Volume-Led Growth: The primary growth driver is the consistent increase in patient volumes. In Q3 FY26, in-patient volumes grew 14.3% YoY to 51,275, and out-patient volumes increased 19.5% YoY to 861,000.

• Developing Hospitals Portfolio: The newer hospitals are a significant source of high growth. For Q3 FY26, the developing hospitals (excluding the newly launched Noida facility) registered a robust revenue growth of 21.5% YoY and an EBITDA growth of 13.3% YoY.

• Matured Hospitals Portfolio: The established hospitals continue to deliver steady, predictable growth. In Q3 FY26, this segment saw revenue increase by 9.4% YoY, driven by a 13.7% rise in ARPOB and a 6.5% increase in in-patient volume.

• Ancillary Services Expansion: The company is strategically growing its "Continuity of Care" network. OPD Pharmacy revenue grew by a strong 30.3% YoY in Q3 FY26. The network was also expanded with over 25 new collection centers during the quarter, bringing the total to over 300.

• International Patient Segment: Revenue from international patients is a key growth area, increasing by 29.9% YoY in Q3 FY26, driven by a higher volume of patients from abroad seeking high-quality care.

The company's growth is well-rounded, stemming from increased patient footfall across both new and established facilities, alongside strategic expansion in ancillary services and international markets.

• Entry into New Geographic Markets: Medanta is making strategic entries into major, underserved metropolitan markets, which presents a significant long-term growth opportunity.

• Mumbai: The company is setting up a 750+ bed super-specialty hospital in Oshiwara, marking its entry into the lucrative Western India market.

• Delhi: Expansion within its core NCR market includes two new hospitals: a ~750-bed facility in Pitampura (North West Delhi) and a ~400-bed hospital in South Delhi in partnership with DLF.

• Guwahati: A planned 400+ bed hospital in Guwahati will establish Medanta's presence in Northeast India, catering to the entire region.

• Campus Ecosystem Development: The company plans to create a comprehensive healthcare ecosystem at its flagship Gurugram location.

• Medical College: Plans are underway to establish a world-class medical college, which will enhance its brand, attract talent, and create a pipeline of skilled professionals.

• Guest House: A ~INR 2.5 billion investment in a service apartment/guest house will cater to out-of-town and international patients, improving their experience and potentially optimizing hospital bed usage.

Medanta is capitalizing on opportunities to expand its geographic footprint into high-potential regions and deepen its service offerings by creating integrated healthcare ecosystems.

• Current Capacity and Utilization:

• As of December 31, 2025, the total installed bed capacity across the network stands at 3,579 beds, a 17.7% increase from the previous year, primarily due to additions in Patna, Ranchi, and the new Noida hospital.

• The overall occupancy rate for Q3 FY26 was 59.1%. This is a temporary dip from 63.6% in the prior year, directly reflecting the significant increase in operational bed capacity from the newly commissioned Noida hospital, which is still in its ramp-up phase.

• Operational efficiency remains strong, with the Average Length of Stay (ALOS) improving (decreasing) by 6.6% YoY to 3.02 days, indicating faster patient turnover and better bed management.

• Capital Expenditure (Capex) Plan:

• The company has outlined a substantial capex plan of approximately INR 39,013 million over the next 5 years to fuel its next phase of growth.

• Project Capex: The majority, around INR 34,513 million, is allocated for new projects. Key investments include Mumbai (INR 13,808 million), South Delhi (INR 5,835 million), Pitampura (INR 4,515 million), and Guwahati (INR 3,000 million).

• Maintenance Capex: Approximately INR 4,500 million is budgeted for maintenance and upgrades across existing facilities over the next three years.

• Funding: This large-scale expansion will be funded through a combination of internal accruals and debt financing. In 9M FY26, the company has already incurred INR 6,246 million in capex.

The company is in a heavy investment cycle, strategically expanding its capacity, with current utilization rates reflecting the initial ramp-up phase of new assets.

• Bed Expansion Roadmap: Medanta has a clear and aggressive plan to significantly increase its scale. The company aims to add approximately 2,300 beds by FY2027, which would increase its total capacity by over 56% to nearly 6,400 beds.

• New Hospital Commissioning: The core of the future plan is the successful execution and commissioning of its pipeline of new hospitals in Delhi (Pitampura and South Delhi), Mumbai, and Guwahati. These projects will transform Medanta from a North/East India-centric player into a pan-India healthcare provider.

• Deepening NCR Presence: With the new Noida hospital now operational and two more large hospitals planned in Delhi, the company is solidifying its dominance in the National Capital Region, its most important market.

• Talent Acquisition: A key focus will be to continue attracting high-quality clinical and managerial talent to staff the new facilities and maintain the high standards of care associated with the Medanta brand.

• Continuity of Care: The company plans to continue expanding its ecosystem outside the hospital walls by adding more clinics, labs, collection centers, and pharmacies to capture a larger share of the patient's healthcare journey.

Medanta's future plans are centered on aggressive, large-scale capacity expansion into new strategic markets, aiming to cement its position as a leading national healthcare institution.

• Q3 FY2026 Margin Analysis:

• Reported EBITDA Margin: Stood at 21.8%, a compression of 463 basis points (4.63%) compared to 26.5% in Q3 FY25.

• Reported PAT Margin: Was 8.3%, down from 14.9% in the previous year.

• Core Business Margin: The margin profile of the core business remains robust. Excluding the impact of the newly operational Noida hospital, the EBITDA margin for Q3 FY26 was a healthy 25.4%.

• Factors Impacting Margins:

• New Hospital Launch: The primary reason for the margin contraction is the launch of the Medanta Noida hospital. New hospitals typically incur high initial operating costs (staffing, marketing) and lower revenues during the ramp-up phase, leading to EBITDA losses (INR 320 million for Noida in Q3 FY26).

• Increased Expenses: Higher depreciation (up 26.3% YoY) and finance costs (up 32.2% YoY) related to the new Noida facility further pressured the PAT margin.

• Exceptional Item: A one-time statutory expense of INR 366 million classified as an exceptional item also negatively impacted the reported PAT margin for the quarter.

While reported margins are temporarily compressed due to significant growth-related investments, the underlying profitability of the established hospital network remains strong.

• Execution Risk: The company has a large pipeline of greenfield projects in Mumbai, Delhi, and Guwahati. Delays in regulatory approvals, construction timelines, or cost overruns could impact projected growth and returns on investment.

• Talent Acquisition and Retention: Medanta's model is heavily dependent on attracting and retaining high-quality doctors and clinical staff. Intense competition for talent could lead to increased employee costs and affect the quality of service.

• Regulatory and Policy Changes: The healthcare sector is subject to evolving government regulations. Changes in pricing, licensing requirements, or other policies could adversely affect operations and profitability. The one-time charge for new Labour Codes is an example of this risk.

• Ramp-Up of New Facilities: The profitability of new hospitals like Noida is dependent on a successful ramp-up of patient volumes and occupancy. A slower-than-expected ramp-up could prolong the period of operating losses and continue to drag down overall margins.

• Macroeconomic Factors: General economic conditions, movements in interest rates, and currency exchange rates can impact patient affordability, financing costs for capex, and the cost of imported medical equipment.

Investors should monitor the company's execution of its ambitious expansion plan and its ability to manage the operational challenges of new facilities.

• Clinical Talent Onboarding: The company continues to strengthen its clinical teams, having onboarded 110 doctors across its network in Q3 FY26. More than 70 of these doctors were specifically for the new Noida hospital, ensuring it is well-staffed from the start.

• Technology Upgradation: A 5th Radiation Oncology machine was operationalized in the Gurugram hospital during the quarter, enhancing its cancer care capabilities. The Noida facility has been equipped with a suite of the latest medical technologies across various specialties.

• "Continuity of Care" Network Expansion: The company added over 25 collection centers in Q3 FY2026, bringing its total network to over 300. It now operates 19 pharmacies, including 10 retail pharmacies outside of its hospital campuses.

• Noida Hospital Inauguration: The Medanta Noida facility was formally inaugurated on November 27, 2025. As of the end of the quarter, it had 328 operational beds and 14 operational theaters, with a planned capacity of 550+ beds.

The company is making consistent operational progress in strengthening its clinical capabilities, expanding its patient outreach network, and successfully launching its new flagship hospital in Noida.