This article first appeared on GuruFocus .
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Consolidated Revenue:INR2,545 crore, up 17.5% year-over-year.
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Hospital Business Revenue:INR2,187 crore, up 19% year-over-year.
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Diagnostic Business Gross Revenue:INR407 crore, up 10.2% year-over-year.
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Consolidated Operating EBITDA (pre-ESOP):INR568 crore, up 15.8%, with a margin of 22.3% (vs. 22.6% in Q1 FY26).
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Hospital Operating EBITDA:INR471 crore, with a margin of 21.5% (vs. 22.1% in Q1 FY26).
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Diagnostic Operating EBITDA:INR97 crore, with a margin of 23.9% (vs. 23.0% in Q1 FY26).
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Consolidated Profit After Tax (before exceptional items):INR263 crore, up approximately 4% year-over-year.
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Net Debt:INR2,233 crore as of June 30, 2026, with a net debt-to-EBITDA ratio of 1.01x.
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Hospital Occupancy:Steady at 69%, with occupied beds up 17% to 3,418 beds.
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ARPOB (Hospital):Increased 2.6% to INR2.71 crore per annum.
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International Business Revenue:INR174 crore, up 13.3% year-over-year.
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Diagnostic Customer Touchpoints:4,493 as of June 30, 2026.
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Diagnostic B2C/B2B Mix:Improved to 53/47 in Q1 FY27 from 61/49 in Q1 FY26.
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Release Date: August 07, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Consolidated revenue grew 17.5% year-over-year to INR2,545 crore, with hospital business revenue up 19%.
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Diagnostics business improved operating EBITDA margin to 23.9% from 23.0% year-over-year.
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Key specialties (renal sciences, neurosciences, orthopedics) saw strong revenue growth of 28%, 27%, and 23% respectively.
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Bed expansion progressing well, with 100 beds added in Q1 and plans for 400 more in the remaining quarters.
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International business revenue grew 13.3% year-over-year, contributing 8% to total revenue.
Negative Points
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Consolidated operating EBITDA margin declined to 22.3% from 22.6% year-over-year, impacted by recent acquisitions and ESOP costs.
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Hospital business EBITDA margin fell to 21.5% from 22.1% year-over-year, with new facilities negatively impacting margins by 0.2%.
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Oncology growth slowed significantly to ~5% due to government-mandated 30% discount on chemotherapy drugs, impacting specialty mix.
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Net debt increased to INR2,233 crore from INR1,869 crore year-over-year, raising net debt-to-EBITDA ratio to 1.01x.
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Diagnostics business growth (10.2%) lagged industry average (~15%), with management acknowledging muted growth and ongoing stabilization challenges.
Q & A Highlights
Q: Can you clarify whether the 25% EBITDA margin guidance for FY28 is pre- or post-ESOP costs, and what are the key levers to achieve this target? A: Vivek Goyal (CFO) confirmed that the company is aspiring to achieve the 25% EBITDA margin after accounting for ESOP costs. Ashutosh Raghuvanshi (MD & CEO) outlined the levers, including the ramp-up of new brownfield facilities like FMRI and Manesar, which are expected to contribute positively. He also noted that the ESOP initiative is designed to align clinician interests with company performance, leading to improved operational efficiency and cost control, which will help offset the ESOP charge.
Q: What is the expected annual ESOP charge for FY27 and the next two fiscal years? A: Vivek Goyal (CFO) stated that the ESOP charge will be around INR50 crore per quarter for the remainder of FY27, declining to approximately INR30 crore per quarter in the second year and around INR25 crore per quarter in the third year. The charge is dependent on vesting schedules and the number of employees covered.
Q: Can you provide an update on the ramp-up of the Manesar and Greater Noida hospitals, and when can we expect them to reach 20% EBITDA margins? A: Ashutosh Raghuvanshi (MD & CEO) said Manesar has operationalized 187 beds with about 60% occupancy, and the radiation oncology equipment is being installed, expected to be commissioned by November. This will transform it into a comprehensive oncology center, dramatically changing its dynamics. Greater Noida is showing steady month-on-month revenue growth of 8-10%. He expects both hospitals to be in the mid-teens EBITDA margin by the end of the calendar year.
Q: What is the rationale behind the ESOP scheme, and was it a reaction to competitor poaching attempts? A: Ashutosh Raghuvanshi (MD & CEO) clarified that the ESOP scheme was a well-thought, calibrated strategy planned over 1.5 years, not a reactionary move. It is broad-based across the network, not limited to Delhi NCR. The philosophy is to align doctors' interests with the company's growth and performance, making them partners in improving efficiency and profitability. He added that while poaching happens periodically, the company's brand and clinical infrastructure attract top clinicians.
Q: What is the CapEx guidance for FY27, and can we expect more inorganic acquisitions this year? A: Vivek Goyal (CFO) said that excluding acquisitions, the company will consume around 50% of its EBITDA for growth, including brownfield expansions and investments in advanced technologies like proton therapy and robotic surgery. On inorganic moves, he confirmed the company is actively pursuing several deals, primarily within its existing focus clusters, but cannot provide details until concluded.
Q: Can you provide an update on the O&M agreement for the Gleneagles hospitals and the management fees generated? A: Ashutosh Raghuvanshi (MD & CEO) stated that the five Gleneagles hospitals under management are showing healthy improvement in operating margins, though not yet fully stabilized to Fortis standards. He expects full stabilization within 2-4 quarters. Vivek Goyal (CFO) added that the company is eligible for a 3% management fee on revenue, which amounted to around INR6 crore for the quarter.
Q: What is the timeline and CapEx for the proton therapy facility at the Gurgaon hospital? A: Ashutosh Raghuvanshi (MD & CEO) confirmed that the board has approved the installation of a proton facility at the flagship Gurgaon hospital. The CapEx is expected to be in the range of INR252 crore, with finalization and spending expected within the current financial year.
Q: Why is the diagnostic business growing at only 10% when the industry is growing at 15%, and what is the strategy to accelerate growth? A: Vijender Singh (MD & CEO, Agilus Diagnostics) acknowledged the muted growth, attributing it to past factors like rebranding. He highlighted the improving B2C mix (53/47) and focus on preventive and specialized portfolios as key drivers. Ashutosh Raghuvanshi (MD & CEO) added that the company has rationalized its lab network and is replicating successful regional strategies, like in NCR, to other regions. He expressed confidence in achieving industry-level growth within the next few quarters.
Q: What is the impact of the oncology segment's decline on the specialty mix, and what is the future growth outlook for oncology? A: Ashutosh Raghuvanshi (MD & CEO) explained that the decline in oncology growth to about 5% is due to the new chemo drug pricing mechanism (30% discount on MRP) for ECHS and CGHS beneficiaries. However, he remains optimistic about oncology as a volume driver, focusing on radiation and surgical oncology. He expects oncology growth to normalize in the 10-12% range, down from the earlier 23-24%.
Q: Can you provide details on the bed expansion plan for the next few quarters and the expected occupancy levels? A: Vivek Goyal (CFO) stated that the company operationalized 100 beds in Q1 and expects to add another 400 beds in the remaining three quarters. The major contribution will come from the FMRI facility, where all work is completed and an occupancy certificate is expected imminently, adding 200 beds. He also noted that overall occupancy is around 70%, with levers to improve by another 2-3 percentage points through new units and better clinical talent.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
