Artemis Medicare margin narrows as costs outpace revenue growth
Sequential revenue growth did not translate into higher profit, while other income contributed 19.72% of pre-tax profit.
Filed 30 Oct 2026, 17:45 IST · after market close · Artemis Medicare Services Ltd (ARTEMISMED)
Key takeaways
- Revenue grew 8.26% sequentially, but expenses rose 10.98%, narrowing operating margin by 2.02 percentage points.
- Net profit slipped 1.08% sequentially as higher interest and depreciation offset a 2.14-percentage-point fall in the tax rate.
- Operating margin at 17.62% was 2.28 percentage points below the 19.9% median for 35 reported healthcare peers.
Price around the results
Revenue growth did not convert into operating profit
Consolidated revenue rose 8.26% sequentially to Rs 311.04 cr, but operating profit fell 2.87% as expenses grew 10.98%. This pushed operating margin down from 19.64% to 17.62%, a 2.02-percentage-point decline. The result was below the 19.9% median operating margin reported by 35 healthcare peers.
Higher funding and depreciation costs weighed on profit
Interest expense increased 14.86% sequentially and depreciation rose 13.9%, helping drive pre-tax profit down 3.87%. Net profit fell a smaller 1.08% because the tax rate declined by 2.14 percentage points to 24.1%. Other income was 19.72% of pre-tax profit, so reported earnings also received a material contribution outside operations.
Expansion agenda broadens the operating footprint
The presentation says management is targeting approximately 2,000 beds by 2029. Management said a 300-plus-bed super-speciality hospital in Raipur became operational in July 2026 and that a 110-bed facility in Mauritius was operationalised as Artemis Cascavelle Hospital in FY27. The company also said it has partnered with KIMS on a Heart and Lung Transplant programme and is using AI-enabled clinical and operational workflows to improve efficiency and patient outcomes.
Results were filed after the market close
The consolidated results were filed after market close on 30 October 2026. The next observable market response will therefore provide the first post-results move for this quarter.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹311 cr | ₹287 cr | +8.26% |
| Other income | ₹8 cr | ₹5 cr | +50.47% |
| Expenses | ₹256 cr | ₹231 cr | +10.98% |
| Operating profit | ₹55 cr | ₹56 cr | -2.87% |
| Operating margin (%) | 17.62% | 19.64% | — |
| Interest | ₹7 cr | ₹6 cr | +14.86% |
| Depreciation | ₹15 cr | ₹13 cr | +13.90% |
| Profit before tax | ₹41 cr | ₹43 cr | -3.87% |
| Tax | ₹10 cr | ₹11 cr | -11.71% |
| Net profit | ₹31 cr | ₹31 cr | -1.08% |
| EPS (₹) | ₹1.96 | ₹1.98 | -1.01% |
Operating margin of 17.62% compares with a Healthcare sector median of 19.90% across 35 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company targets approximately 2,000 beds by 2029.
Expansion
- A 300-plus-bed super-speciality hospital in Raipur became operational in July 2026.
- The company operationalised a 110-bed facility in Mauritius as Artemis Cascavelle Hospital in FY27.
New initiatives
- The company has a strategic partnership with KIMS to establish a Heart and Lung Transplant programme.
- The company is using AI-enabled clinical and operational workflows to drive efficiency and improve patient outcomes.
What to watch
- Whether operating margin recovers from 17.62% after the 2.02-percentage-point sequential decline.
- Whether expenses continue to grow faster than revenue after the 10.98% versus 8.26% sequential increase.
- Progress in adding capacity toward management's stated target of approximately 2,000 beds by 2029.