Revenue jumps 26.50%, but profit slips as costs and interest rise
Sequential margin improved as revenue grew faster than expenses, while Noida reported an EBITDA loss of INR 49 million.
Filed 30 Jul 2026, 15:41 IST · after market close · Global Health Ltd (MEDANTA)
Key takeaways
- Consolidated revenue rose 26.50% YoY, but operating margin was nearly flat as expenses grew 26.55%.
- Net profit fell 1.09% YoY as interest expense rose 93.47% and the tax rate increased 2.64 percentage points.
- Operating margin reached 21.99% after Q3FY26's 19.38%, but remained 5.48 percentage points below the 17-peer healthcare median.
Price around the results
Revenue growth returned to double digits
Consolidated revenue rose to Rs 1,304.05 cr, up 26.50% YoY and 12.51% QoQ. Management said in-patient volumes rose 27.7% YoY and out-patient volumes increased 34.5%, while occupied bed days grew 21.1% with network occupancy at approximately 63%.
Interest and tax absorbed the operating gain
Operating margin was almost unchanged YoY, narrowing 0.03 percentage points because expenses grew marginally faster than revenue. Interest expense rose 93.47% YoY, while depreciation increased 52.92%, limiting the conversion of operating growth into pre-tax profit. Other income fell 44.67% YoY and still contributed 10.39% of pre-tax profit; the 2.64-percentage-point increase in the tax rate also weighed on net profit.
Margin recovered, but stayed below peers
Operating margin improved 0.96 percentage points QoQ to 21.99% because expenses grew 11.15%, slower than the 12.51% rise in revenue. This ended the slide from 22.02% in Q1FY26 through 21.01% in Q2FY26 and 19.38% in Q3FY26, although the margin remains below the 24.13% recorded in Q4FY25. Global Health's margin was 5.48 percentage points below the 27.47% median for 17 healthcare peers that have reported.
Capacity additions widen the operating footprint
Management said the network added 72 beds during the quarter, including 21 in Lucknow and 51 in Noida, and onboarded more than 70 doctors. The company said it plans total capex of approximately INR 48,500 million over the next five years, with maintenance capex estimated at approximately INR 6,000 million over the next three years. Management also said an 80-bed Indore cancer hospital is planned for operation in Q2/Q3 FY27, while construction is in progress on the 400-bed South Delhi hospital and a roughly 750-bed Pitampura hospital is covered by an O&M agreement. Noida reported an EBITDA loss of INR 49 million, and management said Mumbai's MHADA and environmental clearances remain awaited.
No post-result move yet; prior reactions were mixed
The results were filed after market close, so there was no post-result market reaction in the reported session. Across the eight prior result reactions, the stock rose four times and fell four times, with a median absolute move of 3.44%, pointing to no consistent direction.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,304 cr | ₹1,159 cr | +12.51% | +26.50% |
| Other income | ₹22 cr | ₹37 cr | -39.68% | -44.67% |
| Expenses | ₹1,017 cr | ₹915 cr | +11.15% | +26.55% |
| Operating profit | ₹287 cr | ₹244 cr | +17.64% | +26.33% |
| Operating margin (%) | 21.99% | 21.03% | — | — |
| Interest | ₹27 cr | ₹27 cr | -0.11% | +93.47% |
| Depreciation | ₹69 cr | ₹67 cr | +3.70% | +52.92% |
| Profit before tax | ₹213 cr | ₹187 cr | +13.87% | +2.46% |
| Tax | ₹56 cr | ₹46 cr | +22.75% | +13.93% |
| Net profit | ₹157 cr | ₹142 cr | +11.01% | -1.09% |
| EPS (₹) | ₹5.91 | ₹5.36 | +10.26% | -0.17% |
Operating margin of 21.99% compares with a Healthcare sector median of 27.47% across 17 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- In-patient volumes increased 27.7% year-on-year and out-patient volumes increased 34.5%.
- Occupied bed days increased 21.1% year-on-year, with network occupancy at approximately 63%.
Guidance & outlook
- The company plans total capex of approximately INR 48,500 million over the next five years.
- Maintenance capex is estimated at approximately INR 6,000 million over the next three years.
Expansion
- The network added 72 beds in the quarter, including 21 at Lucknow and 51 in Noida.
- An 80-bed Indore cancer hospital is planned to become operational in Q2/Q3 FY27.
- A 400-bed South Delhi hospital is being developed in partnership with DLF, with construction in progress.
- Medanta signed an O&M agreement for a hospital of approximately 750 beds in Pitampura, New Delhi.
- Guwahati's planned hospital capacity increased from 400 to 650 beds after revised NBC norms.
New initiatives
- Ranchi launched surgical oncology services during the quarter.
- The company deployed new robotic and navigation equipment across Gurugram, Lucknow and Patna.
- More than 70 doctors were onboarded across the Medanta network in Q1 FY27.
Competition
- The company describes itself as one of the largest private hospital chains in North and East India.
Problems & risks
- Mumbai's MHADA and environmental clearances remain awaited.
- Noida reported an EBITDA loss of INR 49 million in Q1 FY27.
What to watch
- Whether operating margin builds on the recovery from 19.38% in Q3FY26 and narrows the 5.48-percentage-point gap with the peer median.
- Whether Noida's INR 49 million EBITDA loss improves from the Q1FY27 level.
- Progress on the management-stated 80-bed Indore cancer hospital timeline for Q2/Q3 FY27.