Global Health margin expands 4.18 points as IPD volumes rise 30%
Revenue grew 33.64% YoY faster than expenses at 26.57%; a 4.94-point rise in the tax rate limited profit conversion.
Filed 03 Nov 2026, 16:06 IST · after market close · Global Health Ltd (MEDANTA)
Key takeaways
- Operating margin expanded 4.18 percentage points YoY to 25.19% as revenue growth outpaced expense growth.
- Net profit rose 38.35% YoY, slower than PBT growth of 47.56% as the tax rate increased 4.94 percentage points.
- Management said Q2FY27 census bed capacity expanded 17% and IPD volume grew 30% YoY.
Price around the results
Volume growth drove the Q2 revenue acceleration
Consolidated revenue grew 33.64% YoY and 12.65% QoQ, with expenses rising more slowly at 26.57% and 8.03%, respectively. Management said census bed capacity expanded 17% in Q2FY27, supporting 30% YoY IPD volume growth. The company also attributed ARPP growth to changes in case and payor mix.
Margin recovery reaches 25.19%
Operating margin expanded 4.18 percentage points YoY and 3.20 percentage points QoQ because revenue growth exceeded expense growth. The margin has now risen for three straight quarters, from 19.38% in Q3FY26 to 25.19% in Q2FY27. It was 3.55 percentage points above the 21.64% median for the 47 healthcare peers that had reported.
Tax and interest growth diluted earnings conversion
PBT grew 47.56% YoY, ahead of the 38.35% increase in consolidated net profit, as the tax rate rose 4.94 percentage points to 25.67%. Interest expense increased 64.17% YoY, adding another drag below operating profit. Other income accounted for 8.01% of PBT, so it was a contributor but not the main source of earnings.
Management outlines a broad capacity expansion pipeline
Management said it plans total capex of approximately Rs 62,390 million over the next four to five years, including a proposed 750-bed hospital in Pitampura and a 500-bed super-specialty hospital in Ghaziabad. The company said Noida added 49 beds to reach 482 operational beds, while Lucknow added 25 beds to reach 803 beds; Gurugram also added two operating theatres and one cath lab. Management said the 80-bed Indore cancer hospital was scheduled to be operationalized in Q3FY27.
No post-results market move yet
The consolidated results were filed after market close, so there is no post-results stock reaction to assess yet. Across the last eight result reactions, the stock rose four times and fell four times, with a median absolute move of 3.39%.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹1,469 cr | ₹1,304 cr | +12.65% | +33.64% |
| Other income | ₹24 cr | ₹22 cr | +6.54% | -33.88% |
| Expenses | ₹1,099 cr | ₹1,017 cr | +8.03% | +26.57% |
| Operating profit | ₹370 cr | ₹287 cr | +29.06% | +60.25% |
| Operating margin (%) | 25.19% | 21.99% | — | — |
| Interest | ₹28 cr | ₹27 cr | +5.28% | +64.17% |
| Depreciation | ₹71 cr | ₹69 cr | +2.64% | +42.37% |
| Profit before tax | ₹295 cr | ₹213 cr | +38.25% | +47.56% |
| Tax | ₹76 cr | ₹56 cr | +35.12% | +82.76% |
| Net profit | ₹219 cr | ₹157 cr | +39.36% | +38.35% |
| EPS (₹) | ₹8.21 | ₹5.91 | +38.92% | +39.39% |
Operating margin of 25.19% compares with a Healthcare sector median of 21.64% across 47 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.
This quarter
- Q2 FY27 saw a 17% expansion in census bed capacity and 30% year-on-year IPD volume growth.
- ARPP growth was driven by changes in case and payor mix.
Guidance & outlook
- The company plans total capex of approximately INR 62,390 million over the next four to five years.
- The company plans to jointly build, operate and manage an approximately 750-bed hospital in Pitampura, New Delhi.
- The company plans a 500-bed super-specialty hospital in Ghaziabad.
Planned next quarter
- The 80-bed Indore cancer hospital is scheduled to be operationalized in Q3 FY27.
Expansion
- Noida added 49 beds, taking total operational capacity to 482 beds.
- Lucknow added 25 beds, taking total bed capacity to 803 beds.
- Gurugram added two operating theatres and one cath lab during the quarter.
- Construction is in progress for the 400-bed South Delhi project on site 1.
- Mumbai received environmental clearance and Consent to Establish, and piling works commenced.
New initiatives
- Ranchi launched Medical Oncology services.
- The company added six pharmacies, expanding its network to 28 operational pharmacies.
- More than 100 doctors were onboarded across Medanta in Q2 FY27.
Competition
- The company describes itself as one of the largest private hospital chains in North and East India.
Problems & risks
- Pitampura requires revised building plans to comply with the revised NBC standard 2026.
What to watch
- Whether operating margin holds above 25.19% after three consecutive quarterly increases.
- Whether revenue growth continues to exceed expense growth after the Q2FY27 comparison of 12.65% versus 8.03% QoQ.
- Whether management operationalizes the 80-bed Indore cancer hospital in Q3FY27, as scheduled.