Profit rose 39.72% YoY, but operating margin stayed below sector median
A 1.65-point sequential margin rebound and higher other income lifted earnings, while costs grew faster than revenue year on year.
Filed 14 May 2026, 16:57 IST · after market close · Global Health Ltd (MEDANTA)
Key takeaways
- Consolidated net profit increased 39.72% YoY, helped by the swing in other income to positive territory.
- Operating margin recovered 1.65 percentage points sequentially after reaching 19.38% in Q3FY26, but remained 2.35 percentage points below the healthcare peer median.
- The stock gained 2.52% on the first session after results, less than its 3.44% median absolute post-results move across eight quarters.
Price around the results
Volume growth supported Q4 revenue
Global Health's consolidated revenue grew 24.46% YoY and 3.39% QoQ. Management said in-patient volumes rose 23.0% and out-patient volumes 27.5% YoY, while 86 beds were added during the quarter across Patna and Noida. The company also said international patient revenue was marginally lower sequentially because of flight disruptions.
Margin recovered sequentially but lagged last year
Operating margin improved 1.65 percentage points QoQ because revenue grew 3.39% while expenses rose 1.28%. YoY, the opposite pattern prevailed: expenses increased 29.54% against 24.46% revenue growth, reducing margin by 3.10 percentage points. The rebound followed a decline from 25.20% in Q3FY25 to 19.38% in Q3FY26, but Q4FY26's 21.03% margin was still 2.35 percentage points below the median of 48 reported healthcare peers.
Other income materially lifted reported profit
Net profit grew 39.72% YoY, faster than operating profit growth of 8.49%, partly because other income moved from negative INR 26.97 million to INR 36.74 million. Other income represented 19.62% of pre-tax profit, so earnings quality was supported by a sizeable non-operating contribution. QoQ, the tax rate increased 3.70 percentage points and interest expense rose 24.17%, but the other-income swing helped pre-tax profit rise 56.35%.
Expansion plans point to a larger capital programme
Management said total capex of over INR 45,000 million is planned over the next five years, funded through debt and internal accruals, while maintenance capex is estimated at approximately INR 6,000 million over the next three years. The presentation said an 80-bed Indore cancer hospital is planned to become operational in Q2 FY27. Management also said construction is in progress on the South Delhi project and that agreements have been signed for projects in Pitampura and Varanasi.
The initial market reaction was within the stock's usual range
The stock rose 2.52% on the first session after the results, with a 3.13 times volume ratio, and was up 2.16% after five sessions. The move was smaller than the 3.44% median absolute reaction across eight recent results, when the stock fell after five and rose after three. The results were filed after market close on 14 May 2026.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,159 cr | ₹1,121 cr | +3.39% | +24.46% |
| Other income | ₹37 cr | ₹-15 cr | — | — |
| Expenses | ₹915 cr | ₹904 cr | +1.28% | +29.54% |
| Operating profit | ₹244 cr | ₹217 cr | +12.18% | +8.49% |
| Operating margin (%) | 21.03% | 19.38% | — | — |
| Interest | ₹27 cr | ₹22 cr | +24.17% | +77.71% |
| Depreciation | ₹67 cr | ₹61 cr | +8.71% | +35.07% |
| Profit before tax | ₹187 cr | ₹120 cr | +56.35% | +40.35% |
| Tax | ₹46 cr | ₹25 cr | +84.36% | +42.33% |
| Net profit | ₹142 cr | ₹95 cr | +49.06% | +39.72% |
| EPS (₹) | ₹5.36 | ₹3.54 | +51.41% | +42.18% |
Operating margin of 21.03% compares with a Healthcare sector median of 23.38% across 48 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.52% | +2.72% |
| Next session | +2.25% | — |
| 5 sessions | +2.16% | +2.04% |
| 15 sessions | -0.12% | — |
| 30 sessions | +8.41% | — |
Volume on the results session was 3.13× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Medanta added 86 beds during the quarter, including 32 at Patna and 54 at Noida.
- In-patient count increased 23.0% and out-patient count increased 27.5% year over year during the quarter.
Guidance & outlook
- Medanta plans total capex of over INR 45,000 million over the next five years.
- Maintenance capex is estimated at approximately INR 6,000 million over the next three years.
- Total project capex of approximately INR 45,000 million is expected to be funded through debt and internal accruals.
Expansion
- An 80-bed Indore cancer hospital acquired under a business transfer agreement is planned to become operational in Q2 FY27.
- Medanta announced a 400-bed South Delhi project in partnership with DLF, with construction in progress on site 1.
- Medanta signed an agreement for a roughly 750-bed hospital at Pitampura, New Delhi.
- A 400-bed Varanasi project was announced under a built-to-suit and lease arrangement with a partner.
- Land acquisition and possession for the Guwahati project have been completed, and all regulatory approvals have been received.
New initiatives
- Medanta will jointly build, operate and manage the Pitampura hospital under an operations and management agreement.
- Medanta and DLF will contribute equity equally to the South Delhi hospital, with Medanta retaining operational control.
Problems & risks
- Noida registered its peak loss in Q3 FY26, while its quarterly loss subsequently started to decline.
- International patient revenue was marginally lower sequentially because of flight disruptions.
What to watch
- Whether operating margin holds above 21.03% after the sequential recovery.
- Whether other income remains below its 19.62% share of pre-tax profit.
- Progress on the INR 45,000 million five-year capex plan and the 80-bed Indore hospital targeted for Q2 FY27.