Artemis Medicare Services LimitedQ1 FY27 Results & Financial Update

The combination of the Gurugram Tower IV expansion, Raipur operations, and planned South Delhi facilities aims to scale total operational bed capacity to 2,000 beds by FY 2029-2030.

The approved INR 700 crores QIP acts as an enabling resolution primarily targeting brownfield acquisitions, with final sizing dependent on asset finalization, cash generation, and minimizing shareholder dilution.

Direct insurance empanelment for the Raipur facility is expected within 8 to 10 weeks, supported by industry-wide streamlining initiatives; meanwhile, intermediaries are deployed to ensure seamless cashless patient services.

Growth was underpinned by sustained demand across key specialties including cardiology, oncology, neurosciences, and orthopedics, alongside rising preference for tertiary and quaternary care.

The company is advancing Tower IV at the Gurugram campus, adding 200+ beds and a 450-space multi-level parking structure, targeting full operationalization within 18 to 22 months.

Total projected capital expenditure over the next three years is pegged at approximately INR 800 crores, which covers Tower IV, Raipur, VIMHANS, regular flagship hospital maintenance, and replacement capex.

Improved EBITDA margins were driven primarily by economies of scale at the flagship Gurugram hospital, where patient admissions increased while manpower costs remained largely stable, and by an optimized case mix.

Remaining capital balances from the IFC raise are designated to move towards the VIMHANS project as deposits by the end of the financial year, as deposits cannot be serviced through debt.

Management expects the Raipur facility to break even within 15 to 18 months, incurring an anticipated overall operating loss of around INR 20 crores during the initial ramp-up phase.

Management anticipates that Gurugram standalone margins can scale up toward 23% to 24% over the next 2 to 3 years.

Management clarified that despite regional conflicts in West Asia halting direct flights, international patient contribution held near 27% in Q1 and is projected to trend near or above 30% in Q2 due to diversified country inflows.

Tower IV is designed as a specialized center for advanced pediatric, quaternary, obstetric, and gynecological care under one roof to capture regional referral demand and prevent patient denials as flagship occupancy reaches threshold levels.

Smaller centers like Daffodils and Lite serve initial hub-and-spoke entry purposes, but management intends to progressively consolidate or integrate them with larger facilities over a 3-to-4-year horizon to drive operating efficiencies.