Artemis Medicare Services vs Fortis Healthcare Q3 FY26

Artemis Medicare delivered a solid Q3 FY26 with consolidated revenue of INR 272 Cr (+17.2% YoY) and PAT of INR 22 Cr (+7.9% YoY). EBITDA margin improved to 19.1%, driven by higher patient volumes, complex procedures, and a 34.9% surge in international patient revenue (now 34% of total). Occupancy at the flagship Gurugram facility stood at 62%, with ARPB rising 10% to INR 84,100. Management guided for occupancy to reach 68-70% by year-end, which should drive margin expansion as fixed costs are absorbed. The company announced a INR 700 Cr fundraise via QIP/preferential issue to fund aggressive capacity expansion from ~750 beds today to 2,100-2,300 beds by 2029, including the Raipur (300 beds, operational from April-May 2026) and South Delhi (650+ beds, operational by 2029) projects. Key risk: execution delays in new projects or inability to ramp up occupancy as expected could pressure near-term margins.

Guidance read

Occupancy to reach 68-70% by end of FY26: Management expects occupancy at Gurugram facility to improve from 62% to 68-70% by March 2026, driven by higher patient volumes. Raipur hospital operational from April-May 2026: The 300-bed Raipur facility is on track to begin operations in April-May 2026, with initial ARPB of INR 30,000-35,000. South Delhi hospital to be operational by 2029: The 650+ bed South Delhi hospital is expected to start operations in 2029, with construction beginning in Q1 FY27. Fundraise of INR 700 Cr via QIP/preferential issue: Board approved raising INR 700 Cr to fund new projects and organic expansion, with details to be shared by June 2026.

Risk read

Key risks include Execution delays in new projects — Raipur facility delayed by one month due to equipment installation; further delays could impact revenue ramp-up.; Dilution from fundraise — INR 700 Cr QIP may lead to significant equity dilution, though management expects promoter to maintain majority.; Subdued performance of cardiac care and daffodil centers — Cardiac care and daffodil segments underperform due to unfavorable payer mix; turnaround may take time.; Margin pressure from elevated employee costs — Employee costs rose due to new towers and pre-operative costs for Raipur; margins may remain under pressure until occupancy improves..

Promise ledger

Scorecard data is being built as historical quarters are processed.

FO

Fortis Healthcare

Q3 FY26 · Healthcare

Fortis Healthcare delivered a strong Q3 FY26 with consolidated revenue of ₹2,265 crore (+17.5% YoY) and EBITDA margin expansion of 290 bps to 22.3%, driven by hospital business growth of 19.4% and diagnostics margin recovery to 23.1%. PAT declined to ₹197 crore due to a one-off expense of ₹55 crore for new labor codes. Hospital occupancy remained steady at 67%, while ARPOB grew 4.5% to ₹2.56 lakh, supported by a 52% surge in robotic surgeries. The diagnostics business saw 8.3% revenue growth and a 870 bps margin improvement. Management guided for continued growth trajectory with brownfield expansion of ~400 beds in FY27, led by the fMRI facility. The People Tree acquisition in Bengaluru adds 125 beds with expansion potential to 300. Risks include integration challenges at Glenagles and potential dilution from IHH's planned equity infusion.

Guidance read

Brownfield bed addition of ~400 beds in FY27: Major contribution from fMRI expansion (200+ beds) to be commissioned in phases starting April 2026. ARPOB growth of 4-5% annually for next 2 years: Driven by ~2.5% price increase and balance from case mix improvement, especially in oncology. Continued margin improvement trajectory for at least 2 years: Supported by brownfield expansions in high-margin facilities like fMRI and operational leverage. Potential equity infusion by IHH within 3-6 months: Preferential allotment likely after cooling period ends in May 2026, to strengthen balance sheet for growth.

Risk read

Key risks include Glenagles integration challenges — Revenue declined 4% in 9M FY26 due to management changes and operational issues; turnaround expected only from next fiscal.; Intense competition in Hyderabad cluster — Management expressed caution about Hyderabad due to competitive intensity, though it remains a focus cluster.; Execution risk in People Tree ramp-up — Acquired hospital is suboptimal and requires investment; expansion to 300 beds may take 30 months due to Bangalore approval delays.; CGHS/ECHS rate hike benefits uncertain — New circulars have implementation ambiguities; full benefit may be delayed until clarity on super-specialty rates and drug pricing..

Promise ledger

Scorecard data is being built as historical quarters are processed.