Artemis Medicare Q1FY27 PAT rises 48%, Board approves Gurugram expansion
Artemis Medicare Services delivered strong Q1FY27 results with PAT surging 48.3% to ₹3,144.27 lacs on the back of 12.7% revenue growth and improved EBITDA margins. The Board also approved a significant capacity expansion in Gurugram.
*this image is generated using AI for illustrative purposes only.
Artemis Medicare Services reported a 48.3% year-on-year increase in consolidated net profit after tax (PAT) to ₹3,144.27 lacs for the quarter ended June 30, 2026 (Q1FY27), driven by robust revenue growth and significant margin expansion. Revenue from operations rose 12.7% to ₹28,732.35 lacs, while the EBITDA margin widened to 21.5% from 19.0% in the corresponding period last year. The strong profitability underscores effective operational leverage as patient volumes and average revenue per occupied bed improved across its flagship facilities. In a separate development, the Board of Directors approved an expansion plan for Tower IV at its Gurugram hospital, adding over 200 beds focused on pediatric and women’s health services.
The results were approved by the Board on August 3, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The unaudited financial statements were reviewed by statutory auditors T R Chadha & Co LLP, who issued an unmodified conclusion under Regulation 33. The consolidated figures include the results of its subsidiary, Artemis Cardiac Care Private Limited, which reported total assets of ₹2,260.47 lacs and net profit of ₹37.75 lacs for the quarter.
Financial Performance Highlights
On a standalone basis, revenue from operations grew 12.9% year-on-year to ₹28,200.97 lacs, with PAT rising 45.0% to ₹3,105.11 lacs. The standalone EBITDA margin improved to 21.6% from 19.1% in Q1FY26. Consolidated total income stood at ₹29,269.74 lacs. Other income declined by 22.4% to ₹537.39 lacs, primarily due to the utilization of International Finance Corporation (IFC) funds towards expansion projects. Finance costs decreased by 12.5% to ₹645.99 lacs, further supporting bottom-line growth.
The following table summarizes the key consolidated financial metrics for Q1FY27:
| Metric (Consolidated): | Q1FY27 (₹ lacs) | Q1FY26 (₹ lacs) | YoY Change (%) |
|---|---|---|---|
| Revenue from Operations: | 28,732.35 | 25,496.09 | 12.7 |
| EBITDA: | 6,182.00 | 4,832.00 | 27.9 |
| EBITDA Margin (%): | 21.5 | 19.0 | — |
| Profit Before Tax: | 4,263.04 | 2,978.44 | 43.1 |
| Net Profit After Tax: | 3,144.27 | 2,119.75 | 48.3 |
| Diluted EPS (₹): | 1.98 | 1.35 | 46.7 |
Operative expenses increased by 6.7% to ₹16,776.44 lacs, while employee benefit expenses rose 11.6% to ₹4,283.64 lacs. The company’s paid-up equity share capital remained unchanged at ₹1,583.06 lacs.
Operational Metrics and Growth Drivers
The flagship hospital in Gurugram demonstrated strong operational health, with inpatient volumes increasing 11.4% to 9,181. Occupancy rates improved to 65.7%, up 443 basis points year-on-year. The Average Revenue Per Occupied Bed (ARPOB) rose 7.4% to ₹85,690, reflecting a high-acuity clinical mix. Average Length of Stay reduced slightly to 3.54 days from 3.67 days, indicating enhanced efficiency.
Revenue from overseas patients increased by 8.6% to ₹7,650.52 lacs, contributing approximately 27.5% to the Gurugram hospital’s revenue. About 60% of total revenue is derived from high-acuity specialties such as oncology, transplants, and robotic surgery. The company has established 14 Centres of Excellence across more than 40 specialties.
Capacity Expansion Roadmap
The Board approved the addition of 200+ beds in Tower IV at the Sector-51, Gurugram facility, dedicated to quaternary pediatric care and advanced gynecology & women’s health services. This expansion aims to address growing demand for specialized neonatal, pediatric intensive care, and high-risk pregnancy management. The project requires an investment of approximately ₹160–180 crore, financed through internal accruals and debt, with completion expected within two years.
Other key initiatives include:
- Raipur Hospital: A 300+ bed super speciality hospital commenced operations in July 2026.
- South Delhi Hospital: An MSA was executed for a 650+ bed facility expected to commence operations by FY29.
- Overseas Operations: The company operates an 80-bed facility in Mauritius and announced a 110-bed facility in FY27.
What the Numbers Show
The divergence between revenue growth (12.7%) and PAT growth (48.3%) highlights significant operating leverage achieved in Q1FY27. The EBITDA margin expansion of 250 basis points suggests that fixed costs are being spread over a larger volume base while variable costs are managed effectively. Despite a decline in other income due to IFC fund utilization for expansion, core operational earnings remained resilient. The strategic focus on high-acuity cases and international patients continues to drive premium ARPOB, supporting long-term value creation.
Historical Stock Returns for Artemis Medicare Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.02% | +0.96% | +14.94% | +34.96% | +42.67% | +895.45% |
How will the ₹160–180 crore capital expenditure for the Gurugram Tower IV expansion impact Artemis Medicare's debt-to-equity ratio and interest coverage in the near term?
What is the projected timeline for the newly launched Raipur hospital to achieve breakeven, and how might it affect consolidated occupancy rates in FY28?
Given the 250 basis point EBITDA margin expansion, can Artemis sustain this operational leverage as it scales up high-acuity services across its expanding network?
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