Artemis Medicare Q1FY27 PAT surges 48% as margins expand
Artemis Medicare Services delivered strong Q1FY27 results with consolidated PAT up 48.3% YoY to ₹3,144 lacs, supported by 12.7% revenue growth and expanded margins. Operational improvements in Gurugram, including higher occupancy and ARPOB, drove profitability despite a decline in other income.
*this image is generated using AI for illustrative purposes only.
Artemis Medicare Services reported a significant acceleration in profitability for the quarter ended June 30, 2026 (Q1FY27), with consolidated net profit after tax (PAT) rising 48.3% year-on-year to ₹3,144 lacs. The growth was driven by a 12.7% increase in revenue from operations to ₹28,732 lacs and an expansion in the EBITDA margin to 21.5% from 19.0% in the corresponding period last year. This performance underscores the company’s operational leverage and disciplined cost management amidst strong patient volume growth, with the flagship Gurugram hospital contributing significantly through improved occupancy and higher average revenue per occupied bed.
Financial Performance Highlights
On a standalone basis, revenue from operations grew 12.9% YoY to ₹28,201 lacs, while PAT surged 45.0% to ₹3,105 lacs. The standalone EBITDA margin improved to 21.6% from 19.1% in Q1FY26. At the consolidated level, which includes subsidiary Artemis Cardiac Care Private Limited, total income stood at ₹29,270 lacs. Other income declined by 22.4% YoY to ₹537 lacs, primarily due to the utilisation of International Finance Corporation (IFC) funds towards expansion projects.
| Metric (Consolidated): | Q1FY27 (₹ lacs) | Q1FY26 (₹ lacs) | YoY Change (%) |
|---|---|---|---|
| Revenue from Operations: | 28,732 | 25,496 | 12.7 |
| EBITDA: | 6,182 | 4,832 | 27.9 |
| EBITDA Margin (%): | 21.5 | 19.0 | — |
| Profit Before Tax: | 4,263 | 2,978 | 43.1 |
| Net Profit After Tax: | 3,144 | 2,120 | 48.3 |
| Diluted EPS (₹): | 1.98 | 1.35 | 46.7 |
Operative expenses increased by 6.7% YoY to ₹16,776 lacs on a consolidated basis, while employee benefit expenses rose 11.6% to ₹4,284 lacs. Finance costs decreased by 12.5% to ₹646 lacs, contributing to the bottom-line improvement.
Operational Metrics and Growth Drivers
The company’s flagship hospital in Gurugram demonstrated robust operational health, with inpatient (IP) volumes increasing 11.4% YoY to 9,181. Occupancy rates improved to 65.7%, up 443 basis points year-on-year, supported by higher patient throughput. The Average Revenue Per Occupied Bed (ARPOB) rose 7.4% YoY to ₹85,690, reflecting a differentiated high-acuity clinical mix. Average Length of Stay (ALOS) reduced slightly to 3.54 days from 3.67 days, indicating improved operational efficiency.
Revenue from overseas patients increased by 8.6% to ₹7,651 lacs, contributing 27.5% to the Gurugram hospital's revenue from operations. Approximately 27–30% of total company revenue is derived from international patients, spanning over 150 countries, which supports premium realisations. About 60% of revenue comes from high-acuity specialties, including oncology, transplants, and robotic surgery. The company has established 14 Centres of Excellence across 40+ specialties.
Capacity Expansion Roadmap
Artemis Medicare outlined a clear strategy to expand its bed capacity to approximately 2,000 beds over the next three to five years. Key initiatives include:
- Gurugram Hospital: The facility currently operates 700 beds. A Platinum Green Building Certification allows for a 15% increase in Floor Area Ratio (FAR), enabling an addition of ~100 beds. Further purchase of additional FAR to 2.15 would add another ~200 beds, taking capacity to 950–1,000 beds. The Board previously approved a Tower IV expansion adding 200+ beds focused on pediatric and women’s health services, with an investment of ~₹160–180 crore.
- Raipur Hospital: A 300+ bed super speciality hospital commenced operations in July 2026, strengthening presence in Central India.
- South Delhi Hospital: An MSA was executed for a 650+ bed super speciality hospital in South Delhi, expected to commence operations by FY29. This asset-light model involves a 30-year operating agreement.
- Overseas Operations: The company operates an 80-bed facility in Mauritius (Artemis Curepipe Hospital) and announced a 110-bed facility (Artemis Cascavelle Hospital) 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 year-on-year suggests that fixed costs are being spread over a larger volume base, while variable costs are being managed effectively. The decline in other income did not materially impact profitability, indicating that core operational earnings remain resilient. The strategic focus on high-acuity cases and international patients continues to drive premium ARPOB, supporting long-term value creation.
The company’s paid-up equity share capital as of June 30, 2026, stood at ₹1,583.06 lacs. The Board of Directors met on August 3, 2026, to approve these results and discuss ongoing expansion plans.
Historical Stock Returns for Artemis Medicare Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.24% | +9.59% | +14.06% | +22.59% | +26.42% | +685.75% |
How will the asset-light model for the South Delhi hospital impact Artemis's capital expenditure requirements and debt-to-equity ratio compared to the Gurugram expansion?
What are the projected timelines and regulatory hurdles for acquiring additional Floor Area Ratio (FAR) in Gurugram to reach the 1,000-bed capacity target?
How might the recent 22.4% decline in other income, driven by IFC fund utilization, affect the company's short-term cash flow management during the peak expansion phase?
16
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
