Indraprastha Medical Shares Soar to All-Time High on CGHS Tariff Revision

Indraprastha Medical Corporation 's shares have reached an unprecedented high, driven by a significant revision in Central Government Health Services (CGHS) tariffs. The stock's remarkable performance and the implications of the tariff changes have caught investors' attention.

Stock Performance Highlights

All-Time High: Rs 624.00
2-Day Gain: Over 30%
5-Day Gain: Nearly 40%
Year-to-Date Gain: 15%
12-Month Gain: 44%

CGHS Tariff Revision Impact

The Central Government Health Services has announced its most substantial tariff revision in 15 years, increasing package rates for nearly 2,000 medical procedures. This revision is expected to have a positive impact on Indraprastha Medical Corporation's financials:

Aspect	Details
Rate Increase	5-30%
Benefiting Specialties	Orthopaedics, Cardiology, Oncology
Expected Outcomes	Higher CGHS-linked revenues, Improved average revenue per occupied bed

Company Overview

Indraprastha Medical Corporation is a joint venture between Apollo Hospitals and the Delhi government. The recent CGHS tariff revision is anticipated to boost the company's revenue streams, particularly in its key specialty areas.

Market Indicators

While the stock has shown impressive gains, it's important to note that it's currently trading with a Relative Strength Index (RSI) of 82.00. This high RSI value suggests potential overbought conditions, which investors may want to consider in their decision-making process.

The healthcare sector, particularly companies with strong government service links like Indraprastha Medical Corporation, appears to be benefiting from policy changes aimed at improving healthcare accessibility and quality in India.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.12%	+5.49%	+6.96%	+49.46%	+28.70%	+1,140.80%

Indraprastha Medical Corporation Limited , operating under the brand Indraprastha Apollo Hospitals, has announced strong financial results for the first quarter, demonstrating significant growth across key metrics.

Financial Highlights

The company reported a notable increase in its Q1 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to ₹726.00 million, up from ₹680.00 million in the same period last year. This growth was accompanied by an improvement in the EBITDA margin, which rose to 19.89% from 19.54% year-over-year.

Net profit for the quarter saw a substantial increase, reaching ₹515.00 million compared to ₹448.00 million in the corresponding quarter of the previous year, marking a 15% growth. This performance underscores the company's ability to enhance profitability amid challenging market conditions.

Revenue for Q1 grew to ₹3.70 billion, up from ₹3.50 billion in the same quarter last year, indicating a steady expansion of the company's operations and market presence.

Detailed Financial Performance

According to the unaudited financial results approved by the Board of Directors, Indraprastha Medical Corporation achieved the following results for Q1:

Particulars (in crore rupees)	Q1 FY2025-26	Q1 FY2024-25	YoY Change
Revenue from operations	365.06	347.86	4.94%
Total income	371.96	352.98	5.38%
Total expenses	303.65	293.39	3.50%
Profit before tax	68.31	59.59	14.63%
Profit after tax	51.46	44.77	14.94%
Earnings per share (₹)	5.61	4.88	14.96%

The company's performance shows a balanced growth with revenue increasing by 4.94% while managing to keep the expense growth at 3.50%, resulting in a significant 14.94% increase in profit after tax.

Management Commentary

Shivakumar Pattabhiraman, Managing Director of Indraprastha Medical Corporation, stated, "Our Q1 results reflect the company's resilience and operational efficiency. The improved EBITDA margin and substantial growth in net profit demonstrate our commitment to delivering value to our stakeholders while maintaining the highest standards of healthcare services."

Corporate Developments

In addition to the financial results, the Board of Directors made several key decisions:

Appointment of Mr. Sudhir Jalan as an Independent Director for a five-year term, subject to shareholder approval.
Scheduling of the 37th Annual General Meeting for September 24, to be held via video conferencing.
Setting the record date as September 18, for dividend eligibility and AGM participation.
Re-appointment of M/s Devarajan Swaminathan and Co. as Cost Auditors.
Appointment of M/s RSM & Co. as Secretarial Auditors for a five-year term, pending shareholder approval.

These decisions reflect the company's focus on strengthening its corporate governance and ensuring compliance with regulatory requirements.

Indraprastha Medical Corporation's strong Q1 performance and strategic corporate actions position it well for sustained growth in the healthcare sector. The company continues to leverage its brand strength and operational excellence to deliver quality healthcare services while driving financial growth.