Global Health Ltd Q1 FY27 Earnings Analysis

- Continued strong volume growth with 25%+ growth expected in next 5-6 quarters (FY27). - Developing hospitals like Lucknow (6.5 years old) and Patna (4.5 years old) showing robust 30%+ year-on-year growth in volume and revenue. - Significant bed additions planned: ~500 beds with minimal capex in existing hospitals and ~2,700 beds via 5 greenfield projects over next 3-4 years. - Robust ARPOB growth expected, driven by complexity scaling, specialty additions (e.g., robotics, transplants), and tariff increases at appropriate times. - Procedural additions planned: ~10 new operation theaters, cath labs, and minimally invasive surgeries. - Noida unit ramping up with empanelments driving occupancy and revenues upwards. - Growth lever also from expansion into new markets and services (e.g., oncology in Indore, new specialties in Noida). - International patient revenue growing (30%+ growth) with new markets in Africa, Southeast Asia, CIS. - Overall outlook confident given consistent patient volume increase, operational efficiency improvements, and expansion pipeline.

- Medanta is delivering strong growth with recent quarterly revenue up 25% YoY and EBITDA growing 17-27% YoY across various hospital clusters. - Developing hospitals including Patna and Lucknow are showing 30%+ volume and revenue growth, defying typical plateau expectations even after 4-6 years of operations. - ARPOB for developing units expected to grow ~4%+ annually driven by increased complexity, specialties (e.g., robotics, transplant services), and improved ALOS. - Mature hospitals (Gurgaon, Ranchi, Indore) continue steady growth with 11-15% revenue and EBITDA growth; Gurgaon will add 5-10 operation theaters and cath labs to drive further scale. - Noida unit is ramping up with improving EBITDA losses and expanding empanelments, expected to accelerate revenue throughput. - Capex of INR 800-900 crore in FY27 and 600-700 crore in FY28 supports adding ~500 beds short-term plus 2700 beds in greenfield projects over 3-4 years. - Management conservative on tariff hikes; expects balanced growth through volume, mix improvements, and targeted price increases.

- FY27 capex guidance: INR 800-900 crore - FY28 capex estimate: INR 600-700 crore - Plans to add approximately 500 beds across existing hospitals in the short term with minimal capex - Approximately 2,700 beds to be added through 5 greenfield projects over next 3-4 years, total 5-year project capex ~INR 45,000 million - Capital plan supported by internal accruals and project-specific debt - Focus on operational expansions: adding ~10 operation theaters across existing hospitals in FY27 - Noida hospital expansion ongoing, alongside specialty additions - Actively exploring inorganic growth opportunities including M&A and partnerships (O&M models) - Recent small acquisition in Indore, several other transactions under consideration but not disclosed yet

- Medanta's expansion plans are supported by a combination of internal accruals and project-specific debt, indicating some debt raising as needed for projects. - No explicit mention of plans for raising equity in the transcript. - The company emphasizes capital discipline and balance sheet strength, with a net cash position of INR 5,906 million as of FY26. - Capex for FY27 is expected around INR 800-900 crore and INR 600-700 crore in FY28, likely funded via internal cash flow and selective debt. - Management appears cautious and conservative regarding funding, focusing on disciplined growth rather than aggressive fundraising. - No specific announcements on upcoming fundraising through debt or equity at this time.

The transcript does not explicitly mention the current or expected order book or pending orders for Global Health Limited – Medanta. However, related information on expansions and growth plans includes: - Approximate addition of 500 beds across existing hospitals in the short term with minimal capex. - Planned addition of approximately 2,700 beds through 5 greenfield projects over the next 3 to 4 years. - Total project capex over 5 years of around INR 45,000 million, supported by internal accruals and project-specific debt. - Ongoing capital projects: South Delhi project progressing; Mumbai and Pitampura projects at various regulatory approval stages. - Discussions around potential inorganic expansions, including recent Indore acquisition and other M&A and O&M transactions under evaluation (details not disclosed). No specific figures for order book or pending orders were provided in the transcript.