Park Medi World Ltd Q4 FY26 Earnings Analysis

- Conservative revenue and EBITDA growth forecast of about 7.5%, despite a 12-15% government rate hike, reflecting cautious accounting. - Significant bed capacity expansion planned: from 3,250 beds in FY26 to approximately 5,260 beds by FY28, indicating strong volume growth. - Entry and cluster expansion in Uttar Pradesh with 1,060 beds expected by FY28, covering Agra, Kanpur, Gorakhpur, leveraging the large 260+ million population for market capture. - FY26 capex of ~INR 280 crores for Agra and Panchkula units; FY27 capex primarily for Kanpur and Delhi (~INR 110 crores). - Expect consistent EBITDA margins of 26-27% and PAT margins of 15-17% over the next 3-10 years, indicating stable profitability alongside volume growth. - Anticipated gradual realization of CGHS rate hike benefits by second half of FY27, supporting improved revenue. - Footfall rising with 24% growth in patients in first 9 months of current year, indicating strong demand momentum.

- Park Medi World's EBITDA margin is expected to remain stable around 26%-27% over the mid to long term (3-10 years). - PAT margins are anticipated to stay strong in the 15%-17% range consistently. - The company plans to grow bed strength from approximately 3,250 (FY ‘26) to about 5,260 by FY ‘28, supporting revenue growth. - Expansion includes addition of 660 beds in FY ‘26, 500 beds in FY ‘27, and 850 beds in FY ‘28 across various locations including Agra, Panchkula, Kanpur, Delhi, Gorakhpur, Ambala, and Rohtak. - Conservative revenue and EBITDA growth guidance of about 7.5% is expected from the CGHS rate hike (despite a 12%-15% hike), with the full impact visible by the second half of FY ‘27. - ROE and ROCE are strong around 21%-23%, with a potential slight increase going forward. - Overall, stable margins, bed capacity expansion, and improved reimbursement rates underpin positive earnings growth and EPS stability.

- FY 2026: Total capex of about INR 280 crores, including: - INR 245 crores for Agra acquisition (360 beds) - INR 35 crores for ongoing construction at Panchkula (greenfield, 300 beds), operational by March 2026 - FY 2027: Capex of INR 110 crores anticipated for adding 500 beds across Kanpur (INR 30 crores) and Delhi (INR 80 crores) - FY 2028: Adding three hospitals in Gorakhpur, Ambala, Rohtak; total 850 beds - Overall by March 2028: Adding approximately 2,010 beds on a capex of INR 700 crores, maintaining a capex per bed around INR 35 lakhs - Strategy focuses on both brownfield acquisitions (distressed assets with growth headroom) and greenfield expansions - Capex per bed varies by project; e.g., Agra at approx. INR 68 lakhs per bed, but overall blended capex remains INR 30-35 lakhs per bed - Focus on cluster-based expansion, especially in Uttar Pradesh with three pivots: Agra (west), Kanpur (center), Gorakhpur (east).

- As of January 31, 2026, Park Medi World had term debt of approximately INR 15 crores, which they plan to fully repay by the end of February 2026, aiming to become a debt-free company. - No mention of immediate or planned new debt fundraising was indicated; the company is focusing on being debt-free post-IPO. - Capital expenditure plans for FY ’27 and FY ’28 involve internal funding for expansion and hospital acquisitions (e.g., Agra, Panchkula, Kanpur, Delhi) with no specific mention of raising debt or equity for these. - There was no explicit mention of any upcoming equity fundraising or secondary issuance after the IPO discussed in the transcript. - The company prioritizes strengthening the balance sheet and funding growth via disciplined cost management and internal accruals.

The transcript does not explicitly mention current or expected order book or pending orders. However, related strategic and expansion information includes: - Park Medi World plans to add six more hospitals by March 2028, including the recently acquired 360-bed hospital in Agra and a 300-bed facility in Panchkula. - The company aims to grow bed capacity to about 5,500 to 6,000 by FY 2028, with a longer-term target of doubling capacity to around 10,000 beds in the next five years. - Expansion focus includes acquiring brownfield and greenfield assets across key cities in Uttar Pradesh and other states. - The UP strategy involves creating cluster-based growth with three pivots: Agra (west), Kanpur (center), and Gorakhpur (east). - The company anticipates adding 660 beds from Agra and Panchkula hospitals in the current financial year. No specific numeric order book or pending order values were disclosed.