ARTEMISMED - Artemis Medicare

📊 NSE: ARTEMISMED 🏢 Healthcare 📅 Last Updated: 12/13/2025 18:31

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew 13.8% YoY to INR 274.70 Cr in Q2 FY26. Flagship Gurugram facility remains the primary driver. Asset-light models Artemis Daffodil and Artemis Lite contributed INR 21.10 Cr and INR 19.60 Cr respectively in FY25. International patient revenue contributes approximately 32% of total revenue.

Geographic Revenue Split

Primary revenue is concentrated in Delhi-NCR (Gurugram). The company is diversifying geographically through an O&M contract for a newly constructed hospital in Raipur, Chhattisgarh, and a planned facility in Delhi.

Profitability Margins

Net Profit (PAT) for Q2 FY26 was INR 30.00 Cr, up 35.6% YoY from INR 22.13 Cr. H1 FY26 PAT stood at INR 51.2 Cr compared to INR 38.7 Cr in H1 FY25. Return on Net Worth improved to 14.43% in FY25 from 13.60% in FY24 due to enhanced operational profitability.

EBITDA Margin

EBITDA margin for Q2 FY26 was 21.2%, a 63 bps improvement YoY. Absolute EBITDA grew 17.2% to INR 58.27 Cr. H1 FY26 EBITDA margin was 20.1% with an absolute value of INR 106.6 Cr. Improvement is driven by economies of scale and higher ARPOB.

Capital Expenditure

The company raised INR 330 Cr from the International Finance Corporation (IFC) via Compulsorily Convertible Debentures (CCDs) to fund its next growth phase, including the phased operationalization of Tower 3 at the Gurugram facility and expansion into Delhi.

Credit Rating & Borrowing

CARE Ratings reaffirmed 'CARE A; Stable' for long-term bank facilities (INR 427.90 Cr) and 'CARE A2+' for short-term facilities as of August 2025. Interest coverage ratio improved to 4.58 in FY25 from 3.30 in FY24.

⚙️ Operational Drivers

Raw Materials

Critical medical equipment, surgical devices, and Active Pharmaceutical Ingredients (APIs) represent the primary input costs, though specific percentage of total cost is not disclosed.

Import Sources

The company depends on global imports for high-end medical equipment and critical raw materials, exposing it to international supply chain volatility.

Key Suppliers

Philips is a key strategic partner, holding a 35% stake in the company's cardiac centers.

Capacity Expansion

Flagship Gurugram facility is spread across 8.23 acres. Tower 3 was inaugurated in Q2 FY25, adding 5 new operation theatres and expanded capacity in nephrology, bone marrow transplant, and gastroenterology.

Raw Material Costs

Inventory consumption increased in FY25 due to higher bed capacity, though overall inventory levels remained stable. Inventory turnover ratio improved 25.55% to 24.12 in FY25.

Manufacturing Efficiency

Occupancy levels reached 64.1% in Q2 FY26. Average Revenue Per Occupied Bed (ARPOB) reached an all-time high of INR 81,248, reflecting a shift toward complex procedures.

Logistics & Distribution

Distribution is managed through flagship hospitals and neighborhood 'Artemis Lite' centers; Solace provides home-based healthcare services.

📈 Strategic Growth

Expected Growth Rate

13.80%

Growth Strategy

Growth will be achieved by operationalizing Tower 3 in Gurugram, acquiring the remaining 35% stake in cardiac centers from Philips, and transitioning smaller asset-light units to profitability by Q4 FY26. The company is also expanding via a new Delhi facility and the Raipur O&M contract.

Products & Services

Multi-specialty healthcare services including Cardiology, Oncology, Neurology, Orthopaedics, Nephrology, Bone Marrow Transplant, and Gastroenterology.

Brand Portfolio

Artemis Hospitals, Artemis Daffodils (Mother and Child), Artemis Lite (Neighborhood Hospitals), Artemis Solace (Home Services).

New Products/Services

Expanded specialized units in Nephrology and Bone Marrow Transplant; new O&M services in Raipur.

Market Expansion

Expansion into Raipur (Chhattisgarh) and a planned greenfield/brownfield project in Delhi to diversify beyond the Gurugram hub.

Market Share & Ranking

Artemis was the first hospital in Gurugram to be accredited by both JCI (USA) and NABH, establishing a leading position in the Delhi-NCR premium healthcare market.

Strategic Alliances

Strategic partnership with Philips (65/35 JV in cardiac centers) and funding alliance with International Finance Corporation (IFC).

🌍 External Factors

Industry Trends

The industry is shifting toward asset-light models and digital health surveillance. Artemis is positioning itself by expanding its 'Lite' and 'Daffodils' brands while maintaining a high-end flagship hub.

Competitive Landscape

Faces competition from other large multi-specialty chains in Delhi-NCR; competes on clinical outcomes and international patient services.

Competitive Moat

Moat is built on JCI/NABH clinical excellence certifications and a strong reputation in Medical Value Travel. Sustainability is supported by high switching costs for complex tertiary care and established referral networks.

Macro Economic Sensitivity

Highly sensitive to Medical Value Travel trends and global healthcare spending; also sensitive to domestic inflation affecting operational overheads.

Consumer Behavior

Increasing demand for neighborhood healthcare (Artemis Lite) and specialized mother/child care (Daffodils).

Geopolitical Risks

Geopolitical instability can disrupt international patient flow and supply chains for critical medical imports.

⚖️ Regulatory & Governance

Industry Regulations

Adheres to JCI (USA) and NABH standards; compliant with Ind AS 116 for leases and Ind AS 109 for financial instruments.

Taxation Policy Impact

Effective tax rate is approximately 23.8% based on Q2 FY26 PBT of INR 39.38 Cr and PAT of INR 30.00 Cr.

Legal Contingencies

Key audit matter identified regarding the allowance for expected credit losses (ECL) on trade receivables due to management judgment in estimating cash flows. No specific material court case values disclosed.

⚠️ Risk Analysis

Key Uncertainties

Stabilization of the Raipur hospital and timely execution of the Delhi expansion are key monitorables. Potential impact of 10-15% on margins if operational costs rise faster than ARPOB.