GPTHEALTH - GPT Healthcare

📊 NSE: GPTHEALTH 🏢 Healthcare 📅 Last Updated: 12/13/2025 22:33

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew by 11% YoY in H1 FY26 to INR 226 Cr, compared to INR 204 Cr in H1 FY25. Q2 FY26 revenue grew by 12.5% YoY to INR 118.9 Cr. The growth is primarily driven by healthcare services across in-patient and out-patient departments.

Geographic Revenue Split

Revenue is highly concentrated in West Bengal, Tripura, and Raipur (Chhattisgarh). West Bengal and Tripura are the primary contributors, though specific percentage splits per state are not disclosed.

Profitability Margins

PAT margin stood at 8% in H1 FY26 (INR 18.3 Cr), a decline from 11.4% in H1 FY25. FY25 PAT margin was 12.0% (INR 50 Cr). The decline in H1 FY26 is attributed to higher depreciation and finance costs associated with new hospital commissioning.

EBITDA Margin

EBITDA margin was 18.8% in H1 FY26 (INR 43 Cr), down from 22.3% in H1 FY25. This 350 bps compression is largely due to an operating loss of INR 3-4 Cr at the newly commissioned Raipur hospital which is yet to reach breakeven.

Capital Expenditure

The company has planned a capital expenditure of INR 50 Cr over the medium term for hospitals in Ranchi and Raipur. Historical fresh issue proceeds of INR 40 Cr in February 2024 were used for debt prepayment and corporate purposes.

Credit Rating & Borrowing

CRISIL has assigned a 'Stable' outlook. Borrowing costs are supported by low gearing (0.4 time in 2023) and low bank limit utilization of 4%. Interest coverage remains healthy despite finance costs rising to INR 3.80 Cr in H1 FY26 from INR 1.6 Cr in H1 FY25.

⚙️ Operational Drivers

Raw Materials

Medical consumables, pharmacy drugs, and surgical implants represent the primary variable costs, categorized under 'Other expenses' which stood at INR 102.3 Cr in H1 FY26 (45% of revenue).

Capacity Expansion

Current installed capacity increased to 719 beds in H1 FY26 from 561 beds in FY25. Planned expansion includes a new asset-light hospital in Ranchi expected by FY2027-28.

Raw Material Costs

Other expenses (including medical consumables) increased to 45.2% of revenue in H1 FY26 from 42.6% in H1 FY25. Procurement is managed through internal controls to sustain operating margins between 21-22% in mature units.

Manufacturing Efficiency

Bed occupancy rate was 44.70% in H1 FY26, down from 53.76% in H1 FY25, due to the addition of new capacity at Raipur. Average Length of Stay (ALOS) improved to 3.49 days from 3.51 days YoY.

Logistics & Distribution

Not applicable as a service-based healthcare provider.

📈 Strategic Growth

Expected Growth Rate

11%

Growth Strategy

Growth will be achieved through the ramp-up of the Raipur hospital, which is expected to breakeven monthly by the 13th-14th month at 25% occupancy. Future growth is anchored on the Ranchi hospital (FY28) and increasing ARPOB (which grew from INR 29,671 to INR 32,947 in FY24) by launching new medical specialties.

Products & Services

Healthcare services including In-patient (IPD) treatments, Out-patient (OPD) consultations, surgical procedures, and pharmacy sales.

Brand Portfolio

GPT Healthcare, ILS Hospitals.

New Products/Services

New medical specialties at existing hospitals and the full-scale launch of the Raipur facility are expected to contribute significantly to the projected 8-10% EBITDA margin for new units in FY27.

Market Expansion

Expansion into Raipur (commissioned Q4 FY25) and Ranchi (planned for FY2027-28) to reduce geographic concentration in West Bengal.

Market Share & Ranking

Established market position in Eastern India; specific ranking not disclosed.

🌍 External Factors

Industry Trends

The industry is shifting toward asset-light models and increased insurance penetration. GPTHEALTH is positioning itself by expanding into underserved Tier-2 cities like Raipur and Ranchi.

Competitive Landscape

Faces intense competition from large national hospital chains entering the Eastern Indian market.

Competitive Moat

Moat is built on an established regional brand and strong internal cost controls resulting in RoCE of 23-30% in mature periods. Sustainability depends on maintaining high ARPOB and managing the ramp-up of new facilities.

Macro Economic Sensitivity

Sensitive to healthcare spending and insurance penetration. Ayushman Bharat expansion and GST exemptions on premiums are cited as vital enablers for growth.

Consumer Behavior

Shift toward organized healthcare and specialized treatments is driving higher out-patient volumes (89,802 in H1 FY26 vs 78,909 in H1 FY25).

Geopolitical Risks

Low direct impact, but global supply chain disruptions could affect the cost of imported medical equipment.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Clinical Establishment Acts and government-mandated price caps on cardiac stents, knee implants, and other essential medical devices.

Taxation Policy Impact

Effective tax rate was approximately 30% in H1 FY26 (INR 7.9 Cr tax on INR 26.2 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

Ramp-up time for the Raipur hospital poses a risk to consolidated profitability; a failure to reach 25% occupancy within 15 months could lead to sustained EBITDA losses.

Geographic Concentration Risk

High concentration with significant revenue derived from West Bengal and Tripura, making the company vulnerable to regional economic or regulatory shifts.