INDRAMEDCO - Indrapr.Medical

📊 NSE: INDRAMEDCO 🏢 Healthcare 📅 Last Updated: 12/14/2025 8:03

💰 Financial Performance

Revenue Growth by Segment

Total income from operations grew to INR 1,356.36 Cr in FY25 from INR 1,244.70 Cr in FY24, representing a YoY increase of 8.97%. Revenue per patient increased by 2% to INR 202,869, while revenue per bed day grew by 5% to INR 66,064.

Geographic Revenue Split

The company faces high geographic concentration with 90-95% of its revenues derived from the National Capital Region (NCR), specifically from its two primary hospital properties.

Profitability Margins

Net Profit Ratio improved to 12% in FY25 compared to 10% in FY24, a 200 bps increase. Profit before tax rose 30.2% YoY to INR 216.32 Cr from INR 166.11 Cr.

EBITDA Margin

OPBITDA margins were reported at 14.3% in 9M FY23, improving from 13.5% in FY22. The improvement is driven by better operating metrics and a higher share of international patients and elective surgeries.

Capital Expenditure

Capital expenditure for FY25 was INR 36.33 Cr, a significant reduction from the INR 69.39 Cr spent in FY24. This includes investments in property, plant, equipment, and intangible assets like software licenses.

Credit Rating & Borrowing

The company maintains a strong liquidity position with ~INR 350 Cr in free cash and liquid balances. It remains debt-free with minimal gearing, resulting in robust debt protection indicators.

⚙️ Operational Drivers

Raw Materials

Specific raw material names like medical consumables and pharmaceuticals are not individually listed, but 'rising material costs' are identified as a key performance risk. Inventory stood at a net change of INR 0.54 Cr for the year.

Key Suppliers

Not disclosed in available documents; however, the company follows a stringent buy-back policy with vendors for e-waste and old medical equipment.

Capacity Expansion

Current operations are concentrated in two properties in the NCR. While specific MT/MW metrics are not applicable, the company focused on increasing discharges to 64,423 (up 7% YoY) and out-patient volumes to 596,285 (up 7% YoY).

Raw Material Costs

Material costs are noted as a risk factor that could influence performance, though specific percentage of revenue is not explicitly broken down in the provided snippets.

Manufacturing Efficiency

Bed occupancy was reported at 69% in 9M FY23. Average length of stay (ALOS) improved (decreased) to 3.07 days in FY25 from 3.16 days in FY24, enhancing bed turnover efficiency.

📈 Strategic Growth

Expected Growth Rate

9-12%

Growth Strategy

Growth is targeted through clinical excellence, innovation, and operational efficiency. The company is focusing on high-margin elective surgical procedures and has implemented price revisions to boost Average Revenue Per Operating Bed (ARPOB).

Products & Services

Healthcare services including Oncology, Neurology, Cardiology, Nephrology, and elective surgical procedures, alongside outpatient consultations and diagnostic services.

Brand Portfolio

Indraprastha Apollo Hospitals, backed by the parent brand Apollo Hospitals Enterprise Limited (AHEL).

New Products/Services

Expansion of elective surgical procedures and specialized clinical service lines are expected to be the primary drivers for FY26 growth.

Market Expansion

The company is focused on strengthening its market leadership within the NCR through technological upgrades and clinical innovation.

Market Share & Ranking

The company is a leading healthcare player in the NCR region, leveraging the Apollo brand's national market leadership.

Strategic Alliances

Apollo Hospitals Enterprise Limited (AHEL) and its promoters hold a 25% stake in the company, providing significant operational, financial, and managerial linkages.

🌍 External Factors

Industry Trends

The healthcare industry is seeing a shift toward elective surgeries and specialized care (Oncology/Cardiology). There is a growing trend toward energy efficiency in hospital infrastructure and digital transformation in patient records.

Competitive Landscape

Operates in a 'heightened competition' environment in the NCR with multiple private and government healthcare providers.

Competitive Moat

The company's moat is built on the 'Apollo' brand equity, a 25% strategic stake by AHEL, and a dominant clinical reputation in the NCR. This is sustainable due to high switching costs for complex surgeries and established referral networks.

Macro Economic Sensitivity

Sensitive to changes in the political or economic landscape and tax regimes. Performance is also linked to the resumption and stability of international travel for medical tourism.

Consumer Behavior

Increased demand for elective surgical procedures and high-quality sustainable healthcare services.

Geopolitical Risks

International patient flow is subject to geopolitical stability and travel regulations, as evidenced by the significant revenue jump post-travel resumption.

⚖️ Regulatory & Governance

Industry Regulations

Subject to price control measures and standard compliance requirements for medical services. It maintains cost records as prescribed under Section 148(1) of the Companies Act.

Environmental Compliance

Investments made in energy-efficient HVAC, water pumps, and chillers. Stringent buy-back policies for e-waste and medical equipment are in place to manage hazardous waste.

Taxation Policy Impact

The company is regular in depositing undisputed statutory dues including Income Tax and GST. Current tax liabilities stood at zero as of March 31, 2025, compared to INR 0.58 Cr the previous year.

Legal Contingencies

The company has disclosed pending litigations in Note 30.B and 30.C of its financial statements. While specific values are not in the summary, the auditor notes these could impact the financial position.

⚠️ Risk Analysis

Key Uncertainties

Asset concentration risk is high as revenue is derived from only two properties. Regulatory interventions in pricing could impact earnings by 5-10% if aggressive caps are implemented.

Geographic Concentration Risk

90-95% of revenue is concentrated in the NCR, making the company vulnerable to regional policy changes or economic downturns.

Third Party Dependencies

Dependency on Apollo Hospitals Enterprise Limited (AHEL) for brand and managerial linkages, and on specialized vendors for medical equipment maintenance.