💰 Financial Performance

Revenue Growth by Segment

Total operating income grew 13.16% YoY to INR 1,393 Cr in fiscal 2025 from INR 1,231 Cr in fiscal 2024. Revenue is well-diversified across specialties, with no single specialty accounting for more than 16% of total revenue in fiscal 2025.

Geographic Revenue Split

100% of revenue is generated from North India, with a presence in key cities including Delhi, Gurgaon, Noida, Mohali, Jaipur, Behror, Faridabad, Panipat, Karnal, Sonipat, Ambala, Patiala, and Bathinda.

Profitability Margins

Operating margins declined from 31% in fiscal 2023 to 26.8% in fiscal 2025 due to moderate occupancy in recently acquired hospitals. Reported PAT margin improved from 12.14% in fiscal 2024 to 15.45% in fiscal 2025.

EBITDA Margin

Operating margin stood at 26.8% in fiscal 2025, a decrease from 31% in fiscal 2023. This decline is attributed to the low absorption of fixed costs in new acquisitions in Patiala and Mohali and changes in accounting to IND AS.

Capital Expenditure

Planned capital expenditure of INR 150-200 Cr for fiscal 2026 to fund greenfield projects in Panchkula and brownfield expansions in Narela and Kanpur.

Credit Rating & Borrowing

Credit rating reaffirmed at 'Crisil A+/Stable' in November 2025. Sanctioned bank limits of INR 362 Cr were utilized at 25% on average through June 2025.

⚙️ Operational Drivers

Raw Materials

Medical consumables, surgical implants, and pharmaceutical drugs (specific % of total cost not disclosed).

Capacity Expansion

Current capacity of 3,250 beds across 14 hospitals; planned expansion to reach 5,260 beds by March 2028 through the addition of 2,010 beds via 7 hospitals under execution.

Manufacturing Efficiency

Average Revenue Per Occupied Bed (ARPOB) is healthy at approximately INR 26,000. Occupancy levels in recently acquired units remain a key monitorable for efficiency.

📈 Strategic Growth

Expected Growth Rate

22%

Growth Strategy

Growth will be achieved through a cluster-based model, expanding bed capacity from 3,250 to 5,260 by March 2028. This includes integrating 7 hospitals currently under execution and acquiring brownfield projects like the 250-bed Krishna Super-speciality Hospital for INR 40 Cr. Growth is also driven by improving occupancy in recently acquired units in Patiala and Mohali and maintaining a healthy ARPOB of INR 26,000.

Products & Services

Super-specialty clinical services including Cardiology, Neurology, Oncology, Orthopaedics, Gastroenterology, Critical Care, Nephrology, and Women & Child Health.

Brand Portfolio

Park Group of Hospitals, Park Medi World.

New Products/Services

Integration of 7 new hospitals adding 2,010 beds by 2028; acquisition of Krishna Super-speciality Hospital (250 beds) in Bathinda.

Market Expansion

Targeting North India regions including Panchkula, Narela, and Kanpur with a timeline to reach 5,260 beds by March 2028.

Market Share & Ranking

Ranked as North India’s 2nd largest hospital chain.

🌍 External Factors

Industry Trends

The North Indian healthcare market is shifting towards large multi-specialty chains that can offer metropolitan-grade care in regional hubs. Park Group is positioning itself to capture this by expanding into cities like Bathinda and Panchkula, leveraging technology-enabled ecosystems to improve clinical outcomes.

Competitive Landscape

Operates as the 2nd largest chain in North India, competing with other multi-specialty providers in the Delhi-NCR and Punjab regions.

Competitive Moat

The group's moat is its 30-year brand recall and the promoters' proven ability to turn brownfield acquisitions profitable quickly. This is sustainable because high capital intensity and specialized talent requirements create significant entry barriers, while the group's established presence in 14 locations provides a strong referral network.

Consumer Behavior

Increasing consumer demand for metropolitan-grade healthcare locally in regional and rural districts like Bathinda and Patiala.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by medical waste pollution norms, healthcare facility standards, and pricing regulations on essential medical supplies. Compliance is critical to avoid operational disruptions in its 14 multi-specialty hospitals.

⚠️ Risk Analysis

Key Uncertainties

The primary risk is the timely stabilization of the 2,010 new beds planned by 2028. If occupancy remains moderate, the operating margin could fall below 23%, which would reduce cash accruals below the expected INR 300-320 Cr level.

Geographic Concentration Risk

100% of revenue is derived from North India (Delhi, Haryana, Punjab, Rajasthan), making the group sensitive to regional economic shifts or regulatory changes in these specific states.

Technology Obsolescence Risk

The group is mitigating technology risks by investing in modern medical infrastructure, including modular OTs and automated laboratories, to ensure clinical excellence and maintain its INR 26,000 ARPOB.