• Hospital margin outlook: Thane and Pune facilities will maintain protected margins, while the Indore hospital has room for occupancy improvement. The recently launched Dombivli hospital is projected to drag at the EBITDA level for two years before breaking even.
• Capacity expansion plans: The company is on track to expand its bed capacity from 1,248 to 2,900 beds with a focused greenfield strategy in Western India, including a 500-bed hospital in Pune South (Bibwewadi) by 2028, followed by Mira Road and a 400-bed hospital in BKC.
• Capex funding strategy: Expansion capex over the next 4 to 4.5 years will be funded completely through internal accruals and cash reserves of approximately ₹550 crore, supported by annual EBITDA of around ₹350 crore.
• Revenue and occupancy: The drop in occupancy from 65.3% to 61.2% was driven by denominator dilution following the addition of 100 beds in Indore despite growth in absolute occupied bed days. Operations remain largely insulated from geopolitical disruption because revenue relies almost entirely on local residential catchments rather than medical tourism.