Artemis Medicare Services Limited

'Artemis Medicare Services Limited Q1 FY27 Earnings Conference Call' August 4, 2026

Aadesh Gosalia: Okay. And, as you said, that this will be a core focus facility, so the margins here are expected to be better than what we are generating in the normal in our existing facility, or how do you see the incremental margins coming in? Devlina Chakravarty: So the margins will be same to better is what we predict because, as you know, we are continuing with all these specialties already. It is just like putting them under the same roof. But yes, having said that, since we are adding to economies of scale by adding 200-plus beds, so we look to improve the overall margins beyond 21% is what I can say. Aadesh Gosalia: Okay. That's clear. On continuing on the margin front, we have actually witnessed one of the best quarters on a console level when it comes to our EBITDA margin. So is this, the console level, I think, if you can just help me out with what are the operational drivers that has led to this better, such a good performance, and how sustainable they are and, is it right to assume that cardiac care as it has now turned positive even on PAT level and has generated some decent profits, so is that one of the drivers? Devlina Chakravarty: So, no. So while rightly you said, the other smaller centers and cardiac care, but you must also remember 95% to 97% of revenues come from our Gurgaon specialty, the tertiary care and the quaternary care. So I would say the first reason for improved margins is economies of scale. Our cost remains the same and we are able to admit more and more patients with almost more or less the same manpower cost, that is one big thing. So that, so adding another 200-beds, you will only see these margins going up further. Yes, some of the other contributors are smaller centers, but more importantly is the change of case mix. If you see our ARPOB, which is one of the highest in Delhi NCR, continues to grow because we are now seen as a not just a tertiary, but one of the best quaternary healthcare facilities. So people come in for high-end work, high-end surgeries. We have brought in efficiencies in terms of our consumption, we have brought in efficiency in terms of average length of stay, we have optimized manpower cost. So all of this together, so if you were to tell, if you were to ask me three points, I would say economies of scale, case mix, and the third would be contribution from the smaller centers, but that continues to be a relatively small contribution. Aadesh Gosalia: Okay. Okay, got it. Just a last question on the operational beds, today we average at around 545 even in Q1, and that has been the trend over the past. Devlina Chakravarty: Our occupancy for Q1 was 65.7%, and we are looking to improve it in Q2, and that's the reason we are already in talks to add 200 beds because we feel we are at an inflection point where we would need more beds to prevent patient denial. Aadesh Gosalia: Okay. Thank you so much for answering my questions. I will fall back in the queue. Moderator: Thank you. Next question is from the line of Abin Benny from JM Financial. Please go ahead. Abin Benny: Thank you, ma'am. First of all, congratulations to the management on a great set of numbers. I have two questions. First one, ma'am, in the Raipur asset, what are the specialties that have been made available since the last 10 days to 15 days since it has been started, and what are the phased plans to add the advanced specialties like onco radiation going forward, and possibly the capex that we would be looking for that? Devlina Chakravarty: Yes. Okay. Great question. So, actually Raipur facility when we started, we did a soft launch on 9th July and we started with all the OPD services. But we are not doing any phased kind, we are starting everything together. So we are, as we speak, we are doing an onco surgery today, a very high-end commando surgery today. So we have started with advanced cath lab, EP systems, neurosurgery.

'Artemis Medicare Services Limited Q1 FY27 Earnings Conference Call' August 4, 2026

So that is the math behind INR 800 crores. Having said that, the deposit is over and above this, which is close to INR 250 crores, out of which we have already paid INR 130 crores. Aditya Chheda: Got it, sir. Thank you. Moderator: Thank you very much. With that, I now hand the conference over to the management for closing comments. Rudra Acharjee: I would like to thank everyone for joining the call.

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Our EBITDA for the quarter was INR 61.82 crores with an EBITDA margin of 21.5%. The quarter reflects our continued focus on improving operating efficiencies, optimizing resource utilization, and maintaining disciplined cost management across our healthcare network. Our profit after tax for Q1 was reported at INR 31.44 crores, representing a year-on-year growth of 48.3%. The improvement in profitability reflects the strength of our operating model and our continued focus on delivering sustainable and profitable growth. Operationally, our flagship Gurugram hospital continued to perform very well during the quarter, supported by sustained patient volumes across key specialties and continued demand for advanced tertiary and quaternary services. Our occupancy for the quarter was at 65.7%, while average revenue per occupied bed increased to INR 85,690, reflecting continued improvement in case mix and higher contribution from specialized procedures. A key milestone during the quarter was the commencement of operation of Artemis Shanti Hospital, Raipur, our 300-bed multi-specialty tertiary care hospital in Central India. The hospital became operational during the quarter under the Artemis brand, and marks an important step in expanding our presence beyond North India. Equipped with advanced medical infrastructure and comprehensive specialty services, the hospital strengthens our ability to provide quality healthcare across a wider geography while creating an additional growth platform for the company. Although the hospital has very recently commenced operation, we are encouraged by the initial response and expect its contribution to increase as occupancy improves and additional specialties become operational. Our international patient business also continued to perform well during the quarter despite the West Asian war. We continue to witness demand from Middle East, Africa, CIS, and other international markets supported by our strong clinical outcomes and patient experience. Our focus remains on strengthening relationships across these regions while expanding our medical value travel platform through targeted outreach and clinical excellence. On the expansion front, we continue to make steady progress across our growth initiatives. We have received the approval from the shareholders for the proposed QIP, providing us with greater financial flexibility to support our expansion plan. We are in the process of starting our Tower IV at Gurugram facility, subject to getting all the clearances and compliances. This marks another important milestone in our long-term expansion roadmap. The Tower IV in Gurugram would house 200 plus beds within the same campus. Together with our expansion in Raipur and the planned South Delhi facilities, the projects which have already been announced, this would provide a total bed capacity of 2,000 operational beds by 2029-2030. On the clinical front, we continue to strengthen our centers of excellence by expanding specialist capabilities and introducing advanced treatment protocols across key therapeutic areas. Our allorgan transplants program, including our heart and lung transplants, are doing extremely well with great patient outcomes.

ARTEMISMED: consolidated net profit changed by 48.3% in the quarter ending 30 June 2026, compared with the quarter ending 2025-06-30.

ARTEMISMED: consolidated net profit for the quarter ending 30 June 2026 was ₹31.44 crore.