Global Health Ltd (MEDANTA) Q1 FY27 Results Analysis: Revenue Surges 26.5%, EBITDA Margin Misses Guidance

Global Health Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 1,304.05 Cr (+26.50% YoY) and PAT growth of -1.10% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Medanta delivered strong revenue growth of 26.5% YoY, the highest in recent history, driven by capacity additions and volume growth. However, EBITDA margin missed the company's own 24-26% guidance, coming in at 22.48%, as costs from expansion (finance costs, D&A, retainers) outpaced revenue. The quarter saw flat PAT, but subsidiary hospitals are maturing with a 3x jump in contribution, and new catalysts (Guwahati expansion, Indore oncology unit, medical college) position the company for medium-term improvement.

Key Investment Insights

Key Positives

• Revenue grew 26.5% YoY to Rs.1,304.05 Cr, the strongest quarterly print in recent history.
• Subsidiary PAT contribution (new hospitals) jumped 3x to Rs.21.42 Cr, confirming maturing of new capacity.
• EBITDA margin expanded 58 bps QoQ to 22.48%, consistent with narrowing losses at Noida.
• Cost of materials as % of revenue declined 95 bps YoY.

Risk Factors

• EBITDA margin of 22.48% missed the company's own FY27 guidance of 24-26% by ~152 bps.
• Reported PAT was flat YoY (-0.2%) and normalized PAT declined 9.6% YoY, despite 26.5% revenue growth.
• Finance costs doubled YoY (+93.5%) and D&A rose 52.9% YoY, reflecting the capital-intensive expansion.
• Retainers & consultants fee as % of revenue rose 213 bps YoY to 15.39% due to clinical talent onboarding.