Artemis Medicare Services Ltd (NSE: ARTEMISMED) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Devlina Chakravarty — Managing Director
RUDRA NARAYAN ACHARJEE — Investor Relations
Analysts:
Unidentified Participant
Deepika Murarka — Analyst
Himanshu Binani — Analyst
Raman Venkata Kerti — Analyst
Sumit Gupta — Analyst
Vedant Nilekar — Analyst
Ritika Khandelwal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Artemis Medicare conference call for their Quarter 3 and 9 months FY26 results. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call please signal an operator by pressing star then zero on your touchstone phone. I now hand the conference over to Ms. Deepika Murarka from Choice Equity Broking. Thank you. And over to you ma’. Am.
Deepika Murarka — Analyst
Thank you. Good morning. All right. On behalf of the entire management I thank all the participants present on the call and I wish you a warm welcome to the earnings conference call of Artemis Medicare Services Ltd. To guide us through the results today we have with our senior management team of Artemis medicare presented by Dr. Devlina Chakravarti, Managing Director, Mr. Sanjeev Kumar Kothari, CFO, Dr. Vishal Arora, Chief Business Officer and Rudra Narayan, Head IR. Before we begin, please note that this conference call may contain certain forward looking statements about the company which are based on the beliefs, opinion and expectations of the company as on the date of this call these statements are not a guarantee of future performance and involve certain risks and uncertainties that are difficult to predict.
So we’ll begin the call with the opening speech by Dr. Devlina Chakravarti, managing Director. After this we will open the floor for Q and A. So with that I will now hand over the call to Dr. Devoleena to share her opening remark. Over to you Ma’. Am. Thank you.
Devlina Chakravarty — Managing Director
Thank you Deepika. Good morning ladies and gentlemen. We are pleased to share our financial operational performance for the quarter. Despite a challenging market environment, Artemis Medicare has managed to maintain a steady growth trajectory. This reflects the strength of our clinical capabilities, ongoing operational improvements and strategic capacity expansions. I will walk you through the highlights of our financial performance, operational developments and key strategic initiatives for the quarter. For the third quarter our consolidated revenue from operations stood at INR 272 crores reflecting a year on year growth of 17.2%. This growth was primarily driven by strong performance across our core specialties and improved payer mix.
Our hospitals have recorded strong patient volumes and we have seen an increase in more complex high value procedures. This is indicative of both the rising demand for specialized health care services and growing trust our patients place in Artemis hospitals. Our EBITDA for The quarter was INR 52 crore with an EBITDA margin of 9.1% marking a strong improvement compared to the previous year. In absolute terms this reflects our focus on operational efficiencies and disciplined cost management. The growth in EBITDA was largely driven by increased patient volumes, higher complexity procedures and improved revenue contribution from our international patients.
The positive performance across these factors helped us maintain strong numbers. Profit after tax for the quarter was INR 22 crore reflecting a year on year growth of 7.9%. This strong growth demonstrates our ability to scale efficiently while maintaining financial discipline. For nine months FY26 consolidated revenues were INR 802 crores up 15.1% year on year while EBITDA was at INR 159 crores with a margin of 19.8%. Net profit nine months FY26 was INR 73 crores compared to INR 59 crores in nine months of FY25. Turning to our operational highlights, our flagship facility in Gurugram reported an occupancy rate of 62% during the quarter reflecting continued strong demand and higher complexity in treatments, particularly with high margins.
This compares favorably with the same period last year highlighting our ability to efficiently manage capacity even as distributed demand for our services continues to rise. Average revenue per bed for the quarter was INR 84,100 showing an increase of 10% from the same quarter last year. This growth in RPOB reflects an improved case mix with a higher proportion of complex and high value procedures. The increase in RPOB also mirrors the enhanced payer mix with a higher share of patients opting for premium health care. Our international patients revenue grew by 34.9% contributing to 34% of our total revenues.
This growth is testament to our position as a leader in medical tourism segment. We have seen increasing numbers of patients from overseas especially from countries in the Middle East, Africa, cis. Each year we add to the number and as we speak we are catering to 52 international countries for through medical tourism. Our global brand recognition has also contributed to this growth. Additionally, we continued our focus on expanding and enhancing our infrastructure and this aligns with our long term increase. Long term goal to increase our capacity to 2000 beds plus in coming years which includes state of the art facilities that will further strengthen our service offerings especially in the areas of cardiac care, oncology and organ transplant.
Strategic initiatives and expansions we are looking at our commitment to geographic diversification. We are on track with the commissioning of our new 300 bed super specialty hospital in Raipur which is expected to begin operations from April May 2026. This facility will enhance our presence in Central India and enable us to serve a growing patient base in this region, Raipur is today becoming a hotbed for for tertiary and quaternary care for all health care providers in India. Our Raipur facility will be equipped with the latest medical technologies and will offer a comprehensive range of specialized services.
Furthermore, we are on track with our plans for the 650 plus bed Super Specialty Hospital in South Delhi. This is a significant milestone in our strategy to expand our footprint in key metropolitan areas and tap into growing demands for high quality health care services. Hopefully we should be in a position to soon announce the South Delhi facility, the timelines of which has been already announced in our board meeting yesterday. The binding MOU for this facility as you are aware has been signed and we are expecting to sign the definitive management services contract before the end of this financial year.
Our ongoing investment in digital transformation continues to improve both patient care and operational efficiency. This quarter we made significant improvement in implementing AI assisted triage systems across our facilities. These systems are designed to enhance patient experience by reducing wait times and ensuring that patients recover and receive prompt attention based on their severity of illness. This technology is already showing positive results in improving patient flow and operational productivity. As a part of our commitment to sustainability, we received a Platinum Green Building certification during this quarter. This certification entitles us a 15% increase in our FAR allowing us to add 100 to 125 more beds to our Gurugram facility at no extra cost.
This expansion is going to be very important for further enhancing our capacity in our flagship hospital. Now looking ahead I would like to emphasize to all of you this coming financial year is going to be a very exciting time for all of us. We are looking to increase our bed capacity from our existing 700 to 800 that we have today to 2000 to 2300 by 2029. Our announced projects which are Raipur and Saudali Wimhands with 650 beds are on track and we will come back to you with details of the capex return, of investment, so on and so forth.
Having said that, as you are aware from our board meeting minutes, the board yesterday has agreed to a fundraise of 700 crores. This 700 crores will be deployed to certain new hospitals which are in our funnel and a part would also go for organic expansion of Artemis Gurgaon and adding extra beds to our Wimhans capacity. These details we will come back with the fund deployment once we are in the right time and right stage to do so. But all I can say is that this is a momentous kind of moment for us where Artemis will move from 700800 beds to close to 2,300 beds by 2029.
So the board has okayed the plan and apart from the announced projects post around the time of fundraising, we will come back to you with details of our new projects. So with this I open the floor for any questions regarding our current results, our future strategic plan. All I can assure you is that we are in a new phase of growth which you are going to see for the first time which is beyond organic for Artemis Healthcare. We being a quaternary Healthcare, a JCI NABH accredited hospital. This shift in our expansion is going to create a big shift in the healthcare scenario of Delhi NCR in the years to come.
So with that I will open the floor to questions from all of you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Himanshu Banani with Anandrati. Please go ahead.
Devlina Chakravarty
Hello. Hello Himanshu.
Himanshu Binani
Hi ma’. Am. Thank you for taking my questions and congratulations for a decent setup like number in a seasonally lean quarter. So my first question is largely on the capex side. So what we have seen in the recent past is that the India Europe FTA is like largely done and now with the US status also which has like substantially reduced, so how do we see the cost in terms of the equipments which you have been importing? So because the duties have like technically been reduced to mean now, so how do we see that cost savings basically. For us going forward?
Devlina Chakravarty
Yeah, so it is a very pertinent question Himanshu and I mean we have to see when does this actually come into effect to be very candid. But having said that, it’s a great move for the healthcare industry. Not only have the duties been reduced in the medical equipment that we import, which is going to hugely help save our capex cost, duties have also been removed from some of the 17 cost saving, life saving, cancer and other, you know, immunological drugs which is widely used by all hospitals. So it is a great news for all of us in terms of containing the cost of health care which has been an ongoing exercise for all of us. And with new shift in policy we are very gung ho about this. Change.
Himanshu Binani
With respect to the recent union budget also where the finance minister has really emphasized on the medical value tourism basically in partnership with the private players. So anything which you guys hear basically from the so any like on that. Would be really helpful.
Devlina Chakravarty
So that is something we are really playing to the gallery when it comes to medical value travel. As you are aware, 30 to 33% of our revenues are from international. And let me tell you, we choose this. It’s not that we do not have domestic patients to cover this, but we choose to do that percentage of revenue through international because they are high end cases, they are high profit cases. So we choose to do that. And today as we speak we have over 50 countries from where patients are coming to us. Now with the government Support and the PMO’s initiative of Treat in India and Treat by India and with people like me being part of Sikhi and CII which is moving this medical value travel to the next level, you are going to constantly see, see a lot of inflow, a lot of change.
Just to give you an example, we had proposed that for medical tourism medical visas used to be more expensive than tourist visas. So we had told them that they should be as cheap as tourist visa, if not cheaper. That thing has already been implemented. We had asked for a turnaround time of 7 to 10 days for a medical visa. That has happened today. Missions identified by us through FICCI and CII are, you know, we are doing continuous road shows to talk about our medical tourism piece in India. If you look at there is a government managed, alphabetically named, you know, hospitals for medical tourism where the basic qualification is you at least have to be an nabh.
So where, you know, where medical tourists can directly log in and then get in touch with the respective hospitals. A lot and lot of focus. So today, Himanshu, let me tell you, we are seventh or eighth out of 10 in terms of volumes in terms of medical tourists and the PMO Ministry of Commerce. Their thrust is to get us to the top three, you know, sooner than later because they are seeing this as a low hanging fruit. And you know, the technology, the expertise available in India is, you know, at par with United States. They are hand picking hospitals who have that, you know, wherewithal to provide that level of technology and promoting them through various missions. So this is a great moment for all of us in the MVT space.
Himanshu Binani
Got it, ma’. Am. That was like really helpful. Ma’, am, I have few more questions. I’ll join back in the queue. Thank you.
Devlina Chakravarty
Sure.
operator
Thank you. The next question comes from the line of Raman KV with Sequent Investments. Please go ahead.
Raman Venkata Kerti
Hello ma’, am, can you hear me?
Devlina Chakravarty
Yes, very clear.
Raman Venkata Kerti
Yeah, excuse me if I’m wrong but I’m fairly new to the company. I just want to understand what’s the Capex for the 300 beds in Raipur and can you provide any funding details with respect to it? Like how much is debt, how much is equity?
Devlina Chakravarty
Yeah, so our. Sorry, you said how much is the capex? And what was the second part of the question?
Raman Venkata Kerti
And the CapEx funding split like how much is that? How much is equity?
Devlina Chakravarty
So I. This one is our capex for RIPUR is all done and it is at 100 crores for 300 beds. As you remember the land and build. It’s a partnership actually not a partnership. It’s a long term rental deal where the P and L is with us and the land and the hospital is built by the our partners for which they will get a fixed rental. And the capex is 100 crores which is a mix of accrual and the ISC fund which is lying with us. So 100 accruals for 100 crores for 300 beds. I think it’s a. It’s a good number in terms of cost per bed and we are looking at high kind of efficiency and margins in this center.
Raman Venkata Kerti
And my assumption is you will be able to operate this in the first quarter of SR27. So initially for the full year, how much average revenue per bed are you expecting and how are you planning to ramp up this over the period of next two, three years?
Devlina Chakravarty
So we are expecting an RPOB of 30 to 35,000 to start which is a very doable revenue. And let me just in order to fill you in, tell you that Raipur does not have the level of quaternary care that we are bringing in. Having said that there are hospitals like K. Narayana and others, I mean I’m just naming a few because you would be aware of it. But the type of infrastructure, the type of services that we are providing will be the first of its kind. And from 30 to 35 we will be ramping up to 40, 45, 50, 55 as we move on. So that’s the plan and we are tracked. Yes. To start in the first quarter of the next financial year.
Raman Venkata Kerti
Understood. And my second question is with respect to the fundraise plan, you mentioned that you are planning to raise 700 crores. How much of this will be out of this will be raised by the promoter group. Like how Much are the promoter planning to infuse into the company?
RUDRA NARAYAN ACHARJEE
Promoter doesn’t. Rudra, this side. Promoter doesn’t plan to infuse anything. It would be in a form of qip.
Devlina Chakravarty
So yeah.
RUDRA NARAYAN ACHARJEE
Nothing of warrants or.
Raman Venkata Kerti
Okay.
RUDRA NARAYAN ACHARJEE
Sort of thing. It would be a mix of either QIP or preference.
Raman Venkata Kerti
Okay, understood, ma’. Am. And my last question is. You mentioned that your international patient revenue revenue grew by 34.9% for the quarter. Can I have the volume figures for the quarter with respect to international patients?
Devlina Chakravarty
So you could, you could. Volume is 89 crores.
Raman Venkata Kerti
89 crores. And how much was the growth in terms of volume.
RUDRA NARAYAN ACHARJEE
On year? On year basis? It is a 35% growth.
Raman Venkata Kerti
35% volume growth and 35% revenue growth.
Devlina Chakravarty
Yeah.
Raman Venkata Kerti
Yes, understood. Thank you.
Devlina Chakravarty
Get in touch with our CFO and Rudra for further details on these numbers. Because sometimes these numbers are not readily available with me as I’m speaking.
Raman Venkata Kerti
Yeah, sure. Sure, ma’. Am. Thank you. Thank you so much.
Devlina Chakravarty
Yeah.
operator
The next question comes from the line of Sanskar with Iraya Capital. Please go ahead.
Unidentified Participant
Hello.
Devlina Chakravarty
Hello.
Unidentified Participant
Good morning. So I have a few questions. First regarding the Raipur facility. Last quarter it was a timeline that we would get started by March 2026. And now we are in saying April, May. I understand it’s only a couple of months but I wanted to understand if there is any structural reason behind the delay and can we expect any further delay.
Devlina Chakravarty
Actually it was end of March, beginning of April. Now we are saying end of April, beginning of May. It’s a one month here and there. And the basic reason is some of the equipment installation. Like for instance, you know, we. We had a PET scanner which we had to get in and it took a little bit longer than expected. So for us the project is on time. The compliance is all there. The certificates are all done. So what we were saying, end of March, beginning of April is now end of April, beginning of May.
Unidentified Participant
Understood. But there can be no further delay from that.
Devlina Chakravarty
No, there won’t be. There won’t be. There won’t be. In fact, I don’t know whether I think you. We have not sent, but we have. We have the pictures of the site which I think you would have seen on the presentation. Yeah, it is there inside. So we are actually done. And today before taking the call I took a confirmation from our partner, Dr. Agarwal and he said that you know, it probably would be sooner than later. That’s what he has confirmed. Yeah,
Unidentified Participant
understood. Second, on the fundraise part, I understand that you’re saying you said that you would share core details later but if you can just give a broad perspective of like how will be utilizing the, the funds and.
Devlina Chakravarty
Yeah, I’ll give you a very macro, macro view on this. And later once we have more handle on it, Rudra and Sanjeev will tell you the details. So 700 crores through a mixture of QIP and press and is what we are going to raise. And a large part of this fund is going for our inorganic expansion. So first is if you had looked at the ones which are announced. So Zimhans was announced for 400 beds. So then now we have seen the Wimhans can go up to 650 to 700 beds. So the part of the fund will go for that additional fund.
Additional beds and then there are a couple of very good green and brownfield projects in the pipeline. And this fund would then go to kind of, you know, fund those new projects. The organic growth in the hospital, maybe another additional 200 or maybe 300 beds for which we have either got the FAR or we are in a position to buy the FAR. We could be using our internal accrual and debts for the same. So what I’m trying to say is 700 crores will predominantly go for new projects. A part of it could, could possibly be used for our organic growth. But that we will see how the new projects pan out over a period of time.
Unidentified Participant
So by new project you mean the South Delhi one that is the only in the.
Devlina Chakravarty
No, no, I am saying there are, there’s a south Delhi one which is announced which is the Vimhans, the Raipur one which is already announced. But as we speak we have in our funnel a brownfield and a green field which is very strong. And we will, we are in the process of looking at IT. So the 700 crores will go towards these two additional projects which we are kind of trying to finalize.
Unidentified Participant
No, understood. I understood that there are two projects on South Delhi and Raipur. But what, what you are saying that you are have additional projects in your funnel around Greenfield. So those are in addition to the South Delhi and Rapper, is that understanding correct or.
Devlina Chakravarty
That’s right. So if you, if you, if you, if you are Sanskar. If, if you understand what we are trying to say is today we are around 750 beds. We are looking to grow to 2100 to 2,300 beds by 2029. Right. So from 700 beds which is our Gurgaon facility, we might move on to 950 or thousand beds here. Okay. And we are adding 200 more beds in our Bimhans facility which was initially supposed to be 450 which is going up to 650 beds. Now the balance beds to move up to 2100 to 2300 is a combination of beyond green and brownfield projects which we are looking at and that the fundraise is going to fund this balance beds to give you a macro picture we will come up with further details once we are closer to finalization which should happen sooner than later.
Unidentified Participant
Understood. And can you share details around how much capex per bed will do we estimate for the Saudi or will that.
Devlina Chakravarty
South Delhi once by the before the end of this financial year we are going to be signing our management contract and you know to give you a. Give you a ballpark figure but details will come back later. Cost per bed would be in the range of 75 to 80 lakhs per bed which is actually a steel today in Sao Delhi where cost of beds is northward of 1.75 to 2 crores.
Unidentified Participant
Understood. That is because including that we are constructing the building from ground up.
Devlina Chakravarty
Yes, yes, yes. Because the land, land. Land is a trust land and it’s you know, so you don’t have to pay for that land. You’re paying for the basically paying a rental to the trust or not really a rental, a revenue share to the trust as we move forward.
Unidentified Participant
Understood. And this additional greenfield and brownfield that you are mentioning on top of the current pipeline, when can you share the details of those? Like
Devlina Chakravarty
we should be able to share.The details in the first quarter of 2026. End of first quarter 2026. Sorry, 2020 end of financial. End of first quarter of 2027 means by June on June 2026. By June 2026.
Unidentified Participant
By June 2020.
Devlina Chakravarty
June of this year. Yeah, by June of this year because hopefully by then our fundraise activity should be nearing to a close and those all the discussion closures will be made around that time.
Unidentified Participant
Got it. And this fundraise can we expect from the same current institution only or like there’s no clarity on this.
Devlina Chakravarty
We’re very different institutional player and it’s a qip. There’s going to be proper roadshows and we are and yeah, I’m sorry, I probably didn’t get your question. I’m being corrected by my finance team. Sorry, what did you ask?
Unidentified Participant
No, no, I’m asking that whether the current investor is only participating again or like is it.
Devlina Chakravarty
No, no, no, no, no, no no, no, no, no, no, no.
RUDRA NARAYAN ACHARJEE
Just to give you a brief, this is a 700 crores that we are expecting. So for a QIP of 700 crores at least a 5, 5 investors has to be there. Above 250 crores there has to be 5, 5 investors, institutional investors. So the base would be over and above this.
Unidentified Participant
Okay, understood. Got it. So I have a few, just a couple of last questions around the operational side. So you, in the last quarter, remember you said that we are expected to reach the occupancy of 70% in the current facilities. So any timeline on that? When would that happen?
Devlina Chakravarty
So yes, here I will highlight two things. That yes, we are at 62, 63 by the end of this financial year or the beginning of the next financial year we should, we should be hovering around 68, 70% is one thing. So you are going to see a lot of cost dissipation. Some of you might and I want to clarify that if you, some of you have that question in mind that while our revenue top line has moved very significantly, the margins could have been better. And I’m fully aware and we are looking at that because today, let me tell you, we have a lot of cost which is sitting on with us which includes number one is the cost of the new towers because you see the Overall occupancy is 62% and we will be touching around 68 to 70% by the end of this financial year.
So that cost is going to spread out. The second is, you know, a lot of some of the cost of our new facility which is in Raipur is also sitting with us. Currently the people who are getting the project off the ground is also sitting with us. So that will kind of ease out once the raiput starts by, you know, end of April, beginning of May. That is the second piece. The third is we have started some very high end quaternary department like heart lung transplants, then high end robotics and so on. So that’s an expensive manpower grow manpower cost which we are seeing a good response.
And the numbers of these cases are going to ramp up in the months to come and again efficiencies in the cost are going to come in from there. So this is, even if you do not have a question or if you have a question in your mind and you’re not asking is something at a management level I and my team have looked at. And we know that this is going to show much better margins and much better EBITDA as we move forward. So this is just a comment from My side because this is something we know and it’s sitting with us and it’s going to ease out as we move ahead.
Yes, so.
Unidentified Participant
So in a way you are saying going forward can we expect both occupancy improvement as well as margin improvement or.
Devlina Chakravarty
Both? That, that. That’s the whole. Whole idea. Absolutely.
Unidentified Participant
Understood. Lastly on the government payer makes this wanted to understand are we taking any efforts to like bring it down or like. Or do we expect to maintain that?
Devlina Chakravarty
Yeah, we are, we are. We’re making an effort to bring it down and we are making a very strong effort to bring it down and definitely not to increase it the percentage. So you are going to see maybe in our next next quarter results improvement in our Ebitdas. So we are ready to kind of let go of some of the very low ticket government business. We have taken a decision and you will see the impact in the next quarter.
Unidentified Participant
And again just on the occupancy part, if you can add what are the key reasons behind like a bit lower occupancy like any. Are the beds. No. Are we folding on the bed?
Devlina Chakravarty
No, the low occupancies because we have been constantly opening. You know what we did was for tower two and for tower three. The whole tower or the. Both the towers were ready but the floors we kept opening over a period of time. So what is happening is as we increase the number of beds so the percentage occupancy is hovering around. So once now we have opened all the beds and now we are hoping the occupancy to move up from 62% to the next level. And we are confident it will happen.
Unidentified Participant
So are there any current beds still in pipeline that are remaining open or have we like 44.
Devlina Chakravarty
So we. So sorry. Sorry. We didn’t get in 60 beds. So all of them are open on 31st of December and that’s what you’re asking, right? Maybe I didn’t get the question correct. That Yeah, I mean.
Unidentified Participant
Yeah, like a census bed is 600 and operational beds are 544 and total bed capacity is 700. So I’m just want you to understand if there is a. Would we be increasing any number of operational beds or are we at.
Devlina Chakravarty
No, no, no, no. When Once we reach 70% consistently for three to four months then we might increase 100 to 200 more beds which is already available with us because we have got a 15% extra far that I mentioned in my speech.
Unidentified Participant
Thank you.
operator
I would request. Yeah, thank you.
Devlina Chakravarty
Yes.
operator
The next question comes from the line of sumit Gupta with Antique Stockbroking. Please go ahead.
Devlina Chakravarty
Hello? Sumit? Hello? Sumit?
Sumit Gupta
Yes. Hello?
Devlina Chakravarty
Yes, can you hear me?
Sumit Gupta
Hello?
Devlina Chakravarty
Hello?
Sumit Gupta
Hello? Hello?
Devlina Chakravarty
Hello. I think there is a connectivity. Can you hear me? Sumit?
Sumit Gupta
Hello?
operator
Yes, so much we can hear you. Please go ahead.
Sumit Gupta
Yeah, so three questions. First is on the hospital side. So with this government impetus on like improving the medical tourism in the country and second with the CGHS price hike. Which was done like in previous quarters. So how much airport kega do you expect over the next one to two years?
Devlina Chakravarty
Sorry. So we are going to maintain the increase in the RPOP trend the way we have managed 4 to 6% year on year is something we are. Because we are not only increasing our medical value travel but we are also changing our services mix, adding new services which are more high end. So we look at in that range what we have been delivering so far. We are look in the same range on a year, on year basis.
Sumit Gupta
Okay. Because this quarter it was around 10% and if you see nine months it was around 8%. So and with the strong reverse I.
Devlina Chakravarty
Would say for a long term sustenance a 6% year on year is doable and anything more than that we will try and surprise you with.
Sumit Gupta
Yeah, okay. Okay. And I think one more question on referrals and cardiac care. Like we’ve seen subdued performance in both the segments largely in. So what is the main reason which is going for decadence and cardiac care?
Devlina Chakravarty
Basically there are two reasons. One is, I mean the, the centers are doing well, the losses are almost gone and but the problem is you know we were. These centers were primarily created to provide healthcare at a 20 to 25% cheaper than the main hospital. But you know the mindset of people in some of these regions, they still prefer to come to a hospital. So these guys continue to come to us. But having said that. So while we will continue with this model but on a slower perform on a slower push. And our push has been mainly for like now you see the tertiary and the quaternary care hospitals that we have spoken about.
Sumit Gupta
So let’s say for cardiac care, do you plan to increase it more or do you plan it to basically gain more traction with keeping the existing center count?
Devlina Chakravarty
Sorry, I missed your question. Hello?
Sumit Gupta
Yeah, yeah, yeah. With respect to cardiac care, do you plan to add more centers or you plan to improve the realization?
Devlina Chakravarty
Because no, currently we are only trying. To increase the realization. We’re trying to change the patient mix. We’re trying to get more cash and tpa. So we would. That’s our primary focus and not adding centers because you know these cardiac care a lot of empanel patients were coming. So my first thing is to change the mix to more of TPA and cash before we start adding new centers.
Sumit Gupta
Because concern is that these centers should act as a hub to the main hospital. Right. And largely like the banker as a brand recall should improve. However, this particular segment is not. It’s not performing well even after closing the center and gaining traction.
Devlina Chakravarty
So actually sumit that hub and spoke concept is become. Because if you see most of these centers are. You know, this was like a stand like. Like some of our competitors have a diagnostic standalone business. Similarly cardiac care business. Some of our competitors have cancer care a standalone business. So these were not basically a hub and spoke model because single specialties, you know, apart from sending for a cardiac surgery which is also by and large rare. And secondly, if you see the locations of our cardiac care, it was basically in tier 2 and tier 3 cities to cater to the needs of you know, heart issues which is not available there.
So we were yes, definitely some awareness, definitely some referrals coming from these places. But they were not designed to be only a hub and spoke model. But they were designed to become a separate business model. Like single specialty, separate business model. Like you know, a lot of our competitors have in different areas. So but what we were looking at is the patient mix. Patient mix of more empanel than cash and tpa. So what only those people are wanting to come to a standalone. The rest prefer to probably go to a hospital. So we are trying to change that. And we are trying to change that the payer mix before we add to the number of centers.
Sumit Gupta
Okay, and what is the core reason for deferred deals and like not getting touched? Because like this quarter it was around 37% decline on a bio basis and even 33% decline on quarterly basis. So. So how should we see this business model?
Devlina Chakravarty
No, so the daffodils. See what we have done is as a business decision not 37% less. The what had happened is in the daffodil Gurgaon. We have incorporated it in our new tower as a standalone daffodil. But it comes in the Artemis standalone Gurgaon numbers because so if you look at daffodils which were happening earlier. So this is being reflected in the Gurgaon piece because duplication we realized and people still wanting to come to the hospital. So we pulled it in and we. So the numbers are not decreased. But what you are seeing it is in Gurgaon not in the daffodils and light numbers.
Sumit Gupta
Understood? Understood. So what will be the lip for night growth or this center?
Devlina Chakravarty
Sorry, sorry.
Sumit Gupta
What will be the like or like root?
Devlina Chakravarty
I couldn’t get it. What will be the.
Sumit Gupta
What is the organic growth?
Devlina Chakravarty
Organic. Organic growth.
Sumit Gupta
Yeah. For default. If it were not for the daffodils.
RUDRA NARAYAN ACHARJEE
Piece you are asking. Correct. So Jaipur we have closed sumit. So rest. Rest. We have clubbed it over here. So if you. If you have to see from the. From the east of Kailash which is the one daffodil space to the other what was from the previous year it would be close to a 12% hike on a yoy basis.
Sumit Gupta
Understood. And lastly on the margin part for decades only. So we were expecting one question, just one question. So basically on the break even part for decoders you’re expecting it to get break even in second half. This is how like shall we expect this to break even 4Q or. Or is it expected to go to FY27?
Devlina Chakravarty
Sorry, no question again sorry. Break even by the end of this financial year.
Sumit Gupta
Okay. So fourth year expected. Okay cool. Thank you. All the best.
operator
Thank you. The next question comes from the line of Jay Prakash Toshnival with LIC mutual funds. Please go ahead.
Unidentified Participant
Good morning. Just one thing to understand on the. On the fundraise part to understand. So two things. One is this would lead to considering the current IFC NCDs which will convert get converted equity. That and this one will lead to a higher dilution. So in that scenario so the.
Devlina Chakravarty
The CCD has been already converted and today our Chairman is at 58%, 58.3% shareholding after conversion and even after the fundraise he is going to maintain his majority. That is what we have done and we will come back to you with the details. So he will be up of 50% even the post fundraise so that we are going to be hundred percent maintaining his majority in the whole piece.
Unidentified Participant
Interesting. And secondly when we have now reasonable amount of cash flows, let’s say potential 200 crore cash flows every year for the next 23 years. Considering the 700 crore plus this amount this becomes a very large amount. Do we need actually this amount, this kind of amount fund to raise to actually dilute equity.
Devlina Chakravarty
So Jay Prakash, what you’re going to see is of course we have a lot of headroom for debt also in the next five to seven years you will see close to an investment of 1800 to 1900 crores from us. You know. So part of it will Be through the fundraise balance will be through internal accruals and through debt. You know, and also because some of the projects we are looking at like you know in Delhi, these are basically trust lands. So these trust lands, they need a deposit before we start and we cannot use a debt for the deposits. Right. So that is the reason we are looking at equity. Of course, debt is part of it and our internal accruals.
Unidentified Participant
Okay, this last question from my side. When we start doing like the southbound south Delhi project which we are doing on a trust land, how much time it takes from let’s say to execute these things and get the things running?
Devlina Chakravarty
Two and a half years is what we are looking at. So we are saying 2029 is when Artemis moves from today’s 700 beds to almost 2100 to 2300 beds, all projects included.
Unidentified Participant
Okay. So anytime when we have announced, we.
Devlina Chakravarty
Have come back to show our, to tell you about our fund deployment because there is a funnel. So and we are in the process of finalizing that. So to give you a ballpark, by 2029 we’ll move to 2000 plus beds as per our commitment to our shareholders from a 700, 750 beds today.
Unidentified Participant
Okay. So when we are raising this fund at the 700 crores in the next one year there will be drag on equity at least for the next two, three years. So to say.
Devlina Chakravarty
Yes.
Unidentified Participant
Okay, perfect. Thanks ma’. Am. All the way.
operator
Thank you. Ladies and gentlemen, you are requested to limit your questions to two per participant as there are several people waiting for their turn. The next question comes from the line of Adesh Khosalia with Spark Capital. Please go ahead.
Devlina Chakravarty
Hello.
Unidentified Participant
Hello. Yeah. Yeah. Hi ma’. Am.
Devlina Chakravarty
Hi. Yes you are.
Unidentified Participant
Thank you so much for the opportunity. I had a couple of questions. So first one on continuing with the previous participants question regarding the operational bits. So right now we are operating around 5, 44 bit since last 2, 2, 3 quarters. Right. So and we have a census of 600 and capacity of 700. So are we looking, how are we looking at it? Like inching up around what let’s say 10, 20, 30 beds each year or this we are planning to keep stable. And when we expand our Gurgaon facility at that time the operation beds will go up. How are we looking at it?
Devlina Chakravarty
So what we are looking at is pertinent question. Adish. We are looking at a 70% constant occupancy for a quarter before we move the 545 or a 600 or 700 to the next level again. It will be in this ratio of IPD beds, non censored beds and this. So we, we would like to add another 200 to 300 beds in a phased manner taking the bed strength overall the 700 to 1000 and increasing the inpatients, increasing the non censored and and in the overall kind of beds once we reach a constant occupancy of 70% for a quarter.
So this is for the organic growth and the inorganic. We have told you two hospitals already been announced on track. The first one, end of April, beginning of May should be operational 2026. The second one will come back to you hopefully before the end. Not hopefully, definitely before the end of this financial year. The South Delhi facility which will become operational in 2029 and a couple of more green and brownfield projects which are in the pipeline for which we have requested the fundraise.
Unidentified Participant
So when we say around 800 to 900 beds, so those are like operational beds. So that will be the census beds.
Devlina Chakravarty
That we are looking for operational beds.
Unidentified Participant
Okay. Okay, got it. And the next part that we are looking at the current fundraise and you are talking the funnel that we have regarding the opportunities. So we are concentrating in the northern part of our country or we are planning to you know go towards western and southern part or anything. If you can share some light on the.
Devlina Chakravarty
That’s Delhi ncr.
Unidentified Participant
Okay. We’ll continue to focus on Delhi NCR region.
Devlina Chakravarty
That’s right. Yes.
Unidentified Participant
And okay. So but previously in the conversation that we had we had guided for around a peak debt of around 350 to 400 odd crores. But now this new fundraising is coming up. So is there any change in that or like the debt level will be reduced or.
Devlina Chakravarty
It will be further reduced. The maximum debt we will be at any point will be less than 300, 250 to 280.
Unidentified Participant
Okay. So the debt will on the books will be coming down to 250 to 280 levels. Okay. That’s it. And the employee cost that we have seen going higher in this quarter. So should this be the sustainable like this will be something that will be.
Devlina Chakravarty
I think. I don’t know whether you. Heard me or not. Employee cost, this is, there’s been a peak. This is going to be now maintained because we are active because what is going to have the percentage to the top line, the top line is going to increase because we are at 52%. We are going to look at 68 to 70% occupancy and we are also Going to look at spreading of the cost and some of the cost which is housed with us for the Raipur facility is then going to start getting allocated to Raipur because all the projects, the operations team are already in place. But today the cost is being reflected in our manpower cost.
Unidentified Participant
Okay, okay, got it. So but this will be the peak level that we’ll see around 40, 45.
Devlina Chakravarty
There will be an annual appraisal impact of, you know, 4 to 5%.
Unidentified Participant
That’s. That’s understood.
Devlina Chakravarty
But the peak that you have seen is not going to. This is like a one time and then things are going to ease out.
Unidentified Participant
Yeah, okay, got it. I do have some. Get back in the queue and wait for my chance. Thank you so much.
Devlina Chakravarty
Thank you. Thank you.
operator
Thank you. The next question comes from the line of Yogan Jwani with Mittal Analytics. Please go ahead.
Devlina Chakravarty
Hello Yogan,
Unidentified Participant
thanks for the opportunity. Thanks for the opportunity, ma’. Am. Most of the questions have been answered. Just one clarification or more insights on the Gurugram facility? You mentioned that the FAR has been received for 15% and there’s another far that we look to purchase of 2.15. So any broad timelines that you have in mind. I know you said 70% once we reach occupancy, but a broader timeline by when do you think such numbers would be achieved and what kind of capex will this require? Any broader number, ballpark figure that you can share.
Devlina Chakravarty
You know, for the Gurgaon facility to go up to 1000 beds. Again we’ll be adding like hundreds or maybe you know, depending on the need. So we will be in a year, year and a half for us to go to 1000 beds. Capex is going to be very minimal. Like how you saw the capex here because most of the, you know, the things are already bought. So I would say in the range of how to predict. One year down the line, but around 60, 60, 65 lakhs per bed is what I would say.
Unidentified Participant
Got it. And on the ripur side, once we start the facility in April, May by when do we expect to see break even in this?
Devlina Chakravarty
Yeah, 18 to 24 months.
Unidentified Participant
Thank you. That’s it for myself. All the.
operator
Thank you. The next question comes from the line of Vedant Melekhar with ICICI securities. Please go ahead.
Vedant Nilekar
Hello, I’m audible.
Devlina Chakravarty
Hello, Vedant. Hello. Yes, Vedant you are.
Vedant Nilekar
Thank you for the opportunity. I’m fairly new to the company and I just have one question. Can the management please bifurcate the international patient revenue in terms of broader Geographic area, if that’s possible.
Devlina Chakravarty
From there these patients are coming is what you’re talking about. So they’re basically from the uae, Africa, they come from cis, they are coming in from Scandinavia, Canada and of course multiple other small countries scattered all over.
Vedant Nilekar
And just a follow up on this, does this change on a periodic basis, this pattern, or. It’s broadly the same.
Devlina Chakravarty
What happens is these numbers increase and we keep adding new countries so that we are not dependent on one region or one country. So the numbers keep increasing. But every year we take a make an active effort to open at least two, if not three new countries to the list.
Vedant Nilekar
Okay, got it. Thank you so much.
operator
Thank you. The next question comes from the line of Hrithika Khandelwal with Perpetuity Ventures. Please go ahead.
Devlina Chakravarty
Hello, Ritika.
Ritika Khandelwal
Hi. Can you also give us an update. On the other that you have launched like and what kind of investment will be making in these areas?
Devlina Chakravarty
So basically these are facilities, they’re not much. So we have started heart lung transplants, we have start, we have relaunched high end robotic surgeries and we have done geriatrics. So investment is nothing really except the cost of doctors here and which is what you see in the manpower cost. So because this was the, you know, as we were increasing our beds and towers and infrastructure. So that is included in that cost only. But what is today striking out is the cost of manpower in this. But if you look at it, ticket size of a heart lung transplant goes anywhere between 35 to 55 lakhs for domestic and more for international.
So just to give you an idea, and geriatric packages are packages which are sold in the range of 5 to 7 lakhs, an annual package. So basically what we are trying to say is these are low investment, high profitability departments which over a period of time, it doesn’t happen overnight, but over a period of time shows results. And initially you will see only the cost of manpower. But there is not too much of investment. Like robotics, we already have the da Vinci robot, we have couple of other robots, but we launched high end robotic surgeries or you know, people who are trained in that.
So if you look at it and you can talk separately to our, to Rudra, you will see the jump in our robotic surgeries, you know, once we have launched this and for the effect to come, you’ll have to give us a, you know, few quarters to see how this is impacting our P and L. So to answer your question simply the investment is only the manpower cost, nothing else.
operator
Thank you. The next Question comes from the line of Hanil Baghdadia with Equicore. Please go ahead.
Unidentified Participant
Thank you for the part demand. Hi ma’, am, thank you for the opportunity and congratulations to the team too. Ma’, am. Just some quick questions. Ma’. Am, the investments that we’ve been doing on the heart and lung transplant and the geriatrics part, how scalable can the revenues be and how is the heart and lung transplant with the Kim’s actually going on in terms of volumes for patient? And how big can this be? Because Kim’s is actually in the south and I think so north is where we actually plan to take most of them.
Devlina Chakravarty
Very important today it’s not just volumes. So we have done the first two transplants and people have gone back happy. We have done it within almost two months of starting the program. We have a long waiting list of patient wanting it. But you know, it has to be a cadaver donation and we are working very actively for people to donate who are brain dead, not just in our country but in North India. We are starting, we are doing a program but very importantly, you will have to understand it also adds to the capability of a hospital in terms of what they provide, the expertise.
You know, today hospitals are not just about, you know, having beds or top and bottom line, which is of course very, very important. But a long term sustainability of hospitals will also rely on your capabilities, especially with medical value travel becoming a key player from the PMO as a soft power coming into our country. So you know, whom do people choose to go into? I can promise you there are only a handful of hospitals who do medical value travel and this is based on the capabilities that, you know, you sign contracts with their governments, what all you do, so on and so forth.
So while it will definitely add to the numbers and volumes, what it will also do is give you a positioning statement that you know, you are capable of doing, you know, delivering the last mile to every patient.
Unidentified Participant
Okay. I’m also on the cardiac centers part. We did plan to buy Philips a residual stake. So any progress there? Have we bought it or the stocks are still in progress?
Devlina Chakravarty
We are no. So the offer is there from Philips and we are debating the pros and cons of it and we’ll come back to you once we have a clear decision. Ideally, you know, my view is currently that, you know, why pay an extra and you know, so we are just looking at it, what will it imply on a long term game. But we will come back to you with more details on this, ma’. Am.
Unidentified Participant
Lastly on the hospitals on the O and M hospital side we have an O and M contract in Mauritius. So we also have had plans to expand into another facility that the same hospital had set up. So any progress there? And any more O and M hospitals in pipeline either in international geography.
Devlina Chakravarty
We have already said by me, the Cassaval Hospital in Mauritius, we have already signed it. It should get operational. But you know we get a fee for our brand and fee for our support. So we do not run the P and L there unlike the. We run the entire P and L like we’ll be running for women and Raipur. That’s the difference. The whole P and L is with us for Mauritius. We are paid our loyalty monthly loyalty for our name and our expertise that we provide. Just a royalty coming to us.
Unidentified Participant
Actually what I meant here was we get a lot of international references here and we can get the patient without have to paying any fee or any commission to the agent.
Devlina Chakravarty
So that we have seen that we have. That we have already, you know we have one of the exclusivity. I think we and Apollo are the only ones who have the exclusivity with Ministry of Health of Mauritius for treating their patients abroad. And we get a lot of patients from the ministry and we are also as we speak, we have started our own information center and second opinion centers in our own hospitals there. For those cases which cannot be done in our local hospitals in Mauritius they come to us for treatment here. So that’s an ongoing thing.
Unidentified Participant
Okay, thank you. Thanks a lot ma’ am and wish you all the best.
Devlina Chakravarty
Thank you. Thank you.
operator
The next question comes from the line of Raman KV with Sequent investments. Please go ahead.
Raman Venkata Kerti
Thank you for the. Thank you ma’. Am. For the follow up, I just want to understand. Hello.
Devlina Chakravarty
Robin, your voice is breaking.
operator
Background disturbance from your end.
Raman Venkata Kerti
Can you hear me now?
operator
Hello, can you please use your handset?
Raman Venkata Kerti
Yes, one minute. Hello sir, can you hear me? Hello, can you hear me? Yeah, so I just want to understand the future plans with respect to the. The new hospitals. Said with respect to the Guru hospital we have 15 FAR approval which in the presentation mentioned can do 100. You can expand more 100 beds. What will be the capex cost for these? And one is on that aspect. And if you can provide some more details on the South Delhi hospital if possible. Like you plan to have 600 plus beds in South Delhi. So can you just throw some cost.
Devlina Chakravarty
For this 100, 125 beds is going to be, you know in the range of 40 to 50 lakhs. Because the plinth is already made. We just have to you know add this floors and the beds so not more than that. And for the Saudi hospital that’s a very exciting story for us. We are looking to start construction by end of April, beginning of that is the next financial year. We are looking at two and a half years to finish the construction. It is a state of the art quaternary care Hospital with 650 beds in two phases starting with 400 going then 450 and then going on to 200 more.
A facility which will have from you know this all kinds of transplants then heart and lung surgeries, oncology, radiotherapy, PET CT and everything that you can think of in a quaternary care hospital. And it will have some of the country’s best specialists working here and it will be a hospital very high on medtech, very, very much AI enabled in areas so you know, which will add to the efficiency. So and it is going to be jewel in the crown for us. Something I can tell you.
Raman Venkata Kerti
And what’s the approximate CAPEX allocated for this South Delhi expansion?
Devlina Chakravarty
We’ll come back to you with details once we sign but in the range of 70, 75 lakhs per bed is what we are looking at.
Raman Venkata Kerti
Understood ma’. Am. Thank you.
Devlina Chakravarty
You.
operator
Thank you. Ladies and gentlemen, this will be our last question. It’s from the line of Adesh Goselia with Spark Capital. Please go ahead.
Unidentified Participant
Hello. Thank you for the opportunity. Yeah thank you for the follow up. Again just continuing on the previous participants question first when you said that the South Delhi facility we are coming up with 650 beds. So when you say 400. 450 and then 650. So that you are talking about operationalizing the beds. Right. Or the capacity will be coming up itself in first let’s say 400. Then.
Devlina Chakravarty
One will have 450 and the other will have 200 beds. The towers will be ready at the same time. Operationalization, not 400 actually 450 and then 200. That’s, that’s how the plan is.
Unidentified Participant
So in FY29 we will see the operational beds at 450.
Devlina Chakravarty
Yes.
Unidentified Participant
Okay. And any idea on the R pop that we will be seeing over there like will it be lower?
Devlina Chakravarty
So you know R4 predictions we are not giving right now. We are not giving a guidance. But you can look at our current R Pops here which is one of the finest in Delhi ncr. We will have a similar mix of domestic and international and high end patients and we will be, you know, in sync, if not better than all our competitors around. So the two big hospitals around, not really around, but in that area will be Apollo Hospital Indrapristha and Max Hospital Saket. So this hospital is also going to break many, many years of monopoly by just two brands because it is positioned in a manner which is, you know, kind of right where they are.
Yeah.
Unidentified Participant
Okay. That’s really great to hear. And just the last question on the Raipur facility, the same thing that on the, just on the operational beds. If you can clarify from the 300 in the first year, like in FY27, how much, how many beds will be operationalized?
Devlina Chakravarty
So we are, we are starting to start with 200 and 250. So we are starting with 200 and 200 beds and going on to 300 beds in an, in a year, year and a half time.
Unidentified Participant
Okay. Okay. Oh great. That’s. Yeah, that’s it. From when. Thank you so much, ma’. Am.
Devlina Chakravarty
Thank you.
operator
Thank you. Ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Rudra Acharya for closing comments.
RUDRA NARAYAN ACHARJEE
Hi all. I would like to thank everyone for joining this call. I hope that we have been able to respond to all your queries and questions adequately. For any further information we would like you to be please in touch with me and the investor relationship team. Stay safe, stay healthy and thank you once again for joining us.
Devlina Chakravarty
Thank you.
operator
Thank you on behalf of Artemis, Medicare and Choice UKT Broking. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.