GPT Healthcare Ltd (NSE: GPTHEALTH) Q4 2025 Earnings Call dated May. 24, 2025
Corporate Participants:
Anurag Tantia — Executive Director
Analysts:
Naman Bhansali — Analyst
Parth Kotak — Analyst
Agastya Dave — Analyst
Naysar Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the GPT Healthcare Limited q4 and fy25 Earnings Conference Call. 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. Please note that this conference is being recorded.
I now hand the conference over to Mr. Anurag Satya, executive Director of the company. Thank you and over to you sir.
Anurag Tantia — Executive Director
Thank you. Good morning everyone and welcome to GPT Healthcare Limited’s earning conference call for the fourth quarter and full year ended 31 March 2025. GPT Healthcare Limited is the healthcare arm of GPT Group. Guided by a strong sense of purpose, we are committed to delivering quality healthcare particularly in the underserved regions of the country through our tertiary care hospitals. We aim to bring up advanced medical services closer to where people live, especially in eastern India.
Before we begin, I’m pleased to share a significant milestone in our journey. We’ve moved one step closer to our goal of becoming a 1000 bedroom hospital chain. On 2nd May 2025 we commissioned 158 bed facility at Pachpari Naka in Raipur. This facility has been established under an asset light rental based model. This new hospital will not only serve Raipur but also the surrounding districts of Bilaspur, Dhurg, Bhilai and also Risa. It offers advanced care across a wide range of specialties including cardiac sciences, oncology, Neurology, Orthopedic, Pediatrics and more. The hospital is equipped with the state of art medical technology such as a 3 Tesla MRI, 128 slice dual source CT scan, cardiac cath lab and 5 module operation theaters designed for quaternary care and complex treatments. This facility is supported by by a skilled team of healthcare professionals.
This marks a proud step forward in our mission to bringing world class healthcare closer to the people who need it most. With this we now operate 719 beds across five full service multi speciality hospitals. Additionally, we assigned an MOU for hospital in Jamshedpur which will have a planned capacity of 150 beds with an estimated investment amount of approximately 65 crores. The hospital is expected to be commissioned by the end of Q3FY27 and will further strengthen our presence in the underserved regions with quality tertiary care services. These developments are key milestones in our mission to expand access to world class healthcare and move closer to a 1000 bed target.
Let me now walk you through some of the financial highlights for Q4 and the full year ending FY25. Revenue from operations for Q4 FY25 stood at 101 crores, registering a 2% YoY growth. EBITDA for the quarter was 22 crores with an EBITDA margin of 21.6%. PAT came in at 13 crores with a margin of 12% for the full year. Of FY25. Revenue from operations grew slightly on YoY basis to 407 crores. EBITDA dipped slightly by 1% reaching 92 crores. On account of certain expenditures related to the new hospital in Raipur and also on account of higher impairment provisioning while maintaining a stable EBITDA margin of 22%. PAD grew by 5% YoY totaling to Rs 50 crores and delivering a pack margin of 12%.
A key positive this year has been a finance cost which saw a sharp decline of 55% YoY driven by a strategic reduction in debt. With that, I’m pleased to share that we are now a net debt free company, a milestone that not only strengthens our balance sheet but also enhances our ability to invest in future growth opportunities. With greater flexibility and confidence, we were also able to achieve a ROE of 23.5% and a return on capital employed of 20% for the year March 31, 2025. On the operational front, the average length of stay improved to 3.54 days from 3.95 days in the same period last year, a result of our ongoing efforts to optimize case mix and enhance throughput.
Our RPOP stood at 37,200, aligned with our focus on the middle to high income segment. Approximately 94% of our business continues to come from cash and insurance patients reflecting the strength of our neighbor tertiary care model. Bed occupancy currently stands at 53% which is mainly due to the reduced length of stay which allows us to serve more patients efficiently while focusing on complex procedures coming to the hospitalized performance of the full year. FY25
Let me begin with ILS Hospital Salt Lake, our 85 bed center of surgical excellence. The hospital has delivered a strong performance with an RPOB increasing by 15% YoY from 34,000 to 39,200 and the ALOS further came down with a focus on short stay specialties allowing us to serve more patients without compromising quality. The Agartala Hospital, which is the next hospital we are talking about, is the only corporate tertiary care hospital in the entire state of Tripura with 205 beds. It has 66 critical care beds and has commenced its journey towards providing comprehensive oncology services as well.
The Cancer Care Department of Medical oncology commenced in FY25 and the radiation Oncology equipment has also been commissioned in May FY26, making it the only unit of its kind in Tripura. The RPOB has increased by 16% on a yoy basis 33,700 for FY25. The next hospital is the damn hospital which is 155 beds and is located in the densely populated part of North Calcutta.
The occupancy rate stands at a long term sustainable rate of 70%. It recorded an RPOB of almost 41,000 rupees for FY25, which is an increase of 8%. And the revenue stood at 162 crores. In line with our continuous effort to increase throughput in this hospital, Dum Dum’s average length of stay has reduced from 5.17 to 4.59 for the FY ending 2025.
This reduction in length of stay has correspondingly led to a slight dip in occupancy as well. Despite overall inpatient volumes increasing, the company intends to commence a full fledged cardiothoracic setup and revamp its other clinical offerings in this hospital to further strengthen its scope of services. The Havre Hospital continues to grow from a revenue and patient volume basis. We have also commenced robotic knee surgeries in this hospital. In Q4FY25, the hospital performed 12 surgeries using the robot.
Our four existing hospitals, Solic, Agartala, Damdam and Havra continue to show steady progress in both financial and operational performance. As shared earlier, the we remain firmly committed to our goal of becoming a 1000 bed hospital chain over the next two to three years. This target reflects our broader vision of scaling up operations and bringing quality healthcare to more communities. By expanding our reach and strengthening our capabilities, we aim to enhance healthcare access and improve patient outcomes across eastern India. This vision continues to guide our strategy and reinforces our commitment to delivering excellence in healthcare.
Thank you for your attention. With this I conclude my opening remarks and I would request the moderator to open the floor for questions. I look forward to addressing your queries regarding our performance and future outlook.
Questions and Answers:
Operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue ascends. I would like to remind everyone, if you wish to ask any questions you may press star and 1. We have our first question from the line of Naman Bansal from Nine Rivers Capital. Please go ahead.
Naman Bhansali
Hi sir, thank you for the opportunity. First question is on the volume growth this year which has been flattish for our overall consolidated levels. So what are certain reasons which has led to this flattish growth in terms of volumes this year?
Anurag Tantia
Thank you Naman for this question. So if you see yes, volume growth in our Agartala Hospital has been slightly flattish while we’ve grown in Havra Dum Dum and in Salt Lake. The reasons for this slightly flattish trend in say Damdam or Habra and Agartala has been on account of external factors. The RGCAR incident in Calcutta which is very very close to a damn hospital really affected the numbers to a large extent in that hospital. And Agartala has been greatly affected by the Bangladesh issue. Plus large scale floods which happened in Tripura.
So these were some incidents which muted the numbers slightly. However, our numbers are looking up after that and we are hopeful of gaining momentum this year.
Naman Bhansali
Got it, sir. And how is the situation now in terms of Bangladesh? Patients may be coming in as well as in the Agartala. Is the patient inflow still subnormal versus the last year?
Anurag Tantia
The Bangladesh situation is improving very very slightly. But we still don’t see the patient volumes back in the same numbers which we were experiencing earlier. However, the good part is that patients from the rest of Tripura have started supporting the hospital. And with our setup of comprehensive oncology we expect the volumes to increase significantly in that hospital.
Naman Bhansali
Got it. Second question is on the RIPUR facility. So congratulations on commercializing it this quarter. Firstly, what is the expense that has been already built up for the RIPOR facility in the FY25 financial or maybe Q4.
Anurag Tantia
Thank you. So the RIPUR facility project cost was approximately 55 crores as this was an asset light hospital on a rental basis.
Naman Bhansali
Sir, I’m asking on the OPEX side in case you have already started marketing activities or doctor cost has started to build up already.
Anurag Tantia
So that was an impact which had to be factored into our EBITDA this year on account of India’s the quantification of that we’ll be able to share with you down the line.
Naman Bhansali
Okay, sure. And how do we see the scale up or in the Ricore hospital? Maybe in terms of occupancies in the initial year. Initial first two years. And what is the breakeven level time period that we are internally targeting here?
Anurag Tantia
So we expect the hospital to break even on a month on month basis in 24 months which will be transitional to around 3.35percent occupancy. We expect as in the first year operations we would be stabilizing at around the 20% mark for that hospitality.
Naman Bhansali
Thank you.
Operator
Thank you. We have our next question from the line of Bharat Kotak from Plus91Assets. Please go ahead.
Parth Kotak
Hi. Thanks for the opportunity. Sir, a couple of questions from my end. One, our model relies heavily on cash and insurance patients. Are there any plans to increase government scheme? Patient mix, especially for the new hospital.
Anurag Tantia
Yes, our model is heavily reliant on cash and insurance patients. That allows us our freedom of getting cash flow to operations of almost 80% compared to EBITDA. That being said, for the newer hospital of Raipur, initially we would be relying to an extent on the corporates and government schemes. But as the hospital matures, we would be again transitioning to our strategy of cash and insurance patients. But that strategy does not change in our existing hospitals.
Parth Kotak
Got it, sir. Sir, also on the Raipur hospital, would it be fair to understand that expected rpobs would be slightly lower compared to existing hospitals?
Anurag Tantia
So compared to the existing Calcutta hospitals, we would be slightly muted by around 10% which should be made up as the hospital matures. Compared to other hospitals of the region, we are at par in terms of our pricing strategy.
Parth Kotak
Got it, sir. Just a slightly deeper understanding. Meaning Raipur has a propensity to give us a 30,000 plus RPOP kind of a number, right?
Anurag Tantia
Yes, we are very confident and our model builds into the fact that we are estimating RPOBS of greater than 30.
Parth Kotak
That’s very helpful, sir. I’ll join back in with you. Thank you.
Anurag Tantia
Thank you.
Operator
Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and one. Now. Reminder to all participants, if anyone wishes to ask a question, you may press star and 1. We have a next question from Lino Augusted away from Cao Capital. Please go ahead.
Agastya Dave
Am I clearly audible?
Anurag Tantia
Yes.
Agastya Dave
Thank you very much for the opportunity, sir. So actually most questions were asked by the previous two participants. Just one question on Arpo growth in general overall for the company. If you can go asset by asset and give some commentary on how do you see this, the trend of Arpo growth over the next, let’s say two to three years. I’m saying two to three years. There are some mature assets and some which will be ramping up. So if you can go into slightly more details. That would be it from my senior.
Anurag Tantia
Sure. So the R prob has gone up by an average of around 10% to 12% across the different units going unit wise, as requested by you. At the Salt Lake Hospital, we have gone to an ARPA of 39,200 compared to 34,000. This is primarily on account of an increase in the number of robotic surgeries and on account of the shortening of length of stay which we’ve been focusing on in this hospital to deliver more comprehensive care for short space. We expect the RPOB at this hospital to continue increasing at around this 8 to 10% mark.
For the Agartala Hospital the RPOB has moved from 29,000 last year to 33,600 this year. This is primarily on account of the oncology services which we Medical oncology services which have been started. Combined with our deeper focus on super specialty segments like nephrology and cardiology, we are expecting this RPOP to increase by almost 15% on an annual basis on account of the larger specialized treatments which we are starting here. Also our focus has been on reducing the government scheme cases which is impacting which is increasing. RPAP. Dum Dum the RPAP has grown slightly by around 10% from 38,000 to 41,000. Here again it is a function of our focus on reducing the length of stay of this hospital.
The average avenue per patient has gone down slightly but the RPOP has gone up. Because of our focus on reduction on length of stay and increasing the throughput in the hospital, we expect the RPOP to maintain similar momentum and increase by around 7 to 8% every year. Havra has gone up from 27,000 to almost 33,000 this year. On account of larger focus on super specialities like cardiology and neurology, we expect this RPOB to grow at almost a healthy 10 to 12% every year.
With regards to Tripur, as I already highlighted, we’ve just started off that hospital and we expect the RPOps to match up with our existing RPOps over the course of the next two years.
Agastya Dave
Understood sir. And sir, are there any other labors in terms of super speciality treatments across all your assets which you can pull over the next two years to give you that further?
Anurag Tantia
Definitely there are multiple levers which we are already working on across all our units. Every unit has a different strategy in terms of what levers are to be utilized. For example in Dum Dum, as I said earlier, we are focusing a lot on cardiology. We are also utilizing the lever of interventional neurology and cardiac surgeries. In that hospital in Raipur we are focusing on electrophysiology and cardiology. That is going to be a big lever in super speciality which we will starting up afresh.
At Agartalla we are starting oncology and we are also going to end up. We will be starting kidney transplant also soon there. So every hospital has a different lever which is in play which should materialize over the course of the next year.
Agastya Dave
One final question sir. So we have discussed the realizations to you, but how would cost inflation to you? What kind of inflation are you expecting over the next two, three years in general, across all your assets here? I don’t want sir asset to asset, but in general for the company. What are you seeing, sir?
Anurag Tantia
In general, the cost inflation is expected to be in line with the industry standards of around 7 to 8%. This ranges from across manpower to consumables. Everything should be around an average of around 7 to 8%. That being said, we are focusing strongly on getting our cost of medications and consumables down and we’ve been able to reduce it by almost 2% on a yoy basis because of the stronger focus which we have there.
Agastya Dave
Excellent, sir. Thank you very much for answering all the questions in such detail and with such patience. All the best, sir. This was very, very useful. Thank you, sir.
Anurag Tantia
Thank you.
Operator
Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and 1. Anyone who wishes to ask a question, you may press Star and one. Now we have our next question coming from Credent Asset Management. Please go ahead.
Naysar Shah
Good morning and thank you for the opportunity. So just want to understand at an aggregate level, what will be the contribution of patients coming from Bangladesh to our total revenues?
Anurag Tantia
Thank you for the question. So at an aggregated level across Calcutta, we don’t have a very large focus on Bangladesh. The Bangladesh. Bangladesh as a whole would contribute around 10% of our unit volume to our Agartala Hospital. So I would say that it forms a minuscule 2 or 3% of the overall volume of our consolidated revenues.
Naysar Shah
Okay. And you know, you mentioned reasons earlier as to, you know, why occupancies were low. But some of the reasons that you mentioned maybe were probably there for a very brief period. So that would have still so much impacted our occupancies for the year as a whole. Or maybe, maybe there are some more reasons because of higher competition or whatever. Maybe can you some deep, well deeper into. Because our occupancy running very low for the last few years and we’ve not been able to increase. I understand ALOS is one of the reasons. And again on that as well. See because our occupancy are low. So I can understand you’re reducing ALOS when you are running at 70% plus. But when you’re already at low occupancies, why would you want to say maybe reduce alos? Maybe just creating capacities ahead of probably demand. So maybe just changes will deeper on that.
Anurag Tantia
So if you notice that our hospital of Dum Dum and Solick had been functioning at over 70, 75% occupancy and there there has been a conscious shift to reducing the ALS so that beds can be freed up. We’ve always had that struggle to make beds available for patients in those two hospitals. So there it has been a very, very conscious focus to reducing length of stay.
And RG core incident which affected Dumnam volumes to an extent, was extending for almost three to four months, which is a significant amount of time. In the. When we come to agarthalla, there were two impacts. As I said, 10% of the volume of Agarthala, which is a significant amount, comes from Bangladesh, which has been impacted for a long time now.
And apart from that, there were floods, massive. Floods in the entire state which extended for almost two to three months. The entire connectivity of the region was hampered during that period which impacted the Agathala volumes as well.
Naysar Shah
Only Dum Dum is 69, right? Because you know Salt Lake is less than 60, Agathal is 46 and Howra is 41. So it’s only Dum Dum which is close to 70. Right.
Anurag Tantia
Dum Dum was almost 75% which has come down on account of the reduction of length of stay despite higher volumes. While Sol Lake, if you see historically has been maintaining that 70% again on account of reduction in length of stay while increasing volumes, it has come down. If you see the volume growth of Sol Lake, it has been consistent but because of the reduction in length of stay, it has come down.
Naysar Shah
Andy, any outlook that you can share on occupancies for FY26?
Anurag Tantia
So in FY26 we expect Dum Dum to be stable at around the 70 to 73% mark. Salt Lake will be at around the 70 mark. Agartala should be at 55 and Havra should also be at 55% to 50%.
Naysar Shah
So you’re saying Salt Lake will increase from 58 to 70. So significant increase that you are selling?
Anurag Tantia
Yes.
Naysar Shah
And other color you said from 46 to 55. How are from 41 to 55?
Anurag Tantia
Yes.
Naysar Shah
Okay, 41 50. Salt Lake from 58 to 70 and Agra color from 46 to 55. Right?
Anurag Tantia
Correct.
Naysar Shah
Okay, thank you very much and all the rest.
Anurag Tantia
Thank you.
Operator
Thank you. A reminder to all participants, if you wish to ask any questions you may press Star and one. Anyone who wishes to ask a question may press Star and one on the Touchstone Telephone Foreigner to all participants, if you wish to ask any questions, you may press star and 1. We have our next question from the lineup. Navan Bansali from Nine River Capitals. Please go ahead.
Naman Bhansali
Hi sir, my question is on the EBITDA margin side. So what sort of compression can we expect in the coming financial year? And on the EBITDA margin, Can you please specify on the X other income EBITDA margin stock rating process?
Anurag Tantia
Sure. So in this coming year we expect a business loss on account of the new hospital to the extent of around 7 to 8 crores which will overall have an impact of around 5 to 6% on the overall EBITDA. But the other hospitals would be kicking in in terms of their growth. We expect the EBITDA margin to be two and a half to 23% overall.
Naman Bhansali
Got it, sir. And in terms of growth guidance. What can we expect going from here? Considering in the past over the. This is a longer term financials. They’ve grown more than 15% consistently but this financial has been largely flat. So going forward, what is the expectation here?
Anurag Tantia
We expect the company to grow at a 15% yoy growth on account of the new hospitals as well as the newer specialties being introduced in the existing hospitals.
Naman Bhansali
Got it. And lastly, we have already signed Jamshedpur and could you please share the status on the Ranchi project as well?
Anurag Tantia
So the Ranchi project we are still. There has been a delay on account of the developers in getting clearances. We are still awaiting the clearances from their end but as I highlighted earlier, we have signed Jamshedpur and we are going full ahead with that at this stage. The building is already G4 constructed and now it is being modified and increased to meet our requirements.
Naman Bhansali
All good, right? Thank you.
Anurag Tantia
Thank you.
Operator
Thank you. A reminder to all participants, if you wish to ask any questions. You may press star and 1. A reminder to all participants, if you wish to ask any questions. You may star and 1. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Anurag Tantia
Thank you everyone for your questions which I hope we have suitably addressed. In case you have any further queries, please get in touch with us. Thank you for your continued support and trust in our company’s vision and capabilities. Together we look forward to achieving new milestones and creating lasting value. Thank you and have a good day ahead.
Operator
Thank you on behalf of GPT Healthcare limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.