Medanta's newest hospital in Noida is on track to turn cash positive within the next three to four months, according to Group CEO Pankaj Sahni and CMD Dr Naresh Trehan. As reported by The Economic Times, the healthcare group is working to convert its largest recent capital investment into a meaningful earnings contributor. The facility is currently operating at 380 beds and will add approximately 150 more beds in the coming financial year.
The margin dip in Medanta's latest quarterly results was primarily attributed to startup losses from the Noida facility. According to The Economic Times, when Noida is excluded from the portfolio, the rest of the business actually expanded margins by 50 to 70 basis points in the same period. The company expects Noida to reach profitability in the second half of the coming financial year, with peak losses occurring in Q3 and declining month on month through Q4.
Dr Trehan described the Noida ramp-up as progressing ahead of internal expectations, with both inpatient and outpatient footfalls growing. As reported by The Economic Times, the facility has secured almost all major insurance empanelments, including CGHS accreditation and NABH quality certification achieved within just six months of opening. The company has also secured kidney transplant approvals, with liver transplant approvals being sought and a formal programme launch expected within one to two months.
Medanta has announced new greenfield facilities planned or already announced in Guwahati, Varanasi, Delhi, and Mumbai, with a recent acquisition in Indore being integrated. According to The Economic Times, the group's long-term consolidated EBITDA margin target is conservatively set at 24% to 26%, with operating leverage from scale providing potential upside as occupancy thresholds are crossed.
Sahni pointed to consistent volume growth in Gurugram despite increasing regional competition, with strong demand for complex surgical work. As reported by The Economic Times, Lucknow, operational for six and a half years, and Patna, at four and a half years, are still posting high growth rates, demonstrating that Medanta's model sustains momentum well beyond the typical early ramp-up phase.
