Aggarwal Hospital and Research Services, a wholly owned subsidiary of Park Medi World, has entered into a 28-year Operation and Management Agreement with Axis Educational Society (AES) on 16 September 2026. According to the regulatory filing disclosed to the National Stock Exchange of India (NSE), the agreement covers the operation and management of a 300-bed multi-super speciality hospital located in Kanpur, Uttar Pradesh. The facility, named Axis Hospital and Research Centre, is strategically located at Milestone 478, Chakeri Ward, Hathipur, Rooma, NH 2, Kanpur and spans approximately 1.2 lakh square feet of covered area. As reported by Business Standard, the facility is an established hospital that will be renovated and re-equipped to offer multi-super speciality services before commissioning by the end of the current financial year.
Under the agreement terms, Park Group will assume complete operation and management of the hospital on an asset-light basis. As reported in the regulatory filing, the company will invest in renovation, modernisation and medical equipment while operating the facility under a long-term arrangement without an upfront acquisition of land or building. According to Business Standard, this capital efficient structure allows the Group to add operational bed capacity rapidly at a fraction of the capital required for an owned or a greenfield facility. The hospital will be brought up to Park Group's clinical and infrastructure standards ahead of commissioning and will offer a comprehensive range of multi-super speciality services to Kanpur and its surrounding catchment area.
The agreement establishes a revenue share of 6% of collections subject to applicable taxes, with a minimum guaranteed amount of ₹20 lakh per month inclusive of GST during the first year from the effective date. According to the regulatory filing, thereafter, the minimum guarantee remains at ₹20 lakh per month plus GST. This structure provides revenue stability while allowing Park Medi World to scale operations without direct ownership of the underlying physical assets. The arrangement is designed to bolster the group's presence in Uttar Pradesh, India's largest state by population, and an area recognised for being under-served in healthcare infrastructure.
Kanpur represents a strategic addition to Park Group's Uttar Pradesh expansion, as reported by Business Standard. Kanpur is one of Uttar Pradesh's largest cities and a major industrial and commercial centre, serving a substantial urban and semi-urban catchment. Uttar Pradesh remains one of the most under-served in healthcare infrastructure, with hospital beds per 1,000 population materially below both the national average and the WHO benchmark of 3 beds per 1,000. This makes the state one of the most attractive long-term healthcare markets in the country. Dr. Ankit Gupta, managing director of Park Medi World, stated that Kanpur is an important addition to our Uttar Pradesh footprint, emphasising how the operations-and-management model allows rapid integration of established facilities without significant capital outlay or lead time.
The strategic expansion comes alongside strong financial performance, with Park Group's consolidated net profit jumping 42.31% to ₹82.51 crore on a 19.27% increase in revenue to ₹475.71 crore in Q1 FY27 compared with Q1 FY26. As reported by Business Standard, the scrip was up 0.05% to currently trade at ₹279.40 on the BSE. Park Medi World currently operates 17 hospitals with a combined capacity of approximately 4,300 beds and is in the process of integrating 6 additional hospitals and expanding capacity at 3 existing units, which will add 2,300 beds to the network. Together with this Kanpur facility, the group's total capacity is expected to reach approximately 6,600 beds with ongoing integrations, reinforcing the company's strategy of building density in the state through a mix of owned, PPP, and asset-light operating models.
