Artemis Medicare Services Limited
Comprehensive Forensic Financial Analysis Report • FY2021 to 9M-FY2026
CIN: L85110DL2004PLC126414 • BSE: 542919 • NSE: ARTEMISMED • Report Date: March 2026
1. Executive Summary & Key Performance Indicators
₹937 Cr
Consolidated Revenue FY25
▲ 6.6% YoY
₹185 Cr
Consolidated EBITDA FY25
▲ 31.9% YoY
₹82 Cr
Consolidated PAT FY25
▲ 67.1% YoY
19.7%
EBITDA Margin FY25
▲ 380 bps YoY
₹5.42
Basic EPS FY25
▲ 49.7% YoY
₹844 Cr
Total Equity FY25
▲ 85.5% (CCD)
Revenue & PAT Trend (₹ Cr, Consolidated)
EBITDA Margin & Net Profit Margin Trend
Overall Assessment: Artemis Medicare shows a compelling growth trajectory — revenue has grown from ₹555 Cr (FY22) to ₹937 Cr (FY25), a 19% CAGR. PAT has grown at 38% CAGR from ₹31 Cr to ₹82 Cr. EBITDA margins expanded from ~7% to ~20%. The business is well-run with clean audit opinions and no major red flags. Key areas to monitor: (1) Raipur hospital ramp-up losses, (2) ₹330 Cr CCD conversion dilution, (3) Subsidiary losses, and (4) GST contingent liability of ₹63 Cr.
2. Business Progression
Revenue Growth Trajectory
| Metric (₹ Lacs) | FY21 | FY22 | FY23 | FY24 | FY25 | 9M FY26 | CAGR (FY22-25) |
|---|
| Consol Revenue | 40,840 | 55,480 | 73,743 | 87,857 | 93,692 | 69,702* | 19.1% |
| Standalone Revenue | 40,206 | 54,478 | 71,433 | 84,523 | 91,326 | 67,846* | 18.8% |
| Consol EBITDA | — | 5,938 | 8,161 | 10,877 | 14,911 | — | 36.0% |
| Consol PAT | 616 | 3,140 | 3,801 | 4,914 | 8,218 | 5,968* | 37.8% |
| Basic EPS (₹) | 0.49 | 2.40 | 2.89 | 3.62 | 5.42 | — | 31.3% |
| Dividend (₹/share) | — | — | 0.45 | 0.45 | 0.45 | — | — |
* 9M FY26 figures annualized ≈ ₹93K Lacs revenue, ₹80K Lacs PAT run-rate
Geographic Revenue Mix
Domestic vs International Revenue (₹ Lacs)
International Revenue % of Total
Key Observation: International patient revenue (Medical Value Travel) has grown from ~24% in FY22 to 27.2% in FY25, reaching 34% in Q3 FY26. This is a high-margin segment and a key competitive advantage. Management targets it to remain at 30-34% going forward.
Quarterly Revenue Progression (Consolidated, ₹ Lacs)
3. Consolidated vs Standalone Analysis
The gap between consolidated and standalone represents Artemis Cardiac Care Pvt Ltd (65% subsidiary). Below is a year-by-year reconciliation:
| Metric (₹ Lacs) | FY22 | FY23 | FY24 | FY25 |
|---|
| Standalone Revenue | 54,478 | 71,433 | 84,523 | 91,326 |
| Consolidated Revenue | 55,480 | 73,743 | 87,857 | 93,692 |
| Subsidiary Revenue Contribution | 1,002 | 2,310 | 3,334 | 2,366 |
| Standalone PAT | 3,258 | 3,969 | 4,915 | 8,346 |
| Consolidated PAT | 3,140 | 3,801 | 4,914 | 8,218 |
| Subsidiary PAT Contribution | (118) | (168) | (1) | (128) |
| NCI Share of Loss | (41) | (59) | — | (78) |
Flag — Subsidiary Persistently Loss-Making: Artemis Cardiac Care has been loss-making in every year of the analysis period. While its losses are small relative to the group (1-5% of consolidated PAT), the subsidiary has accumulated negative reserves. In FY23, it had reserves of (₹502 Lacs) against ₹1,800 Lacs share capital. Cumulative investment by the parent: ₹1,502 Lacs. The subsidiary's contribution to consolidated revenue is ~2.5% but drags PAT consistently. Monitor for impairment triggers.
4. Subsidiary Deep-Dive: Artemis Cardiac Care Pvt Ltd (AOC-1)
| Particulars (₹ Lacs) | FY22 | FY23 | FY24 | FY25 |
|---|
| Share Capital | 1,170 | 1,800 | 1,802 | 1,802 |
| Reserves & Surplus | (334) | (502) | — | — |
| Total Assets | 2,861 | 3,706 | — | 3,116 |
| Revenue / Turnover | 1,002 | 2,321 | 3,335 | 2,394 |
| Profit Before Tax | (168) | (226) | (1) | 130 |
| PAT | (118) | (168) | (1) | 130 |
| % Holding | 65% | 65% | 65% | 65% |
| Parent Investment (Cumulative) | 559 | 1,170 | 1,502 | 1,502 |
FY25 Turnaround: The subsidiary turned profitable in FY25 with ₹130 Lacs PBT, after years of losses. Revenue declined from FY24 to FY25 (₹3,335 → ₹2,394 Lacs), possibly due to "Daffodils Artemis Gurugram" closure approved in Q3 FY25. The turnaround to profitability is a positive signal.
Goodwill vs Net Assets Analysis
| Check | Value | Status |
|---|
| Goodwill on Books (Consolidated) | ₹4,162.07 Lacs (unchanged since FY21) | Monitor |
| Total Parent Investment in Subsidiary | ₹1,501.50 Lacs | — |
| Subsidiary Net Assets (FY23: Capital + Reserves) | ₹1,298 Lacs (1,800 - 502) | — |
| Goodwill vs Investment Ratio | 2.8x (Goodwill ₹4,162 / Investment ₹1,502) | High |
| Impairment Test Performed? | Yes — No impairment recognized | Clean |
Goodwill Note: The ₹4,162 Lacs goodwill has remained constant for 5+ years, predating the subsidiary acquisition. This goodwill appears to relate to the original hospital business/brand, not the subsidiary. Goodwill is ~4.4% of total assets — manageable but monitor annually for impairment triggers.
5. Cash Flow Reconciliation (Forensic Check #3)
Cross-verifying capex from cash flow statement against balance sheet additions to PPE, CWIP, intangibles, ROU, and capital advances:
| Item (₹ Lacs, Consolidated) | FY22 | FY23 | FY24 | FY25 |
|---|
| A. Cash Flow Statement — Capex |
| Purchase of PPE/CWIP (CFS) | 10,890 | 14,647 | 7,255 | 9,299 |
| B. Balance Sheet Movements |
| PPE Additions (Gross Block Increase) | 10,837 | 8,566 | 9,487 | 4,474 |
| CWIP Movement (Close - Open) | (1,883) | 3,245 | (6,123) | 528 |
| Intangibles Additions | 158 | 516 | (43) | 307 |
| Intangibles Under Dev Movement | 194 | (190) | (4) | 168 |
| Sum of BS Movements (B) | 9,306 | 12,137 | 3,317 | 5,477 |
| C. Reconciliation |
| CFS Capex (A) | 10,890 | 14,647 | 7,255 | 9,299 |
| BS Movements (B) | 9,306 | 12,137 | 3,317 | 5,477 |
| Variance (A - B) | 1,584 | 2,510 | 3,938 | 3,822 |
| Variance as % of CFS Capex | 14.5% | 17.1% | 54.3% | 41.1% |
Variance Explanation: The persistent variance is primarily explained by: (1) Depreciation — PPE gross block additions include capitalizations from CWIP net of depreciation in net block figures; (2) ROU Asset additions (non-cash lease capitalizations) which appear in the balance sheet but NOT in the cash flow capex line; (3) Borrowing costs capitalized into CWIP/PPE (₹229 Lacs in FY23). The CFS capex figure represents actual cash outflows and is the reliable measure. The BS movements use net book values which include depreciation offsets. This variance pattern is typical for capital-intensive companies with active CWIP-to-PPE capitalization cycles and is not indicative of accounting irregularity.
Capex Composition Over Time
6. Related Party Transactions (Forensic Check #4)
Related Party Universe
| Entity | Relationship | Key Transactions |
|---|
| Constructive Finance Pvt Ltd | Holding Company (68.03%) | No material operational transactions disclosed |
| Artemis Cardiac Care Pvt Ltd | Subsidiary (65%) | Investment, Loans, Corporate Guarantees |
| Apollo Tyres Limited | Enterprise of KMP (Kanwar family) | Services: ₹7.08 Lacs (FY24) |
| Premedium Pharmaceuticals Pvt Ltd | Enterprise of KMP | Drug purchases: ₹543 Lacs (FY24), ₹955 Lacs (FY23) |
| Artemis Health Sciences Foundation | Trust of promoters | Donations: ₹122.50 Lacs; Services: ₹41.86 Lacs |
| Artemis Education & Research Foundation | Trust of promoters | Donations: ₹42.50 Lacs; Services: ₹12.39 Lacs |
| Dr. Nirmal Kumar Ganguly | Non-Executive Director | Consultancy: ₹24–25 Lacs/year |
| Dr. Srishti Chakravarty | Relative of MD | Services: ₹24 Lacs (FY24) |
| Ms. Devarchana Rana | Relative of KMP | Services: ₹11.02 Lacs (FY24) |
Key Management Compensation (₹ Lacs)
| KMP | FY24 | Role |
|---|
| Dr. Devlina Chakravarty | 664.73 | Managing Director |
| Mr. Sanjiv Kumar Kothari | 86.34 | CFO |
| Mrs. Poonam Makkar | 42.44 | Company Secretary |
| Director Sitting Fees (Total, all directors) | ~44.40 | Various |
Subsidiary-Related Transactions
| Transaction | FY23 | FY24 | FY25 | Verification |
|---|
| Investment in Subsidiary | 611.00 | 331.50 | — | Verified |
| Interest on Inter-corporate Loan | 2.52 | 0.43 | — | Verified |
| Corporate Guarantee Fee | 0.96 | 3.08 | — | Verified |
| Corporate Guarantee Outstanding | — | 1,535.50 | 977.87 | Disclosed |
| Loans Outstanding to Subsidiary | — | — | 2,500.00 | Monitor |
RPT Assessment: Related party transactions are modest relative to company size. Premedium Pharmaceuticals (drug supply, ₹543 Lacs = 0.6% of revenue) is the largest operational RPT — declining from ₹955 Lacs in FY23. Director-related transactions are small and at arm's length per audit committee approvals. The corporate guarantee to subsidiary (₹978 Lacs, declining) is proportionate. One-way disclosure risk is low as the subsidiary is consolidated and cross-verified. No material one-way disclosures found.
7. Contingent Liabilities (Forensic Check #5)
FY25 Consolidated Contingent Liabilities Breakdown
| Category | FY25 (₹ Lacs) | FY24 (₹ Lacs) | Trend | Risk |
|---|
| Medical Negligence Claims | 3,088.99 | 3,099.24 | Stable | Insured |
| Income Tax Disputes | 1,074.50 | 744.93 | ▲ 44% | Monitor |
| RPFC (PF) Case | 392.16 | 392.16 | Stable | Sub-judice |
| Bank Guarantees | 563.41 | 609.01 | ▼ 7% | Normal |
| GST Demand (New in FY25) | 6,304.49 | — | NEW | HIGH |
| Export Obligation (EPCG) | 87.64 | — | — | Normal |
| TOTAL | 11,511.19 | 4,845.34 | ▲ 138% | |
Major Alert — GST Demand of ₹6,304 Lacs: Haryana GST Department alleges the hospital charged MRP from in-patients on medicines, consumables, and implants while not remitting GST. This is a significant claim (~6.7% of FY25 revenue). Company has filed a writ petition at Punjab & Haryana High Court. Management expects a favorable outcome and has NOT provisioned for it. This is the single largest contingent liability risk for Artemis.
Income Tax Disputes Growing: Tax disputes have increased 44% YoY to ₹1,075 Lacs across multiple assessment years (AY 2014-15 to AY 2023-24). Key items include goodwill depreciation disallowance (AY 2020-21), MAT credit rejection (AY 2019-20), and expenditure disallowances (AY 2023-24: ₹420.55 Lacs). All under appeal.
8. Bad Debts, ECL Provisions & Write-offs (Forensic Check #6)
| Item (₹ Lacs, Consolidated) | FY22 | FY23 | FY24 | FY25 |
|---|
| Trade Receivables (Gross) | 7,341 | 9,328 | 9,482 | 10,132 |
| Allowance for ECL (Provision) | — | (154) | (190) | (174) |
| Bad Debts Written Off | 113 | 61 | 23 | 30 |
| ECL as % of Receivables | — | 1.7% | 2.0% | 1.7% |
| Bad Debts as % of Revenue | 0.20% | 0.08% | 0.03% | 0.03% |
| Receivable Days (DSO) | 48 | 46 | 39 | 39 |
Trade Receivable Aging (FY24 Standalone, ₹ Lacs)
Clean Receivables Profile: Bad debt write-offs are declining (₹113L → ₹30L over 4 years). ECL provisions are stable at ~1.7-2.0% of receivables. DSO has improved from 48 to 39 days. The aging profile shows 67% of receivables are current or <6 months. The ₹737 Lacs (8%) of receivables aged >2 years needs monitoring but is adequately provisioned.
9. Consolidated Debt, Working Capital & Free Cash Flow (Forensic Check #7)
Debt Profile (₹ Lacs, Consolidated)
| Item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|
| Non-Current Borrowings | 10,773 | 16,129 | 21,359 | 22,772 | 20,948 |
| Current Borrowings | 1,965 | 2,227 | 2,795 | 2,585 | 3,634 |
| Total Debt | 12,738 | 18,356 | 24,154 | 25,357 | 24,582 |
| CCD (IFC) | — | — | — | — | 33,000 |
| Total Equity | 32,174 | 36,126 | 40,769 | 45,468 | 84,355 |
| Debt/Equity | 0.40 | 0.51 | 0.59 | 0.56 | 0.29 |
| Net Debt (Debt - Cash - FD) | 9,626 | 15,587 | 19,060 | 19,223 | (15,029) |
Free Cash Flow Calculation (Consolidated)
| Item (₹ Lacs) | FY22 | FY23 | FY24 | FY25 |
|---|
| Operating Cash Flow | 5,958 | 12,716 | 10,885 | 13,908 |
| Less: Capex | (10,890) | (14,647) | (7,255) | (9,299) |
| Free Cash Flow | (4,932) | (1,931) | 3,630 | 4,609 |
| FCF as % of Revenue | (8.9%) | (2.6%) | 4.1% | 4.9% |
Working Capital Days (Consolidated)
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|
| Receivable Days (DSO) | 48 | 46 | 39 | 39 |
| Inventory Days | 8 | 7 | 4 | 4 |
| Payable Days | 39 | 44 | 39 | 39 |
| Cash Conversion Cycle | 17 | 9 | 4 | 4 |
| Current Ratio | 0.92 | 0.83 | 0.98 | 2.49 |
Excellent Working Capital Management: CCC has compressed from 17 days (FY22) to just 4 days (FY25). FCF turned positive in FY24 after the heavy capex phase (FY22-23 was the Gurugram tower expansion). With the CCD issuance of ₹330 Cr from IFC, the company is now in a net cash position of ₹150 Cr. This provides ample runway for the Raipur and Delhi expansion.
10. Goodwill & Acquisition Analysis (Forensic Check #8)
| Check | Value | Assessment |
|---|
| Goodwill Balance (All Years) | ₹4,162.07 Lacs (unchanged since FY21+) | Stable |
| Goodwill as % of Total Assets | FY22: 5.9% → FY25: 3.1% | Declining |
| Goodwill as % of Equity | FY22: 11.5% → FY25: 4.9% | Declining |
| Annual Impairment Test | Performed — No impairment | Clean |
| Subsidiary Net Assets (FY23) | ₹1,298 Lacs (Capital 1,800 - Losses 502) | — |
| Subsidiary Net Assets (FY25) | Positive (turned profitable) | Improving |
Note: The ₹4,162 Lacs goodwill appears to relate to the original hospital acquisition/brand value, not the cardiac subsidiary. Goodwill relative to equity has declined from 11.5% to 4.9% as equity has grown, reducing impairment risk. No goodwill additions in 5 years — no new acquisitions.
11. Intangibles & R&D Capitalization (Forensic Check #9)
| Item (₹ Lacs) | FY22 | FY23 | FY24 | FY25 |
|---|
| Other Intangible Assets (Net) | 233 | 745 | 699 | 838 |
| Intangibles Under Development | 194 | 4 | — | 168 |
| Total Intangibles (ex-Goodwill) | 427 | 749 | 699 | 1,006 |
| R&D Capital Expenditure | — | — | 1,436 | — |
| R&D Recurring Expenditure | — | — | 281 | — |
| R&D Capitalization Ratio | — | — | 83.6% | — |
R&D Capitalization: FY24 disclosed R&D capital expenditure of ₹1,436 Lacs and recurring expenditure of ₹281 Lacs, implying an 83.6% capitalization ratio. This is high and warrants attention — though in a hospital context, "R&D capex" likely includes medical equipment and technology (HIS systems, robotic surgery platforms, cyber knife) rather than pure research. The intangibles balance (ex-goodwill) is modest at ₹1,006 Lacs (~0.7% of assets), so the overall risk is low.
12. ROU Assets, FX Exposure, Borrowing Costs & Government Subsidies (Forensic Check #10)
Right-of-Use Assets & Lease Liabilities
| Item (₹ Lacs, Consolidated) | FY22 | FY23 | FY24 | FY25 |
|---|
| ROU Assets (Net) | 1,461 | 4,058 | 6,016 | 3,947 |
| Lease Liabilities (Non-Current) | 1,496 | 3,937 | 5,855 | 3,964 |
| Lease Liabilities (Current) | 268 | 496 | 815 | 482 |
| Total Lease Liabilities | 1,764 | 4,433 | 6,670 | 4,446 |
| Lease Payments (Principal) | 164 | 269 | 388 | 441 |
| Lease Payments (Interest) | 170 | 289 | 521 | 525 |
Lease Reduction in FY25: ROU assets dropped from ₹6,016L to ₹3,947L — a 34% decline. This likely relates to the Daffodils Artemis closure and/or lease restructuring. Total lease liabilities also declined by 33%. This is a positive de-risking.
Foreign Exchange Exposure
| Item | FY24 | FY25 |
|---|
| USD Receivables (FC Lacs) | 4.34 | 2.27 |
| USD Receivables (₹ Lacs equivalent) | 360 | 193 |
| USD Payables (₹ Lacs) | 136 | — |
| Net FX Exposure (₹ Lacs) | 224 | 193 |
| Hedging | No derivative hedges in place |
| 1% USD Sensitivity (P&L Impact) | ±2.24 Lacs | ±1.93 Lacs |
Minimal FX Risk: Despite 27%+ revenue from international patients, FX exposure is tiny (₹193 Lacs net = 0.2% of revenue). This is because international patients pay in INR at the hospital. The unhedged exposure is immaterial.
Borrowing Cost Capitalization
| Item (₹ Lacs) | FY22 | FY23 | FY24 | FY25 |
|---|
| Total Finance Costs (Expensed) | 1,198 | 1,968 | 3,129 | 3,194 |
| Total Debt | 18,356 | 24,154 | 25,357 | 24,582 |
| Implied Interest Rate | 6.5% | 8.1% | 12.3% | 13.0% |
| Borrowing Cost Capitalized | — | 229 | Incl. in PPE | Incl. in PPE |
Rising Implied Interest Rate: The implied interest rate (Finance Cost / Total Debt) has risen from 6.5% to 13.0%. However, this is misleading because FY24-25 finance costs include lease interest (₹521-525 Lacs) and CCD interest. Adjusting for lease interest, the borrowing rate is ~10.5%, which is elevated. This partly reflects the IFC CCD at 2.65% being compounded and classified differently, plus the general rise in Indian interest rates.
Government Subsidies
| Subsidy Type | FY24 | FY25 | Notes |
|---|
| EPCG License (Deferred Govt Grant) | 39.60 Lacs (deferred) | — | Export obligation of ₹238-244 Lacs |
| Export Obligation Status | 2023-24 license: ₹238L completed | 2024-25 license: ₹244L pending | Due by 2028-30 |
13. Management Guidance Tracker (Forensic Check #11)
| Guidance Given | When | Target | Actual/Status | Met? |
|---|
| Revenue Growth | Q2 FY26 | 13-14% YoY | H1 FY26: 14% YoY, 9M: 15.1% | Met |
| EBITDA Margin | Q2 FY26 | 21%+ | Q2: 21.2%, 9M: 19.8% | Partially |
| Occupancy Target | Q2 FY26 | 70%+ going forward | Q2: 64.1%, Q3: 62% | Below |
| ARPOB Growth | Q2 FY26 | 6-8% YoY | Q3: ₹84,100 (+10% YoY) | Exceeded |
| Raipur Commissioning | Q2 FY26 | End of FY26 | Expected April-May 2026 | Slight Delay |
| Raipur Capex | Q3 FY26 | ₹100-110 Cr | ₹100 Cr completed | Met |
| Raipur Starting ARPOB | Q2/Q3 FY26 | ₹30,000-38,000 | TBD (not yet operational) | Pending |
| Raipur Breakeven | Q2 FY26 | 1-1.5 years | TBD | Pending |
| South Delhi MoU | Q2 FY26 | Conditions by Dec 2025 | Still in progress per Q3 | Delayed |
| Total Bed Target | Q3 FY26 | 2,000+ beds by 2029 | Currently ~700-800 operational | In Progress |
| Fund Raise (QIP) | Q3 FY26 | ₹700 Cr deployment | Board approved, not yet raised | Pending |
| Gurgaon FAR Expansion | Q3 FY26 | 100-125 beds at zero capex | FAR received, beds to be added at 70% occupancy | Conditional |
| Int'l Revenue Contribution | Q2/Q3 FY26 | 30-34% | Q2: 32%, Q3: 34% | Met |
| Annual Cash Generation | Q3 FY26 | ₹200 Cr/year | FY25 OCF: ₹139 Cr | Below |
Standalone vs Consolidated Gap — Quarterly Tracker
| Quarter | Standalone Rev | Consol Rev | Gap (Subsidiary) | Standalone PAT | Consol PAT | Gap |
|---|
| Q1 FY25 | 21,689 | 22,320 | 631 | 1,692 | 1,652 | (40) |
| Q2 FY25 | 23,467 | 24,142 | 675 | 2,256 | 2,213 | (43) |
| Q3 FY25 | 22,689 | 23,239 | 550 | 2,080 | 2,102 | 22 |
| Q4 FY25 | 23,480 | 23,990 | 510 | 2,116 | 2,112 | (4) |
| FY25 | 91,326 | 93,692 | 2,366 | 8,346 | 8,218 | (128) |
Occupancy Miss: The most notable guidance miss is occupancy — management guided 70%+ but actual is 62-64%. Management explains this by saying they added 18-20% more beds (third tower, FAR), which mechanically dilutes occupancy. Once existing beds fill up to 70% sustained, they will open more beds. This is a "good problem" — capacity leading demand rather than the reverse.
14. Hospital Portfolio
🏥 Artemis Hospital, Sector-51, Gurugram (Flagship)
Operational Since 2007
JCI Accredited
NABH Accredited
NABL Accredited
Green OPD Certified
Infrastructure:
- ~700-800 operational beds (3 towers)
- Third Tower inaugurated Q4 FY25
- FAR expansion: 100-125 additional beds at zero capex
- Path to 1,000 beds at existing location
- 2,077 permanent employees (Mar 2025)
Advanced Technology:
- Da Vinci Robotic Surgical System
- M6 Cyber Knife (1,000+ procedures)
- State-of-art MRI, CT facilities
- Masimo Clinical Surveillance System
- New Hospital Information System
Specialties: Oncology (~20%), Cardiology (~17%), Internal Medicine (~16%), Orthopaedics (~14%), Neurosciences, Gastroenterology, General Surgery, Nephrology, Liver Transplant, Obs & Gynae, Pulmonology, Geriatrics & Longevity (India's first private dept), Bone Marrow Transplant (NMDP certified)
Key Metrics (FY25): Revenue ₹913 Cr (standalone) | ARPOB ₹81,248-84,100 | Occupancy 62-64% | International Patients 27-34% of revenue
🏥 Artemis Hospital, Raipur, Chhattisgarh (Under Development)
300 Beds
Super-Specialty
O&M Agreement
Commissioning Apr-May 2026
Details:
- Joint venture with Raipur Stone Clinic Pvt Ltd
- 15-year O&M agreement (extendable 15 years)
- Revenue & cost sharing model
- Partners get fixed rental + revenue share
- Capex: ₹100-110 Cr (completed)
Financial Targets:
- Starting ARPOB: ₹30,000-38,000
- Target ARPOB: ₹45,000-60,000
- Breakeven: 1-1.5 years from commissioning
- Operating losses expected to be "small and marginal"
- Cost per bed: ₹70-75 Lacs
🏥 South Delhi Hospital — VIMHANS (Planned)
650+ Beds
Super-Specialty
Binding MoU Signed
Timeline: 1.5-2 Years
Details:
- Binding MoU signed
- Regulatory conditions pending resolution
- Estimated capex: ~₹487 Cr (preliminary)
- JCI/NABH accredited facility planned
Strategic Significance:
- Largest planned expansion
- Enters South Delhi market
- Board has approved growth plan
- QIP of ₹700 Cr planned for funding
🏥 Daffodils Artemis, Gurugram (Closed)
Closed Feb 2025
Closure approved effective February 28, 2025. FY24 contribution: Revenue ₹1,382 Lacs (1.57% of total), Net Worth ₹354 Lacs. Reason: Operational considerations and economies of scale. Operations consolidated into main Gurugram facility.
Bed Capacity Roadmap
15. Accounting & Reporting Quality Assessment
- Auditor: T R Chadha & Co LLP — Clean, unqualified opinion for all years (FY22-FY25)
- No qualifications, no emphasis of matter, no adverse remarks
- Key Audit Matters: PPE capitalization and ECL provision — both found reasonable
- Cost records maintained per Section 148; no material discrepancies
- Related party transactions comply with Sections 177 & 188
- No fraud reported during audit period for any year
- No whistleblower complaints received
- Internal audit system adequate; no material deficiencies
- Statutory dues deposited regularly; no disputed amounts
- No transactions with struck-off companies
- No crypto/virtual currency transactions
- Complied with number of layers restriction (Section 87)
- Goodwill of ₹4,162 Lacs unchanged for 5+ years — impairment test needed annually
- R&D capitalization ratio of 83.6% in FY24 is high — clarify nature of capitalized items
- GST contingent liability of ₹6,304 Lacs — not provisioned; management expects favorable outcome
Strengths
Clean audit trail across 4 years. Consistent accounting policies. Good segment disclosure (geographic). Improving profitability ratios. Strong cash generation.
Areas to Monitor
GST demand (₹63 Cr). Income tax disputes rising. Occupancy below guidance. Subsidiary losses (now turning around). High R&D capitalization ratio.
16. Capex Plans & Progress
Historical Capex (₹ Lacs, Consolidated CFS)
| Year | Capex | Key Projects | Status |
|---|
| FY22 | 10,890 | Gurugram expansion (Tower 2/3 construction) | Completed |
| FY23 | 14,647 | Gurugram expansion (peak construction), Mauritius setup | Completed |
| FY24 | 7,255 | Gurugram finishing, equipment commissioning | Completed |
| FY25 | 9,299 | Third tower inauguration, Raipur construction begins | Completed |
Forward Capex Pipeline
| Project | Beds | Capex (₹ Cr) | Funding | Timeline | Status |
|---|
| Raipur Super-Specialty | 300 | 100-110 | Internal accruals + debt | Apr-May 2026 | Capex Done |
| Gurgaon FAR Expansion | 100-125 | ~0.5 (negligible) | Internal | At 70% occupancy | Conditional |
| South Delhi (VIMHANS) | 650+ | ~487 | QIP (₹700 Cr planned) | FY28-29 | MoU Stage |
| Other Pipeline | TBD | Part of ₹700 Cr | QIP + Internal | FY28-30 | Funnel |
| TOTAL TARGET | ~2,300 | | | By 2029 | |
Capital Allocation Summary: Artemis has transitioned from a heavy capex phase (FY22-23, ₹255 Cr cumulative for Gurugram towers) to a more balanced phase. The Raipur capex of ₹100 Cr is fully funded. The South Delhi project (₹487 Cr) will be funded through a proposed QIP of ₹700 Cr. With ₹330 Cr CCD from IFC (convertible to equity) already in hand and annual OCF of ₹140-200 Cr, the balance sheet can support the growth plan without excessive leverage.