GPT Healthcare Ltd

Introduction

I am pleased to present yet another year where the Company deepened its endeavor to retain its presence as a prominent healthcare chain across Eastern India with the commissioning of a new 158-bed facility at Pachpedi Naka in Raipur to serve not only Raipur but also the neighbouring districts of Bilaspur, Durg and Bhilai. This represents a milestone in our mission to widen world-class healthcare across Eastern India. Besides, the commissioning of this facility reinforces our foundation to deepen business sustainability.

I am pleased to communicate that the Company maintained stable revenue from operations in FY 25 at Rs. 407 crores. There was a marginal decline in the Company's EBITDA by 1 percent to Rs. 92 crores but this was mainly due to the initial expenditure related to the new Raipur hospital that was written off from the Profit & Loss account as well as the higher impairment provisioning. But for these provisions, the EBIDTA reported by the Company would have been higher. I am also pleased to state that the EBITDA margin of the Company remained stable at 22%. PAT increased by 5 percent to Rs. 50 crores, corresponding to a PAT margin of 12%. There was an improvement in the Company's operating hygiene. Finance cost declined sharply by 55 percent following debt reduction. By the close of the year under review, the Company was net debt-free, the Balance Sheet was stronger and there was now a wider flexibility to make prospective investments.

As a sign of the capital on Equity of 23.5 percent and Return on Capital Employed of 20 percent during the year ended March 31, 2025.

I am pleased to communicate that the Company's operational hygiene continued to remain attractive during the year under review. The average length of stay (ALOS) of patients declined from 3.95 days to 3.54 days during the course of the year, driven by case mix optimisation and a focus on short stay treatments. The average revenue per occupied bed (ARPOB) of Rs. 37,200 reflected our sustained focus on the middle to high-income patient segment. Around 94 percent of our business was generated from cash and insurance patients, underscoring our low reliance on government insurance schemes. Our bed occupancy of 53 percent was primarily due to the reduced length of stay that translated into a high patient turnover and a corresponding focus on complex procedures.

India's healthcare sector is as old as civilisation in this country. It is fundamental to human existence; it is irreplaceable. If at all, modern technologies like artificial intelligence may enhance the value of delivered solutions, shrink processes and enhance outcome accuracy, but never replace the value of the service itself. Two realties have emerged over the last few years that have deepened the relevance of the sector – the pandemic has prioritised medical insurance and advanced healthcare in India. Besides, the emergence of artificial intelligence and deep learning will only enhance the effectiveness of outcomes delivered by the country's healthcare, making it even more central to the objective of our business: return patients to complete health in the shortest time at the lowest cost. Our patient-centric model, focused on cash and insurance payers, enables faster turnaround time. With modern infrastructure, a deepening presence in Eastern India, and the integration of emerging technologies such as advanced diagnostics and surgeries, we aim to deliver superior outcomes at an optimal cost. The addition of specialized services, oncology in Agartala, robotics in Howrah, and cardiology across units, reinforces our mission to return patients to health, swiftly and sustainably.

I must draw the attention of our stakeholders to select numerical markers that indicate that we continued to protect the integrity of our business model.

The Company continued to protect its affordable positioning during the last financial year, staying true to the expectations of its service audience. The Company's average revenue per operating bed was Rs. 37,180 in FY 25, increasing 13 percent from Rs. 32,947 in FY 24, which compared favorably with around Rs. 60,000 for some of the prominent urban corporate healthcare brands. The Company's phased commissioning strategy, combined with its negative net debt-to-equity ratio, positions it well to drive growth in the current financial year through organic and inorganic investments.

India's corporate healthcare sector is at the right place at the right time. For one, it addresses the largest population cluster in the world. This market is delivering the largest growth in people terms year-on-year; what India adds in a single year to its population is twice the size of a country like New Zealand. In India, there is a growing preference for organised services and products; there is a willingness to buy into established brands; there is an openness to paying more for superior services. This indicates the shift from a price-sensitive mindset to a value-driven perspective. The result is that we expect our addressable market to keep growing attractively – not merely on account of population growth but also on account of a switch in preference from unorganised to organised healthcare. The combination of these two will mean that corporatised healthcare could account for a disproportionately larger market share across the coming years.

India's corporate healthcare landscape is expanding rapidly, driven by rising consumer expectations, deeper insurance coverage and a shift toward trusted, branded care. GPT Healthcare is uniquely positioned to serve this evolving demand through a focused presence in underserved urban centers and a high reliance on cash and insurance payers. As patients increasingly prioritise quality and outcomes over cost alone, GPT's neighborhood tertiary care model is poised to capture a growing share of this organised healthcare segment.

We operate in cities with low or no corporate healthcare presence; following the commencement of Radiation oncology in June 2025 at ILS Agartala, there is no other cancer care hospital available in the State of Tripura. This will help in ramping occupancy at this hospital to 70 percent in the next few years. In this direction, the Company entered into a Memorandum of Understanding to establish a new 150-bed hospital in Jamshedpur for around Rs. 65 crores. This facility is expected to be operational by the end of the third quarter of FY 2027, enhancing our commitment to deliver quality tertiary care in underserved areas. This will help us progress towards our goal of a 1,000-bed hospital chain in three years. The Company is focused on expanding its footprint beyond its existing locations into Tier II cities across Benaras, Cuttack, Assam, and Odisha. It is also targeting strategic locations in Tier I cities within Eastern India. The strategic expansion into growing, but under-addressed markets will enhance our operational flexibility and empower us to widen the coverage of world-class healthcare.

This then represents the beginning of our value-accretive journey.

Executive Chairman