GPT Healthcare Limited (GPTHEALTH) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the GPT Healthcare Ltd. Q2 and H1FI27 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 touchtone phone. To discuss this quarter's performance, we have from the management, Mr. Anurad Tantia, Executive Director. Before we proceed with this call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risk and uncertainties. For more details, kindly refer to the investor presentation and other filings that can be found on the company's website and stock exchanges. With that, I would like to hand out the call to Mr. Anurag Thantia for his opening remarks. Thank you and over to you.

Good morning, everyone, and thank you for joining us today for GPT Healthcare Ltd.'s Q2 and H1 FY27 Earnings Conference Call. I would like to take this opportunity to wish you and your families a very shimdipavali. To begin with, let me briefly touch upon the key trends shaping the Indian healthcare sector and the structural growth drivers that continue to underpin our long-term strategy. The Indian healthcare sector continues to witness strong structural growth, supported by rising health awareness. Increasing prevalence of lifestyle-related and chronic diseases, higher health insurance penetration, and growing demand for specialized medical services. The demand for quality health care is also being driven by an aging population, advancements in medical technology, and increasing affordability of advanced treatments. Despite this growth, India continues to have a significant gap in health care infrastructure, particularly in hospital bed availability and access to quality tertiary and specialized care. This creates a meaningful opportunity for organized hospital chains to expand their presence, especially across theater cities. At the same time, the increasing complexity of medical requirements is making technology and specialized clinical capabilities important differentiators for hospital operators. Investments in advanced medical equipment, robotic-assisted procedures, and specialized treatment infrastructure enables hospitals to broaden their clinical offerings, address complex medical needs, and enhance their ability to attract patients. At GPT Healthcare, we have focused on strengthening these capabilities across all our hospitals in the network. We have introduced robotic-assisted surgery at ILS Salt Lake and ILS Harbrook, alongside investments in advanced oncology and diagnostic infrastructure. These initiatives are aimed at expanding our service capability offerings, improving access to advanced treatment options, and further strengthening our clinical capabilities. Let me now take you through our operational and financial performance for Q2 and H1FI27. We have continued to build on momentum across the hospital network, delivering healthy growth through improved patient volumes, better utilization of our established facilities, and a stronger contribution from specialized clinical services. During Q2 FY27, revenue from operations stood at 135.6 crores, registering a growth of 14.1% year-on-year. This growth was driven by improved occupancy levels, higher patient throughput, and favorable case mix across our network hospitals. EBITDA grew at a faster pace, increasing by 23.9% year-on-year to 29.8 crores. The EBITDA margin expanded by 150 basis points to 21.5%, compared with 20% in the corresponding quarter last year. Profit after tax increased by 45.2% to 15.4 crores, with part-pack margin expanding by 230 basis points to 11.1%, reflecting the strong flow-through of operational growth to the bottom line. On the operational front, RPOP for the quarter stood at Rs. 40,721, reflecting year-on-year growth of 7.1%. The network occupancy improved to 50.3% compared with 47.4% in the corresponding quarter last year. Excluding RIPER, occupancy across our mature hospitals stood at 59.8%, indicating improved utilization across our established network. Turning toward H-127 performance, revenue from operations grew by 15.8% year-on-year to 261.8 crores, demonstrating sustained business momentum across the network. EBITDA increased by 30.3% to 56 crores, with margins improving by 221 basis points to 21%, compared with 18.8% in H-1 F-526. Profit after tax increased by 53.9% to 28.1 crores. Our H1 RPOF stood at 41,490, while network occupancy was 47.9%, compared with 44.7% in H1 FY26. Occupancy across mature hospitals stood at 56.7%, excluding RIPOF. Our overall performance was supported by steady progress across the hospital network, with contributions from both established and newer facilities. Among our established hospitals, Ilusolik continued to deliver a strong performance, recording an occupancy of 65.4% in H1 and the highest RPUB across our network at 43.284. The hospital also registered year-on-year growth. of 12% and crossed the milestone of 850 robotic surgeries, reflecting its growing expertise in advanced and technology-enabled clinical procedures. Moving to ILS Dumb Dumb, the hospital continued to deliver a robust operating performance and remained the largest revenue contributor to our network. During H1 FY27, its recorded revenue of 84.8 pros with occupancy of 69.4% And an RPUB of Rs. 43,086. Further strengthening its clinical capabilities, the hospital has commenced a cardiothoracic and vascular surgery unit aimed at providing comprehensive cardiac care under one roof and expanding access to advanced cardiac treatments. At ILS Agarthala, the hospital continues to strengthen its position as the leading center for specialized oncocardial care in Tupura. Its oncology program has gained significant traction with over 3,200 radiation therapy procedures performed through its Planac facility and more than 1,000 PET scans completed in just over a year. The hospital recorded year-on-year growth of 8.1% in H1 Fi27 with an ARPA of Rs. 40,254, reflecting steady operational performance. ILS Habra, the hospital, is witnessing and causing growth, with revenue increasing by 25% year-on-year basis in H1-FI27, supported by higher patient volumes and improved occupancy of 45.8%. The hospital has also strengthened its orthopedic capabilities with the launch of the MECO robotic knee surgery system and is nearing the milestone of 100 robotic procedures. Moving to our U.S. facility, ILS Ripor, which marks our first entry into Central India, we are encouraged by the progress it has made during its initial phase of operations. It achieved NABH accreditation within its first year of operations, performing its first TAVI procedure and liver transplant in Q2FI27. It has also completed 11 adrenal transplants in just under a year. Looking ahead, we remain committed to achieving ROE and ROCE of approximately 25%, supported by disciplined capital allocation, prudent leverage, and a focus on improving returns from our existing assets. The Jumshedpur project is progressing as planned, with the upcoming 155-bed tertiary care hospital expected to commence operations in March-April 2027. This expansion will further strengthen our presence across Eastern India and enhance access to quality health care in the region. To conclude, we believe GPD Healthcare is well-positioned to capitalize on the long-term growth opportunities in Indian healthcare sector, particularly across the underserved markets of Eastern and Central India. Our established hospital network, diversified clinical capabilities, strong doctor relationships, and proven track record of achieving hospital-level break-even provide a strong foundation for sustainable growth. With that, I conclude my opening remarks, and I request the moderator to open the floor for questions. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove 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 assembles. We'll take our first question from the line of Recha Chaudhary from Electrum PMS. Please go ahead.

Yes, hi, sir. Thank you for the opportunity. So, I just wanted to understand this quarter across all your hospitals, we saw increase in utilization. But at the same time, when we see Salt Lake, Avertala, and Raipur, we saw a drop in the ARCOV sequentially. So, any specific reasons are the same. And the second question is, Raipur utilization, if we see it hasn't picked up quarter and quarter. And if you could just tell us what were the losses for this quarter that we saw.

Sure. So, the RPOP drop is a very minor amount in the overall network, and that is primarily on account of seasonal variations. Water 2 tends to have a high fever season, which results in a slight change in speciality mix. In terms of RIPOR, we have seen encouraging growth in that hospital. There has been some amount of slightly lesser productivity on account of seasonal change and some attrition on account of increased competition. But we've been able to fill those gaps and are hopeful for better performance in the end-swing quarter.

Okay, and what are the losses for this quarter in Raipur?

The Raipur losses for this quarter have been to the tune of around 9 crores, which overall in H2 have been to the tune of around 9 crores, which is in line with our expectation.

H1 losses were at 9 crores?

Sorry, H1 losses were at 6.5 crores, which are in line with our expectation.

Okay, and when are we expecting this to break even? Probably by next year, quarter two, or like, could you just give us that?

Generally, new tertiary care hospitals end up taking almost three years to break even on a monthly basis. We expect this hospital to break even by Q1 of next year on a monthly basis.

Okay, and is there any update on the acquisition of Greenfield APEX for the upcoming hospital after Jim Sheethor? Any landmines for the event?

We are constantly evaluating opportunities. There are opportunities which come in. It is about finding the suitable and the appropriate mix. We do not intend to enter into an agreement just for the sake of expansion. They have to be meaningful contributors to the overall bottom line and top line. So we are looking for suitable opportunities, and once they are one-sick tick, we definitely have to know. Thank you so much.

Okay. Thank you. Thank you. Next question is from the line of Aditya Cheda from Incrate Asset Management. Please go ahead.

Hi, good morning. Good morning. So, can you update on the regulatory landscape for kidney transplant and whether the de-emphasis of nephrology is completed at Dhamda?

So, we have, there is no change in the landscape with regards to the renal transplant program. With regards to the nephrology program in Dhamdham, we have been working on reducing our dependence on the same, and we've significantly been able to reduce the contribution of the overall nephrology department in the overall scheme of things. The contribution of the department is now less than around 15% compared to it being almost 30% earlier.

Right. Can you talk about, you know, I'm comparing you to YOI, Agartha Lai and Haurai have both seen almost double-digit growth. So, what is driving this for us?

These have been driven by increased productivity numbers and obviously a change in speciality next year. We have been focused on higher-end specialties. These combined with improved productivity numbers are driving the growth.

Right, and if you want to share your outlook on how do you see F527 paying out, and any comments on the likely lease expenses that you would see from Raipur and Jabeshikpur both on an absolute basis, if you can quantify those, that would be my question.

So, we are committed to our initial estimates of... F by 27 numbers, we are on track to achieving around 15% to 16% growth over last year. In terms of the lease expenses of Raipur and Jamshedpur, Raipur is already operational with the lease expense of almost 4 crores a year. Jamshedpur would also be a similar amount.

Okay, thank you.

Thank you. Before we take the next question, we'd like to remind participants, to ask a question, please press star and 1 on your phone. Next question is from the line of Avinish Balasubramaniam from Brookfields Estate. Please go ahead.

Good morning, sir. Thank you for taking my question. In the earlier concourse, basically I just wanted to understand how the management is thinking about growth. Because in the earlier concourse, we had data that the legacy hospitals will reach occupancy of 70% in the next 12 months or 18 months. So, when that happens, I think the company can generate an EBITDA of anywhere in the band of 130 to 150 crores. So, the company does have the value to probably invest around 100 crores each year for expansion. So, I just wanted to understand how the management is thinking about that. Is there an internal guideline that the management wants to add a certain number of bets going forward? I just wanted to kind of understand your thoughts on that.

Sure. So the management is intent upon growth, and we are looking at adding hospitals every couple of years to our overall portfolio. We are commissioning our jump shift for hospital in March or April of 2017, of calendar 2027. That will add another 155 beds to our overall network. Apart from this, we have been actively scouting for opportunities in the eastern part of the country, both greenfield and acquisition opportunities. It is about the right one clicking for us. It is something which the management is intent on doing and is continually evaluating them.

Sir, in this point, maybe I have a suggestion. If the company can look at acquiring some land in three, four places, and then kind of sequentially commissioning the hospital.

Sure. Thank you for your suggestion. That is something which is already under action. Hopefully, you will be getting to know of it soon. Thank you so much.

Thank you. Next question is from the line of Anubhav Mukherjee from Prescient Capital. Please go ahead.

Am I audible?

Yes, please go ahead.

Congrats on strong results. I have a few basic questions as I'm looking at the company recently. So my first question is that the Agatala Hospital, it is the second oldest hospital in our network. But its occupancy is still, like, around 54%. So, and in fact, lower compared to maybe, like, Dhamdham, which was started two years later. So, can you share some historical perspective on, like, why is the utilization, like, comparatively lower and, yeah.

So, Agatala, the hospital of Agatala is located in Tripura, which is a northeastern state. Operating in the Northeast, especially in a state like Tripura, which is far away from the mainland, comes with its own operational challenges. We have faced significant challenges in the past with regards to recruitment of clinicians, which we have overcome with due time as the hospital reputation has increased. This is a constant process where we are adding consultants to this hospital. It is a challenging environment to get consultants, but we've been fairly successful at it, which reflects on the growth the hospital has been able to do in the past few years. We are hopeful with the increase in momentum from these new consultants who have been added, we will be able to get to an optimum occupancy soon.

Yes, and in line with other older hospitals, we believe that even Agarthala can go up to like 70-75% occupancy.

We are very hopeful with the momentum we have, we should be able to reach the optimal occupancy of 70% very soon.

Yes, thanks for that perspective. And at our existing hospitals, four mature hospitals, is there any scope for any brownfield?

In the Calcutta Hospital, there is no further scope for brownfield-related tradition. We have scope to AgVeg in Agarthala and in Raipur.

And we'll look at that in, like, one hospital.

We will activate those when the hospital, once the hospital reaches an optimum occupancy where growth can be sustained.

Ah, okay. And another, like, maybe slightly dumb question, like, is the, like, therapy mix quite different across our three hospitals in Calcutta? Because Aura seems to have a lower ARPOV, so, compared to the Dum Dum and Salt Lake Hospital. So, let me share the reason for this.

Sure, sure. So, Dumb Dumb being obviously a quaternary care hospital where there is a significant amount of revenue from tertiary care specialties like cardiology and nephrology, etc., does tend to have a higher RPOP. The product method, Havra, is slightly different on account of its location, but it is also something which is developing with time. We've been constantly adding new departments to that hospital as well. We expect the RPOP to come up to Damnam Sanders, but at the same time, we also need to keep in mind the payer profile and the location of that unit, where the RPOP might always be muted compared to something in mainland Calcutta.

Great. Just a final small question. We were looking at hospital addition in Rachi also, I suppose, in the recent past. So, is that like brand dropped off or like, yeah?

So, the Rachi MOE, which was signed, could not be executed because the owner, it was an satellite hospital where the owner went into some legal troubles, so we could not complete that project. However, we deviated and we... We are on the verge of commissioning our Jamshed Prosper, which is also in Jharkhand.

Thank you.

Ladies and gentlemen, to ask a question, please press star and one on your phone. Next question is from the line of Naisar Shah from AMPL Asset Management. Please go ahead.

Hi, Andhraq. Thanks for the opportunity. So, just for Raipur, I thought earlier you were guiding for breakeven in Q3, and now you are saying breakeven in Q1 F28. Is that correct?

Yes. So there is a reason for it, which I touched upon earlier as well. There was some amount of attrition in our clinical talent on account of newer entrants which had entered the market, but we've been able to bridge that gap and we've been able to get all consultants back in again. That has delayed the break-even timeline slightly, but that is something which is well in our control and we are back on track for that.

Maybe any guidance you can give on exit utilization by Q4? Sorry? Sorry? Exit occupancy rate by Q4 at 27, any guidance on occupancy?

We expect the average occupancy to be around the 25 to 30% mark by the end of Q4.

Okay, and you said you can add beds at Agarthala, or is there one more hospital you said that you can add beds, Brownpeak, or also near Agarthala?

We have expansion capability within our existing premises at Agarthala, and at Raipur Hospital, we have the capability to take up additional space from the developer and add beds.

Okay, so Agarthala and Raipur, when the need arises, how many beds you can add, Brownpeak? At both the hospitals, we can add another 100 beds. Put together?

No, each of them.

Okay, each. Okay. And Anurad, I was just wondering, at Raipur, you've got insurance empanelments from most of the insurance, or that is still a work in progress?

It is still a work in progress. We've been able to have the empanelment of almost 70% of the players. There are still some insurance providers who are not on board. We are working very closely with them to come to an agreement soon.

Okay. And also, I was just wondering, I know at Raipur, you said initially, to pin more weights, you had said that you would look at adding more government patients, right? So, is that strategy on track?

We have been taking Aishman Bhavak patients there, but obviously, we have to do it keeping in mind the overall cash flow position. So, we have been taking some Ayushman Health patients along with that. We have also started corporate patients from SAIL, from Kohlendia, etc., and other major corporates in that region as well.

And corporate ARPOB, how does it compare with Ayushman ARPOB in terms of cash collection?

Corporate ARPOBs generally work at 3GHS rates, which are slightly better than Ayushman rates. And how about cash collection? The payment cycle generally is within 90 years.

Within 90 years?

Yes.

Okay, and since our occupancy in a couple of hospitals is very low, I know we are more focused on cash and insurance where those patients have 90% plus of revenues. But, you know, our occupancies are very low. I've seen so many hospitals where, you know, they restrict government or corporate to, say, less than 20-25%. So, would it not be a wise strategy? I know you know it. I know you know this better. But to maybe take some more patients, Ayushman, corporate, so that you can feel your beds faster. And obviously, you limit within certain numbers, whatever that you internally decide. I understand it will lead to higher data, but it will help you on all operating levels in the utilization.

Sure, thank you for your suggestion. We do do that in the hospitals where we feel we can control the receivables and at the same time increase occupancy. We have been doing that in Agarthala and in Raipur, where the requirement is there. Sir, you said you are doing only Agarthala. We have been doing it extensively in Agathala and in Raipur. In Calcutta also, we have been taking some patients, but not a whole lot because we don't have spare beds available. But in Agathala and Raipur, we have been taking Aishwan Bharat patients. This is obviously the receivables and the specialty mix.

So, in Agartala, despite you taking government and corporate, your occupancy is still very low, but there also the occupancy is low, right? So, there you cannot take government and corporate patients.

We have to be mindful of the speciality mix and the receivable cycle when we are taking these patients, and we do it based on optimal utilization of both.

Okay, thank you very much, and all the best. Thank you.

Thank you. Next question is from the line of Dixit Toshi, from Whitestone Financial Advisor.

Thanks for the opportunity. Most of my questions are answered. Just one question is, after the recent Supreme Court, you know, judgment on trade margins, on essential medicine, can that impact anyway to our margins?

That is something which will be, we'll have more clarity once the order comes out and once the effect comes out in November 2nd week. But that is, healthcare has to be seen at an overall basis. These were just components in the overall service pricing. Obviously, service pricing basis that has to be corrected so that the margins are maintained, and that is what our intention will also be.

Thank you. Next question is from the line of Anubhav Mukherjee from Treciant Capital. Please go ahead.

Thanks for the follow-up opportunity. I have another basic question. Like, most of the hospitals in your network and also the additions that you're doing seem to be mid-sized hospitals, like 200 beds. Some of the other listed, especially the larger chains, they look at, like, setting up, like, larger hospitals, 400, 500 beds in one place. So, can you share your thought process on this? Is this like a reflection of the geography you are operating in or your business model of like more least hospitals? So, can you share your thought process on this?

Sure. So, it is not a product of more leased hospitals. It is more a product of A, as you correctly said, the geography. B, these are optimally designed hospitals which give us better control in terms of our costs. It leads to a faster break-even for us also. Generally, our hospitals break-even on a monthly basis is much faster compared to competition. So, it is a by-product of both the cost, faster break-even time, our operation costs, and the geography. These are something which have given us success in the past, and we are looking at replicating the same model going forward as well.

Great fact. And another small follow-up is like, obviously this has not been like enacted or anything, but there was also like some talk of like capping the room rents and like pegging it against like a three-star hotel rate. So how do you look at like your room rates in comparison to like wherever you are operating? Some color on that would be like helpful.

Those are topics which are still under discussion at the statutory level. There are various healthcare representations also towards that because healthcare cannot be looked or compared from a hotel star category perspective. Hospitals need to have their independent ranking system. That being said, our service delivery is in line with peers like Apollo Focus, Manipal, Australia MRI. So our service delivery and our service offerings, including our environment, et cetera, are in line with that, while our pricing compared to them might be at a 10% to 15% discount compared to location, depending on the location.

Good, thanks. That's all for me.

Thank you. Next question is from the line of Darsh Mahida from JK Capital. Please go ahead.

Hi, thanks for the opportunity. Just a couple of questions. Could you help us understand the key growth drivers during the quarter? So, like, how much of the growth was driven by improved occupancy or higher patient volumes? And also, should we expect this momentum to sustain in the second half of FR27? Sure.

So... We had almost an 11% increase in the inpatient volumes at a network level, which obviously led to a higher throughput and increased occupancy levels, and this was the primary reason for the growth. In Dambaram, Havra, both these locations, there was double-digit growth, while locations like Salt Lake had around 10% growth. So these are primary factors which led to the overall increase in occupancy and thereby the revenue as well, along with, obviously, an incremental ARPA.

That's great. And, like, could you share the occupancy trajectory you are targeting for each of the mature hospitals, like, over the next two quarters? In particular, what are the key initiatives being undertaken to improve utilization at Havra and Agatala?

So, however, we have been focusing on higher-end specialties. We have made significant progress with regards to orthopedics. We are doing almost more than 120-odd orthopedic procedures every month. We are now focusing on other allied specialties like cardiology and nephrology in that hospital as well, which should give a significant uptick in the overall occupancy levels. Solid Lake is already running at a good occupancy level of around 65-odd percent. We expect momentum to carry on. Sorry, Solid Lake is running at almost 68 percent occupancy with very limited scope of growth. We are working on RPOP numbers and optimizing the bed matrix there. Dumb Dumb is also working on almost 74% occupancy, which leaves very little room. There also we are working on further optimizing our product mix. Agartella is working at a 55% occupancy. As mentioned earlier, we have been focusing on high-end specialties, especially around cardiology, oncology, nephrology there. These are continuous initiatives and investments we are taking in these departments, including addition of new consultants, which are starting to give us results, and we hope that we would be reaching an optimal occupancy of around 70% in the near future.

And just a last question, how is the oncology segment contributing to the hospital's overall revenue and ARPOV? Additionally, like with occupancy, I think 3.7% in Q2. So, what is the future occupancy target? Are international patient inflows, particularly from Bangladesh, showing any meaningful recovery?

So international patient flow is showing a slow recovery. It is not back as per the previous estimates or previous historical numbers. It is showing a slow recovery, but there is increased momentum. We are getting increased number of visa request letters. There have been changes in processes in the overall international patient movement from Bangladesh, but we are seeing increased requests coming in for sure. With regards to oncology, oncology is in association with our partners, and we are seeing revenue contribution of around 4% at this point in that hospital, which is growing every quarter. We expect it to stabilize around 10% to 15% in the next four quarters.

Perfect. Thank you so much, and all the rest. Thank you. Thank you. Thank you.

Next question is from the line of Soumya Raghuwanshi from Nirwar Security. Please go ahead.

Good morning, sir. Thank you so much for the opportunity. Sir, with Raipur reporting quarterly revenue of 9 crore in Q2 and occupancy improving to around 16.5%, along with progress in key clinical milestones, could you update us on whether the hospital remains on track to achieve the previously guided operational break-even by Q3-FA27?

As mentioned earlier, RIPO has some attrition in terms of clinical talent to newer competition which are coming. That is something which led to a slight dip in the overall productivity numbers in the second quarter, but we've made that good. We now have clinical talent back on board, and we expect the break-even to be slightly delayed to quarter one of FY28.

All right, all right, understood. So, how are these high-acuity procedures translating into incremental patient volumes and revenue? And what is the current specialty mix at Tripood? And how much of the hospital's revenue is now being generated from these advanced clinical services?

So, the Raipur Hospital is a quaternary care hospital where we are already doing complex procedures like liver transplant, renal transplant, EP studies, and more. They have been... Good contributors to the overall revenue offerings at Raipur. The good portion of the Raipur hospital is that there is no dependence on any one speciality towards the revenues. All specialities from gastroenterologist sciences to cardiac sciences, renal sciences, have been contributing evenly across the spectrum, and a lot of it is coming from high-end procedures. We expect this momentum to continue, basis to the clinical pool which we have, and hopefully, as I said earlier, we should be baking even by quarter one.

Okay, all right. Just a last question from my end. As the facilities continue to scale, could you outline the key occupancy and revenue milestones required to achieve sustainable profitability?

So, we expect the Raipur Hospital to break even around the 35% occupancy mark. We are on track towards doing that. Others already are profitable and are delivering good results. It is only RIPER, which is slightly below the expected profitability number.

Okay, all right. That's it for my answer. Thank you so much.

Thank you.

Thank you. Next question is from the line of Jeeva, an individual investor. Please go ahead.

Yes, good morning.

Yes, please go ahead.

What is the current cash on the book, sir?

Current cash is almost around 45 crores standing in our mutual funds. And debt, sir, total borrowings? Borrowings are to the tune of around 35 crores. Okay, since our debt-free equity is very low and we have scope for further leverage.

Is there any plan to increase the leverage, sir, and increase the plan of expansion?

We will be obviously taking a good healthy mix of debt and equity for our expansion. We will be taking some amount of debt for our Jamshirpur hospital as well, and the newer hospitals as and when the opportunity is coming. Okay. Thank you. Thank you. That's all from us.

Thank you. Next question is from the line of Naisar Shah from AMPL Asset Management. Please go ahead.

Yeah, Anurag, you think you can ever operate at 80% plus occupancies?

It is very difficult for hospitals to operate at 80% plus occupancy. It requires a lot of downtime with regards to bed change. There are long-stay patients. There are insurance approvals. Operating at 80% occupancy is a very big challenge, and very few hospitals are able to do it successfully. We have done it in the past before the restructuring of Dhamdham. We hope to get to an optimal – we should be able to get there, but beyond that is very difficult.

So 80% you can get there? Yes. Okay, and Salt Lake and DumDum, where you already have higher occupancy, is there a scope for reduction in ALOS there? And overall, what are your thoughts on network level ALOS?

So, we have already optimized the network level ALS, especially at the Dumb Dumb and Salt Lake Hospital. Salt Lake, the ALS is around 2.9 to 3. Even Dumb Dumb, the ALS has gone down from almost 5.5 to just 4.3. So, we have optimized the ALS to the best possible levels, considering the treatment standards and considering the kind of procedures we end up doing.

Thank you. Next question is from the line of Aditya Cheda from INCRED Asset Management. Please go ahead.

How do we manage the doctor retention across the newer markets or tier 2 you mentioned about losing clinical talent? In your assessment, what is the, you know, right measures you would take in this, you know, also be, you know, relevant surveillance of chain poor?

Sure. See, obviously, efforts are made to engage them properly and, you know, control. There are a lot of efforts put into engaging with them constantly so that there is a good synchronization between the doctors and the hospital team. We end up doing that. Unfortunately, there were comparative offerings in Raipur which were not in sync with our estimates and not in sync with what we thought the market could offer. So, there has been some amount of attrition there, but we do not expect that to happen in Jamshirpur. Jamshirpur, we know the market is much better from a product offering perspective and consultant retainability perspective as well. Plus, we have also slightly changed our strategy towards engaging with them at a much higher level. We have started organizing a lot of conferences recently. At Agartha Laospur, we organized a conference for the entire Northeast. Similarly, we are doing one in Rajapur as well. So we are using a good mix of clinical and non-clinical initiatives to engage with the consultants.

Got it, thanks. Can you quantify the losses from Raipur and from Jamshedpur in FY28, if any, the ballpark range would also be helpful?

So, in FY28, we expect Raipur to be overall net positive, just by a minor amount, though, and Jamshedpur would have a loss of approximately 10 crores at Nibbeta level.

And Raipur for FY27?

Raipur for FY27, the loss should be to the tune of around 10 crores.

Okay, great. Thank you.

Thank you. Next question is from the line of Anubhav Mukherjee from Prescient Capital. Please go ahead.

Uh, thanks for the follow-up opportunity. Uh, you hinted that, uh, uh, increased competition led to some, uh, talent attrition material I-2 facility. So, would you give some color on, like, has the competition increased compared to what you initially thought when you, like, chose the location? And also, I think Artemis also has set up a hospital in Rippo. So, some color on how is the competition there would be very interesting.

So we welcome any competition in these markets. These competition obviously help in improving the overall service offerings in that region. Yes, Artemis has entered into RIPUR, and that led to some amount of attrition, but we've been able to make good that attrition again, and we are also committed towards improving the overall productivity numbers and occupancy level at RIPUR. That had a minor impact, but we are well past that now.

And just to follow up, like, in terms of your focus on East and Central India, so also what they are, like, given, like, slightly lower medical penetration compared to maybe other areas, like, how are you seeing, like, is there an increased focus on hospital change in your, like, regions of focus?

So definitely with the potential Eastern India offers, there will be increased focus. But at the same time, we have been players in this region for quite some time. We understand this region pretty well as well. So we feel we have a competitive advantage when it comes to our expansion opportunities. And at the same time, there is enough expansion opportunities for players to come in.

Thanks. This was really helpful. Thank you.

Thank you. Thank you, everyone, for joining us today. For any further queries, please contact Cygnus Partners Private Limited, the Investor Relations Advisors to GPT Healthcare Limited. On behalf of GPT Healthcare Limited, we thank you for your participation. This concludes today's conference call. You may now disconnect your lines.