Park Medi World’s Q2 Profit Falls 31% to 54.5 Crore Rupees
Key Facts
Park Medi World’s consolidated profit after tax fell 31% year on year to 54.5 crore rupees in the second quarter of fiscal 2027, from 78.7 crore rupees in the year-earlier period, according to Business Standard. The decline came as revenue from operations reached its highest level at that time, highlighting a widening gap between revenue growth and the bottom line. Revenue rose 24.6% to 511 crore rupees from 410 crore a year earlier. But earnings before interest, taxes, depreciation and amortization fell 9.7% to 101.7 crore rupees, compared with 112.6 crore in the second quarter of fiscal 2026. EBITDA margin narrowed to 19.9% from 27.5%, a decline of 758 basis points, the report said.
Weaker operating profit was accompanied by narrower margins, despite revenue growth of more than a fifth during the quarter. Business Standard said EBITDA margin fell to 19.9% of revenue from 27.5% in the same period a year earlier, a decline of 758 basis points. This means the increase in business volume did not translate into comparable growth in operating profit: EBITDA fell to 101.7 crore rupees from 112.6 crore, even as revenue from operations rose to 511 crore. On expenses, Business Upturn reported that total costs increased 35.9% year on year to 444.24 crore rupees, outpacing revenue growth of 24.6%. These figures provide context for the pressure on profitability during the quarter, as the company expanded its capacity.
The largest increase among cost items was in materials and services consumed, which rose 64.2% year on year to 116.42 crore rupees, according to Business Upturn. This increase came as total expenses climbed to 444.24 crore, while revenue grew at a slower pace. The chairman and managing director said the company had added 680 beds in Rudrapur and Panchkula over six months, taking capacity to 4,290 beds when it announced its quarterly results. He said, "The introduction of this new capacity had, as we expected, a short-term impact on occupancy and profitability," explaining that new facilities take time to ramp up operations. Management linked part of the near-term pressure on occupancy and profitability to that expansion, as the bed base continued to grow.
The results announcement weighed on the stock during the November 13, 2026, session. Shares fell to an intraday low of 231 rupees on the BSE, down 9.9%, nearing the lower trading limit of 230.80 rupees, according to Business Standard. Earlier in the session, at 11:55 a.m., the stock was down 5.6% at 242 rupees. The move coincided with the Sensex falling 0.45% to 81,544 points at the same time. The stock’s session movement shows its losses widening from the level recorded at 11:55 a.m. to the intraday low, as it neared its lower trading limit.
The company plans to continue expanding in fiscal 2027, with management forecasting the addition of 1,430 beds in total through the opening of facilities in Delhi, Gurugram, Zirakpur and Kanpur. It said the additions would represent about 40% more than capacity at the end of fiscal 2026 and mark the largest annual expansion in its history. An investor-presentation summary said targeted capacity would reach 5,040 beds by March 2027, with 680 beds already added in the first half of the fiscal year. The company provided no revenue or net profit guidance, according to the summary. Executing the new bed plan will make the ramp-up and occupancy of facilities part of the expansion path announced by management, while the presentation left future financial targets unspecified.