Medanta CEO Pankaj Sahni said the hospital chain’s focus on delivering high-quality healthcare has helped it achieve strong financial growth not only in metro cities but also in Tier-2 markets. He noted that Medanta’s successful operations in cities like Lucknow and Patna demonstrated growing demand for premium healthcare outside major urban centres, prompting other hospital groups to enter similar markets.
Sahni said Medanta currently operates hospitals in six cities Gurugram, Ranchi, Indore, Patna, Lucknow and Noida and all of them have performed strongly both financially and in improving local healthcare standards. Building on this growth, the company has announced plans to open two new hospitals in Delhi and one each in Mumbai, Guwahati and Varanasi. These greenfield projects will add nearly 2,700 beds over the next five years.
He added that Medanta plans to continue expanding into cities where there is demand for quality healthcare, including both metro and emerging urban centres.
On the financial front, Sahni said the company has earmarked nearly ₹4,500 crore for expansion over the next five years but does not foresee the need to raise additional capital. According to him, Medanta remains net cash positive by around ₹700 crore and continues to maintain strong cash flow generation from EBITDA.
Sahni said the company follows a conservative financial strategy, generally maintaining a debt-to-equity ratio of 1:1 or lower for projects while keeping debt levels under control. He added that Medanta has funded much of its expansion through internal accruals and project-specific debt, while maintaining healthy cash reserves.
He further said the returns generated from Medanta’s first Gurugram hospital over the last 15 years helped finance its subsequent hospitals, and those returns are now expected to support the next phase of expansion.
Highlighting the company’s long-term performance, Sahni said Medanta has consistently maintained healthy profitability, balance sheet strength and return on capital over the years, and expects this trend to continue as it expands further.
