Ladies and gentlemen, good day and welcome to Jupiter Life Line Hospitals Limited Q2 and H1 FY 2027 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants' 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Dr. Ankit Thakker, Managing Director and CEO. Thank you, and over to you, sir. Good morning, everyone. I thank you for joining us on our earnings call to discuss the business and financial performance of Q2 and H1 FY 2027. I hope everyone had a chance to view our financial results and investor presentation, which were posted on our website and the stock exchanges. I am joined this morning by Mr. Anand Apte, our Chief of Business and Strategy, Mr. Aditya Gupta, our Senior VP, Corporate Affairs, Mr. Nitin Patodi, Head of Finance, Ms. Suma Upparatti, our Company Secretary and Compliance Officer, and our investor relations advisors on the call from SGA. I am pleased to share with all of you that following successful negotiations with the landowner, the Board has approved the acquisition of the land currently leased for our Pune South Hospital. The land measures 11,452 sq m, and the total agreed consideration for the land is INR 150 crores. The INR 50 crores of deposit that was already paid earlier will be adjusted against this, so the incremental cash outflow for the company is limited to INR 100 crores. The land is expected to be registered in our name in the coming few days. We have always said that we prefer to own the land on which our hospitals are built, as it gives us control, certainty, and better long-term financial value. The Pune South project is also progressing well and remains on schedule. At Mira-Bhayandar, the project is currently in the regulatory stage, and we expect to commence the next phase of activities before the end of this financial year. BKC is in the planning stage and will soon go into the regulatory clearance process. Coming to our operating hospitals, our existing hospitals continue to perform in line with expectations with Thane, Pune, and Indore all staying on course. At Dombivli, the ramp-up is continuing well. The EBITDA impact from the hospital was INR 20 lakhs in Q2 compared to INR 9.5 crores in Q1. Part of this improvement reflects higher medical admissions during the quarter, driven by a seasonally higher infectious disease burden in this region. This has traditionally been the case with all of our existing hospitals as well, where Q2 occupancy has been higher than Q1 and Q3. The overall ramp-up trajectory of Dombivli, however, remains intact. Moving to the financial performance. Q2 numbers, the income stood at INR 456.5 crores in this quarter. The EBITDA stood at INR 106.9 crores in this quarter, with a PAT of INR 56.4 crores. Half-yearly numbers, the income is INR 867.5 crores, with an EBITDA of INR 186.2 crores and a PAT of INR 93.9 crores. The ARPOB is INR 71,800. The IP ARPOB is INR 58,700. The ALOS is 3.79 days, and the occupancy for first half is 59.5% for all the hospitals. But excluding Dombivli, the occupancy is 64.8%. With this, I am happy to take your questions. Thank you. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Abin Benny from JM Financial. Please go ahead. Thank you. Hope I am audible. Yes. First of all, congratulations to the management to the great set of numbers. My first question, if you could indicatively help us understand what kind of revenues did Dombivli clock in the quarter and the kind of occupancy levels we exited for the hospital. Currently, we have not been giving unit-wise revenue numbers, so I would not have that accessible with me. Sure, sir. But in terms of metrics, what kind of occupancy levels that we are seeing right now, and given this higher infectious diseases that are there, what kind of metrics or the evolution are we seeing right now? Currently occupancy should be in mid-30s. 30%, right. Sure, sir. Thank you. My second question regarding the mature assets, especially Pune and Thane that is there, any brownfield bed expansion opportunities that we might have here, any kind of bed increases that we can see? Second, growth here, indicatively, as you have earlier also mentioned, that is much linked to inflation. Apart from that, occupancy-wise, any levels that we can probably see in future? Pune, there is no further scope of expansion. Thane has said that we may have a possibility to add some beds subject to regulatory clearance. We have not got the clearance yet, but we remain hopeful to get it soon. If and when that happens, I will update everybody about that. On Thane front, occupancy is already high, 70%. Unless the new beds do come in, inflation remains the only lever. Pune occupancy is close to 70%, so it still has a little more headroom of growth in terms of occupancy as well, besides inflation. Sure, sir. Thank you. I will join back to the queue. Thank you. Thank you. The next question is from the line of Kalkesh Jain from Jain Securities. Please go ahead. Yeah, hi. Thanks for the opportunity. One question I have, Dombivli EBITDA loss narrowed sharply from INR 9.5 crores in Q1 to INR 0.2 crores in Q2, partly due to the higher infectious disease admissions. What would the Q2 losses have been excluding this seasonal benefit? What loss should we expect in Q3 as admissions go up? It is hard to segregate and label each patient and say, what if this person had not come in, and what would be the losses with that and without that. It is difficult to do analysis at that level, and therefore, I cannot answer that question. Q3, again, I wish I had a crystal ball into the future, which I do not. Broadly speaking, as I said, the trajectory is positive. Q3 occupancies traditionally in all units are lower than Q2. So in that sense, you must expect a little moderation, but how it will offset with the growth, et cetera, remains to be seen. Understood. Thank you. Thank you. Anyone who wishes to ask a question may press star and one. The next question is from the line of Janardhan from JF Securities. Please go ahead. Hello. Thank you for the opportunity. Recently, the Supreme Court has raised concerns regarding the commercialization of private healthcare, particularly the markups on medicines and the pricing of medical consumables. From Jupiter Life Line Hospitals' perspective, how do you see these developments translating into potential regulatory changes? More specifically, if the government introduces restrictions on medicine margins, pharmacy pricing, or hospital billing practices, what could be the potential impact on Jupiter's revenue mix, EBITDA margins, and overall profitability? How much of the company's operating economics could be affected, and what measures would management take to mitigate that impact? The second question is, I want to know the economic moat and sustainable competitive advantage. If we look at Jupiter Life Line Hospitals in the context of its peers, what are the structural advantages that allow the company to build and sustain its competitive position over the longer term? For instance, considering clinical expertise, doctor relationships, or patient trust that we have built up, case complexity, occupancy, payer mix, and capital efficiency, which of these factors genuinely differentiate Jupiter from competing hospital chains? More importantly, which of these advantages become stronger as the business scales, and how do they translate into sustainable pricing power, superior returns on invested capital, and long-term shareholder value? These were the two questions. Thank you. Janardhan, long question, but unfortunately, I don't have a very long answer. The first part of the question pertains to Supreme Court. I don't want to make comments on issues that Supreme Court is still deliberating on at this point in time. Whatever happens will be law of the land, and like all other hospitals in the country, we will abide by law of the land. How that will play out depends on what the law becomes. I don't want to venture a guess into that. As far as Jupiter's position is concerned, we have a strong position in each of the community that we operate with a strong infrastructure, medical team, and clinical services, all of that together. I don't have anything new to say than what I have already said in the past. All right. Thank you. Thank you so much, sir. Thank you. The next question is from the line of Dhvani Shah from DSP Mutual Fund. Please go ahead. Yeah. Thank you for this opportunity and congrats on good set of numbers. First, we wanted to understand a little bit more on Indore facilities. We can see that the top line has grown by almost around 18%, but the EBITDA number has remained flat. If you can just explain how this kind of turned out in the quarter and what is the trajectory you are expecting. Indore, as I had said couple of months back is kind of in a growth phase and this is a phase where we are investing more into the medical team and till this matures, you will keep seeing for the next several quarters in my mind, a little bit of fluctuation in all numbers, top line, EBITDA, even occupancy because once we add some more beds, once these beds get occupied, we have a chance to add one more round of expansion of beds and then the percentage occupancy will also drop and then we will add more medical team. EBITDA will go up and go down and that. Generally, we wish that the journey was more linear but it is not. Broadly the trajectory is positive and you will see bumps along the way. Understood. But until the next set of beds come into play, is the medical hiring almost near completion or do you expect this to continue for at least the next two to three quarters? Ongoing. We expect it to continue for some more time. Understood. Fair. Also, slightly on the bookkeeping number, we see that there is a goodwill number which has been reported at INR 5 crores and this is mainly for the IV fluid or I think manufacturing facility near Ujjain which we have acquired, but the cost of acquisition is around INR 3.8 crores. Just trying to understand what is it that led to goodwill creation on this. This was a historical land which was bought and it has been transferred at the current Ready Reckoner land value. INR 3.8 crores was the equity value. There was a debt in the company of about INR 7 crores, INR 8 crores or something of that sort. That is the difference or INR 10 crore of debt, I don't know. What is that? Sorry. Understood. Just one more thing. Last quarter, we did try and understand that Dombivli runs at a fixed cost around INR 6 crores-INR 7 crores per quarter and at that time the losses were around per month and the losses were around INR 3 crore per month, and occupancies of 25%-30%. If I just forward that math into this quarter wherein the EBITDA losses have almost broken even, but occupancies are still at 35%. Would it be fair to understand that the balance impact is the seasonal incidence benefit that we have got in the quarter? It is a combination of general organic growth and a little extra seasonal padding that you get in this quarter. What would have happened if this quarter was Q1 instead of Q2 and how much growth would you have gotten anyway, I really don't know. We'll find out in the next one or two quarters how it goes. Fair enough. Thank you so much. Okay. Thank you. The next question is from the line of Aryan Jain from Groww Mutual Fund. Please go ahead. Yeah. Thank you for the opportunity. I hope I'm audible. Yes. Yes. Yeah. So sir, my question was a follow-up on a previous participant's question. The margin cap on onco drugs has already, I think, come out and will be effective from 1st November if I am not wrong. Since we do not give out case mix for our revenue, just wanted to understand ballpark what would be the impact of this 30% margin cap on our revenue EBITDA, just ballpark would be fine. So Aryan, very honestly, we have not done that modeling because whatever happens, we do not have any way of influencing the margin. It is what it is now. We will find out how it plays out in this quarter and maybe end of this quarter, we will be happy to tell you what has been the ballpark impact. Okay. Understood. And sir, on Dombivli, since this quarter we were almost breakeven. I know it may sound a little repetitive, but still I just wanted to understand. Your earlier guidance was achieving breakeven maybe close to end of second year of operation. So would you be revising that guidance right now or would you wait a bit, maybe couple of quarters for the revision of that guidance? Let us see how it plays out. I have said that typically new hospital you should expect two years for EBITDA breakeven. Whether that means each and every hospital will breakeven exactly in the second year or some will take one and a half year, some will take two, some will take something different. Predictions of that accuracy are hard to do. But broadly speaking, that is the budgetary model that we make when we start any new hospital that we will face a drag for two years. Positive surprises are welcome, but one must, in our view, be conservative in estimates. Let us see how it plays out over the next one or two quarters, and then maybe we can see if we want to revise anything. Okay. Just one last thing. How much debt levels would be comfortable with the expand, like doubling our bed capacity? The Board has currently mandated a self-imposed ceiling of 3x of EBITDA. We will not increase debt above that. Currently, we are within the number. But yeah, that is a thought that we don't want to go more than 3 x EBITDA. Okay, understood. Those were my questions. Thank you. Thank you, Aryan. Thank you. Participants who wish to ask question may press star and one at this time. The next question is from the line of Mohit Mittal from JH Investment. Please go ahead. Yeah. Hi. Thank you for the opportunity. Hopefully I am audible. Yes. Okay. Thank you. So, sir, can you please share the ARPOB details excluding Dombivli for this quarter and the first half? Interesting question. Let me see if I have those numbers. Mohit, I just have the blended numbers with me currently. Sorry. Okay, sure. Yeah, that was the question from my side. Okay. Thank you. Thank you. Thank you. The next question is from the line of Ahmed Madha from Unifi Capital. Please go ahead. Yeah. Thank you so much for the opportunity. Two, three very brief questions. Firstly, in your presentation you provide occupancy details excluding Dombivli. Can you give a brief sense how is that number being calculated? Just trying to reconcile the numbers better. Should one assume 200 operating beds and into, say, 35% occupancy, so 70 beds operating in Q2? That's how one should look at it? Can you give some sense on it, please? Well, I'll tell you the logic is that when you do excluding Dombivli, you will exclude the number of occupied bed days and the bed from the numerator and the capacities on the denominator and whatever remains as a performance of the other three hospitals will be reported as excluding Dombivli. Sure. Also for just, I don't know, I don't have access to your sheet, but occupancy is calculated on census beds and not total beds. 200 is the total beds, which would include some daycare beds, dialysis, ER, all of those on which occupancy is not calculated. So probably you have a higher denominator. Okay. So what denominator I should consider? Around 350, something like that. Okay. Got it. In terms of overall monthly fixed cost, insurance empanelment, all those stuff, how are things progressing? Obviously, there have been a lot of questions on this same topic, and everyone is trying to make a judgment, where do we move. Just some more granular understanding if you can provide. Yeah. So insurance process typically takes about a year. You need your NABH accreditation in place, which cannot be applied for before you have finished six months of operations. So we have applied for that, not yet received it. Then you have to start liaising with all the insurance companies. So the process is ongoing. Again, I have really no way to predict which date will happen, but the process is ongoing. Typically, it takes around a year also for all the empanelments to get concluded. Once that happens, definitely the people of that region will be able to access care here a little more seamlessly, which should help. Your fixed cost numbers, yeah, as we said, I think last time INR 6 crore-INR 8 crore is the numbers. Again, once we keep adding beds or hiring more doctors, the numbers could move a little north. Currently that is what it is. And just to understand on the Thane side, what would the current occupancy be close to? Is it that things will be steady state in the hospital and we can assume certain rate of ARPOB growth and the volumes will be more or less steady? Is that fair way to look at it? Yeah. Broadly speaking, they have been steady for the last couple of years because capacity is near saturation. So in the current scheme of things, I think the occupancy numbers should be quite steady. The ARPOB will only grow with inflation and not beyond that. And the occupancy will be closer to 75% on the- Yeah. It is around 75% now. Okay, sure. Thank you so much. That is all my time. Thank you. Thank you. The next question is from the line of Abdulkader Puranwala from ICICI Securities. Please go ahead. Yeah. Thank you for the opportunity and congrats on that early EBITDA breakeven for, or near EBITDA breakeven for Dombivli. Sir, I have couple of questions on Dombivli. Starting with, if I look at your sequential numbers, that is in Q2 or Q1, it more looks like the Dombivli revenue would have been a little flattish and despite that there is an EBITDA breakeven. So wanted to hear your comments as how has the revenue played out and I know you talked about some increased investments to happen in Dombivli in terms of doctor hiring. So is that something which is supposed to happen maybe by Q3 or something? What are you planning towards next year, that is FY 2028? Abdul, the doctor hiring will be an ongoing process for the next year and a half. As and when conversations materialize with the doctors of different branches, this will be an ongoing process. There is no target date by which something needs to be done or must be done because discussions with doctors go the way they go and it cannot be very targeted. Besides that, the revenue and occupancy typically will follow hand in hand. Again, as we have discussed in the previous years or quarters, when Q2 has higher medical occupancy, typically the ARPOBs of medical admissions tend to be lower than surgical admissions. So the ratio when it is skewed towards medical, you will see a dilution of ARPOB in Q2, which is all historically been reported even with the other units. Similar story is panning out with Dombivli as well. Got it. Next one, sir, you talked about adding new beds at Indore. Any timeline to that? Is that something what will happen, say maybe in the next six months or beyond that? Not in six months, I think, because we are still mid to high 50s. We would like to be in mid-60s before we add another bed. Not for the next couple of quarters is my guess. Okay. Last one, if I may. You secured a INR 500 crore of term loan. Out of that, I think in the presentation you talked about INR 100 crore going towards purchase of land for the new Pune facility. Sir, how do we see the balance INR 400 crore getting utilized? You see, basically there is no new project that I have to announce today, but there are three projects which are live: Pune South, Mira Road, and BKC. The CapEx outlay for the three also we have spelled out. Essentially these will be the projects towards which the money should be used. Got it, sir. Thank you for answering my questions. Thank you, Abdul. Thank you. Next we have a follow-up question from Janardhan from JF Securities. Please go ahead. Thank you for the opportunity once again. As Jupiter continues investing in expansion, how should we assess the conversion of EBITDA into operating cash flow after the working capital requirements? I just wanted to understand when probably the operating leverage would kick in for our company and what level of annual maintenance on growth CapEx should investors factor in and over the medium term, how does management expect free cash flow and return on invested capital to evolve as the new facilities mature? The second question is what is the current gross debt and cash we have as of today on the balance sheet? The third one would be any guidance that you want to give over a medium term regarding the revenue profit, EBITDA growth and the EBITDA margin. Thank you. As we had said that in the last couple of years, our EBITDA to net cash has averaged around 70%. If the net debt levels go up, that 70% could get tempered to some 60% something, but that should still be the cash that we will generate from operations every year, which we plan to reinvest into the three projects that we just spoke about. We believe that the internal accruals and the cash flow from internal accruals will remain a key contributor towards the next round of CapEx. The debt on. I think we had a cash on hand at the end of six months of around INR 400 + crore, and a debt of INR 600 on a consolidated level, so about net debt of INR 170 odd crore at the end of Q2. As these projects come along, again, the net debt numbers might go up a little bit. Anything on the annual maintenance and the growth revenue profitability? We have never given financial guidance, so I will continue to refrain on. What was your first question again? It was just about the medium-term guidance. Any ballpark number would be perfectly fine. Maintenance CapEx would be about, say, INR 10 crores-INR 20 crores per unit, maybe. You can assume that. Again, these would fluctuate from year to year, so when I give these numbers, it is an average number which you should plug in for four or five years because there are some expensive biomedical equipment, and you do not replace all of them every year. But if you replace one in one year, the next year it may be a low CapEx, and one year it may be a high CapEx. It cannot be an exact number. But this is a number which is good for an averaged projection for the next four or five years. From here on, I do not think we have more huge CapEx lined up, but it is just that we would probably go for annual maintenance and just the minuscule numbers that- Nothing which is pending, which needs to be done in terms of CapEx for the current units, besides the addition of beds, if and when that happens. When I say equipment, which I call maintenance CapEx, because in healthcare, your depreciation of biomedical equipment especially, is a very real phenomenon. On an average of 10 years, you will have to replace all the biomedical technology. So, that has to come in, and that is a real cash expense which will come in from time to time. But besides that, there is no specific addition which is needed. Thank you. Thank you so much, sir, for patiently answering all my questions. Thank you so much. Thank you, Janardhan. Thank you. Before we take the next question, we would like to remind the participants that you may press star and one to ask a question. The next question is from the line of Maulik Varia from 361 Capital. Please go ahead. Hi, sir. Thank you for the opportunity. I hope I am audible. Just wanted to understand, have we started all specialties at our Dombivli facility or we have not yet started all of it? Pretty much all. Transplants have not yet started. Should start in the next couple of quarters. Oncology basic services have been started. The radiation oncology is under commissioning, which should start in the next quarter. Besides that, pretty much everything has started. Understood. Okay. With the addition of, let us say, transplant and the oncology specialty, how much ARPOB increase are we expecting? Any broad understanding on that? Will that be significant, or our existing specialties will be the key driver there? I really do not know. We have not specifically modeled out how these two specialties will contribute to ARPOB, et cetera. But qualitatively, what I will tell you is that over the first three years, the case mix kind of becomes more and more mature. In the early days of the hospital, the case mix is more skewed towards secondary care, which over the next couple of years becomes more of tertiary and quaternary. So, along with that, the ARPOBs do tend to mature and improve a little bit. And we should see that playing out for the next two or three years. Specifically, quarter on quarter variations, hard to comment on. But as far as the trajectory for three years is concerned, you should see occupancy going up and ARPOB rising faster than inflation in a new hospital, mainly because of maturing of case mix. Understood, sir. Thank you. One last question on insurance. Is it generally observed that the GIPSA insurance empanelment is done earlier than the private ones? That's right. Okay. Can we expect that within that 1-year period which you mentioned, that 6 to 8 months GIPSA will be done, and then within a year's period, the private insurance will be done? Is my understanding correct? Well, that is the hope. Let us see how it plays out, because insurance companies have a mind of their own. Let us see how that plays out. We hope that it gets done sooner rather than later. Okay. Thanks a lot, sir. Thank you. Thank you. Thank you. The next question is from the line of Mihir from MB Securities. Please go ahead. Yeah. Sir, I had a few questions regarding from the data point perspective. I wanted to know how much CapEx we have incurred in the Pune II hospital and the Mira-Bhayandar so far. Pune, so far, we have spent around INR 220 crores. Now we will spend another INR 100 crores on the land. Mira Road, currently we have bought the land and spent very little more. Around INR 75 crores-INR 80 crores has been spent on Mira Road because currently, as I said, it is still in the regulatory phase. Once the construction starts, then the CapEx will really kick in. Okay, understood. Around INR 320 crores in the Pune one. Sir, could you also share payer mix of the Dombivli hospital for this quarter, Q2? Again, I have a blended number, which is 55%-odd of insurance for the whole group. But considering that Dombivli does not have cashless empanelment, the number is going to be skewed more towards self-payers, out of pocket. The insurance that does happen in Dombivli would either be a few small insurance companies or some IRDA specific schemes of Everywhere Cashless, et cetera. But the number would be lower than everywhere else. Once the empanelment happens, then the number should pick up and then the number should have more meaning. Increase. Okay. Understood, sir. Thank you. That is all from my side. Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for closing comments. Over to you, sir. Thank you, everyone. I hope the questions were answered satisfactorily. However, if there are any more questions or you need any clarifications, please feel free to contact the SGA team and they will be happy to put you in touch with us. Wishing all of you a happy Diwali, and good day. Thank you. Thank you. On behalf of Jupiter Life Line Hospitals Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.