Whalesbook
Artemis Medicare Q3 FY26: Robust YoY Growth Offset by QoQ Profit Slump, ₹700 Cr Fundraise Announced
📉 The Financial Deep Dive
Artemis Medicare Services Limited announced its Q3 FY26 financial results, showcasing a year-on-year (YoY) revenue expansion of 17.73% to ₹26,712.34 lakhs from ₹22,689.34 lakhs in Q3 FY25. However, sequentially, revenue saw a marginal decrease of 0.99% from the previous quarter.
On the profit front, standalone net profit after tax for the quarter grew 8.34% YoY to ₹2,251.28 lakhs, up from ₹2,077.83 lakhs in Q3 FY25. Basic EPS rose to ₹1.42 from ₹1.33 YoY. Despite YoY gains, the net profit experienced a significant sequential decline of 24.88% from ₹2,996.45 lakhs in Q2 FY26. This was partly attributable to an exceptional item of ₹307.44 lakhs, recognized for the impact of new Labour Codes on gratuity and leave liabilities.
On a consolidated basis, Q3 FY26 revenue grew 17.20% YoY to ₹27,235.23 lakhs, with net profit rising 8.00% YoY to ₹2,223.44 lakhs.
For the nine-month period ended December 31, 2025, standalone revenue grew 16.00% YoY to ₹78,670.51 lakhs, and net profit after tax increased 22.64% YoY to ₹7,389.45 lakhs. Basic EPS for 9M FY26 stood at ₹4.68, up from ₹3.94 YoY.
💰 Corporate Action: Fundraise
The Board of Directors approved a proposal to raise funds aggregating up to ₹700 crores. This capital infusion can be achieved through various instruments, including equity shares, convertible debentures, or other equity-based securities, via preferential allotment, private placement, or other permitted methods, subject to necessary approvals.
🚩 Risks & Outlook
Specific Risks: The significant QoQ profit decline, coupled with the impact of the exceptional item, raises concerns about short-term profitability trends. The large fundraising plan, while aimed at growth, could lead to share dilution for existing investors if not managed effectively. The absence of any forward-looking guidance from the management introduces a layer of uncertainty regarding future performance and strategic direction.
The Forward View: Investors will be closely monitoring how the company utilizes the capital raised and whether it can reverse the sequential profit decline. The ongoing impact of the new Labour Codes on operational costs and liabilities will also be a key factor to watch in the coming quarters.