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Park Medi World shares fell 10% intraday after reporting a sharp decline in profits, signaling operational strain despite revenue growth.

Park Medi World Shares Drop 10% Amid Q2 Profit Decline and Margin Compression

Shares of Park Medi World plunged nearly 10% on Friday following the release of its Q2 FY27 results. The company reported a year-on-year (YoY) drop of 31% in consolidated net profit after tax to ₹54.5 crore, compared to ₹78.7 crore in the same period last fiscal year. Revenue from operations hit an all-time high of ₹511 crore, up 24.6% YoY but down slightly quarter-on-quarter (QoQ) by 7%. The stock traded near its lower price band at ₹230.80 after a sharp intraday drop to ₹231.

Despite the revenue growth, operating margins contracted sharply by 758 basis points to 19.9%, from 27.5% in Q2 FY26. EBITDA also declined YoY by 9.7% to ₹101.7 crore, down from ₹112.6 crore a year earlier.

The company’s aggressive expansion strategy has led to rising costs and lower occupancy rates at new facilities. Park Medi World added 680 beds in six months, bringing its total capacity to 4,290 beds. The firm plans to add another 1,430 beds this fiscal year—a 40% increase over FY26 closing levels.

Analysts are closely watching whether the new facilities will achieve full occupancy and restore margins. Investors remain skeptical about the company’s ability to balance growth with profitability amid rising operational costs.

Park Medi World plans to add 1,430 beds in FY27, representing its largest expansion yet. The firm will continue operating new facilities including Febris (Delhi), Palam Vihar (Gurugram), Mehar Hospital (Zirakpur), and Kanpur.

Park Medi World’s Q2 results highlight the challenges of scaling rapidly while maintaining profitability, with key uncertainty around whether its expansion strategy will deliver long-term value.

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Source: Business Standard