Q1 2027 Narayana Hrudayalaya Ltd Earnings Call

August 3, 2026

Speaker #1: NHIC, Mr. Nishant Singh, Vice President, Finance and Investor Relations, and Mr. Vivek Agarwal, Deputy General Manager, Finance and Investor Relations. The results presentation and financial statements have already been uploaded on the stock exchanges, and are also available on the company's website.

Operator: NHIC, Mr. Nishant Singh, Vice President, Finance and Investor Relations, and Mr. Vivek Agarwal, Deputy General Manager, Finance and Investor Relations. The results presentation and financial statements have already been uploaded on the stock exchanges and are also available on the company's website. Before we proceed with this call, we would like to remind everyone that everything that is being said on this call that reflects any outlook for the future, or which can be construed as a forward-looking statement, must be viewed in conjunction with the uncertainties and the risks that they face. Please note that this call is for the duration of one hour. We will address questions pertaining to the India business first 30 minutes, followed by international business. Given the limited time available, participants are requested to ask maximum two questions at a time and join the queue for any follow-up questions.

Speaker #1: Before we proceed with this call, we would like to remind everyone that everything that is being said on this call, that reflects any outlook for the future or which can be construed as a forward-looking statement, must be viewed in conjunction with the uncertainties and the risk that they face.

Speaker #1: Please note that this call is for the duration of 1 hour. We will address questions pertaining to the India business first 30 minutes, followed by international business.

Speaker #1: Given the limited time available, participants are requested to ask maximum 2 questions at a time and join the queue for any follow-up questions. With that, now we would like to start the Q&A.

Operator: Now we would like to start the Q&A. I request everyone to use the Raise Hand icon to go ahead with your question. Participants, you may click on Raise Hand icon to proceed with your question. First question is from Prithviraj. Kindly announce your company name and proceed with your question.

Speaker #1: I request everyone to use the raise-hand icon to go ahead with your question. Participants may click on the raise-hand icon to proceed with your question.

Speaker #1: First question is from Prithviraj. Kindly announce your company name and proceed with your question.

[Analyst] (Unifi Capital): Hi, this is Prithviraj from Unifi Capital. Let me begin with the domestic hospitals brief first. I think the EBITDA growth of 40%, despite not adding any beds in the last seven to eight years, is quite remarkable. In this context, my first question is with respect to the revenue growth. I think till last few quarters, entire revenue growth for India hospitals came from ARPOB, but this time surprisingly even the footfalls went up. Could you explain that, and how should we look at it going forward? Will it be a combination of ARPOB plus footfalls, or it will be predominantly ARPOB till you commission the new hospitals?

Prithvi Raj: Hi, this is Prithviraj from Unifi Capital. Let me begin with the domestic hospitals brief first. I think the EBITDA growth of 40%, despite not adding any beds in the last seven to eight years, is quite remarkable. In this context, my first question is with respect to the revenue growth. I think till last few quarters, entire revenue growth for India hospitals came from ARPOB, but this time surprisingly even the footfalls went up. Could you explain that, and how should we look at it going forward? Will it be a combination of ARPOB plus footfalls, or it will be predominantly ARPOB till you commission the new hospitals?

Speaker #2: hi. This is Prithviraj from Unifi Capital. Let me begin with the domestic hospitality first. I think the EBITDA grew to 40% despite not adding any bets in the last 7 to 8 years.

Speaker #1: Good morning, everyone, and welcome to the Q1 FY27 earnings call of Narayana Hrudayalaya Limited. We thank you for joining us today. On the call, from the management team, we have with us Dr. Emmanuel Rupert, CEO and MD; Ms. Sandhya Jairaman, Group CFO; Mr. Venkatesh, Group COO; Dr. Aneesh Shetty, MD of the International Business; Mr. Ravi Vishwanathan, CEO of NHIC; Mr. Nishant Singh, Vice President, Finance and Investor Relations; and Mr. Vivek Agarwal, Deputy General Manager, Finance and Investor Relations.

Operator: Good afternoon, everyone, and welcome to the Q1 FY27 earnings call of Narayana Hrudayalaya Limited. We thank you for joining us today. On the call from the management team, we have with us Dr. Emmanuel Rupert, CEO and MD, Ms. Sandhya Jayaraman, Group CFO, Mr. Venkatesh, Group COO, Dr. Anesh Shetty, MD of the International Business, Mr. Ravi Vishwanath, CEO of NHIC, Mr. Nishant Singh, Vice President, Finance and Investor Relations, and Mr. Vivek Agarwal, Deputy General Manager, Finance and Investor Relations. The results presentation and financial statements have already been uploaded on the stock exchanges and are also available on the company's website.

Speaker #2: It's quite remarkable. In this context, you know, my first question is with respect to the revenue growth. I think the last few quarters the entire revenue growth for India hospitals came from RCOP, but this time surprisingly even the footfalls went up.

Speaker #2: So, you know, could you explain that and how should you look at it going forward? Will it be a combination of RCOP plus footfalls, or it will be predominantly RCOP till you commission the new hospitals?

R. Venkatesh: Hi, Prithviraj. I'll take this up. We've been obviously doing a lot of high-end procedures and also the robotic work has gone up substantially. If you see the margin improvement over the last two, three quarters, they are basically on account of high volume of high-end procedures and also increased use of technology and robotics. If you see the presence of our clinic across the network in mainly around Bangalore, has actually strengthened the brand reputation of the hospital network, resulting in increased footfall. If you look at the data of clinics. Clinics, we do more or less the total footfalls of patients in clinic is approximately 30% of the total overall footfalls in the hospital. That is also the level of contribution clinics are doing. That is also complemented towards increasing of the footfall.

Speaker #3: Hi, Prithviraj. I'll take this up. We've been outfit doing a lot of high-end procedures and also the robotic work has gone up substantially. So if you see the margin improvement over the last 2 to 3 quarters, they are basically on account of high volume of high-end procedures and also increased use of technology and robotics.

Speaker #1: The results presentation and financial statements have already been uploaded on the stock exchanges and are also available on the company's website. Before we proceed with this call, we would like to remind everyone that everything being said on this call that reflects any outlook for the future, or which can be construed as a forward-looking statement, must be viewed in conjunction with the uncertainties and risks that we face.

Operator: Before we proceed with this call, we would like to remind everyone that everything that is being said on this call that reflects any outlook for the future, or which can be construed as a forward-looking statement, must be viewed in conjunction with the uncertainties and the risks that they face. Please note that this call is for the duration of 1 hour. We will address questions pertaining to the India business first 30 minutes, followed by international business. Given the limited time available, participants are requested to ask maximum 2 questions at a time and join the queue for any follow-up questions. With that, now we would like to start the Q&A. I request everyone to use the raise hand icon to go ahead with your question. Participants, you may click on the raise hand icon to proceed with your question. First question is from Prithwiraj.

Speaker #3: And also, if you see the presence of our clinic across the network in mainly around Bangalore, has actually strengthened the brand reputation of the hospital network, resulting in increased footfall.

Speaker #3: If you look at the data of clinics, clinics we do more or less the total footfalls of patients in clinic is approximately 30% of the total OPD footfalls.

Speaker #1: Please note that this call is for the duration of 1 hour. We will address questions pertaining to the India business first 30 minutes, followed by international business.

Speaker #3: In the hospital, so that is also the level of contribution clinics are doing. That is also complemented towards increasing of the footfall. And overall general demand is also strong as far as healthcare is concerned.

Speaker #1: Given the limited time available, participants are requested to ask a maximum of two questions at a time, and join the queue for any follow-up questions. With that, we would now like to start the Q&A.

R. Venkatesh: Overall general demand is also strong as far as healthcare is concerned. We have seen a good traction in terms of volumes coming across the network, across all the regions. It has been a good combination of volumes as well as realizations. Going forward, we would strive towards continuing with such a combination in the quarters to come. Obviously we will not be able to boil down to any specific numbers. We would always work towards getting a combination of both volumes and realizations in the quarters to come. Yeah.

Speaker #3: So we have seen a good traction in terms of volumes coming across the network across all the regions. And it has been a good combination of volumes as well as realizations.

Speaker #1: I request everyone to use the raise hand icon to go ahead with your question. Participants may click on the raise hand icon to proceed with your question.

Speaker #3: And going forward, we would strive towards continuing with such a combination in the quarters to come, but obviously we will not be able to boil down to any specific numbers but we would always work towards getting a combination of both volumes and realizations in the quarters to come.

Speaker #2: Fantastic. Just on margins front, you made a point of, you know, the 24% EBITDA margin. So if we compare your RCOP with the other competitors it is significantly lower however your margins are largely on par with the competitors.

[Analyst] (Unifi Capital): Just on margin front, you made a point of a 24% EBITDA margin. If you compare your ARPOB with the other competitors, it is significantly lower. However, your margins are largely on par with the competitors. I understand you have taken several initiatives on efficiency, et cetera. You think, is there a further scope for hospitals margins to go up or it should stabilize at these levels?

Prithvi Raj: Just on margin front, you made a point of a 24% EBITDA margin. If you compare your ARPOB with the other competitors, it is significantly lower. However, your margins are largely on par with the competitors. I understand you have taken several initiatives on efficiency, et cetera. You think, is there a further scope for hospitals margins to go up or it should stabilize at these levels?

Speaker #2: And as you know you have taken several initiatives on efficiency etc but you think is there a further scope for hospitals margins to go up or it should stabilize at these levels?

Speaker #1: First question is from Prithviraj. Kindly announce your company name and proceed with your question.

Operator: Kindly announce your company name and proceed with your question.

Speaker #2: Hi, this is Prithviraj from Unifi Capital. Let me begin with the domestic hospitals piece first. I think the EBITDA growth of 40%, despite not adding any beds in the last 7 to 8 years, is quite remarkable.

[Analyst] (InCred Equities): Hi. This is Prithwiraj from Unifi Capital. Let me begin with the domestic hospital space first. I think the EBITDA growth of 40% despite not adding any beds in the last 7 to 8 years is quite remarkable. In this context, my first question is with respect to the revenue growth. I think till last few quarters, entire revenue growth for India hospitals came from ARPOB, but this time surprisingly, even the footfalls went up. Could you explain that, and how should we look at it going forward? Will it be a combination of ARPOB plus footfalls, or it will be predominantly ARPOB till you commission the new hospitals?

R. Venkatesh: Sandhya, you want to take that?

Speaker #3: And I want to take that.

Sandhya Jayaraman: Yes, sure, Rintu. If you look at how our margin journey, like you had acknowledged that we haven't added any beds, but we've been able to deliver incremental revenue and throughput. That is what is giving us the expansion that we are seeing in margins in addition to footfalls, as we call that. This will continue because we don't have any meaningful bed addition coming in for the next 2 to 3 years. Having said that, we have to make a choice on the leverage benefits. We are an operator that works with an affordable care philosophy. We will continue to make that choice on how much do we pull back into cash flows and thereby fueling our expansion initiatives, how much we are going to continue to invest into our new growth verticals, like integrated care, and how much we will pass back to the customers.

Speaker #4: Yes, sure. Thank you. If you look at how our margin journey like you had acknowledged that we haven't added any beds but we've been able to deliver incremental revenue and throughput.

Speaker #2: In this context, you know, my first question is with respect to the revenue growth. I think in the last few quarters, the entire revenue growth for India hospitals came from RPOP, but this time, surprisingly, even the footfalls went up.

Speaker #4: And that is what is giving us the expansion that we are seeing in margins in addition to footfalls that we call that. This will continue because we don't have any meaningful bed addition coming in for the next 2 to 3 years.

Speaker #2: So, you know, could you explain that, and how should we look at it going forward? Will it be a combination of RPOP plus footfalls, or will it be predominantly RPOP till you commission the new hospitals?

Speaker #4: Having said that we have to make a choice on the leverage benefit we are an operator that works with an affordable care philosophy so we will continue to make that choice on how much do we pull back into cash flows and thereby fueling our expansion initiatives.

Speaker #3: Hi, Prithviraj. I'll take this up. We've been oscillating, doing a lot of high-end procedures, and also the robotic work has gone up substantially. So if you see the margin improvement over the last two to three quarters, they are basically on account of high volume of high-end procedures and also increased use of technology and robotics.

R. Venkatesh: Hi, Prithviraj. I'll take this up. We've been obviously doing a lot of high-end procedures, and also the robotic work has gone up substantially. If you see the margin improvement over the last two, three quarters, they are basically on account of high volume of high-end procedures and also increased use of technology and robotics. If you see the presence of our clinic across the network in mainly around Bangalore, has actually strengthened the brand reputation of the hospital network, resulting in increased footfall. If you look at the data of clinic. Clinics, we do more or less the total footfalls of patients in clinic is approximately 30% of the total overall footfalls in the hospital. That is also the level of contribution clinics are doing. That is also complemented towards increasing of the footfall.

Speaker #4: How much we are going to continue to invest into our new growth verticals like integrated care and how much we will pass back to the customers and those operational decisions we will make as we go through this journey.

Sandhya Jayaraman: Those operational decisions we will make as we go through this journey. It is not possible to give a prediction on that, but what we can definitely see is that we will see expansion in the core operating margin of the business, given the leverage benefit that we will enjoy.

Speaker #3: And also, if you see, the presence of our clinic across the network—mainly around Bangalore—has actually strengthened the brand reputation of the hospital network, resulting in increased footfall.

Speaker #4: It is not possible to give a projection on that but what we can definitely see is that we will see expansion in the core operating margin of the business given the leverage benefit that we will enjoy.

Speaker #3: If you look at the data of clinics, we do more or less—the total footfalls of patients in clinics is approximately 30% of the total OPD footfalls.

Speaker #2: One final question on domestic business. If you look at the insurance piece I think the losses shot up significantly during the quarter just trying to understand you know what has changed so much in one quarter that you know the losses spiked up in a big way and should we expect these losses to sustain for the next few quarters or is it more of a one-off quarter so what explains this domestic insurance losses?

[Analyst] (Unifi Capital): One final question on domestic business. If you look at the insurance piece, I think the losses shot up significantly during the quarter. Just trying to understand, what has changed so much in one quarter that the losses spiked up in a big way. Should we expect these losses to sustain for the next few quarters, or is it more of a one-off quarter? What explains these domestic insurance losses?

Prithvi Raj: One final question on domestic business. If you look at the insurance piece, I think the losses shot up significantly during the quarter. Just trying to understand, what has changed so much in one quarter that the losses spiked up in a big way. Should we expect these losses to sustain for the next few quarters, or is it more of a one-off quarter? What explains these domestic insurance losses?

Speaker #3: In the hospital, so that is also the level of contribution clinics are making. That is also contributing towards the increase in footfall. And overall, general demand is also strong as far as healthcare is concerned.

Speaker #3: So, we have seen good traction in terms of volumes coming across the network, across all the regions. It has been a good combination of volumes as well as realizations.

Speaker #3: And going forward, we would strive towards continuing with such a combination in the quarters to come. Obviously, we will not be able to boil it down to any specific numbers, but we would always work towards getting a combination of both volumes and realizations in the quarters to come.

Speaker #3: Ravi, can you just take this up?

Operator: Ravi, can you just take this up, please?

R. Venkatesh: Ravi, can you just take this up, please?

Speaker #5: Sure. Hi Prithviraj. No, I mean absolutely right. I think a few things here to kind of keep in mind on this. It is still a relatively small book and so a few large claims sometimes can have a disproportionate impact when you look at loss ratios.

[Company Representative] (Narayana): Sure. Hi, Prithvi. No, absolutely right. I think a few things you have to kind of keep in mind on this. It is still a relatively small book, a few large claims sometimes can have a disproportionate impact when you look at loss ratios. At the same time, when you look at the growth, there are other benefits. You're seeing also the expense ratio came down substantially. You've got to kind of a little bit balance both those things. In our case, the issue is contained to a few policies. Having said that, as part of our priorities, we're working on a number of initiatives to ensure that we manage our portfolio for long-term sustainability. As I said before, small book can be still volatile for a little while until it comes to a little bit of scale.

Ravi Vishwanathan: Sure. Hi, Prithvi. No, absolutely right. I think a few things you have to kind of keep in mind on this. It is still a relatively small book, a few large claims sometimes can have a disproportionate impact when you look at loss ratios. At the same time, when you look at the growth, there are other benefits. You're seeing also the expense ratio came down substantially. You've got to kind of a little bit balance both those things. In our case, the issue is contained to a few policies. Having said that, as part of our priorities, we're working on a number of initiatives to ensure that we manage our portfolio for long-term sustainability. As I said before, small book can be still volatile for a little while until it comes to a little bit of scale.

Speaker #5: But at the same time when you look at the growth there are other benefits. So you have seen also the expense ratio came down substantially and you know so you've got to kind of a little bit balance both those things.

Speaker #2: Fantastic. Yeah, just on the margin front, you made the point about the 24% EBITDA margin. So, if you compare your RPOP with other competitors, it is significantly lower.

[Analyst] (InCred Equities): That's clear. Just on margin front you made a point of the 24% EBITDA margin. If you compare your ARPOB with the other competitors, it is significantly lower. However, your margins are largely on par with the competitors. I understand you have taken several initiatives on efficiency, et cetera. You think is there a further scope for hospitals margins to go up, or it should stabilize at these levels?

Speaker #5: In our case the issue has contained to a few policies. And you know having said that as part of our priorities you know we're working on a number of initiatives to ensure that we manage our portfolio for long-term sustainability.

Speaker #2: However, your margins are largely on par with the competitors. And as you know, you have taken several initiatives on efficiency, etc. But do you think there is further scope for hospitals' margins to go up, or should they stabilize at these levels?

Speaker #5: As I said before right small book can have it can be still volatile for a little while until it comes to a little bit of scale.

Speaker #5: But you know we're not waiting for that. We're working on a number of initiatives. Some of these I can share with you. For example we're implementing AI solutions across the board to review claims and minimize fraud waste and abuse in claims especially outside our preferred network.

[Company Representative] (Narayana): We're not waiting for that. We're working on a number of initiatives. Some of these I can share with you. For example, we're implementing AI solutions across the board to review claims and minimize fraud waste reviews in claims, especially outside our preferred network. We're in-housing more and more claims to ensure we bring not only a policy view but also a health expertise view in these reviews. That's one of the unique things that as Narayana Health Insurance we can bring to the table that others may not have. We continue to sharpen our audits with our partners to ensure there's high quality in claims operations, for example, with TPAs. In terms of future growth as well, portfolio-wise, we continue to focus on SME and retail business as growth drivers. As you know, those have got better margins than, say, larger GMC accounts.

Ravi Vishwanathan: We're not waiting for that. We're working on a number of initiatives. Some of these I can share with you. For example, we're implementing AI solutions across the board to review claims and minimize fraud waste reviews in claims, especially outside our preferred network. We're in-housing more and more claims to ensure we bring not only a policy view but also a health expertise view in these reviews. That's one of the unique things that as Narayana Health Insurance we can bring to the table that others may not have. We continue to sharpen our audits with our partners to ensure there's high quality in claims operations, for example, with TPAs. In terms of future growth as well, portfolio-wise, we continue to focus on SME and retail business as growth drivers. As you know, those have got better margins than, say, larger GMC accounts.

Speaker #3: And I want to take that.

R. Venkatesh: Vandana, you want to take that?

Speaker #4: Yes, sure, Venkatesh. If you look at our margin journey, as you acknowledged, we haven't added any beds, but we've been able to deliver incremental revenue and throughput.

Sandhya Jayaraman: Yes, sure, Venkatesh. If you look at how our margin journey, like you had acknowledged that we haven't added any beds, but we've been able to deliver incremental revenue and throughput. That is what is giving us the expansion that we are seeing in margins in addition to footfalls, as you call that. This will continue because we don't have any meaningful bed addition coming in for the next 2 to 3 years. Having said that, we have to make a choice on the leverage benefits. We are an operator that works with an affordable care philosophy. We will continue to make that choice on how much do we pull back into cash flows and thereby fueling our expansion initiatives, how much we are going to continue to invest into our new growth verticals like Integrated Care, and how much we will pass back to the customers.

Speaker #5: We're in housing more and more claims to ensure we bring not only a policy view but also a health expertise view in these reviews right and that's one of the unique things that as Narayana Health Insurance we can bring to the table that others may not have.

Speaker #4: And that is what is giving us the expansion that we are seeing in margins, in addition to footfalls, which you called out. This will continue because we don't have any meaningful bed addition coming in for the next two to three years.

Speaker #5: We continue to sharpen our audits with our partners to ensure there's high quality in claims operations for example with PPAs. And in terms of future growth as well portfolio wise we continue to focus on SME and retail business as growth drivers.

Speaker #4: Having said that, we have to make a choice on the leverage benefit. We are an operator that works within the affordable care philosophy, so we will continue to make that choice on how much we pull back into cash flows and thereby fuel our expansion initiatives.

Speaker #5: And as you know those have got better margins than say larger GMC accounts so it's a combination of all of these things and as these measures start to deliver benefits and the book size grows which is important I feel confident the loss ratio will moderate to acceptable levels over a period of time.

[Company Representative] (Narayana): It's a combination of all of these things. As these measures start to deliver benefits and the book size grows, which is important, I feel confident the loss ratio will moderate to acceptable levels over a period of time. In the short term, we might still see some volatility in the book until it achieves a little bit of scale, because some of this is law of large numbers. I hope that answers your question.

Ravi Vishwanathan: It's a combination of all of these things. As these measures start to deliver benefits and the book size grows, which is important, I feel confident the loss ratio will moderate to acceptable levels over a period of time. In the short term, we might still see some volatility in the book until it achieves a little bit of scale, because some of this is law of large numbers. I hope that answers your question.

Speaker #4: How much are we going to continue to invest into our new growth verticals, like integrated care, and how much will we pass back to the customers?

Speaker #5: But in the short term we might still see some volatility in the book until it achieves a little bit of scale because some of this is law of large numbers.

Speaker #4: And those operational decisions, we will make as we go through this journey. It is not possible to give a projection on that, but what we can definitely see is that we will see expansion in the core operating margin of the business, given the leverage benefit that we will enjoy.

Speaker #5: I hope that answers your question.

Speaker #1: Thank you Prithviraj. I have request to come back for a follow-up. Participants can click on ask a question tab Participants can click on raise an icon to ask a question Participants can click on the raise an icon to ask a question Next follow-up question is from the line of Prithviraj please go ahead.

Operator: Thank you, Prithviraj. I request to come back for a follow-up. Participants can click on Ask a Question tab. Participants, you can click on the Raise Hand icon to ask a question. Next follow-up question is from the line of Prithviraj. Please go ahead.

Speaker #2: One final question on domestic business. If you look at the insurance piece, I think the losses shot up significantly during the quarter. Just trying to understand what has changed so much in one quarter that the losses spiked up in a big way.

[Analyst] (InCred Equities): One final question on domestic business. If you look at the insurance space, I think the losses shot up significantly during the quarter. Just trying to understand, what has changed so much in 1 quarter that the losses spiked up in a big way? Should we expect these losses to sustain for the next few quarters, or is it more of a 1-off quarter? What explains these domestic insurance losses?

Speaker #2: And should we expect these losses to sustain for the next few quarters, or is it more of a one-off quarter? Also, what explains these domestic insurance losses?

Speaker #3: Ravi, can you just take this up? Sure.

R. Venkatesh: Ravi, can you just take this up, please?

Ravi Vishwanath: Sure. Hi, Prithvi. No, absolutely right. I think a few things here to kind of keep in mind on this. It is still a relatively small book, a few large claims sometimes can have a disproportionate impact when you look at loss ratios. At the same time, when you look at the growth, there are other benefits. You would have seen also that the expense ratio came down substantially. You've got to kind of little bit balance both those things. In our case, the issue is contained to a few policies. Having said that, as part of our priorities we're working on a number of initiatives to ensure that we manage our portfolio for long-term sustainability. As I said before, right? Small book can be still volatile for a little while until it comes to a little bit of scale.

Speaker #5: Hi, Prithviraj. No, I mean, you're absolutely right. I think there are a few things here to kind of keep in mind. It is still a relatively small book, and so a few large claims can sometimes have a disproportionate impact.

Speaker #2: Yeah I just have one follow-up on this incident business again. So how much of the claims are coming to your own hospital chain and how much of the claims are going to the third party hospitals at this point of time and is that a reason what explains the higher losses?

[Analyst] (Unifi Capital): Yeah. I just have one follow-up on this insurance business again. How much of the claims are coming to your own hospital chain, and how much of the claims are going to the third-party hospitals at this point of time? Is that a reason what explains the higher losses?

Prithvi Raj: Yeah. I just have one follow-up on this insurance business again. How much of the claims are coming to your own hospital chain, and how much of the claims are going to the third-party hospitals at this point of time? Is that a reason what explains the higher losses?

Speaker #5: When you look at loss ratios, but at the same time, when you look at the growth, there are other benefits. So you would have seen also that the expense ratio came down substantially.

Speaker #5: And, you know, so you've got to kind of balance both those things a little bit. In our case, the issue has been contained to a few policies.

[Company Representative] (Narayana): Maybe I can take that and others could chime in if you want. Couple of things on this. I don't think we're prepared at this point in time to disclose some of those numbers. Having said that, as Venkatesh was talking about for the clinics business, for example, similarly, the insurance business has a lot in terms of brand visibility for the group. As these customers come in and as we get more and more engagement with these customers and introduce them to the entire gamut of services that Narayana Health provides, over time, we believe that we feel confident that they will consider NH for all their advanced diagnostics and their hospitalization needs. We will see a large portion of people coming to our hospital.

Speaker #5: So maybe do I maybe I can take that as another good timing if you want. So a couple of things on this right. I don't think we're prepared at this point in time to disclose some of those numbers.

Ravi Vishwanathan: Maybe I can take that and others could chime in if you want. Couple of things on this. I don't think we're prepared at this point in time to disclose some of those numbers. Having said that, as Venkatesh was talking about for the clinics business, for example, similarly, the insurance business has a lot in terms of brand visibility for the group. As these customers come in and as we get more and more engagement with these customers and introduce them to the entire gamut of services that Narayana Health provides, over time, we believe that we feel confident that they will consider NH for all their advanced diagnostics and their hospitalization needs. We will see a large portion of people coming to our hospital.

Speaker #5: And having said that, as part of our priorities, you know, we're working on a number of initiatives to ensure that we manage our portfolio for long-term sustainability.

Speaker #5: Having said that as Venkatesh was talking about for the clinics business for example similarly the insurance business has a lot in terms of brand visibility for the group and as these customers come in and as we get more and more engagement with these customers and introduce them to the entire gamut of services that Narayana Health provides over time we believe that we feel confident that they will consider NH for all the advanced diagnostics and then hospitalization needs and we will continue to see a large portion of people or we will see a large portion of people coming to our hospital.

Speaker #5: As I said before, right, a small book can still be volatile for a little while until it comes to a little bit of scale.

Speaker #5: But, you know, we're not waiting for that. We're working on a number of initiatives. Some of these I can share with you. For example, we're implementing AI solutions across the board to review claims and minimize fraud, waste, and abuse in claims, especially outside our preferred network.

Ravi Vishwanath: We're not waiting for that. We're working on a number of initiatives. Some of these I can share with you. For example, we're implementing AI solutions across the board to review claims and minimize fraud, waste reviews in claims, especially outside our preferred network. We're in-housing more and more claims to ensure we bring not only a policy view, but also a health expertise view in these reviews, right? That's one of the unique things that as Narayana Health Insurance we can bring to the table that others may not have. We continue to sharpen our audits with our partners to ensure there is high quality in claims operations, for example, with TPAs. In terms of future growth as well, portfolio-wise, we continue to focus on SME and retail business as growth drivers. As you know, those have got better margins than, say, larger GMC accounts.

Speaker #5: We're in-housing more and more claims to ensure we bring not only a policy view, but also a health expertise view in these reviews, right?

Speaker #5: And that's one of the unique things that, as Narayana Health Insurance, we can bring to the table that others may not have. We continue to sharpen our audits with our partners to ensure there's high quality in claims operations.

Speaker #5: Having said that in our group policies at the moment we would you know we do offer people choice and you know we're working hard to win you know these customers to our hospitals by making sure they get great service in the hospital making sure that you know the overall experience they have is good and engaging deeply with them to ensure that you know they that our hospital is at the top of their mind when they're considering their hospitalization needs.

[Company Representative] (Narayana): Having said that, in our group policies at the moment, we do offer people choice, and we're working hard to win these customers to our hospitals by making sure they get great service in the hospital, making sure that the overall experience they have is good, and engaging deeply with them to ensure that our hospital is at the top of their mind when they're considering their hospitalization needs. That's kind of where we are. We do have a difference. Broadly what I can tell you is that on the retail side, a lot of our customers come to our hospitals by choice. On the group side, we are seeing those numbers improving, but we continue to work on that and to be top of mind for our customers to consider NH when they require hospitalization.

Ravi Vishwanathan: Having said that, in our group policies at the moment, we do offer people choice, and we're working hard to win these customers to our hospitals by making sure they get great service in the hospital, making sure that the overall experience they have is good, and engaging deeply with them to ensure that our hospital is at the top of their mind when they're considering their hospitalization needs. That's kind of where we are. We do have a difference. Broadly what I can tell you is that on the retail side, a lot of our customers come to our hospitals by choice. On the group side, we are seeing those numbers improving, but we continue to work on that and to be top of mind for our customers to consider NH when they require hospitalization.

Speaker #5: For example, with TPAs. And in terms of future growth as well, portfolio-wise, we continue to focus on SME and retail business as growth drivers.

Speaker #5: And as you know, those have got better margins than, say, larger GMC accounts. So it's a combination of all of these things. And as these measures start to deliver benefits and the book size grows, which is important, I feel confident the loss ratio will moderate to acceptable levels over a period of time.

Ravi Vishwanath: It's a combination of all of these things. As these measures start to deliver benefits and the book size grows, which is important, I feel confident the loss ratio will moderate to acceptable levels over a period of time. In the short term, we might still see some volatility in the book until it achieves a little bit of scale, because some of these large numbers. I hope that answers your question.

Speaker #5: So that's kind of where we are. You know we do have a difference more I mean broadly what I can tell you is that on the retail side a lot of our customers come to our come to our hospitals by choice and on the group side we are seeing those numbers improving but we continue to work on that and to be top of mind for our customers you know to consider NH when they require hospitalization.

Speaker #5: Levels over a period of time, but in the short term, we might still see some volatility. In the book, until it achieves a little bit of scale—because some of this is law of large numbers.

Speaker #5: I hope that answers your question.

Speaker #1: Thank you, Prithviraj. I'll request to come back for a follow-up. Participants can click on the "Ask a Question" tab. Participants, you can click on the "Raise Hand" icon to ask a question.

Operator: Thank you, Prithviraj. I'll request to come back for a follow-up. Participants can click on Ask a Question tab. Participants, you can click on the Raise Hand icon to ask a question. Next follow-up question is from the line of Prithviraj. Please go ahead.

Speaker #1: Thank you. Next question is from the line of Japreet Singh. Kali announced your company name and proceed with your question.

Operator: Thank you. Next question is from the line of Japjit Singh. Kindly announce your company name and proceed with your question.

Jaspreet Singh: Hello, sir. My question is, what is the current ROCE of our UK business?

[Analyst 1]: Hello, sir. My question is, what is the current ROCE of our UK business?

Speaker #1: Participants can click on the "Reason" icon to ask a question. The next follow-up question is from the line of Prithviraj. Please go ahead.

Speaker #4: Hello sir my question is what is the current ROC of our UK business?

Sandhya Jayaraman: Can you kindly repeat the question? It wasn't very clear for us.

Speaker #6: So you currently repeat the question it wasn't very clear for us.

Speaker #4: What is the ROC of our UK business currently?

Jaspreet Singh: What is the ROCE of our UK business currently?

[Analyst 1]: What is the ROCE of our UK business currently?

Speaker #2: Yeah, I just have one follow-up on this insurance business again. So, how much of the claims are coming to your own hospital chain, and how much of the claims are going to the third-party hospitals at this point of time?

Speaker #6: So I think it is too early to measure the ROC of the UK business at the moment it's very early days for us we have just acquired that business.

Sandhya Jayaraman: I think it is too early to measure the ROCE of the UK business at the moment. It's very early days for us. We have just acquired that business. We can start reporting this maybe four quarters from now.

[Analyst] (InCred Equities): Yeah. I just have one follow-up on this insurance business again. How much of the claims are coming to your own hospital chain, and how much of the claims are going to the third-party hospitals at this point of time? Is that a reason what explains the higher losses?

Speaker #2: And is that a reason that explains the higher losses?

Speaker #6: So we can start reporting this maybe four quarters from now.

Speaker #5: So maybe I can take that, and then others could chime in if you want. So, a couple of things on this, right?

Ravi Vishwanath: Maybe I can take that and others could chime in if you want. A couple of things on this, right? I don't think we're prepared at this point in time to disclose some of those numbers. Having said that, as Venkatesh was talking about for the clinics business, for example. Similarly, the insurance business has a lot in terms of brand visibility for the group. As these customers come in, and as we get more and more engagement with these customers and introduce them to the entire gamut of services that Narayana Health provides. Over time, we feel confident that they will consider NH for all their advanced diagnostics and their hospitalization needs. We will continue to see a large portion of people coming to our hospital. Having said that, in our group policies at the moment, we do offer people choice.

Speaker #4: Is there any target by 2030 so any milestone that we will achieve that we can say UK acquisition as a good capital allocation and is there any targets?

Jaspreet Singh: Is there any target by 2030 or any milestone that we will achieve that you can say UK acquisition as a good capital allocation? Is there any targets?

[Analyst 1]: Is there any target by 2030 or any milestone that we will achieve that you can say UK acquisition as a good capital allocation? Is there any targets?

Speaker #5: I don't think we're prepared at this point in time to disclose some of those numbers. Having said that, as Venkatesh was talking about, for the clinics business, for example, similarly, the insurance business has a lot in terms of brand visibility for the group.

Sandhya Jayaraman: Anesh, you want to take that question?

Speaker #6: Anesh you want to take that question.

Anesh Shetty: Yeah. Thank you. Japjit, we'd like to have the international question in the second half, but since you've asked, I think as we said during the acquisition time itself, we don't have any particular definite number to disclose as a ROCE target. Having said that, we believe that the assets were acquired at a very, very reasonable price, and there is a substantial opportunity for us to improve their earnings compared to where they are now and when we acquired it, without any significant further capital deployments in that market with the existing capital base that already exists.

Speaker #2: Yeah thank you. Japreet like to have the international question in the second half but since you've asked I think as we said during the acquisition time itself you know we don't have any particular definite number to disclose as a ROC target having said that we believe that the assets were acquired at a very very reasonable price and there is a substantial opportunity for us to improve their earnings compared to where they are now and when we acquired it without any significant further capital deployments in that in that market with the existing capital base that already exists.

Speaker #5: And as these customers come in, and as we get more and more engagement with these customers and introduce them to the entire gamut of services that Narayana Health provides, over time, we believe and feel confident that they will consider NH for all their advanced diagnostics and hospitalization needs.

Speaker #5: And we will continue to see a large portion of people, or we will see a large portion of people, coming to our hospital. Having said that, in our group policies at the moment, we do offer people choice.

Speaker #5: And, you know, we're working hard to win these customers to our hospitals by making sure they get great service in the hospital, making sure that the overall experience they have is good, and engaging deeply with them to ensure that, you know, our hospital is at the top of their mind when they're considering their hospitalization needs.

Ravi Vishwanath: We're working hard to win these customers to our hospitals by making sure they get great service in the hospital, making sure that the overall experience they have is good and engaging deeply with them to ensure that our hospital is at the top of their mind when they're considering their hospitalization needs. That's kind of where we are. We do have a difference. Broadly what I can tell you is that on the retail side, a lot of our customers come to our hospitals by choice. On the group side, we are seeing those numbers improving, but we continue to work on that and to be top of mind for our customers to consider NH when they require hospitalization.

Speaker #1: Thank you. Next question is from the line of Sajal Kapoor. Kali announced your company name and proceed with your question.

Operator: Thank you. Next question is from the line of Sajal Kapur. Can you announce your company name and proceed with your question.

Speaker #2: Yeah hi hi team this is Sajal from NT Fragile Thinking and thanks for giving me this opportunity. My first question is what evidence do we have today that owning both insurance and care delivery gives Narayana a structural underwriting advantage rather than you know simply transferring economics between insurer and the hospital?

Sajal Kapur: Yeah. Hi. Hi, team. This is Sajal from Antifragile Thinking, and thanks for giving me this opportunity. My first question is: What evidence do we have today that owning both insurance and care delivery gives Narayana a structural underwriting advantage rather than simply transferring economics between insurer and the hospital?

Speaker #5: So that's kind of where we are. You know, we do have a difference. I mean, broadly what I can tell you is that, on the retail side, a lot of our customers come to our hospitals by choice.

Speaker #5: And on the group side, we are seeing those numbers improving, but we continue to work on that and to be top of mind for our customers to consider NH when they require hospitalization.

Speaker #2: Sandhya you want me to take that?

Anesh Shetty: Sandhya, you want me to take that?

Speaker #6: Yeah Anesh.

Sandhya Jayaraman: Yes.

Speaker #2: Yeah so hi Sajal thank you for your question. So just to clarify sorry due to a prior travel commitment and some delays there Viren is unable to attend this call so he sent this apologies.

Anesh Shetty: Yeah. Hi, Sajal. Thank you for your question. Just to clarify, sorry, due to a prior travel commitment and some delays there, Viren is unable to attend this call, so he sends his apologies. To your question, I think just keeping the underwriting advantage aside for now, if you look at our actual experience in a very short time, where we have the largest cluster of clinics is in Bangalore. The footfall, the outpatient footfall in those small clinics in aggregate represents a little over a third of what we see in our flagship hospital in Bangalore, including the HSR second hospital in Bangalore as well.

Speaker #1: Thank you. Next question is from the line of Japreet Singh. Kali announced your company name—please proceed with your question.

Operator: Thank you. Next question is from the line of Jagjit Singh. Kindly announce your company name and proceed with your question.

Speaker #2: To your question I think just keeping the underwriting advantage aside for now if you look at our actual experience in a very short time where we have the largest cluster of clinics is in Bangalore and the footfalls the outpatient footfall in those small clinics in aggregate represents a little over a third of what we see in our flagship hospital in Bangalore including the HSR second hospital in Bangalore as well.

Speaker #3: And my question is, what is the current ROC of our UK business?

Japjit Singh: Hello, sir. My question is, what is the current ROCE of our UK business?

Speaker #4: Can you kindly repeat the question? It wasn't very clear to us.

Sandhya Jayaraman: Can you kindly repeat the question? It wasn't very clear for us.

Speaker #3: What is the ROC of our UK business currently?

Japjit Singh: What is the ROCE of our UK business currently?

Speaker #2: Now when we look at the referral potential and what we're actually seeing being referred in it is a phenomenal driver of activity volume and empowering a lot of the growth we're seeing in our in our footfall and conversions especially around the high-end complex procedures robotic surgeries etc.

Anesh Shetty: When we look at the referral potential and what we're actually seeing being referred in, it is a phenomenal driver of activity, volume, and empowering a lot of the growth we're seeing in our footfall and conversions, especially around the high-end complex procedures, robotic surgeries, et cetera, the complex cardiac interventions and so on. To your second question about the underwriting model itself. There is very little medical underwriting happening in the insurance industry as we speak. We have an ability to understand the consumption patterns through the people who are subscribers for our clinics. We render the bulk of their primary care, the bulk of their pharmaceutical needs, the bulk of their diagnostic and follow-up care. This really gives us an ability to understand where people are spending, what are they spending on, and how can we best position ourselves to cater to that.

Speaker #4: So, I think it is too early to measure the ROC of the UK business at the moment. It's very early days for us—we have just acquired that business.

Speaker #4: So we can start reporting this maybe four quarters from now.

Speaker #2: The complex cardiac interventions and so on. To your second question about the underwriting model itself now there is very little medical underwriting happening in the insurance industry as as we speak we have an ability to understand the consumption patterns through the people who are subscribers for our clinics.

Speaker #3: Is there any target by 2030? So, any milestone that we will achieve where we can say the UK acquisition was a good capital allocation? Are there any targets?

Japjit Singh: Is there any target by 2030 or any milestone that we will achieve that we can say UK acquisition as a good capital allocation? Is there any targets?

Speaker #4: Anish, do you want to take that question?

Sandhya Jayaraman: Anesh, you want to take that question?

Speaker #2: We render the bulk of their primary care the bulk of their pharmaceutical needs the bulk of their diagnostic and follow-up care. This really gives us an ability to understand where people are spending what are they spending on and how can we best position ourselves to to cater to that.

Speaker #2: Yeah, thank you. Japreet, we'd like to have the international question in the second half, but since you've asked, I think, as we said during the acquisition time itself, we don't have any particular definite number to disclose as a ROC target.

Anesh Shetty: Yeah. Thank you. Jagjit, we'd like to have the international question in the H2, but since you've asked. I think as we said during the acquisition time itself, we don't have any particular definite number to disclose as a ROCE target. Having said that, we believe that the assets were acquired at a very reasonable price, and there is a substantial opportunity for us to improve their earnings compared to where they are now and when we acquired it without any significant further capital deployments in that market with the existing capital base that already exists.

Speaker #2: Now obviously this is a a longer term play while we have started seeing very encouraging results with the clinics and the subscription plans. Insurance as Ravi mentioned is is early days it's a small book these things will play out but the early signs do point to us having something interesting to work on where we do have a an inherent structural advantage to somebody just selling an open-ended policy to anyone who who fulfills certain criteria.

Anesh Shetty: Obviously, this is a longer-term play. While we have started seeing very encouraging results with the clinics and the subscription plans, insurance, as Ravi mentioned, is early days. It's a small book. These things will play out. The early signs do point to us having something interesting to work on, where we do have an inherent structural advantage to somebody just selling an open-ended policy to anyone who fulfills certain criteria.

Speaker #2: Having said that, we believe that the assets were acquired at a very, very reasonable price, and there is a substantial opportunity for us to improve their earnings compared to where they are now and when we acquired them.

Speaker #2: Without any significant further capital deployments in that market, with the existing capital base that already exists.

Speaker #1: Thank you. Next question is from the line of Sajal Kapoor. Kali announced your company name. Please proceed with your question.

Operator: Thank you. Next question is from the line of Sajal Kapoor. Kindly announce your company name and proceed with your question.

Speaker #2: No that's helpful Anesh I mean just just a quick follow-up on that one. So some of the the patients would have renewed their policy right and given their past behavior we potentially understand them a little better in terms of what kind of system they have in terms of their own sort of mental and physical well-being as well as their pattern of submitting a claim and how does that reflect in the pricing for the renewal and that's one and then as a system we are continuously learning because yes it's it's a smaller book and early days for us and how is that learning getting reflected in our underwriting decision making for the new patients that were never part of our network.

Sajal Kapur: No, that's helpful, Anesh. Just a quick follow-up on that one. Some of the patients would have renewed their policy, right? Given their past behavior, we potentially understand them a little better in terms of what kind of system they have in terms of their own sort of mental and physical well-being as well as their pattern of submitting a claim, how does that reflect in the pricing for the renewal? That's one. As a system, we are continuously learning because, yes, it's a smaller book and early days for us. How is that learning getting reflected in our underwriting decision-making for the new patients that were never part of our network?

Speaker #2: Yeah, hi. Hi, team. This is Sajal from NT Fragile Thinking. Thanks for giving me this opportunity. My first question is: What evidence do we have today that owning both insurance and care delivery gives Narayana a structural underwriting advantage, rather than simply transferring economics between the insurer and the hospital?

Sajal Kapoor: Hi. Hi, team. This is Sajal from Antifragile Thinking, thanks for giving me this opportunity. My first question is: what evidence do we have today that owning both insurance and care delivery gives Narayana Hrudayalaya a structural underwriting advantage rather than simply transferring economics between insurer and the hospital?

Speaker #6: Ranjay, do you want me to take that?

Anesh Shetty: Sandhya, you want me to take that?

Speaker #4: Yeah, Anish.

Speaker #6: Yeah. So, hi, Sajal. Thank you for your question. Just to clarify, due to a prior travel commitment and some delays, Viren is unable to attend this call.

[Company Representative] (Narayana Hrudayalaya): Yeah.

Anesh Shetty: Yeah. Hi, Sajal. Thank you for your question. Just to clarify, sorry, due to a prior travel commitment and some delays there, Viren Shetty is unable to attend this call, so he sends his apologies. To your question, I think just keeping the underwriting advantage aside for now, if you look at our actual experience in a very short time, where we have the largest cluster of clinics is in Bangalore. The footfall, the outpatient footfall in those small clinics in aggregate represents a little over a third of what we see in our flagship hospital in Bangalore, including the HSR second hospital in Bangalore as well.

Speaker #6: So, he sends his apologies. To your question, I think, just keeping the underwriting advantage aside for now, if you look at our actual experience in a very short time, where we have the largest cluster of clinics is in Bangalore.

Speaker #4: So I'll pass it on to Ravi but just a quick comment for a good number of our patients given our role as both a provider and insurer we actually are the only people who can underwrite them and price out the policy as well as a renewal to reflect their changing health status.

Anesh Shetty: I'll pass it on to Ravi. Just a quick comment. For a good number of our patients, given our role as both a provider and insurer, we actually are the only people who can underwrite them and price out a policy as well as a renewal to reflect their changing health status. Ravi, do you want to take Sajal's question?

Speaker #6: And the footfalls—the outpatient footfall in those small clinics, in aggregate—represent a little over a third of what we see in our flagship hospital in Bangalore, including the HSR second hospital in Bangalore as well.

Speaker #4: But Ravi do you want to take Sajal's question?

Speaker #3: Yeah certainly. So a few things there Sajal. So one thing just to keep in mind and kind of be very clear about right is that in India at the moment at least you know we can't change somebody's renewal premium based on let's say deterioration in their health right.

[Company Representative] (Narayana): Yeah, certainly. A few things there, Sajal. One thing just to keep in mind and kind of be very clear about, right, is that in India, at the moment at least, we can't change somebody's renewal premium based on, let's say, deterioration in their health. Right? That's one thing to keep in mind, we of course, don't do that. Having said that, let's think about how this benefits us over a period of time. Right? There are two parts to this. One is, while I may not be able to change prices at an individual level, what this gives me a very good sense of is what's happening at a portfolio level at my overall group retail portfolio and at a group policy level. I have a good sense of what the claims are going to be next year.

Ravi Vishwanathan: Yeah, certainly. A few things there, Sajal. One thing just to keep in mind and kind of be very clear about, right, is that in India, at the moment at least, we can't change somebody's renewal premium based on, let's say, deterioration in their health. Right? That's one thing to keep in mind, we of course, don't do that. Having said that, let's think about how this benefits us over a period of time. Right? There are two parts to this. One is, while I may not be able to change prices at an individual level, what this gives me a very good sense of is what's happening at a portfolio level at my overall group retail portfolio and at a group policy level. I have a good sense of what the claims are going to be next year.

Speaker #6: Now, when we look at the referral potential and what we're actually seeing being referred in, it is a phenomenal driver of activity volume and is empowering a lot of the growth we're seeing in our footfall and conversions, especially around the high-end complex procedures, robotic surgeries, et cetera.

Speaker #3: So that's one thing to keep in mind and we of course don't do that. Having said that let's think about how this benefits us you know over a period of time right.

Speaker #3: There are two parts to this. One is while I may not be able to change prices at an individual level what this gives me a very good sense of is what's happening at a portfolio level at my overall group retail portfolio and at a group policy level I have a good sense of what the claims are going to be next year.

Speaker #6: The complex cardiac interventions and so on. To your second question about the underwriting model itself, there is very little medical underwriting happening in the insurance industry as we speak.

Speaker #6: We have an ability to understand the consumption patterns through the people who are subscribers to our clinics. We render the bulk of their primary care, the bulk of their pharmaceutical needs, and the bulk of their diagnostic and follow-up care.

Speaker #3: When you typically underwrite a group policy right you have some information and it's kind of imperfect that most companies would underwrite with. In our case we have a good idea of what claims have already happened and are unlikely to repeat next year.

[Company Representative] (Narayana): When you typically underwrite a group policy, right, you have some information, it's kind of imperfect that most companies would underwrite with. In our case, we have a good idea of what claims have already happened and are unlikely to repeat next year, what claims haven't happened yet but we know are going to happen next year, and price our renewal group at a group level accordingly and make changes at the price level at a portfolio level, right? That is a significant advantage that we have. As our policies come to renew, right, we've just started getting into renewal cycle on our retail book and have got three policies so far renewed on the group side and more to come. We see that this is becoming something that is becoming more and more valuable to us.

Ravi Vishwanathan: When you typically underwrite a group policy, right, you have some information, it's kind of imperfect that most companies would underwrite with. In our case, we have a good idea of what claims have already happened and are unlikely to repeat next year, what claims haven't happened yet but we know are going to happen next year, and price our renewal group at a group level accordingly and make changes at the price level at a portfolio level, right? That is a significant advantage that we have. As our policies come to renew, right, we've just started getting into renewal cycle on our retail book and have got three policies so far renewed on the group side and more to come. We see that this is becoming something that is becoming more and more valuable to us.

Speaker #6: This really gives us the ability to understand where people are spending, what they are spending on, and how we can best position ourselves to cater to that.

Speaker #3: What claims haven't happened yet but we know are going to happen next year and price our renewal group at a group level accordingly and make changes at a price level as per the requirements of of at a portfolio level right.

Speaker #6: Now, obviously, this is a longer-term play. While we have started seeing very encouraging results with the clinics and the subscription plans, insurance, as Ravi mentioned, is in the early days.

Anesh Shetty: obviously, this is a longer-term play. While we have started seeing very encouraging results with the clinics and the subscription plans, insurance, as Ravi mentioned, is early days. It is a small book. These things will play out. The early signs do point to us having something interesting to work on, where we do have an inherent structural advantage to somebody just selling an open-ended policy to anyone who fulfills certain criteria.

Speaker #6: It's a small book; these things will play out. But the early signs do point to us having something interesting to work on, where we do have an inherent structural advantage, compared to somebody just selling an open-ended policy to anyone who fulfills certain criteria.

Speaker #3: So that is a significant advantage that we have and as our policies come to renew right we've just started getting into renewal cycle and our renewal on our retail book and have got three policies so far renewed on the group side and more to come and we see that this is becoming something that is becoming more and more valuable to us.

Speaker #2: No, that's helpful. Anish, I mean, just a quick follow-up on that one. So some of the patients would have renewed their policy, right? And given their past behavior, we potentially understand them a little better in terms of what kind of system they have, in terms of their own sort of mental and physical well-being, as well as their pattern of submitting a claim.

Sajal Kapoor: That is helpful, Anesh. Just a quick follow-up on that one. Some of the patients would have renewed their policy, right? Given their past behavior, we potentially understand them a little better in terms of what kind of system they have in terms of their own sort of mental and physical well-being, as well as their pattern of submitting a claim. How does that reflect in the pricing for the renewal? That is one. Then as a system, we are continuously learning because, yes, it is a smaller book and early days for us. How is that learning getting reflected in our underwriting decision-making for the new patients that were never part of our network?

Speaker #3: The other part is that is the entire engagement that we do with customers. So if you think about it in a slightly different way from a customer's perspective right what do we bring to the table for the customer.

[Company Representative] (Narayana): The other part is that the entire engagement that we do with customers. If you think about it in a slightly different way from a customer's perspective, what do we bring to the table for the customer? Because we understand their health, unlike another insurance company, we can actually intervene earlier and we can send somebody to the hospital and recommend and do the surgery now. It's better for the customer. It's hopefully less complicated. It's quicker recovery, and it is a lower cost to the insurance company as well. There's a number of things here that play that allow us to impact the life of the customer in a very positive way, while also managing our overall book in a sustainable way. That is the unique thing that we have as an insurance company that is promoted by a hospital.

Ravi Vishwanathan: The other part is that the entire engagement that we do with customers. If you think about it in a slightly different way from a customer's perspective, what do we bring to the table for the customer? Because we understand their health, unlike another insurance company, we can actually intervene earlier and we can send somebody to the hospital and recommend and do the surgery now. It's better for the customer. It's hopefully less complicated. It's quicker recovery, and it is a lower cost to the insurance company as well. There's a number of things here that play that allow us to impact the life of the customer in a very positive way, while also managing our overall book in a sustainable way. That is the unique thing that we have as an insurance company that is promoted by a hospital.

Speaker #3: We allow because we understand their health unlike another insurance company we can actually intervene earlier. And we can send somebody to the hospital and recommend that do the surgery now.

Speaker #2: And how does that reflect in the pricing for the renewal? And that's one. And then, as a system, we are continuously learning because, yes, it's a smaller book and early days for us.

Speaker #3: It's better for the customer. It's hopefully less complicated. It's quicker recovery and it is a lower cost for the insurance company as well. So there's a number of things here that play that allow us to impact the the life of the customer in a very positive way.

Speaker #2: How is that learning getting reflected in our underwriting decision-making for the new patients that were never part of our network?

Speaker #3: While also managing our our overall book in a sustainable way and that is the unique thing that we have as an insurance company that is promoted by a hospital.

Speaker #3: Sure. I'll pass it on to Ravi. But just a quick comment: for a good number of our patients, given our role as both a provider and insurer, we actually are the only people who can underwrite them and price out a policy, as well as a renewal to reflect their changing health status.

Anesh Shetty: I will pass it on to Ravi. Just a quick comment. For a good number of our patients, given our role as both a provider and insurer, we actually are the only people who can underwrite them and price out a policy as well as a renewal to reflect their changing health status. Ravi, do you want to take Sajal's question?

Speaker #3: The only insurance company is promoted by a hospital.

[Company Representative] (Narayana): The only insurance company that's promoted by a hospital.

Ravi Vishwanathan: The only insurance company that's promoted by a hospital.

Speaker #2: That's helpful. Thank you and my second question is is related to related to a classic tension so when the hospital benefits from doing more and insurer benefits from doing less how does Narayana decide what is the optimal for the system as a whole?

Sajal Kapur: That's helpful. Thank you. My second question is related to a classic tension. When the hospital benefits from doing more and insurer benefits from doing less, how does Narayana decide what is optimal for the system as a whole?

Speaker #3: But Ravi, do you want to take Sajal's question?

Speaker #5: Yeah, certainly. So, a few things here, Sajal. One thing, just to keep in mind and be very clear about is that in India, at the moment at least, we can't change somebody's renewal premium.

Ravi Vishwanath: Certainly. A few things here, Sajal. One thing just to keep in mind and kind of be very clear about, right, is that, in India, at the moment at least, we cannot change somebody's renewal premium based on, let us say, deterioration in their health, right? That is one thing to keep in mind, and we of course, do not do that. Having said that, let us think about how this benefits us over a period of time, right? There are two parts to this. One is while I may not be able to change prices at an individual level, what this gives me a very good sense of is what is happening at a portfolio level, at my overall group retail portfolio. At a group policy level, I have a good sense of what the claims are going to be next year.

Speaker #5: Based on, let's say, deterioration in their health, right? So that's one thing to keep in mind. And we, of course, don't do that. Having said that, let's think about how this benefits us over a period of time, right?

Speaker #4: In the short run you know there is a conflict but in the long run if the hospital does too much the insurance arm will not be sustainable.

Anesh Shetty: In the short run, there is a conflict, but in the long run, if the hospital does too much, the insurance arm will not be sustainable. If the hospital does too little, then that's also not good for the long-term outcomes of the patient. In the short term, yes, one quarter or two, but in the long term, sustainable way, if you look at integrated care models all across the globe, it is a self-check mechanism where you render the right amount of care, not too much, not too little. More importantly, in our market, where there's abundant choice, if the insurance clients perceive that you're denying care or you're not rendering enough care, they will leave and go, which defeats the entire purpose.

Speaker #4: If the hospital does too less then that's also not good for the long-term outcomes of the patient. So in a short run yes one quarter or two but in a long-term sustainable way if you look at integrated care models all across the globe it is a self-check mechanism where you render the right amount of care not too much not too less.

Speaker #5: There are two parts to this. One is, while I may not be able to change prices at an individual level, what this gives me a very good sense of is what's happening at a portfolio level—overall group, retail portfolio—and at a group policy level, I have a good sense of what the claims are going to be next year.

Speaker #4: But more importantly in our market where there's abundant choice if the insurance company the insurance clients perceive that you're denying care or you're not rendering enough care they will leave and go.

Speaker #5: When you typically underwrite a group policy, right, you have some information, and it's kind of imperfect—that most companies would underwrite with. In our case, we have a good idea of what claims have already happened.

Ravi Vishwanath: When you typically underwrite a group policy, right, you have some information, and it's kind of imperfect that most companies would underwrite with. In our case, we have a good idea of what claims have already happened and are unlikely to repeat next year, what claims haven't happened yet but we know are going to happen next year, and price our renewal group at a group level accordingly and make changes at the price level as per the requirements at a portfolio level, right? That is a significant advantage that we have. As our policies come to renewals, right, we've just started getting into renewal cycle on our retail book and have got 3 policies so far renewed on the group side and more to come. We see that this is becoming something that is becoming more and more valuable to us.

Speaker #4: Which defeats the entire purpose.

Speaker #1: Thank you Sajal. I'll request to come back for a follow-up. I request to all the participants kindly limit yourself to two questions per participant.

Operator: Thank you, Sajal. I'll request to come back for a follow-up. I request all the participants, kindly limit yourself to two questions per participant. Next question.

Speaker #5: And unlikely to repeat next year. What claims haven't happened yet, but we know are going to happen next year, and price our renewal group at a group level accordingly—and make changes at a price level as per the requirements, at a portfolio level. Right?

Speaker #1: Next question.

Nishant Singh: I request Ravi to take a pertinent question from the chat box. Ravi, if you could just see that question, the question number 1 out of the all patients admitted in the Narayana hospital this quarter.

Speaker #4: I request Ravi to take a pertinent question from the chat box. Ravi if you could just see that question on the question number one out of the all patients submitted in the Narayana hospital this quarter.

Speaker #4: Sure. Are you able to see that question?

[Company Representative] (Narayana): Sure.

Ravi Vishwanathan: Sure.

Nishant Singh: Are you able to see that question?

Speaker #3: I am. I will just read that out for for people's benefits and quickly answer that. We did cover this a little bit earlier as well.

[Company Representative] (Narayana): I am. I would read that out for people's benefits and quickly answer that. We did cover this a little bit earlier as well. Out of all the patients admitted in the hospital this quarter, what percentage originated through our insurance platform compared with traditional referral channels? The first part of the question. Again, we're not prepared at this point to share the percentages, although we track it very diligently. Again, the insurance book is still a small book, and it will take some time before we see really significant impact. That is, of course, the direction that we all are working towards. The second part of the question is, as a book matures in underwriting, do you expect underwriting profitability to improve through premium increases, better risk selection, or lower operating expenses? I would say that First of all three.

Ravi Vishwanathan: I am. I would read that out for people's benefits and quickly answer that. We did cover this a little bit earlier as well. Out of all the patients admitted in the hospital this quarter, what percentage originated through our insurance platform compared with traditional referral channels? The first part of the question. Again, we're not prepared at this point to share the percentages, although we track it very diligently. Again, the insurance book is still a small book, and it will take some time before we see really significant impact. That is, of course, the direction that we all are working towards. The second part of the question is, as a book matures in underwriting, do you expect underwriting profitability to improve through premium increases, better risk selection, or lower operating expenses? I would say that First of all three.

Speaker #5: So that is a significant advantage that we have. And as our policies come up for renewal—right, we've just started getting into the renewal cycle—our renewal on our retail book, and we've got three policies so far renewed on the group side.

Speaker #3: So out of all the patients admitted in the hospital this quarter what percentage originated through our insurance platform compared with traditional referral channels? The first part of the question.

Speaker #3: Again we're not prepared at this point to share the percentages although we track it very very diligently. But again you know the insurance book is still a small book and it'll take some time before we see you know really significant impact but that is of course the direction that we all are working towards.

Speaker #5: And more to come. And we see that this is becoming something that is becoming more and more valuable to us. The other part is that is the entire engagement that we do with customers.

Ravi Vishwanath: The other part is the entire engagement that we do with customers. If you think about it in a slightly different way from a customer's perspective, right? What do we bring to the table for the customer? Because we understand their health, unlike another insurance company, we can actually intervene earlier, and we can send somebody to the hospital and recommend that do the surgery now. It's better for the customer. It's hopefully less complicated. It's quicker recovery. It is a lower cost to the insurance company as well. There's a number of things here that play that allow us to impact the life of the customer in a very positive way while also managing our overall book in a sustainable way. That is the unique thing that we have as an insurance company that is promoted by a hospital.

Speaker #5: So, if you think about it in a slightly different way from a customer's perspective—right—what do we bring to the table for the customer?

Speaker #5: We allow because we understand their health. Unlike another insurance company, we can actually intervene earlier, and we can send somebody to the hospital and recommend that they do this surgery now.

Speaker #3: The second part of the question is as a book matures and underwriting do you expect underwriting property to improve through premium increases better risk selection or lower operating expenses?

Speaker #3: I would say that our prior in order of first of all all three and in order of priority I think it's very important for us and it's consistent with our our overall approach at a group to have the lowest possible operating expenses to give the maximum possible benefit back to the customer.

Speaker #5: It's better for the customer. It's hopefully less complicated. It's a quicker recovery. And it is a lower cost for the insurance company as well. So there are a number of things here at play that allow us to impact the life of the customer in a very positive way, while also managing our overall book in a sustainable way.

[Company Representative] (Narayana): In order of priority, I think it's very important for us, and it's consistent with our overall approach as a group to have the lowest possible operating expenses to give the maximum possible benefit back to the customer. That will continue to be a focus, you would have seen a significant drop in our expense ratio from previous periods and something we'll be working on very closely. Better risk selection, just in as a response to the earlier question we spoke a little bit about that. The premium increases will be a fact of life based on how the book performs. Our approach is going to be to be responsible in our pricing and keep doing that and make sure that we are not overpriced or underpriced and trying to be as correctly priced as possible in order to have a sustainable business.

Ravi Vishwanathan: In order of priority, I think it's very important for us, and it's consistent with our overall approach as a group to have the lowest possible operating expenses to give the maximum possible benefit back to the customer. That will continue to be a focus, you would have seen a significant drop in our expense ratio from previous periods and something we'll be working on very closely. Better risk selection, just in as a response to the earlier question we spoke a little bit about that. The premium increases will be a fact of life based on how the book performs. Our approach is going to be to be responsible in our pricing and keep doing that and make sure that we are not overpriced or underpriced and trying to be as correctly priced as possible in order to have a sustainable business.

Speaker #3: That will continue to be a focus and you would have seen a significant drop in our in our expense ratio you know from previous periods and something we'll be working on very very closely.

Speaker #5: And that is the unique thing that we have as an insurance company that is promoted by a hospital—the only insurance company promoted by a hospital.

Speaker #3: Better risk selection just in as a response to the earlier conversation we spoke question we spoke a little bit about that. And the premium increases you know will be a factor of factor of life based on how the book performs.

Ravi Vishwanath: The only insurance company that's promoted by a hospital.

Speaker #2: That's helpful, thank you. And my second question is related to a classic tension. When the hospital benefits from doing more and the insurer benefits from doing less, how does Narayana decide what is optimal for the system as a whole?

Sajal Kapoor: That's helpful. Thank you. My second question is related to a classic tension. When the hospital benefits from doing more and insurer benefits from doing less, how does Narayana decide what is optimal for the system as a whole?

Speaker #3: And you know our approach is going to be to be responsible in our pricing and you know keep doing that and make sure that we are not overpriced or underpriced and trying to be as you know as correctly priced as possible in order to have a sustainable business which means value proposition of the customer as well as a you know sustainable pricing for ourselves.

Speaker #3: In the short run, you know, there is a conflict. But in the long run, if the hospital does too much, the insurance arm will not be sustainable.

Anesh Shetty: In the short run, there is a conflict. In the long run, if the hospital does too much, the insurance arm will not be sustainable. If the hospital does too less, that's also not good for the long-term outcomes of the patient. In a short term, yes, one quarter or two, in a long-term sustainable way, if you look at integrated care models all across the globe, it is a self-check mechanism where you render the right amount of care, not too much, not too less. More importantly, in our market, where there's abundant choice, if the insurance clients perceive that you're denying care or you're not rendering enough care, they will leave and go, which defeats the entire purpose.

[Company Representative] (Narayana): Which means value proposition for customer as well as sustainable pricing for ourselves. On the second part, maybe I'll defer to Sandhya or Anesh on that, insurance sitting inside a listed company.

Ravi Vishwanathan: Which means value proposition for customer as well as sustainable pricing for ourselves. On the second part, maybe I'll defer to Sandhya or Anesh on that, insurance sitting inside a listed company.

Speaker #3: If the hospital does too little, then that's also not good for the long-term outcomes of the patient. So in the short run, yes, one quarter or two.

Speaker #3: The second part maybe I'll defer to Sandhya or Anesh on that. Insurance sitting inside the listed company.

Speaker #3: But in a long-term sustainable way, if you look at integrated care models all across the globe, it is a self-check mechanism where you render the right amount of care—not too much, not too little.

Speaker #5: Yeah sure. So the question is it sits inside the listed company and therefore suppresses consolidated return metrics. As the board internally defined a maximum acceptable period accumulative investment after which the strategy would be reassessed.

Anesh Shetty: Yeah, sure. The question is, it sits inside the listed company and therefore suppresses consolidated return metrics as the board internally defined a maximum acceptable period of cumulative investment after which the strategy would be reassessed. It's a combination of both time and cumulative investment. As Viren mentioned, we did set out broadly the terms in terms of the amount of investment we were willing to make into this. Things are on track, especially ahead of plan with the clinic, slightly behind with the insurance. Every few quarters or so, we'll continue to reassess if the ecosystem benefits do materialize. The early results are encouraging with the clinics. Insurance is too small to judge now. We'll continue to watch and reassess every few quarters or so.

Speaker #3: But more importantly, in our market where there's abundant choice, if the insurance clients perceive that you're denying care or not rendering enough care, they will leave and go elsewhere.

Speaker #5: It's a combination of both time and and cumulative investment as Viren mentioned. We did set out broadly the terms in in terms of the amount of investment we were willing to to make into this.

Speaker #3: Which defeats the entire purpose.

Speaker #5: Things are on track especially ahead of plan with the clinic slightly behind with the insurance but every every you know few quarters or so we'll continue to reassess if the ecosystem benefits do materialize.

Speaker #1: Thank you, Sajal. I'll request you to come back for a follow-up. I request all the participants to kindly limit yourselves to two questions per participant. Next question.

Operator: Thank you, Sajal. I request to come back for a follow-up. I request all the participants, kindly limit yourself to two questions per participant. Next question.

Speaker #3: I request Ravi to take a pertinent question from the chat box. Ravi, if you could just see that question on question number one: All of the patients admitted in the Narayana hospital this quarter. Sure.

Nishant Singh: I request Ravi to take a pertinent question from the chat box. Ravi, if you could just see that question on the question number one out of the all patients admitted in the Narayana hospital this quarter.

Speaker #5: The early results are encouraging with with the clinics. Insurance is too small to to judge now. We'll continue to watch and reassess every few quarters or so.

Speaker #3: Are you able to see that question?

Speaker #5: I am. I will just read that out for people's benefit and quickly answer that. We did cover this a little bit earlier as well.

Ravi Vishwanath: Sure.

Nishant Singh: Are you able to see that question?

Ravi Vishwanath: I am. I would just read that out for people's benefits and quickly answer that. We did cover this a little bit earlier as well. Out of all the patients admitted in the hospital this quarter, what percentage originated through our insurance platform compared with traditional referral channels? The first part of the question. Again, we're not prepared at this point to share the percentages, although we track it very diligently. Again, the insurance book is still a small book, and it'll take some time before we see really significant impact. That is, of course, the direction that we all are working towards. The second part of the question is, as a book with chosen underwriting, do you expect underwriting profitability to improve through premium increases, better risk selection, or lower operating expenses? I would say that first of all three.

Speaker #1: Thank you. Next audio question. Is from Rajat Agarwal. Kindly announce your company name and proceed with your question.

Operator: Thank you. The next audio question is from Rajit Aggarwal. Kindly announce your company name and proceed with your question.

Speaker #5: So, out of all the patients admitted to the hospital this quarter, what percentage originated through our insurance platform compared with traditional referral channels? That's the first part of the question.

Speaker #5: Again, we're not prepared at this point to share the percentages, although we track it very, very diligently. But again, the insurance book is still a small book.

Rajit Aggarwal: Hi. In your presentation, you mentioned there are three projects which have got postponed from FY28 to FY29. Two to FY29, one to FY30. What are the reasons for this postponement, if you can share? Southwest Bangalore, the 100 beds which were supposed to come during the current financial, which quarter do we expect them to operationalize?

Speaker #6: Hi. In your presentation you mentioned there are three projects which have got postponed from FY28 to FY29. Two to FY29 one to FY30. So what are the reasons for this postponement if you can share?

Speaker #5: And it will take some time before we see really significant impact. But that is, of course, the direction that we all are working towards. The second part of the question is: as a book matures and underwriting, do you expect underwriting profitability to improve through premium increases, better risk selection, or lower operating expenses?

Speaker #6: And also. The Southwest Bangalore the 100 beds which are supposed to come during the current financial which quarter do we expect them to operationalize?

Speaker #5: I would say that, in order of priority—first of all, all three. And in order of priority, I think it's very important for us, and it's consistent with our overall approach as a group, to have the lowest possible operating expenses to give the maximum possible benefit back to the customer.

Ravi Vishwanath: In order of priority, I think it's very important for us and it's consistent with our overall approach as a group to have the lowest possible operating expenses to give the maximum possible benefit back to the customer. That will continue to be a focus, and you would have seen a significant drop in our expense ratio from previous periods and something we'll be working on very closely. A better risk selection, just as a response to the earlier question we spoke a little bit about that. The premium increases will be a fact of life based on how the book performs. Our approach is going to be to be responsible in our pricing and keep doing that and make sure that we are not overpriced or underpriced and trying to be as correctly priced as possible in order to have a sustainable business.

Speaker #4: Yeah. And take this see among all the projects which we have listed out most of the projects are within the acceptable timeline even if there is a slight delay they are within that six month window period of acceptable timeline.

R. Venkatesh: Yeah. See, among all the projects which we have listed out, most of the projects are within the acceptable timeline. Even if there is a slight delay, they are within that six-month window period or acceptable timeline. There are a couple of asset-light partner model projects which are running a bit slow, specifically because from the partner side, in terms of certain licensing issues or delayed licensing, which obviously we are in constant discussion with them and it should get sorted in the next month or so. They should cut those delay by a considerable period of time. This is minor delay. Other than that, most of these projects are within the acceptable limits.

Speaker #5: That will continue to be a focus, and you would have seen a significant drop in our expense ratio from previous periods. That's something we'll be working on very, very closely.

Speaker #4: There are a couple of asset light partner model projects which are running a bit slower specifically because from the partner side in terms of certain licensing issues are delayed licensing which obviously we are in constant discussion with them and it should get sorted in the next month or so.

Speaker #5: Better risk selection—just adding that as a response to the earlier conversation; we spoke a little bit about that. And the premium increases will be a fact of life.

Speaker #5: Based on how the book performs, our approach is going to be to remain responsible in our pricing. We will keep doing that and make sure that we are not overpriced or underpriced, and try to be as correctly priced as possible.

Speaker #4: So they should cut those delay by considerable period of time. So this is minor delay but other than that most of these projects are within the acceptable limits.

Speaker #4: And when it comes to the project in Southwest Bangalore as you said we are at the end stage of these construction and we are hopeful to start it by the end of Q2.

R. Venkatesh: When it comes to the project in Southwest Bangalore, as you said, we are at the end stage of the construction and we are hopeful to start it by the end of Q2. This is also fully in line with our plans, and we hope to have this start by end of Q2.

Speaker #5: In order to have a sustainable business—which means a value proposition for the customer, as well as sustainable pricing for ourselves—on the second part, maybe I'll defer to Sandhya or Anish on that.

Ravi Vishwanath: Which means value proposition for customer as well as sustainable pricing for ourselves. On the second part, maybe I'll defer to Sandhya or Anesh on that, insurance sitting inside the listed company.

Speaker #4: So this is also fully in line with our plans and we hope to have this start by end of Q2.

Speaker #5: Insurance sitting inside the listed company.

Speaker #4: Yeah, sure. So the question is, it sits inside the listed company and therefore suppresses consolidated return metrics. Has the board internally defined a maximum acceptable period of cumulative investment, after which the strategy would be reassessed?

Speaker #6: Okay. Thank you.

Rajit Aggarwal: Okay. Thank you.

Anesh Shetty: Yeah, sure. The question is it sits inside the listed company and therefore suppresses consolidated return metrics as the board internally defined a maximum acceptable period of cumulative investment after which the strategy would be reassessed. It's a combination of both time and cumulative investment. As Viren mentioned, we did set out broadly the terms in terms of the amount of investment we were willing to make into this. Things are on track, especially ahead of plan with the clinic, slightly behind with the insurance. Every few quarters or so, we'll continue to reassess if the ecosystem benefits do materialize. The early results are encouraging with the clinics. Insurance is too small to judge now. We'll continue to watch and reassess every few quarters or so.

Speaker #1: Thank you. Next question is from the line of form. Kindly announce your company name and proceed with your question. Form we are go ahead.

Operator: Thank you. Next question is from the line of Om. Kindly announce your company name and proceed with your question. Om, go ahead.

Speaker #3: It's a combination of both time and cumulative investment, as Vireen mentioned. We did set out broadly the terms in terms of the amount of investment we were willing to make into this.

Speaker #3: Things are on track—especially ahead of plan with the clinic, slightly behind with the insurance. But every few quarters or so, we'll continue to reassess if the ecosystem benefits do materialize.

[Analyst]: Hi. Yeah. My question was more to Ravi on this insurance side, right? Ravi was explaining in earlier participant call where the insurance business is having.

[Analyst 2]: Hi. Yeah. My question was more to Ravi on this insurance side, right? Ravi was explaining in earlier participant call where the insurance business is having.

Speaker #4: Yeah. So my question was more to Ravi on this insurance side right. So Ravi was explaining in earlier participants call where insurance business is having.

Speaker #3: The early results are encouraging with the clinics. Insurance is too small to judge now. We'll continue to watch and reassess every few quarters or so.

Operator: Om, sorry to interrupt. Your audio is not clear. Can you speak little louder?

Speaker #1: Form sorry to interrupt the audio is not clear. Can you speak a little louder?

Speaker #4: Am I audible now? Yeah. So my question was mainly to Ravi with regarding to you know insurance having an impact on the overall profitability as of now playing and Ravi was explaining that for now this will be going a little bit of you know maybe a couple of more quarters this impact will be.

[Analyst]: Am I audible now?

[Analyst 2]: Am I audible now?

Operator: Yes.

[Analyst]: My question was mainly to Ravi regarding to insurance having an impact on the overall profitability as of now playing. Ravi was explaining that for now, this will be going a little bit of maybe couple of more quarters, this impact will be. I just wanted to understand from Ravi that how long do you see that the scaling of insurance books will have impact on profitability. By when we expect that that will start contributing on this.

[Analyst 2]: My question was mainly to Ravi regarding to insurance having an impact on the overall profitability as of now playing. Ravi was explaining that for now, this will be going a little bit of maybe couple of more quarters, this impact will be. I just wanted to understand from Ravi that how long do you see that the scaling of insurance books will have impact on profitability. By when we expect that that will start contributing on this.

Speaker #1: Thank you. Next audio question is from Rajat Agarwal. Kindly announce your company name and proceed with your question.

Operator: Thank you. The next audio question is from Rajat Agarwal. Kindly announce your company name and proceed with your question.

Speaker #5: Hi. In your presentation, you mentioned there are three projects which have been postponed from FY28 to FY29—two to FY29, and one to FY30. So, what are the reasons for this postponement, if you can share?

Speaker #4: So I just wanted to understand from Ravi that how long do you see that the scaling of insurance books will have impact on profitability?

Rajat Agarwal: Hi. In your presentation, you mentioned there are three projects which have got postponed from FY28 to FY29. Two to FY29, one to FY30. What are the reasons for this postponement, if you can share? Also Southwest Bangalore, the 100 beds which are supposed to come during the current financial, which quarter do we expect them to operationalize?

Speaker #4: And and and by when we we expect that that will start contributing on this?

Speaker #6: Right. I'll I'll attempt to answer that. At this point you know we don't make you know future forecasts but I think the important thing here is a couple of things.

[Company Representative] (Narayana): Right. I'll attempt to answer that. At this point, we don't make future forecasts. I think the important thing here is a couple of things. As I laid out in the earlier response, there are a number of things that we will continue to do to make sure that the portfolio itself is something that is managed sustainably. That includes a number of things around underwriting and claims, as well as the type of business that we are writing. The nature of insurance business and the way that it is currently accounted is that you are able to book a fraction of your revenue in the period but you have to book the entire expenses. Growth and does have impact on P&L. These are all things that we look at closely and monitor.

Ravi Vishwanathan: Right. I'll attempt to answer that. At this point, we don't make future forecasts. I think the important thing here is a couple of things. As I laid out in the earlier response, there are a number of things that we will continue to do to make sure that the portfolio itself is something that is managed sustainably. That includes a number of things around underwriting and claims, as well as the type of business that we are writing. The nature of insurance business and the way that it is currently accounted is that you are able to book a fraction of your revenue in the period but you have to book the entire expenses. Growth and does have impact on P&L. These are all things that we look at closely and monitor.

Speaker #5: And also, the Southwest Bangalore, the 100 beds which are supposed to come during the current financial year— which quarter do we expect them to be operational?

Speaker #6: As I laid out in the earlier response there are a number of things that we will continue to do to make sure that the portfolio itself is something that is managed sustainably.

Speaker #2: Yeah, I'll take this. See, among all the projects which we have listed out, most of the projects are within the acceptable timeline. Even if there is a slight delay, they are within that six-month window period of acceptable timeline.

R. Venkatesh: Yeah, I'll take this. See, among all the projects which we have listed out, most of the projects are within the acceptable timeline. Even if there is a slight delay, they are within that six-month window period of acceptable timeline. There are a couple of asset-light partner model projects which are running a bit slower, specifically because from the partner side, in terms of certain licensing issues or delayed licensing. Which obviously we are in constant discussion with them and it should get sorted in the next month or so. They should cut those delay by a considerable period of time. This is minor delay. Other than that, most of these projects are within the acceptable limits.

Speaker #6: That includes a number of things around underwriting and claims as well as the type of business that we are we are writing. The nature of insurance business and the way that it is currently accounted is that you know you you are able to book a a a fraction of your revenue in the period and then but you have to book the entire expenses.

Speaker #2: There are a couple of asset-light partner model projects which are running a bit slower, specifically because, from the partner's side, there are certain licensing issues or delayed licensing. Obviously, we are in constant discussion with them.

Speaker #6: So you know growth comes with you know in does have impact on P&L. But all these are all things that we you know look at closely and monitor.

Speaker #2: And it should get sorted in the next month or so. So they should cut those delays by a considerable period of time. So this is a minor delay.

Speaker #6: I think the the important thing for us is to have a long-term sustainable portfolio and over time to engage with our customers across primary care that we provide them as part of the insurance offering and as part of the value added services.

[Company Representative] (Narayana): I think the important thing for us is to have a long-term sustainable portfolio. Over time, to engage with our customers across primary care that we provide them as part of the insurance offering and as part of the value-added services, so that the entire integrated care approach comes in and we're able to see as a group the value of having hospital, clinic, insurance together, working with customers to help them get well, stay healthy. That's kind of how we're going to be approaching this. We are obviously very focused on a sustainable business. At this point in time, I think given the size of the portfolio, the volatility, it's a little bit too soon to talk about when is it going to get to various levels. It's something that we'll keep working on and keep updating each quarter.

Ravi Vishwanathan: I think the important thing for us is to have a long-term sustainable portfolio. Over time, to engage with our customers across primary care that we provide them as part of the insurance offering and as part of the value-added services, so that the entire integrated care approach comes in and we're able to see as a group the value of having hospital, clinic, insurance together, working with customers to help them get well, stay healthy. That's kind of how we're going to be approaching this. We are obviously very focused on a sustainable business. At this point in time, I think given the size of the portfolio, the volatility, it's a little bit too soon to talk about when is it going to get to various levels. It's something that we'll keep working on and keep updating each quarter.

Speaker #2: But other than that, most of these projects are within the acceptable limits. And when it comes to the project in Southwest Bangalore, as you said, we are at the end stage of this construction.

R. Venkatesh: When it comes to the project in Southwest Bangalore, as you said, we are at the end stage of this construction, and we are hopeful to start it by the end of Q2. This is also fully in line with our plans, and we hope to have this start by end of Q2.

Speaker #2: And we are hopeful to start it by the end of Q2. So, this is also fully in line with our plans, and we hope to have this start by the end of Q2.

Speaker #6: So that the entire integrated care approach comes in and we are able to see as a group the value of having hospital clinic insurance together working with customers to help them get well stay healthy.

Speaker #5: Okay, thank you.

Ravi Vishwanath: Okay. Thank you.

Speaker #6: So you know that's kind of how we're going to be approaching this. We are of course you know we are obviously very focused on a sustainable business.

Speaker #1: Thank you. Next question is from the line of Om. Kindly announce your company name and proceed with your question. Om, you may go ahead.

Operator: Thank you. Next question is from the line of Om. Kindly announce your company name and proceed with your question.

Speaker #6: At this point in time I think it's given the size of the portfolio the volatility it's a little bit too soon to talk about you know when is it going to get to various levels.

Speaker #6: But it's something that we'll keep working on and keep updating each quarter.

Speaker #4: You got it Ravi. Just to add on to the same so earlier we had a bit of more targeted segment was the retail. Now as you indicated that we have been also looking somewhere on the group and the other segment of you know the sector as well.

[Analyst]: Got it, Ravji. Just to add on to the same. Earlier we had a bit of more targeted segment was the retail. Now, as you indicated that we have been also looking somewhere around the group and the other segment of the sector as well. Where do you see this shaping up in two to three years? I'm not talking about from profitability point of view. Just want to get a view from scalability perspective. Do you see Narayana Health Insurance becoming a prominent player in terms of the other competitors as well for the health insurance sector?

[Analyst 2]: Got it, Ravji. Just to add on to the same. Earlier we had a bit of more targeted segment was the retail. Now, as you indicated that we have been also looking somewhere around the group and the other segment of the sector as well. Where do you see this shaping up in two to three years? I'm not talking about from profitability point of view. Just want to get a view from scalability perspective. Do you see Narayana Health Insurance becoming a prominent player in terms of the other competitors as well for the health insurance sector?

Speaker #3: Yeah, so my question was more to Ravi on the insurance side, right? Ravi was explaining in earlier participants' calls where the insurance business is having a….

[Analyst]: Hi.

Operator: Om, go ahead.

[Analyst]: Hi. Yeah. My question was more to Ravi on this insurance side, right? Ravi was explaining in earlier participants call where the insurance business is having.

Speaker #1: Om, sorry to interrupt. The audio is not clear. Can you speak a little louder?

Operator: Om, sorry to interrupt. Your audio is not clear. Can you speak little louder?

Speaker #4: Where do you see this shaping up in in two to three years? I'm not talking about from profitability point of view just want to get a view from scalability perspective do you see you know Narayana Health Insurance becoming a prominent player in terms of you know the other competitors as well for the health insurance sector?

Speaker #3: Am I audible now? Yeah. So my question was mainly to Ravi, regarding insurance having an impact on the overall profitability as of now.

[Analyst]: Am I audible now?

Operator: Yes.

[Analyst]: Yeah. My question was mainly to Ravi with regarding to insurance having an impact on the overall profitability as of now playing. Ravi was explaining that for now this will be going a little bit of maybe couple of more quarters, this impact will be. I just wanted to understand from Ravi that how long do you see that the scaling of insurance books will have impact on profitability? By when we expect that will start contributing on this.

Speaker #3: And Ravi was explaining that for now, this will be going on for a little bit, maybe a couple more quarters, this impact will be.

Speaker #3: So I just wanted to understand from Ravi that how long do you see that the scaling of insurance books will have impact on profitability?

[Company Representative] (Narayana): I don't know what you mean by prominent. If you think about the impact that we will have on the lives of our customers and be able to provide an entire integrated approach across everything that our customer requires from a healthcare perspective, then as Narayana Health, I think we'd be very prominent in the life of that customer. That's what we're trying to build. Okay. I think that's our focus. In terms of channels and distribution our focus, I would imagine, would continue to be on those areas where we think we can make the most impact in the life of our customer, which for us at the moment appears to be retail coverage as well as SME.

Ravi Vishwanathan: I don't know what you mean by prominent. If you think about the impact that we will have on the lives of our customers and be able to provide an entire integrated approach across everything that our customer requires from a healthcare perspective, then as Narayana Health, I think we'd be very prominent in the life of that customer. That's what we're trying to build. Okay. I think that's our focus. In terms of channels and distribution our focus, I would imagine, would continue to be on those areas where we think we can make the most impact in the life of our customer, which for us at the moment appears to be retail coverage as well as SME.

Speaker #6: I don't know what you mean by prominent. I mean if you think about the impact that we will have on the lives of our customers and be able to provide an entire integrated approach across everything that that our customer requires from a healthcare perspective then as Narayana Health I think we'd be very very very prominent in the life of that customer.

Speaker #3: And by when do we expect that will start contributing to this?

Speaker #5: Right. I'll attempt to answer that. At this point, we don't make future forecasts. But I think the important thing here is a couple of things.

Ravi Vishwanath: Right. I'll attempt to answer that. At this point we don't make future forecasts. I think the important thing here is a couple of things. As I laid out in the earlier response, there are a number of things that we will continue to do to make sure that the portfolio itself is something that is managed sustainably. That includes a number of things around underwriting and claims, as well as the type of business that we are writing. The nature of insurance business and the way that it is currently accounted is that you are able to book a fraction of your revenue in the period, but you have to book the entire expenses. Growth comes with and does have impact on P&L. These are all things that we look at closely and monitor.

Speaker #6: And that's what we're trying to build. And I think that's our focus. But in terms of you know channels and distribution I our focus I would imagine would continue to be on those areas where we think we can make the most impact in the life of our customer which for us at the moment appears to be retail coverage as well as SME these are areas where there is a lot of people who are left uncovered who for whom having insurance will make a real difference in their life will stop pushing them into you know below the poverty line should they require you know should they be a catastrophe or not be able to access care.

Speaker #5: As I laid out in the earlier response, there are a number of things that we will continue to do to make sure that the portfolio itself is something that is managed sustainably.

Speaker #5: That includes a number of things around underwriting and claims, as well as the type of business that we are writing. The nature of insurance business and the way that it is currently accounted for is that you are able to book a fraction of your revenue in the period, but you have to book the entire— which does have an impact on P&L.

[Company Representative] (Narayana): These are areas where there is a lot of people who are left uncovered for whom having insurance will make a real difference in their life, will stop pushing them into below the poverty line should there be a catastrophe or not be able to access care. That's what we are focused on. In terms of prominence, I don't think we look at it as a market share thing. It's about how can I provide a complete integrated service across clinics, hospitals, and insurance to our customers so that we can be super prominent in their life. If we make that impact And do that over a period to as many people as we can, and then I think we've made a real difference.

Ravi Vishwanathan: These are areas where there is a lot of people who are left uncovered for whom having insurance will make a real difference in their life, will stop pushing them into below the poverty line should there be a catastrophe or not be able to access care. That's what we are focused on. In terms of prominence, I don't think we look at it as a market share thing. It's about how can I provide a complete integrated service across clinics, hospitals, and insurance to our customers so that we can be super prominent in their life. If we make that impact And do that over a period to as many people as we can, and then I think we've made a real difference.

Speaker #6: That's what we are focused on. But in terms of prominence I don't think we look at it as a market share thing. It's about how you know how can I provide a complete integrated service across clinics hospitals and insurance to our customers so that we can be super prominent in their life and if we make that impact and do that over a period you know to as many people as we can then I think we've made a real difference.

Speaker #5: But these are all things that we look at closely and monitor. I think the important thing for us is to have a long-term, sustainable portfolio.

Ravi Vishwanath: I think the important thing for us is to have a long-term sustainable portfolio and over time to engage with our customers across primary care that we provide them as part of the insurance offering and as part of the value-added services so that the entire integrated care approach comes in. We are able to see as a group the value of having hospital clinic insurance together, working with customers to help them get well, stay healthy. That's kind of how we're going to be approaching this. We are obviously very focused on a sustainable business. At this point in time, I think it's given the size of the portfolio, the volatility, it's a little bit too soon to talk about when is it going to get to various levels. It's something that we'll keep working on and keep updating you each quarter.

Speaker #5: And over time, to engage with our customers across primary care, which we provide as part of the insurance offering and as part of the value-added services.

Speaker #4: That's very well. And and and to achieve that we will be strictly sticking to the integrated Narayana integrated ecosystems right. So we are only targeting on that area.

[Analyst]: That's very well. To achieve that, we will be sticking to the Narayana integrated ecosystems, right? We are only targeting on that area. We are not going to pursue this as a separate entity.

[Analyst 2]: That's very well. To achieve that, we will be sticking to the Narayana integrated ecosystems, right? We are only targeting on that area. We are not going to pursue this as a separate entity.

Speaker #5: So that the entire integrated care approach comes in, and we are able to see as a group the value of having hospital, clinic, and insurance together, working with customers to help them get well and stay healthy.

Speaker #4: We are not going to pursue this as a separate entity.

Speaker #6: You are the question that you asked was over a period of time right. So look we are always going to be looking at opportunities and looking at what makes sense.

[Company Representative] (Narayana): The question that you asked was over a period of time, right? Look, we are always going to be looking at opportunities and looking at what makes sense, but the lens is always going to be an overall integrated lens. That is the unique thing that we bring to this market, and that's what we're going to be focusing on. All opportunities, all ideas, new things that we'll invent are all on the table to help us drive that goal.

Ravi Vishwanathan: The question that you asked was over a period of time, right? Look, we are always going to be looking at opportunities and looking at what makes sense, but the lens is always going to be an overall integrated lens. That is the unique thing that we bring to this market, and that's what we're going to be focusing on. All opportunities, all ideas, new things that we'll invent are all on the table to help us drive that goal.

Speaker #5: So that's kind of how we're going to be approaching this. We are, of course, obviously very focused on a sustainable business. At this point in time, given the size of the portfolio and the volatility, it's a little bit too soon to talk about when it is going to get to various levels.

Speaker #6: But the lens is always going to be an you know an overall integrated lens that is the unique thing that we bring to to this we're going to be focusing on.

Speaker #6: You know and all all all opportunities all ideas new things that we'll invent are all on the table to help us drive that goal.

Speaker #5: But it's something that we'll keep working on and keep updating each quarter.

Speaker #3: Got it, Raviji. Just to add on to the same, so earlier we had a bit more of a targeted segment, which was retail. Now, as you indicated, we have also been looking somewhere at the group and the other segments of the sector as well.

[Analyst]: Got it, Raviji. Just to add on to the same. Earlier we had a bit of more targeted segment was the retail. Now, as you indicated, that we have been also looking somewhere on the group and the other segment of the sector as well. Where do you see this shaping up in two to three years? I'm not talking about from profitability point of view. Just want to get a view from scalability perspective. Do you see Narayana Health Insurance becoming a prominent player in terms of the other competitors as well for the health insurance sector?

Speaker #4: Thank you Ravi. All the best.

[Analyst]: Thank you, Raviji. All the best.

[Analyst 2]: Thank you, Raviji. All the best.

Speaker #1: Thank you. Parvan, you may click on the raise hand icon to ask a question. Next follow-up question is from the line of Japreet Singh.

Operator: Thank you. Participants, you may click on the Raise Hand icon to ask the question. Next follow-up question is from the line of Jaspreet Singh.

Speaker #3: Where do you see this shaping up in two to three years? I'm not talking about it from a profitability point of view; I just want to get a view from a scalability perspective.

Speaker #5: But just on the retail OC my will it be better than what we have received in Indian and KML business retail OC will be better than that?

Jaspreet Singh: Just on the UK ROCE. Will it be better than what we have received in India and Cayman business? UK ROCE will be better than that?

[Analyst 1]: Just on the UK ROCE. Will it be better than what we have received in India and Cayman business? UK ROCE will be better than that?

Speaker #3: Do you see Narayana Health Insurance becoming a prominent player compared to other competitors in the health insurance sector?

Speaker #2: Yes. Thank you for your question. We'd like to take the.

Anesh Shetty: Yeah. Jaspreet, thank you for your question.

Speaker #5: I don't know what you mean by 'prominent.' I mean, if you think about the impact that we will have on the lives of our customers, and being able to provide an entire integrated approach across everything that our customer requires from a healthcare perspective, then as Narayana Health, I think we'd be very, very, very prominent in the life of that customer.

Ravi Vishwanath: I don't know what you mean by prominent. If you think about the impact that we will have on the lives of our customers and be able to provide an entire integrated approach across everything that our customer requires from a healthcare perspective, then as Narayana Health, I think we'd be very prominent in the life of that customer. That's what we're trying to build. Okay. I think that's our focus. In terms of channels and distribution, our focus, I would imagine, would continue to be on those areas where we think we can make the most impact in the life of our customer, which for us at the moment appears to be retail coverage as well as SME.

Operator: Sorry to interrupt. Jaspreet, can you please mute your line from your side? Go on.

Speaker #1: Sorry to interrupt. Japreet, can you please mute side? So good.

Speaker #2: Yeah. We'd like to take the UK questions in the second half but since you've asked it's still early days Japreet to answer that question definitively.

Anesh Shetty: Yeah. We'd like to take the UK questions in the second half, since you've asked. It's still early days, Jaspreet, to answer that question definitively. Like we said before, we do perceive a very good opportunity to increase margins disproportionate to the capital we've deployed. It's a country that has a lot of favorable economics in terms of how the business is structured and especially our advantage of being a low-cost provider. To your specific question, it's too early to have a definitive number and a definitive timeline compared to where we are currently.

Speaker #5: And that's what we're trying to build.

Speaker #3: Okay.

Speaker #5: And I think that's our focus. But in terms of channels and distribution, our focus, I would imagine, would continue to be on those areas where we think we can make the most impact.

Speaker #2: But like we said you know before we do perceive a a very good opportunity to increase margins for the capital we have in you know disproportionate to the capital we've deployed.

Speaker #5: In the life of our customer, which for us at the moment appears to be retail coverage, as well as SME, these are areas where there are a lot of people who are left uncovered.

Speaker #2: It's a country that has a lot of favorable economical you know favorable economics in terms of how the business is structured and especially our advantage being a low cost provider.

Ravi Vishwanath: These are areas where there is a lot of people who are left uncovered for whom having insurance will make a real difference in their life, will stop pushing them into below the poverty line should there be a catastrophe or not be able to access care. That's what we are focused on. In terms of prominence, I don't think we look at it as a market share thing. It's about how can I provide a complete integrated service across clinics, hospitals, and insurance to our customers so that we can be super prominent in their life. If we make that impact and do that over a period or to as many people as we can, then I think we've made a real difference.

Speaker #5: Who are the people for whom having insurance will make a real difference in their life—will stop pushing them below the poverty line should there be a catastrophe or should they not be able to access care?

Speaker #2: But to your specific question you know it's too early to have a definitive number and a definitive timeline compared to where we are currently.

Speaker #5: That's what we are focused on. But in terms of prominence, I don't think we look at it as a market share thing. It's about how can I provide a complete, integrated service across clinics, hospitals, and insurance to our customers so that we can be super prominent in their life.

Speaker #5: So a second question is there is a significant increase in our cash equivalent in the balances. Where this cash has come from and where it is going to utilize?

Jaspreet Singh: A second question is, there is a significant increase in our cash equivalent in the balance sheet. Where this cash has come from and where it is going to utilized?

[Analyst 1]: A second question is, there is a significant increase in our cash equivalent in the balance sheet. Where this cash has come from and where it is going to utilized?

Sandhya Jayaraman: Yeah. Jaspreet, you're asking the cash balance that we are holding in the balance sheet, right? You're asking where we are going to deploy that cash, right?

Speaker #2: Yes. Just speak you're asking the cash balance that we are holding in the balance sheet right. You're asking where we are going to deploy that cash right.

Speaker #5: And if we make that impact, and do that over a period to as many people as we can, then I think we've made a real difference.

Speaker #3: That's very well. And to achieve that, we will be strictly sticking to the integrated Narayana ecosystems, right? So we are only targeting that area.

Speaker #5: Yes. Yes.

Jaspreet Singh: Yes.

[Analyst 1]: Yes.

Sandhya Jayaraman: Okay. This will get deployed into the projects that we have committed over the next two years. We've committed INR 3,000 crores. A part of that will be our own contribution and a part of it will be borrowing in nature. We will deploy that cash towards projects.

Speaker #2: Okay. So this will get deployed into the projects that we have submitted over the next two years. We have committed 3000 crores. A part of that will be our own contribution and a part of it will be borrowing in nature.

Speaker #3: We are not going to pursue this as a separate entity.

Speaker #5: The question that you asked was over a period of time, right? So, look, we are always going to be looking at opportunities.

Ravi Vishwanath: The question that you asked was over a period of time, right? Look, we are always going to be looking at opportunities and looking at what makes sense, but the lens is always going to be an overall integrated lens. That is the unique thing that we bring to this market. That's what we're going to be focusing on. All opportunities, all ideas, new things that we'll invent are all on the table to help us drive that goal.

Speaker #2: So we will deploy that cash towards projects.

Speaker #5: And looking at what makes sense. But the lens is always going to be an overall, integrated lens. That is the unique thing that we bring to this market.

Jaspreet Singh: There is significant increase in the cash, from 2025 to 2026. Where this has come from?

Speaker #5: Like where this cash has come there is significant increase in the cash like from 25 to 26. Where this has come from like?

[Analyst 1]: There is significant increase in the cash, from 2025 to 2026. Where this has come from?

Speaker #5: And that's what we're going to be focusing on. All opportunities, all ideas, any new things that we'll invent are on the table to help us drive that goal.

Speaker #2: The cash has entirely come from the performance of the operating business in India and KML.

Sandhya Jayaraman: The cash has entirely come from the performance of the operating business in India and Cayman.

Speaker #3: Thank you, Ravi ji. All the best.

Speaker #5: Okay. Thank you.

Jaspreet Singh: Okay. Thank you.

[Analyst 1]: Okay. Thank you.

[Analyst]: Thank you, Raviji. All the best.

Speaker #1: Thank you. Arzan, you may click on the resend icon to ask a question. The next follow-up question is from Japreet Singh.

Speaker #1: Thank you.

Operator: Thank you.

Operator: Thank you. Participants, you may click on the Raise Hand icon to ask a question. Next follow-up question is from the line of Japjit Singh.

Speaker #2: I think we can take the questions on the chat Neerav and then move to UK. So we can finish off all the India questions on the chat.

Sandhya Jayaraman: I think we can take the questions on the chat, Nirav, and then move to UK so we can finish off all the India questions on the chat.

Speaker #1: Sure ma'am.

Operator: Sure, ma'am.

Speaker #4: There's a question on is your HSR hospital on track and also any plans for expanding presence into North Bangalore? See, HSR is mostly on track.

Nishant Singh: There's a question on, is your SSR Hospital on track, and also any plans for expanding presence into North Bangalore? See, SSR is mostly on track. In terms of the North Bangalore, we have already announced our project for the first round of expansion. Whenever we come to the second round of expansion, this North Bangalore will be one of our priority areas, along with the other parts of Bangalore where we are not present currently. The second question is. India, we've already covered for insurance.

Speaker #2: But just on the UK ROC, will it be better than what we have achieved in India and the Cayman business? The UK ROC will be better than that?

Japjit Singh: Just on the UK ROCE, will it be better than what we have received in India and Cayman business? UK ROCE will be better than that?

Speaker #4: In terms of the North Bangalore we have already announced our projects for the current for the first round of expansion. Whenever we come to the second round of expansion this North Bangalore will be one of our priority areas along with the other other parts of Bangalore where we are not present currently.

Speaker #4: Yeah, Japreet. Yeah, thank you for your question. We'd like to take the—

Ravi Vishwanath: Yeah. Jagjit, thank you for your question. We'd like to take.

Speaker #4: The second question is India we have already covered for insurance.

Speaker #1: Sorry to interrupt. Japreet, can you please mute your line from your side? Please go ahead.

Operator: Sir, sorry to interrupt. Jagjit, can you please mute your line from your side? Go ahead.

Sandhya Jayaraman: Yeah, insurance we've covered.

Speaker #2: India insurance we have covered.

Nishant Singh: There's a question on ALOS. ALOS during Q1 was 4.3. Where do you see it settling down?

Speaker #4: There's a question on ALOS. ALOS during quarter one was 4.3. Where do you see it settling down?

Speaker #4: Yeah, we'd like to take the UK questions in the second half. But since you've asked, it's still early days. Japreet, to answer that question, definitely.

Ravi Vishwanath: Yeah. We'd like to take the UK questions in the second half, but since you've asked. It's still early days, Jagjit, to answer that question definitively. Like we said before, we do perceive a very good opportunity to increase margins disproportionate to the capital we've deployed. It's a country that has a lot of favorable economics in terms of how the business is structured and especially our advantage of being a low-cost provider. To your specific question, it's too early to have a definitive number and a definitive timeline compared to where we are currently.

[Company Representative] (Narayana): Hi, Dr. Rupert here. Our intention is to get it down somewhere between 3.9 and four. That's a journey because that's one of the areas of efficiencies we have been working on for the last couple of quarters. We want to do that. Some of the complexities of the work which we do have a different length of stay. We are trying to balance out all of these things to get to that kind of a number. Overall, the effort across all the hospitals is to reduce the ALOS, but we also have a sizable number of medical patients who require a little bit of a length of stay. It's quite a balance, but we hope to get down to somewhere close to four as soon as possible.

Emmanuel Rupert: Hi, Dr. Rupert here. Our intention is to get it down somewhere between 3.9 and four. That's a journey because that's one of the areas of efficiencies we have been working on for the last couple of quarters. We want to do that. Some of the complexities of the work which we do have a different length of stay. We are trying to balance out all of these things to get to that kind of a number. Overall, the effort across all the hospitals is to reduce the ALOS, but we also have a sizable number of medical patients who require a little bit of a length of stay. It's quite a balance, but we hope to get down to somewhere close to four as soon as possible.

Speaker #6: Has I am Dr. Rupert here. Our intention is to get it down somewhere between 3.9 and 4.

Speaker #4: But like we said before, we do perceive a very good opportunity to increase margins for the capital we have, disproportionate to the capital we've deployed.

Speaker #4: That's a journey because we that's one of the areas of efficiencies we have been working on for the last couple of quarters. And we want to do that.

Speaker #4: It's a country that has a lot of favorable economics in terms of how the business is structured, and especially our advantage being a low-cost provider.

Speaker #4: But some of the complexities of the work which we do do have a different length of stay. So we are trying to balance out all of these things to get to that kind of a number.

Speaker #4: But overall the effort across the all the hospitals is to reduce the ALOS but we also have a sizable number of medical patients who require a little bit of a length of stay.

Speaker #4: But to your specific question, it's too early to have a definitive number and a definitive timeline compared to where we are currently.

Speaker #4: So it's a quite a balance but we hope to get down to somewhere close to 4 as possible. There's a question on the overall losses loss funding for insurance clinic business put together.

Speaker #2: So a second question is: there is a significant increase in our cash equivalents in the balances. Where has this cash come from, and where is it going to be utilized?

Japjit Singh: Second question is, there is a significant increase in our cash equivalent in the balance sheet. Where this cash has come from and where it is going to utilize?

Nishant Singh: There's a question on the overall losses. Loss funding for insurance clinic business put together. This we've already covered.

Speaker #4: This we've already covered.

Speaker #2: Answered.

Sandhya Jayaraman: Answered.

Speaker #4: Yeah. Jaspreet, you're asking about the cash balance that we are holding on the balance sheet, right? You're asking where we are going to deploy that cash, right?

Speaker #4: The rest are mostly for international businesses.

Nishant Singh: The rest are mostly for international businesses.

Sandhya Jayaraman: Yeah. Japjit, you're asking the cash balance that we are holding in the balance sheet, right? You're asking where we are going to deploy that cash, right?

Speaker #2: Yes.

Sandhya Jayaraman: Yes.

Speaker #4: Can you provide some color on the trend in patient transaction volumes across your clinics this quarter?

Nishant Singh: Can you provide some color on the trend in patient transaction volumes across your clinics this quarter?

Speaker #2: Yes, yes.

Speaker #4: Okay, so this will get deployed into the projects that we have committed over the next two years. We have committed ₹3,000 crores. A part of that will be our own contribution, and a part of it will be borrowing in nature.

Japjit Singh: Yes.

Sandhya Jayaraman: Okay. This will get deployed into the projects that we have committed over the next two years. We have committed INR 3,000 crores. A part of that will be our own contribution and a part of it will be borrowing in nature. We will deploy that cash towards projects.

Sandhya Jayaraman: Niri, you want to answer that?

Speaker #2: Are we want to answer that?

Speaker #4: Yes certainly. So I mean in terms of the overall transactions that we have across clinics I mean this is something that continues to be positive.

[Company Representative] (Narayana): Yeah, certainly. In terms of the overall transactions that we have across clinics, this is something that continues to be positive. Just give me a moment and I'll just pull up some of the numbers here for you. Right. In terms of overall transactions, in terms of OP consults, these have grown by about 30% year on year. In the quarter, we did about 66,000 consultations across our clinic network. That is something that has been pretty encouraging. A very high percentage of our customers, again, we're not sharing the exact number, but a very high percentage, well over a significant number of the revenue of the clinics comes from these members. That's been very encouraging. Our clinic business continues to grow. We are opening 2 more clinics this quarter and breaking ground on more later.

Ravi Vishwanathan: Yeah, certainly. In terms of the overall transactions that we have across clinics, this is something that continues to be positive. Just give me a moment and I'll just pull up some of the numbers here for you. Right. In terms of overall transactions, in terms of OP consults, these have grown by about 30% year on year. In the quarter, we did about 66,000 consultations across our clinic network. That is something that has been pretty encouraging. A very high percentage of our customers, again, we're not sharing the exact number, but a very high percentage, well over a significant number of the revenue of the clinics comes from these members. That's been very encouraging. Our clinic business continues to grow. We are opening 2 more clinics this quarter and breaking ground on more later.

Speaker #4: So, we will deploy that cash towards projects.

Speaker #4: Just give me a moment and I'll just pull up the some of the numbers here for you. Right. So in terms of overall transactions in terms of OP consults these have grown to grown by about 30% year on year.

Speaker #2: Like, where has this cash come from? Where is the significant increase in the cash, like from '25 to '26—where has this come from?

Japjit Singh: There is significant increase in the cash from 2025 to 2026. Where this has come from?

Speaker #4: The cash has entirely come from the performance of the operating business in India and came in.

Sandhya Jayaraman: The cash has entirely come from the performance of the operating business in India and Cayman.

Speaker #4: And in the quarter we did about 66,000 consultations. Across our clinic network. So that is something that has been you know pretty encouraging. A very high percentage of our customers again we're not sharing the exact number but a very high percentage well over a significant number.

Speaker #2: Okay, thank you.

Speaker #1: Thank you.

Japjit Singh: Okay. Thank you.

Speaker #4: I think we can take the questions on the chat, Neerav, and then move to the UK. So we can finish off all the India questions on the chat.

Operator: Thank you.

Sandhya Jayaraman: I think we can take the questions on the chat, Nirav, and then move to UK so we can finish off all the India questions on the chat.

Speaker #1: Sure, ma'am.

Speaker #4: Of the revenue of the clinics comes from these members. And so that's been very encouraging. So our clinic business continues to grow we are opening two more clinics this quarter.

Speaker #3: There's a question on: Is your HSR hospital on track? And also, any plans for expanding presence into North Bangalore? See, HSR is mostly on track.

Operator: Sure, ma'am.

Nishant Singh: There's a question on, is your HSR hospital on track, and also any plans for expanding presence into North Bangalore? See, HSR is mostly on track. In terms of North Bangalore, we have already announced our projects for the first round of expansion. Whenever we come to the second round of expansion, North Bangalore will be one of our priority areas, along with other parts of Bangalore where we are not present currently. The second question is insurance. We have already covered for insurance.

Speaker #3: In terms of North Bangalore, we have already announced our projects for the current, for the first round of expansion. Whenever we come to the second round of expansion, North Bangalore will be one of our priority areas, along with other parts of Bangalore where we are not currently present.

Speaker #4: And breaking ground on more later. So you know we are quite excited about the direction of the clinic business is going. Both at a clinic level as well as the support that is providing to the hospital as well as our insurance business.

[Company Representative] (Narayana): We are quite excited about the direction that the clinic business is going, both at a clinic level as well as the support that it's providing to the hospital, as well as our insurance business. The entire integrated story that we've been building for the last couple of years is starting to play out, and we're pretty excited with the direction of that.

Ravi Vishwanathan: We are quite excited about the direction that the clinic business is going, both at a clinic level as well as the support that it's providing to the hospital, as well as our insurance business. The entire integrated story that we've been building for the last couple of years is starting to play out, and we're pretty excited with the direction of that.

Speaker #3: The second question is, regarding India, we have already covered insurance.

Speaker #4: So the entire integrated story that we've been building for the last couple of years is coming you know is starting to play out and we're pretty excited with the direction on that.

Speaker #4: Yes, India insurance we have covered.

Speaker #3: There's a question on ALOS. ALOS during Q1 was 4.3. Where do you see it settling down?

Sandhya Jayaraman: Insurance we have covered.

Nishant Singh: There's a question on ALOS. ALOS during Q1 was 4.3. Where do you see it settling down?

Nishant Singh: This is a question on the domestic market, which Anesh can answer. How do you see competition because every other hospital is adding beds, and why don't you expand your network in states like UP, where organized players like Max, Medanta, Fortis have no presence? Anesh.

Speaker #4: This is a question on the domestic market which Anesh can answer. How do you see competition because every other hospital is adding beds and why don't you expand your network in states like UPPR where organized sales like Max Madanta Fortis has they have no presence.

Speaker #5: As I am Dr. Rupert here, our intention is to get it down to somewhere between 3.9 and 4.

Emmanuel Rupert: Hi, Dr. Rupert here. Our intention is to get it down somewhere between 3.9 and four. That's a journey because that's one of the areas of efficiencies we have been working on for the last couple of quarters. We want to do that. Some of the complexities of the work which we do have a different length of stay. We are trying to balance out all these things to get to that kind of a number. Overall, the effort across all the hospitals is to reduce the ALOS. We also have a sizable number of medical patients who require a little bit of a length of stay. It's quite a balance, but we hope to get down to somewhere close to four as soon as possible.

Speaker #3: That's a journey because that's one of the areas of efficiency we have been working on for the last couple of quarters, and we want to do that.

Speaker #4: Anesh.

Anesh Shetty: Yeah, sure. Thank you. Yeah, sure. Thank you for the question, whoever asked it. We continually evaluate all opportunities in India, especially states that are under-penetrated like you mentioned. Having said that, our focus now with the current wave of capital deployment and expansion is in the clusters where we are already strong, already have an established presence, and we have a track record of delivering and establishing a brand. We have outlined over the next, I think, three years or so, three financial years or so, how that capital deployment will look like. Once we start phase II, following some progress on phase I, we will consider newer markets and newer geographies. We currently do not have a presence in the states mentioned.

Speaker #2: Sure. Thank you. Yeah sure. Thank you for the question. Whoever asked it. We continue to evaluate you know all opportunities in India especially states that are under penetrated like you mentioned.

Speaker #3: But some of the complexities of the work which we do, do have a different length of stay. So we are trying to balance out all of these things to get to that kind of a number.

Speaker #2: Having said that our focus now with the current wave of capital deployment and expansion is in the clusters where we are already strong already have an established presence and we have you know a track record of delivering and establishing a brand.

Speaker #3: But overall, the effort across all the hospitals is to reduce the ALOS, but we also have a sizable number of medical patients who require a little bit longer length of stay.

Speaker #3: So, it's quite a balance, but we hope to get down to somewhere as close to 4 as possible.

Speaker #2: We have outlined over the next I think three years or so three financial years or so how that capital deployment will look like. And once we start phase two following some progress on phase one we will consider newer markets and newer geographies.

Speaker #5: There's a question on the overall loss funding for the insurance clinic business put together. This we've already covered.

Nishant Singh: There's a question on the overall losses. Loss funding for insurance clinic business put together. This we've already covered.

Speaker #4: 21 foot.

Speaker #2: We currently do not have a presence in in the states mentioned.

Sandhya Jayaraman: Answered.

Speaker #5: The rest are mostly for international businesses. Can you provide some color on the trend in patient transaction volumes across your clinics this quarter?

Nishant Singh: The rest are mostly for international businesses.

Sandhya Jayaraman: Yes.

Nishant Singh: Can you provide some color on the trend in patient transaction volumes across your clinics this quarter?

Speaker #4: There's a question which Sander will answer. Is the Q1 FY27 a beta margin decline temporarily due to integration cost or should we consider this the new normal for the consolidated business?

Nishant Singh: There's a question which Sandhya will answer. Is the Q1 FY27 EBITDA margin decline temporary due to integration costs, or should we consider this the new normal for the consolidated business?

Speaker #4: Do we want to answer that?

Sandhya Jayaraman: Naveen, do you want to answer that?

Speaker #5: Yes, certainly. So, I mean, in terms of the overall transactions that we have across clinics, this is something that continues to be positive.

Speaker #2: So I'd like to take this in three parts actually if you look at the India business per se including combining the losses from the clinic business.

Sandhya Jayaraman: I'd like to take this in three parts, actually. If you look at the India business per se, including combining the losses from the clinic business, even if you set that off, the net margin has expanded by 400 bps year on year. There, I think there is no shrinking. In fact, it's a very strong performance. Cayman Hospital has come back to its earlier levels and has been, because of the ramp-up, and is operating at optimal margins. There are three places where there is a cash burn. One is Cayman Insurance, India Insurance. Cayman Insurance we'll speak about when we come to the Cayman segment. India Insurance we've already spoken about, and both of these are in the improving trajectory, and we will definitely be able to recoup margins over a period of time. Similarly for UK.

Ravi Vishwanath: Yeah, certainly. In terms of the overall transactions that we have across clinics, this is something that continues to be positive. Just give me a moment and I'll just pull up some of the numbers here for you. Right. In terms of overall transactions, in terms of OP consults, these have grown by about 30% year on year. In the quarter, we did about 66,000 consultations across our clinic network. That is something that has been pretty encouraging. A very high percentage of our customers, again, we're not sharing the exact number, but a very high percentage, well over a significant number of the revenue of the clinics comes from these members. That's been very encouraging. Our clinic business continues to grow. We are opening two more clinics this quarter and breaking ground on more later.

Speaker #2: Even if you set that off the net margin has expanded by 400 bps year on year. So there I think there is no shrinking.

Speaker #5: Just give me a moment and I'll pull up some of the numbers here for you. Right. So, in terms of overall transactions, in terms of OP consults, these have grown by about 30% year on year.

Speaker #2: In fact it's a very strong performance. KML hospital has come back to its earlier levels and has been because of the ramp up and is operating at optimal margins.

Speaker #5: And in the quarter, we did about 66,000 consultations across our clinic network. So that is something that has been pretty encouraging. A very high percentage of our customers—again, we're not sharing the exact number—but a very high percentage, well over a significant number, of the revenue of the clinics comes from these members.

Speaker #2: There are three places where there is a cash burn. One is KML insurance. India insurance. KML insurance we'll speak about when we come to the KML segment.

Speaker #2: India insurance we've already spoken about and both of these are in the improving trajectory. And we will definitely be able to recoup margins over a period of time.

Speaker #5: And so that's been very encouraging. Our clinic business continues to grow; we are opening two more clinics this quarter and breaking ground on more later.

Speaker #2: Similarly for UK UK has also caused a dilution in the margins. Which again we will speak about when we come to the UK segment.

Sandhya Jayaraman: UK has also caused a dilution in the margins, which again, we will speak about when we come to the UK segment. In all, overall, we are positive that the margin trajectory will be in the upward direction from here, given that all the efforts that we are taking will start to bear fruit in the medium term for us.

Speaker #5: So, we are quite excited about the direction the clinic business is going, both at the clinic level as well as the support that it is providing to the hospital and our insurance business.

Speaker #2: In all overall we are positive that the margin trajectory will be in the upward direction from here. Given that all the efforts that we are taking will start to bear fruit in the medium term for us.

Ravi Vishwanath: We are quite excited about the direction the clinic business is going both at a clinic level as well as the support that it's providing to the hospital as well as our insurance business. The entire integrated story that we've been building for the last couple of years is starting to play out, we're pretty excited with the direction of that.

Speaker #5: So, the entire integrated story that we've been building for the last couple of years is starting to play out, and we're pretty excited with the direction on that.

Speaker #3: Now, this is a question on the domestic market, which Anish can answer. How do you see competition? Because every other hospital is adding beds. And why don't you expand your network in states like UP and Bihar, where organized players like Max have no presence?

Nishant Singh: Somewhat related.

Speaker #4: Still somewhat related.

Nishant Singh: Somewhat related.

Speaker #3: I think Nishant given the time we're making progress let's take questions on the other divisions and where where there's a gap we can take the chat questions as well.

Anesh Shetty: Nishant, given the time, let's take questions on the other divisions, and where there's a gap, we can take the chat questions as well.

Nishant Singh: This is a question on the domestic market to which Anish can answer. How do you see competition because every other hospital is adding beds and why don't you expand your network in states like UP, Bihar where organized players like Max, Medanta, Fortis, they have no presence.

Speaker #4: Sure.

Nishant Singh: Sure. Thank you. Next follow-up question is from the line of Prithviraj. Please go ahead.

Speaker #4: Yeah, thank you. Yeah, sure. Thank you for the question, whoever asked it. We continue to evaluate all opportunities in India, especially states that are under-penetrated, like you mentioned.

Speaker #3: Thank you. Next follow up question is from the line of Prithviraj. Please go ahead.

Anesh Shetty: Yeah, sure. Thank you for the question, whoever asked it. We continue to evaluate all opportunities in India, especially states that are under-penetrated, like you mentioned. Having said that, our focus now with the current wave of capital deployment and expansion is in the clusters where we are already strong, already have an established presence, and we have a track record of delivering and establishing a brand. We have outlined over the next, I think three years or so, three financial years or so, how that capital deployment will look like. Once we start phase II, following some progress on phase I, we will consider newer markets and newer geographies. We currently do not have a presence in the states mentioned.

Speaker #4: Having said that, our focus now, with the current wave of capital deployment and expansion, is on the clusters where we are already strong, already have an established presence, and have a track record of delivering and establishing a brand.

Speaker #4: Yeah.

[Analyst] (Unifi Capital): Yeah. Anesh, moving on to Cayman and UK. If you look at the insurance business in Cayman, I mean, it's good to see that quarterly losses have come down on sequential basis. However, in the last call, you mentioned that one-third of the contracts will get repriced starting from July. Can we assume that we are behind worse for Cayman Insurance losses and it should start improving significantly as this repricing starts kicking in in July and Jan? Should we look at break-even anytime soon?

Prithvi Raj: Yeah. Anesh, moving on to Cayman and UK. If you look at the insurance business in Cayman, I mean, it's good to see that quarterly losses have come down on sequential basis. However, in the last call, you mentioned that one-third of the contracts will get repriced starting from July. Can we assume that we are behind worse for Cayman Insurance losses and it should start improving significantly as this repricing starts kicking in in July and Jan? Should we look at break-even anytime soon?

Speaker #2: Anesh you know moving on to KML and UK if you look at the insurance business in KML I mean it's good to see that quarterly losses have come down on sequential basis.

Speaker #2: But however in the last call you mentioned that one third of the contracts will get repriced starting from July. So can we assume that we are behind words for KML insurance losses and it should start improving significantly at this repricing starts kicking in in July and Jan.

Speaker #4: We have outlined, with an exciting three years or so—three financial years or so—how that capital deployment will look like. And once we start phase two, following some progress on phase one, we will consider newer markets and newer geographies.

Speaker #4: We currently do not have a presence in the states mentioned.

Speaker #2: And should you look at break even anytime soon?

Speaker #3: Yeah thanks Prithvi. So on the exercise of renewals in July where very happy to note that we had a 100% acceptance and renewal rate which is quite unusual.

Anesh Shetty: Yeah. Thanks, Prithvi. On the exercise of renewals in July, we're very happy to note that we had a 100% acceptance and renewal rate, which is quite unusual for a new insurer. That means we're confident that people are happy with what we're offering. They're happy to accept the price increases to a more sustainable level, and we're confident we'll have a similar result in the January cycle as well. That cycle has gone on successfully. It's not reflected in the quarter results, you're seeing, because that kicks in from July, but it will be in the Q2 cycle. Having said that, to your question, yes. You will always have some abnormal swings in some quarters in insurance because you can have a few large claims here and there.

Speaker #3: There's a question which Sander will answer. Is the Cuban FI27 EBITDA margin declined temporarily due to integration costs, or should we consider this the new normal for the consolidated business?

Nishant Singh: There's a question which Sandhya will answer. Is the Q1 FY-27 EBITDA margin decline temporary due to integration costs, or should we consider this the new normal for the consolidated business?

Speaker #3: For a for a new insurer. So that means we're confident that people are happy with what we're offering. They're happy to accept the price increases to a more sustainable level.

Speaker #4: So I'd like to take this in three parts, actually. If you look at the India business per se, including combining the losses from the clinic business—even if you set that off—the net margin has expanded by 400 bps year on year.

Speaker #3: And we're confident we'll have a similar result in the January cycle as well. So those that cycle has gone on successfully. And it's not reflected in the quarter results you're seeing because that kicks in from from July.

Sandhya Jayaraman: I'd like to take this in three parts, actually. If you look at the India business per se, including combining the losses from the clinic business, even if you set that off, the net margin has expanded by 400 basis points year-on-year. There, I think, there is no shrinking. In fact, it's a very strong performance. Cayman Hospital has come back to its earlier levels and has been, because of the ramp-up, and is operating at optimal margins. There are three places where there is a cash burn. One is Cayman Insurance, India Insurance. Cayman Insurance we'll speak about when we come to the Cayman segment. India Insurance we've already spoken about, both of these are in the improving trajectory, and we will definitely be able to recoup margins over a period of time. Similarly, for UK.

Speaker #4: So there, I think there is no shrinking. In fact, it's a very strong performance. Cayman Hospital has come back to its earlier levels and has been because of the ramp-up and is operating at optimal margins.

Speaker #3: But it will be in in the Q2 cycle. Having said that to your question yes you know in you will always have some abnormal swings in in some quarters in insurance because you can have a few large claims here and there.

Speaker #4: There are three places where there is a cash burn. One is Cayman Insurance, India Insurance. Cayman Insurance, we'll speak about when we come to the Cayman segment.

Speaker #3: But if you look at a rolling two or three quarters basis we would agree with you that our intention is fully to see that the worst is behind us in the previous previous quarter.

Anesh Shetty: If you look at a rolling two or three quarters basis, we would agree with you that our intention is fully to see that the worst is behind us in the previous quarter, barring some abnormal swing that could happen with a few large claims for some complex cases. I think we agree with your conclusion.

Speaker #4: India insurance, we've already spoken about. Both of these are on an improving trajectory, and we will definitely be able to recoup margins over a period of time.

Speaker #3: Barring some abnormal swing that could happen with a few large claims for some complex cases. But I think we we agree with with your conclusion.

Speaker #4: Similarly, for the UK, the UK has also caused a dilution in the margins, which again we will speak about when we come to the UK segment.

Speaker #4: And moving on to the KML hospitals. I mean the growth this quarter in USA terms is a bit soft in a size 6 percentage.

[Analyst] (Unifi Capital): Moving on to the Cayman Hospital, I mean, the growth this quarter in USD terms is a bit soft at 5% to 6%. The whole point of getting into insurance is that it will also add more footfalls to the hospitals. Is there any specific reason for this low growth in Cayman Hospitals this quarter, or is it more to do with a couple of surgeries getting delayed, which explains this?

Prithvi Raj: Moving on to the Cayman Hospital, I mean, the growth this quarter in USD terms is a bit soft at 5% to 6%. The whole point of getting into insurance is that it will also add more footfalls to the hospitals. Is there any specific reason for this low growth in Cayman Hospitals this quarter, or is it more to do with a couple of surgeries getting delayed, which explains this?

Speaker #4: Overall, we are positive that the margin trajectory will be in the upward direction from here, given that all the efforts we are taking will start to bear fruit in the medium term for us.

Speaker #4: So the whole point of getting into insurance is that you know it will also add more footfalls to the hospitals. So you know is there any specific reason for this low growth in KML hospitals this quarter or it's more to do with couple of surgeries getting delayed which explains this.

Sandhya Jayaraman: UK has also caused a dilution in the margins, which again, we will speak about when we come to the UK segment. Overall, we are positive that the margin trajectory will be in the upward direction from here, given that all the efforts that we are taking will start to bear fruit in the medium term for us.

Speaker #3: So you know deeply it is a it is a softer quarter. Having said that if you look at the volume metrics we are seeing healthy double digit increase in our whether we see year on year discharges or outpatient footfall etc.

Anesh Shetty: Seasonally, it is a softer quarter. Having said that, if you look at the volume metrics, we are seeing a healthy double-digit increase in our, whether we see year-on-year discharges or outpatient footfall, et cetera. A lot of it is because of the integrated care strategy playing out. Having said that, we do look forward to the growth being a little more in the hospital end. As you said, which should result from the insurance company growing. The insurance company is not small anymore. It's looking at a $60 million annualized book of business. That should be empowering at least a little better growth trajectory in the hospitals for a few quarters to come. Q1 is a seasonally slower quarter given the holidays. We're happy with what we're seeing in the early months of July and August.

Speaker #5: Then somewhat related.

Speaker #2: I think Nishant,

Speaker #3: Given the time, we're making progress. Let's take questions on the other divisions, and where there's a gap, we can take the chat questions as well.

Nishant Singh: Still, somewhat related.

Speaker #5: Sure.

Anesh Shetty: Nishant, given the time we're making progress.

Speaker #3: A lot of it is because of the integrated care strategy playing out. Having having said that we do you know look forward to the growth being a little more in the hospital end as you said which which should result from the insurance company growing.

Nishant Singh: Sure

Anesh Shetty: I'm thinking let's take questions on the other divisions, and where there's a gap, we can take the chat questions as well.

Speaker #2: Thank you. Next follow-up question is from the line of Prithvi Ranj. Please go ahead.

Nishant Singh: Sure.

Speaker #3: The insurance company is not small anymore. I mean it's you know looking at a 60 million annualized book of business. So that should be empowering at least you know a little better growth trajectory in the hospitals for some for a few quarters to come.

Speaker #3: Yeah, Anish, you know, moving on to Cayman and the UK, if you look at the insurance business in Cayman, I mean, it's good to see that quarterly losses have come down on a sequential basis.

Operator: Thank you. Next follow-up question is from the line of Prithviraj. Please go ahead.

[Analyst] (InCred Equities): Yeah. Anesh, moving on to Cayman and UK. If you look at the insurance business in Cayman, it's good to see that quarterly losses have come down on sequential basis. However, in the last call, you mentioned that one-third of the contracts will get repriced starting from July. Can we assume that we are behind worse for Cayman insurance losses, it should start improving significantly as this repricing starts kicking in in July and January? Should we look at break-even anytime soon?

Speaker #3: However, in the last call, you mentioned that one-third of the contracts will get repriced starting from July. So, can we assume that we are on track for Cayman insurance losses and that things should start improving significantly as this repricing starts kicking in in July and January? And should we look at break-even anytime soon?

Speaker #3: But Q Q1 is a seasonally slower quarter given given the holidays. But we're happy with what we're seeing in the early months of you know July and August.

Speaker #4: So one final question on UK business. I mean you know surprising to see that losses going up considerably in this quarter on sequential basis.

[Analyst] (Unifi Capital): One final question on UK business. Surprising to see that losses going up considerably in this quarter on sequential basis, even there has been a revenue decline. What's happening there? One, obviously this quarter. Second, how is the entire traction? Are you people able to take control of the business and the change in payer mix or the initiatives that you wanted to take, how is everything going on there?

Prithvi Raj: One final question on UK business. Surprising to see that losses going up considerably in this quarter on sequential basis, even there has been a revenue decline. What's happening there? One, obviously this quarter. Second, how is the entire traction? Are you people able to take control of the business and the change in payer mix or the initiatives that you wanted to take, how is everything going on there?

Speaker #2: Yeah, thanks, Prithvi. So, on the exercise of renewals in July, we're very happy to note that we had a 100% acceptance and renewal rate, which is quite unusual.

Speaker #4: And even it has been a revenue decline. So what's happening there you know one obviously this quarter. Second how is the entire traction you know are you people able to take control of the business and you know the change in payer mix or the initiatives that you wanted to take?

Anesh Shetty: Yeah. Thanks, Prithvi. On the exercise of renewals in July, we're very happy to note that we had a 100% acceptance and renewal rate, which is quite unusual for a new insurer. That means we're confident that people are happy with what we're offering. They're happy to accept the price increases to a more sustainable level, we're confident we'll have a similar result in the January cycle as well. That cycle has gone on successfully. It's not reflected in the quarter results you're seeing because that kicks in from July, but it will be in the Q2 cycle. Having said that, to your question, yes. You will always have some abnormal swings in some quarters in insurance because you can have a few large claims here and there.

Speaker #2: For a new insurer. So that means we're confident that people are happy with what we're offering. They're happy to accept the price increases to a more sustainable level.

Speaker #4: How how is everything going on there?

Speaker #3: Yeah. So to your first question on a you know there will always be seasonal variation. But on a year on year basis which we will have to compare to the period prior to acquisition.

Anesh Shetty: Sure. To your first question on, there will always be seasonal variation, but on a year-on-year basis, which we have to compare to the period prior to acquisition, there is about a 5% year-on-year revenue growth. It would have been higher. However, as you would have read in the media, there was a widespread heat wave, which was very severe all across the country. Critical infrastructure, not only hospitals, but railway operators, and other infrastructure, was significantly impacted. For us, what that meant is the chillers and air conditioning units in the hospitals conking off quite often, and we lost several days of operating capacity, which, in a business with a baseline low margin can be quite catastrophic. We unfortunately had some of those heat wave impacted days even in Q2.

Speaker #2: And we're confident we'll have a similar result in the January cycle as well. So that cycle has gone on successfully, and it's not reflected in the quarter results you're seeing because that kicks in from July.

Speaker #3: It is about a 5% year on year revenue growth. It would have been higher. However as you would have read in the media there was a widespread heat wave which is very severe all across the country.

Speaker #2: But it will be in the Q2 cycle. Having said that, to your question, yes, you know, you will always have abnormal swings in some quarters in insurance because you can have a few large claims here and there.

Speaker #3: Critical infrastructure not only hospitals but railway operators and other infrastructure was significantly impacted. For us what that meant is the chillers and air conditioning units in the hospitals conking off quite often.

Speaker #2: But if you look at it on a rolling two- or three-quarter basis, we would agree with you that our intention is fully to see that the worst is behind us in the previous quarter.

Speaker #3: And we lost several days of operating capacity which you know in a business with a baseline low margin can be quite catastrophic. So we unfortunately have some of those heat wave impacted days even in Q2.

Speaker #2: Barring some abnormal swing that could happen with a few large claims for some complex cases. But I think we agree with your conclusion.

Speaker #3: Hopefully towards the mid and end of Q2 you know we you know the season changes and we think that's the worst is behind us.

Anesh Shetty: Hopefully towards the mid and end of Q2, the season changes, and we think that the worst is behind us. This is definitely something that hit us pretty bad. Hopefully it will be a one-off. We do have experience through Cayman and India of operating hospitals in much hotter climates with higher humidity. We look to incorporate and strengthen our systems, especially around the HVAC and chillers, to be able to be more resilient to these things. It will take some time. To the second part of your question around how the business is generally going. I think we are fairly positive with what we are seeing. The team is doing a great job. The integration is progressing well. We have finished almost all of the separation from the erstwhile parent. We only bought a division that was a very big time-consuming transition exercise, which is complete.

Speaker #3: And moving on to the Cayman hospitals, I mean, the growth this quarter in USD terms is a bit soft, in the 5–6% range.

Speaker #3: But this is definitely something that hit us pretty pretty bad. But hopefully it will be a one off. We do have experience through KML and India of operating hospitals in much hotter climates with higher humidity.

Speaker #3: So the whole point of getting into insurance is that, you know, it will also add more footfalls to the hospitals. So, is there any specific reason for this low growth in Cayman hospitals this quarter, or is it more to do with a couple of surgeries getting delayed, which explains this?

[Analyst] (InCred Equities): Moving on to the Cayman hospitals. The growth this quarter in USD terms is a bit soft in at 5%, 6%. See, the whole point of getting into insurance is that it will also add more footfalls to the hospitals. Is there any specific reason for this low growth in Cayman hospitals this quarter, or it's more to do with a couple of surgeries getting delayed, which explains this?

Speaker #3: We look to incorporate and strengthen our systems especially around the HVAC and and chillers to be able to be more to be more resilient to these swings.

Speaker #3: It will take some time. To your the second part of your question around how the business is generally going. I think we you know we're we're fairly positive with what we're seeing.

Speaker #4: So, you know, feasibly, it is a softer quarter. Having said that, if you look at the volume metrics, we are seeing a healthy double-digit increase in our—whether we see year-on-year discharges or outpatient footfall, et cetera.

Speaker #3: The team is the team is doing a great job. The integration is progressing well. We have finished all almost all of the separation from the erstwhile parent.

Anesh Shetty: Seasonally, it is a softer quarter. Having said that, if you look at the volume metrics, we are seeing a healthy double-digit increase whether we see year-on-year discharges or outpatient footfall, et cetera. A lot of it is because of the integrated care strategy playing out. Having said that, we do look forward to the growth being a little more in the hospital end, as you said, which should result from the insurance company growing. The insurance company is not small anymore. We're looking at a INR 60 million annualized book of business. That should be empowering.

Speaker #3: You know we only bought a a division that was a very big time consuming transitional exercise which is complete. We now have all hands on deck towards our transformation plan and our implementation of our software our synergies.

Speaker #4: A lot of it is because of the integrated care strategy playing out. Having said that, we do, you know, look forward to the growth being a little more in the hospital end, as you said, which should result from the insurance company growing.

Anesh Shetty: We now have all hands on deck towards our transformation plan and our implementation of our software, our synergies. We continue to be positive with what we are seeing. It is going to take a little time because the certification regulatory timelines around our software products is a little longer than we expected. With the opportunity that we now have scoped out, compared to what we theoretically imagined pre-acquisition, the two are very close, and we continue to be positive on the mid to long-term direction of that business.

Speaker #3: We continue to be positive with what we're seeing. It's going to take you know a little time because to the the certification regulatory timelines around our software products is a little longer than we expected.

Speaker #4: The insurance company is not small anymore. I mean, it's, you know, looking at a 60 million annualized book of business. So that should be empowering at least.

Speaker #3: But with the opportunity that we now have scoped out compared to what we theoretically imagined pre acquisition the two are very close and we continue to be positive on the mid mid to long term direction of that of that business.

Speaker #4: Right. Thanks. That's all from my side.

[Analyst] (Unifi Capital): Okay, sir. That is all from my side.

Prithvi Raj: Okay, sir. That is all from my side.

Speaker #2: Thank you. Next question is from the line of Jyotish. Kindly announce your company name and proceed with your question.

Operator: Thank you. Next question is from the line of Jyotish. Kindly announce your company name and proceed with your question.

Speaker #4: Hi. Am I audible? Hi team. So my question on the international business side. So did the international business witness any sequential margin pressure in Q1 fiscal 27 compared to the Q4 fiscal 26?

[Analyst]: Am I audible?

[Analyst 3]: Am I audible?

Operator: Yes, go ahead.

[Analyst]: Hi, team. My question on the international business side. Did the international business witness any sequential margin pressure in Q1 fiscal 2027 compared to the Q4 fiscal 2026? If yes, what were the key drivers?

[Analyst 2]: Hi, team. My question on the international business side. Did the international business witness any sequential margin pressure in Q1 fiscal 2027 compared to the Q4 fiscal 2026? If yes, what were the key drivers?

Speaker #4: And if yes what were the key drivers?

Speaker #3: So Jyotish thanks for your question. Let's take KML separately because I think that's the the relevant one for for your question. You know Q1 compared to Q4 is the weakest quarter compared to the strongest quarter seasonally.

Anesh Shetty: Sure, Jyotish. Thanks for your question. Let's take Cayman separately because I think that's the relevant one for your question. Q1 compared to Q4 is the weakest quarter compared to the strongest quarter seasonally. Yes, there was a revenue decline sequentially, but the revenue growth year-on-year, if you look at it. For the hospital business, where the bulk of the margin, the profitability comes from, a revenue decline will have some softening of the margins. Insurance, which is still a growing business sequentially, we had a meaningful reduction in the losses, quarter-on-quarter. Year-on-year will not be comparable in insurance because the size of the book almost 3x year-on-year. Quarter-on-quarter, there was a reduction from approximately $5.2 million for the quarter in insurance losses to about $3.7 now. Nishant, Yeah, we have Rajit, then we can take some from the chat.

Speaker #3: So yes there was a revenue decline sequentially but the revenue growth year on year if you look at it. For the hospital business where the bulk of the margin the profitability comes from a revenue decline will have some softening of of the margins.

Speaker #3: Insurance which is still a growing business sequentially we had a meaningful reduction in the losses. Quarter on quarter. Year on year will not be comparable in insurance because the size of the book almost 3x year on year.

Speaker #3: But quarter on quarter there was a reduction from approximately 5.2 million for the quarter in insurance losses to about 3.7 now. Nishant do you yeah we have Rajit and then we can take some from the chat.

Speaker #2: Thank you. Next follow up is from the line of Rajit Agarwal. Kindly go ahead with your question.

Operator: Thank you. Next follow-up is from the line of Rajit Aggarwal. Kindly go ahead with your question.

Rajit Aggarwal: Hi. You did mention that technology certification, et cetera, you have initiated at UK. Apart from that, any other specific steps that you could share that you are looking at or you might have undertaken? Anything towards change in payer mix or maybe rationalizing HR costs or anything of that kind?

Speaker #5: Hi. So you did mention that technology certification etc. you have initiated at UK. But apart from that any other specific steps that you could share that you are looking at or you might have undertaken?

Speaker #5: Anything towards change in payer mix or maybe rationalizing HR costs or anything of that kind?

Speaker #3: Yeah absolutely. So let's do it in two buckets Rajit. The cost and revenue. So on the cost side you know pretty much what we started in in in NH in India about I would say 15 years ago.

Anesh Shetty: Yeah, absolutely. Let's do it in two buckets, Rajit, the cost and revenue. On the cost side, pretty much what we started in NH in India about, I would say, 15 years ago. Standardizing the variation in implants, consumables, drugs, consolidating purchasing power to a few global vendors and getting those benefits. That process is playing out well. Standardizing output and bill of materials for each procedure. Engaging with consultants to understand if they're aligned with a productivity-focused model rather than more of a time-spent model, which can be at cross-purposes. At the same time, when we look at the cost side and the non-clinical aspects, the entire non-clinical, that is the admin overhead, is a large chunk where automation does translate into meaningful reductions in effort and cost. We've already started a lot of that. The thing with our software platform is it's modules.

Speaker #3: So standardizing the variation in implants consumables drugs you know consolidating purchasing power to a few global vendors and getting those those benefits. That process is playing out well.

Speaker #3: Standardizing output and bill of materials for each procedure. Engaging with consultants to understand if they're aligned with the productivity focused model rather than more of a time spent model which can can be a cross purposes.

Speaker #3: At the same time when we look at the cost side on the non clinical aspects the entire non clinical that is the admin overhead is is a large chunk where automation you know does translate into meaningful reductions in in effort and cost.

Speaker #3: We've already started you know a lot of that. The thing with our software platform is it's it's modules. It's not one day the old system switches off and the next day the new system switches on.

Anesh Shetty: It's not one day the old system switches off and the next day the new system switches on. Every quarter or so, one will pass certification, we will deploy, there will be a quarter or two of settling in, and then the benefits kick in. With each and every administrative process, whether it is submitting an invoice, processing payroll, closing a purchase order. With every administrative process, we have identified concrete steps to reduce the number of touch points and the number of steps and costs it takes to fulfill that process. It does take time, and this is in line with our diligence and our thesis pre-acquisition. On the revenue side, our biggest goal was changing the payer mix from a predominantly NHS-oriented payer mix to something more balanced, which had private sources of revenue, which are self-pay and PMI, which is essentially private insurance.

Speaker #3: You know every quarter or so one will pass certification. We will deploy. There will be a quarter or two of settling in and then the benefits kick in.

Speaker #3: But with each and every administrative process whether it is submitting an invoice processing payroll you know closing a a purchase order. With every administrative process we have identified concrete steps to reduce the number of touch points and the number of steps and costs it takes to fulfill that process.

Speaker #3: But it it it does take time. And this is in line with our diligence and our thesis pre pre acquisition. On the revenue side our our biggest goal was changing the payer mix from a predominantly NHS oriented payer mix to something more balanced which had private sources of revenue which are self pay and PMI which is essentially private insurance.

Speaker #3: We have made progress there. The business is private contribution while still low very low compared to peers. Compared to the business itself is at a historical all time high.

Anesh Shetty: We have made progress there. The business's private contribution, while still low, very low compared to peers, compared to the business itself, is at an historical all-time high. It's never had this proportion of private revenue sources. Still early days. It's only been, I would say, two solid quarters of us owning the business. We continue to invest in those relationships, and it's very aligned with what the private insurers are looking for. They are desperate to look for providers that are focused on controlling costs, whereas that's not necessarily been an option for them. They've usually had quite a fraught relationship with the other providers, whereas we are coming out and saying that our goal is to control costs and lower costs.

Speaker #3: It's never had disproportion of private revenue sources. But still early days it's only been I would say two solid quarters of of us owning the business.

Speaker #3: We continue to invest in those relationships and the it's it's very aligned with what the private insurers are looking for. They are desperate to look for providers that are focused on controlling costs whereas that's not necessarily been you know an option for them.

Speaker #3: They've usually been had quite a fraught relationship with with the other providers whereas we are coming out and saying that our goal is to control costs and lower costs.

Speaker #3: So this is very aligned with the private insurers and they are actively and definitely encourage being very encouraging to our plans and helping us build out the private book of business.

Anesh Shetty: This is very aligned with the private insurers, and they are actively and definitely being very encouraging to our plans and helping us build out the private book of business. I hope that was helpful, Rajit. Yeah.

Speaker #3: I hope that was helpful Rajit. Yeah.

Speaker #5: Yeah that's very helpful. Just one small thing. I mean earlier you used to give out a breakup of numbers with UK without UK which is not there now.

Rajit Aggarwal: Yeah, that's very helpful. Just one small thing. Earlier you used to give out a breakup of numbers with UK, without UK, which is not there now. Can we expect that to see going forward?

Speaker #5: So can we expect that to see going forward?

Speaker #3: Sandhya I think that I think that is derived but Sandhya you want to take that.

Anesh Shetty: Sandhya, I think that is derived, but Sandhya, you want to take that?

Speaker #4: Yeah because we have given the UK numbers separately so without UK we'll be you just have to reduce remove them from the numbers we've reported because I think this is getting very complex.

Sandhya Jayaraman: Yeah, because we have given the UK numbers separately. Without UK, you just have to remove them from the numbers we reported.

Rajit Aggarwal: Sure.

Sandhya Jayaraman: Because that's why it is getting very complex. If you have any questions, you can always reach out to our team and we'll be very happy to clarify.

Speaker #4: But if you have any questions you can always reach out to our team and we'll be very happy to clarify.

Speaker #5: No I did reach out last time as well. I mean I just wanted to know I mean if if it if I reach out to you would you be able to give me those the number the breakup of the numbers like you used to present earlier?

Rajit Aggarwal: No, I did reach out last time as well. I just wanted to know if I reach out to you, would you be able to give me the breakup of the numbers like you used to present earlier?

Speaker #4: Yes with and without UK we can share.

Sandhya Jayaraman: Yes. With and without UK, we can share.

Speaker #5: Okay okay I'll reach out. Thank you so much.

Rajit Aggarwal: Okay. I'll reach out. Thank you so much.

Speaker #2: Thank you. So we can go on to the chat questions.

Operator: Thank you. We can move on to the chat questions.

Speaker #3: Nishant you want to screen and run through what we've answered or how do you want to go?

Anesh Shetty: Nishant, you want to screen and run through what we've answered or how do you want to go about it?

Speaker #5: Yeah so there are a couple of questions on India as well. There's a question on any plans to reduce debt or will it be maintained at these levels?

Nishant Singh: Yeah. There are a couple of questions on India as well. There's a question on any plans to reduce debt or will it be maintained at these levels? See, the debt equity ratio and the debt levers ratios are not very high even now. Our net debt to EBITDA still doesn't run. These debt numbers will go up as the project construction picks up pace, which will be for the next two, three years. By FY30, you would expect these numbers to come down to even lower levels than what it is currently. There's a question on would you be thinking of entering into other European markets or USA, Canada in the next two, three years? Anesh, do you want to-

Speaker #5: See that debt equity ratio and the debt leverage ratios are not very high even now. Our net debt to beta is is still less than one.

Speaker #5: These numbers still debt numbers will go up as the project construction picks up pace which will be for the next two three years. But by FY30 you would expect these numbers to come down to even lower levels than than what it is currently.

Speaker #5: There's a question on would you be thinking of entering into other European markets like European European markets or USA Canada in the next two three years?

Speaker #5: Anesh.

Anesh Shetty: We have our hands full with what we've started.

Speaker #3: We have a we have a handful with what we started. Yeah.

Speaker #5: Okay. So one question on UK which we've already covered for a bit but there's a question related question who are the closest comparative hospitals in the UK business?

Nishant Singh: Okay. One question on UK, which you've already covered for EBITDA, but there's a related question. Who are the closest comparative hospitals in the UK business?

Speaker #3: Yeah in order of size that would be Spire that's the only publicly listed one. The other one is Your Health sorry Circle which is owned by Pure Health and there's Ramsey Nafeel which is a not for profit.

Anesh Shetty: In order of size, that would be Spire. That's the only publicly listed one. The other one is PureHealth. Sorry, Circle, which is owned by PureHealth. There's Ramsay, Nuffield, which is a not-for-profit, and then us.

Speaker #3: And then us. HC of course which is very London based so the economics are completely different. But the others would be suitable comparative.

Nishant Singh: Right.

Anesh Shetty: HCA, of course, which is very London-based, so the economics are completely different. The others would be suitable comparatives.

Speaker #5: So there's a question on India in the console financials. There's a jump in professional fees paid to doctors from INR 244 crores in Q4 26 to INR 327 crores in Q1 FY27 without increase in volumes.

Nishant Singh: There's a question on India in the consort financials. There's a jump in professional fees paid to doctors from INR 244 crores in Q4 FY2026 to INR 327 crores in Q1 FY2027 without increase in volumes. What is the reason for this increase? Is there some one-time element to it? Sandhya, if you'd like to answer.

Speaker #5: What is the reason for this increase? Is there some one time element to it? Sandhya if you'd like to answer.

Speaker #4: Yeah. So actually in Q4 we had a reclass in the Cayman Professional fees where the fees to doctors was accounted in the profession and fees line instead of the employee cost line.

Sandhya Jayaraman: Actually in Q4, we had a reclass in the claimant professional fees, where the fees to doctors was accounted in the professional fees line instead of the employee cost line. That got reclassed, which means the professional fees for that quarter ended up being negative. When we booked the Q1, so that's why you are having that difference. The actual cost has not gone up at all. It is actually flat between the quarters. It is because of the reclass entry that we passed from one line to another that you are seeing that difference.

Speaker #4: So that got reclassed which means the professional fees for that quarter ended up being negative. And when we booked the Q1 in the so that's why you're having that difference.

Speaker #4: The actual cost has not gone up at all. It is actually flat between the quarters. It is because of the reclass entry that we passed from one line to another that you are seeing that difference.

Speaker #5: Thanks Sandhya. Anesh there's a related question to it's a follow up question to your answer last. Can you elaborate what you mean by longer regulatory approval timelines for the own software products?

Nishant Singh: Thanks, Sandhya. Anesh, there's a related question. It's a follow-up question to your answer last. Can you elaborate what you mean by longer regulatory approval timelines for the own software products?

Speaker #3: Sure. So to deploy software in in the UK medical software it frequently gets classified depending on how you use it as software as a medical device which has a certification timeline.

Anesh Shetty: Sure. To deploy software in the UK, medical software, it frequently gets classified, depending on how you use it, as software as a medical device, which has a certification timeline. We knew that there were certain regulatory and data privacy processes to go through pre-acquisition, but we did not have the details about how our software would be classified. Having said that, I think it adds about, I'm going to be approximate here, but four to six months in terms of timeline to what we initially anticipated. It's a one-time effort, and the advantage it gives us is there are very few products at our scale that have all the classifications to be used as software as a medical device in the UK.

Speaker #3: We knew that there were certain regulatory and data privacy processes to go through pre acquisition but we did not have the details about how our software would be classified.

Speaker #3: Having said that I think it adds about I'm going to be approximate here about four to six months in terms of timeline to what we initially anticipated.

Speaker #3: But it's a one time effort and the advantage it gives us is there are very few products at our scale that have all the classifications to be used as software as a medical device in the UK.

Speaker #5: Thanks Anesh. There's a question on the UK business being showing high dependence on the NHS contracts. And what do you how do you say what it covered?

Nishant Singh: Thanks, Anesh. There is a question on the UK business showing high dependence on the NHS contracts.

Anesh Shetty: Yes.

Nishant Singh: Aren't you already covered? Yeah.

Speaker #3: Yeah. Yeah. No go ahead Nishant sorry.

Anesh Shetty: Yeah. No, go ahead, Nishant, sorry.

Speaker #5: No I'm saying you've already covered on the margins and how the future will look like but maybe you can mention about this dependency on the NHS.

Nishant Singh: No, I'm saying you've already covered on the margins and how the future will look like, but maybe you can mention about this dependency on the NHS.

Speaker #3: Yes the business we acquired was 95% NHS. That's definitely not good and not where we want it to be. The closest tier in terms of geographical distribution has about 70% NHS approximately.

Anesh Shetty: Yes, the business we acquired was 95% NHS. That's definitely not good and not where we want it to be. The closest peer in terms of geographical distribution has about 70% NHS approximately. That's closer to where we want to be. It obviously will take time to get there. We did anticipate this to take four to five years to move. Early results are promising. We have had some encouraging signs, but it's a journey because the doctor engagement model, insurance relationships, even the location and structure of these hospitals, which you cannot change in the short term, everything has to be redone. It is a worthwhile pursuit because it does come at a meaningfully higher per-unit realization. That is part of our acquisition thesis.

Speaker #3: So that's closer to where we want to be. It obviously will take time to get there. We did anticipate this to take four to five years to move.

Speaker #3: Early results are are promising. We have had some encouraging signs but it's a journey because the doctor engagement model insurance relationships the even the location and and structure of these hospitals which you cannot change in the short term everything has to be you know redone.

Speaker #3: But it is a worthwhile pursuit because it does come at a meaningfully higher per unit realization. And that is part of our acquisition thesis.

Speaker #5: Yeah. One more question. They're asking if you can give a split of the private versus NHS in value or volume terms.

Nishant Singh: Yeah. One more question. They're asking if you can give a split of the private versus NHS in value or volume terms.

Speaker #3: Yeah in in value terms like we said when the business was acquired it was approximately 95.5. It's you know we are better off there but not enough to to comment on.

Anesh Shetty: Yeah, in value terms, like we said, when the business was acquired, it was approximately 95, 5. We are better off there, not enough to comment on. What we can do is once we have a few more quarters under the belt, we'll think about the appropriate way to convey progress on diversifying payer mix.

Speaker #3: What we can do is once you know we have a few more quarters under the belt we'll think about the appropriate way to to convey progress on on diversified payer mix.

Speaker #5: There's a question on the shared if you could if you can share the losses in India business in for Q1 FY27. So it's there in the IATEC that number we have also given the margins with or without clinics.

Nishant Singh: There's a question on the share peak. If you can share the losses in India clinics business for Q1 FY27. It's there in the ITEC, that number. We have also given the margins with or without clinics. That number is approximately INR 15 crores for this Q1 of FY27 for the clinics business alone. Neeraj, do you see any more investors asking questions?

Speaker #5: That number is approximately 15 crores for this this first quarter of FY27. For the clinics business alone. Neerav do you see any more investors asking questions?

Speaker #2: No sir.

Operator: No, sir.

Speaker #5: So if you can just wrap up this session Neerav for us.

Nishant Singh: If you can just wrap up the session, Neeraj, for us.

Speaker #2: Thank you very much. Thank you everyone for joining the call. And for your continued interest in Narayana Health. We appreciate your participation and support.

Operator: Thank you very much. Thank you everyone for joining the call and for your continued interest in Narayana Health. We appreciate your participation and support. Should you have any further queries, please feel free to reach out to the investor relations team. Have a good day. Thank you all.

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Q1 2027 Narayana Hrudayalaya Ltd Earnings Call

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