Jeena Sikho Lifecare (NSE:JSLL) Q1 2026 Earnings Call

0:02 Ladies and gentlemen, good day, and welcome to Jeena Sikho Lifecare Limited q one FY twenty seven earnings conference call hosted by Go India Advisors. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. I now hand the conference over to miss from Go India Advisors. Thank you, and over to you, ma'am. Good day, everyone, and welcome to q one FY twenty seven conference call of Jeena Sikho Lifecare Limited. We have on call with us mister, the managing director, mister, the whole time director, and mister, the chief financial officer.

0:53 We must remind you that discussions on today's call may include certain forward looking statements and must therefore be viewed in conjunction with the risk pertaining to the business. I now request the management to take us through the business update. And for that, we'll open the floor for q and a. Thank you, and over to you, sir. Health care prevention prevention is better than cure. Prevention is the only cure.

2:18 Business model, ground level, execute patient journey. Hospital admissions health awareness initiative ecosystem consolidation, OPD, lifestyle coaching, products, or longevity For the heart intensive treatment hospital, wellness, IPD, or treatment. Treatment protocol treatment follow-up, lifestyle guidance, or Ayurvedic medicine patient If they take IPD patient, recurring product customer products, customer, client support center or OPD intensive treatment IPD patient Our experience

4:00 of early world of health or patient acquisition customer relationship acquisition. Quarter one FY twenty seven model execution financial performance revenue from operation. EBITDA or PAD 65 crore. 41% EBITDA margin or 28% PAD margin delivered. The number quarterly performance operating model scale scale scale scale scale system development reflection health operating system awareness, consultation, treatment, product, prevention care, integrated ecosystem, or wellness.

5:27 Health care opportunity. Network, clinical capabilities, technology, or product ecosystem prevention, first approach execution or disciplined capital allocation sustainable growth stakeholders meaningful long term value create your q one FY twenty seventh financial performance Thank you,.

6:52 Good afternoon, everyone. I will walk you through the financial performance going by we commenced FY 'twenty seven on a healthy note with both our Aribita, Healthcare Services and products. Business delivering strong underlying performance on yearly basis. Revenue, operations grew by 29% Y o Y. Q1 FY 'twenty seven supported by the higher patient footfalls, expansion of our service network, continued momentum in our products business. Profitability remained robust with EBITDA growing 17% on Y o Y basis and EBITDA margin sustaining at healthy 41%. The margin performance reflects improving the operating leverage, better utilization of our existing infrastructure and increased scalability across the businesses.

7:45 Within our Ayurveda health care service business, underlying demand remains strong with consumer revenue growing 13% in Q1 FY 'twenty seven, supported by 33% Y o Y increase in IPD patient and 31% increase in day care volume. Our Ayurveda Healthcare product business continued to perform strongly growing 47% Y o Y during the quarter. The growth was driven by the broader product portfolio and expanding customer base and increasing the acceptance of the quality focused Arvita offering. Going forward, we remain focused on strengthening our products, franchisee and delivering our expanding healthcare ecosystem to drive across selling and deeper customers' engagement. Thank you very much.

8:51 Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Karanveer Singh from NuvaMa Health. Go ahead. Thank you, madam. Number

10:46 past quarter services business $9,500,100 number of. Yearly quarter on quarter basis pay. Private business payment time.

11:51 Product line. There are question actually focus. Product services Mhmm.

13:25 So advertisement cost. So, Jay, it's my advertisement basically product focus to continuous advertisement for expense.

14:42 Product focus So Yes. They ask you, ma'am. For example, medicine sales quarter one. On quarter four, it's what product business Sorry to interrupt, mister.

16:06 Sorry to interrupt. May we request you to to you. We will request you to return to the question queue for any follow-up question. Thank you, Naveen. Question is from the line of Pal Balar from Asset Manager. Please go ahead. Hello, Manaji.. Thank you for thank you for giving me the opportunity. So we test software testing.

17:01 So last week final meeting testing complete. So within two months... Two weeks, sorry. Two weeks Okay. Okay. Business future.

18:02 Prevention better than cure. Prevention quarter total four lakh 87,000. Total count number of OPD, IPD, day care, COD, or e com. All consolidation four lakh 87,000. Quarter four quarter one The participant has been disconnected.

19:57 The next participant is from the line of Aditi Cheda from Ingrid Asset Management. Please go ahead.. Sir. Sir, in health care services, may IPD growth, 33%, or PDK growth 21, but revenue growth in percent degree IPD volume growth 33% last year or OPT growth 21% Y o Y, but revenue growth So 30 it's make change volume 33% but revenue up night number day care volume.

21:27 Day care volume notice matrix OPD, COD, and consulting patient. 143%. Sir, patient guide patient patient patient patient from the OPD, COD, or consultation. Year on year, maybe 65% change. Right.

23:50 Operating cost model model. To interrupt. To interrupt, Aditi.

24:36 May we request that you return to the question queue for any follow-up questions? By chance, on call question ma'am. So Nana ji, mail ID CFO survey. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, Please limit your questions to two per participant. The next question is from the line of from Nine Rays Equity Research. Please go ahead. Hi.. Thanks for the opportunity. Sir, a question to quarterly results. If I see the other income, last quarter September, May, December, May, we charge. We'll see that charge.

25:30 I mean, if I look at the March 2526 balance sheet, cash and bank balance will be 108. So if you could one off price, sir, see how do we see the other income going forward? Because why I'm asking, of 51 crores, 6... 56 crore, the 66. So just is it... Is there there some extraordinary onetime income? Yeah. Going forward, how do you see this other income for the next three quarters? Sir, it's not one time other income book around 7 crore. This may around 5 crore of what are valuation are 2.5 crore is the capital gain income.

26:34 My requisite deposits. You so much. Sir, second question is regarding this premium. Okay. Okay. Okay. FY '27. 2028 I can I can I can answer? September, October, May. Already booking.

27:41 Date start metrics. FY 'twenty eight, sir. Thank you very much. Hi, everyone. Thank you very much for your time. I'd like to throw some this is Ankush Kaushal. I would like to throw some light on the question asked about this premium wellness center that we are adding into our portfolio. So you're asking about the business projection of that. So since it is a unit that consists of 108 rooms and plus 22 villas, we right now are working on a minimum guarantee of 35 rooms. So with an average occupancy expected for the first twelve business months would be 50% with an ADR of 30,000 to 35,000 and with overall gross margins of around 50 to 55%, with an EBITDA coming to approximately 35% to 40 plus percent for year one. And year two, we are looking at 60% occupancy with near about 7,700 occupied room nights with an ADR of 35,000 to 37,000 with overall gross operating margin of near about 60%, 62% and at a very bare minimum operating cost of 9% to 10% only.

29:04 Now this is where we have changed the whole dynamics of this business because such minimal operating cost is impossible in such a luxurious setup of a wellness resort that too in the mountains. However, we have done a very strategic deal in which all we have to bear is marketing and the the wage cost. Neither we are paying for heat, light, power, nor we are paying for any other wage cost than doctors and healers. So everything... So same front office team to security team to food and beverage team to your chefs to food costs to beverage costs to housekeeping to laundry to maintenance to every single thing is already been taken care of within the deal that we have done.

29:53 So that's why it will run on a operating cost, which will be very, very minimalistic. Premium wellness launch central profit Net profit. Thank you.

30:44 Thank you so much. I'll come back in with you, sir. Sikho Lifecare. Best of luck. Thank you. The next question is from the line of Deepak Kodar from Safar Capital. Please go ahead. Yeah. Thank you very much, sir, for this opportunity. So just first quarter one off expense add expense 4 crores. So is there any other one off cost? Software implementation launch recurring system patient launch retention plan. Hello?

31:43 Ma'am, We request mister Deepak to come back in the queue. I'm audible? Yes. Yes. Please go ahead. So,, I mean, yeah, I think, yeah. So this is Jeena. So technology development software development around two CRM onetime installment expense book wire. Like audit fees and EV one of the incremental expense as compared with the last quarter's average expense.

32:34 So these are distance to is what higher salary. Government So naturally Okay. Okay. So total cost, I mean, ad expense I'm Okay. So second quarter, it will taper down. How should one look at going forward?

38:03 Best. Yes. Thank you. Thank you, sir. Thank you. Thank you. The next question is from the line of Navin Bet from Nuvama AMC. Please go ahead. Thank you so much. Sir, last quarter nine products launched OTC. So next four quarters product or currently in our product in terms of monthly revenues? Okay. Product

39:47 launch e commerce platform third party platform Amazon, Flipkart platform Okay.

40:54 Okay. And, sir, product specific question. If I look at your... One of the key products, which is paid for the competing products to check ingredients, largely 80 to 85 ingredients, literally identical. Same but identical. So what explains the product almost sir, manufacturing cost 20%. Manufacturing cost manufacturing cost product product And also in addition to that, you know, we are... You may be con... Only comparing the granular formulation, But then there are different foreshorts as well.

42:09 So our formulation is an amalgamation and towards a bigger framework of root cause. Powder compare formulation different Okay. Got it. Got it. Thank you. Management system.

43:07 Thank you. Thank you so much. Thank you. The next question is from the line of Ashish from Invest PMS. Please go ahead. So, sir, luxury business resort have we entered into a partnership with some entity? Sir. Sorry. Can you please repeat the question? So I was trying to understand, is this a leased property that we are taking when someone is owner or we are Absolutely.

43:58 Absolutely. JV with them, where it's a revenue sharing will happen. How is it modeled? So basically, this is this is a property which is owned by some individual. However, we have leased out. Now the model that we are working on is that right now, we have guaranteed 35 rooms out of which plus 80% of their spa area for our consultations and treatments. However, we have already provisioned out that when as and when required, we will be taking additional inventory because when we'll be doing our camps, preventive camps, health camps that HRG does and our team does, then we would be requiring bigger inventory. So yes, the lease is fixed, but that is fixed for x number of units, which we have already shared with everybody, including giving the intimation.

44:47 However, additional inventory can be added as and when required. And also for that, we have fixed a rate. In terms of the lease, what we have done is we have put in all the inclusions that one possibly cannot put to bring our operating cost down drastically. Okay. So how many years of arrangement is this to start with? Right now, we have signed for three years contract to be further renewable on three plus three plus three. Okay. Second question would be, sir, there are properties which are existing, which are away from the city. So for example, like the Punjil one is far far off and the occupancies there in such kind of properties seem to be on a much lower scale. So what is the plan for augmenting the occupancy there? Because it it... It's so off that it doesn't seem to be the case that very difficult to get up on the 30 side of these properties. Your Yes. In that, please. You you know, I would beg to defer onto that statement. Reason why? Because that's probably an individual stake.

46:03 You know, a lot of people do prefer within city treatment and then to be boxed within a building. However, a lot of people preferentially, they have an inclination towards resort style healing. For example, people, you know, either come from references or they come from obviously looking at our social media or people talk to people. And then most of these people have also either these individuals or their loved ones or their family ones or extended friends, they have seen or heard about Merit, which was our flagship in terms of resort style healing. So people do prefer that when it comes to an integrated approach rather than just a very clinical conventional approach to be in one building. So I don't see the proximity to be an issue because we are getting favorable response. And we have already, you know, this is a tried and tested model for our Merit Shuddhi, you know, the Jeena Sikho HIMS Merit is also at the same distance of near about seventy to ninety minutes proximity from Central Delhi or from the airport itself. But that that hospital is doing wonders.

47:13 Okay. So so just to Sir, I'm thinking of it possible for Sir, answer who tried and tested model. Reason why because a lot of people healing better current surroundings you feel disconnected, you are more aligned, and then rest of the things work in a better alignment as well. So just even optimal

48:44 utilization capacity pay, we will pick up a lot of more business because logo Yes. It's a project. I need to do it, and I am in nature surrounded by a different aesthetics and completely different environment. Thank you, sir. I'll take this offline. Maybe sometime we'll discuss this. Sure. Please. Please. --. Thank you. We request all the participants that in order to ensure that the management is able to address questions from all participants, please limit your question to one per participant. The next question is from the line of from Ingrid Asset Management. Please go ahead.

49:32 Yes, sir. So 30% imply q $22.50 crore or $282.90 crore current rate. So we ramp up sponsored segments are expected going forward or hospital business or product business. 45 or 55%. Quarter four services business are 45% or quarter one forty '7 or quarter one last year 54% government business business business develop Sir, hospital business, ma'am, PBT

51:07 despite growth. So it's new center quarter it, sir. And lastly, out of EBITDA margin. Sorry to interrupt, Aditi. We may request So having the clear 27 to 30% net profit or EBITDA 40% plus company The next question is from the line of Sunil from VK Investments. Please go ahead.

52:10 Jeena Sikho Lifecare in patient growth or 22% or outpatient growth 33% whose basis pay up the revenue 13%. Business minus volume IPD 33% or OPD vice percent year on year.

53:01 But for revenue may translate patient pay. 30%, piece percent. Okay. Price question. Payment

55:48 benefit Or or,, just to add just to add to what and my dear colleague, has mentioned, I would also like to share with you that a significant portion of the incremental OPD that came from first time consultation and screening patients who are still progressing through that treatment funnel. So obviously, comes a natural lag between OPD acquisition and conversion into Panchakarma therapies. COD and consulting patients. 143% Or VOPT consultation 65%.

56:34 Business integrated. So very quickly,

58:16 second question, Jeena. That is my second question. Just May we request that you return to the question queue? Sir, may I don't like something, sir. Thank you. The next question is from the line of Priyanshu Jain from Group X. Please go ahead. Namaskar, sir.. Real time within six minutes upload So, sir, but request quarter April, May, June. So June first week because is

1:00:17 quarter and the dollar amount. Sir, what are internal news Sir, quarterly update to company or company update. Legal concern or corporate governance Okay, sir. Thank you, sir. Welcome, sir.

1:01:18 Thank you. The next question is from the line of from AK Investments. Please go ahead. Hi, sir. Am I audible? Sir, first of all, congratulations Sir, first question partnership currently product business Okay, sir. Thank you.

1:03:44 Patient experience technology clinical protocol clinical trial data or analytics team. Digital CEO. Dashboard real time pay, minute to minute company corporate level company uniform culture capital allocation Next.

1:05:23 Okay, sir. All the best. Thank you. We take that as the last question. I now hand the conference over to the management for closing comments. Madam, closing corporate governance

1:07:38 or process system, doctor, better patient experience, technology, clinical protocol, data analytics, digital CEO, capital allocation, or day care center Thank you very much. Thank you so much, everybody. Vision execution strategic road map or sub same quarter professional or committed team vision reality dedicated.

1:08:28 Thank you,. Thank you, madam. Thank you,. Thank you, everybody. Thank thank you, everyone. Thank you. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.