Financials · Deal-Level Pro-Forma
Remedy Hospitals
Deal Financials
Deal-level financial model for the Remedy Hospitals Hyderabad acquisition. ₹55 Cr equity for ₹80 Cr EV (11.8× FY26E EBITDA · ~30% sector discount). Transaction structure, 3-year P&L trajectory, EBITDA bridge, balance sheet, cash flow, and return scenarios.
Remedy Deal Summary
Enterprise Value₹80 Cr
Equity Required₹55 Cr
Entry Multiple11.8× FY26E EBITDA
FY26 Revenue₹30 Cr
FY26 EBITDA₹6.8 Cr (23%)
FY29 Revenue Target₹55 Cr
FY29 EBITDA Target₹13.5 Cr (25%)
Standalone Exit Multiple16x
Standalone Exit Value~₹216 Cr
01
Remedy Transaction Structure
₹55 Cr Equity → ₹80 Cr EV
| Component | ₹ Cr | % of Total | Rationale |
|---|
| Promoter Buyout (80%) | 10 | 18% | Majority control; 20% retained for alignment |
| Debt Refinancing | 15 | 27% | Eliminate ₹24.4 Cr debt; save ₹3.8 Cr annual interest |
| Working Capital | 10 | 18% | Normalize DSO 90→60 days; transition funding |
| Capex (Equipment) | 5 | 9% | CT/ICU upgrades; reduce maintenance drag 30% |
| NASA Consolidation | 15 | 27% | Pre-fund consolidation of NASA's 300-bed platform |
| Total Equity | 55 | 100% | EV ₹80 Cr @ 11.8x FY26E EBITDA |
| Equity Split | Percentage | ₹ Cr Committed | Rationale |
|---|
| PE Investors | 49% | 27.0 | Governance & capital discipline |
| NASA Hospitals | 31% | 17.0 | Operator role; integration leader |
| Remedy Promoters | 20% | 11.0 (retained) | Alignment & legacy |
| Total | 100% | 55.0 | — |
02
Remedy 3-Year Income Statement
FY27–FY29 Trajectory
| Line Item (₹ Cr) | FY26 (Entry) | FY27 (Stabilisation) | FY28 (Growth) | FY29 (Scale) |
|---|
| Revenue | 30.0 | 36.0 | 48.0 | 55.0 |
| Revenue Growth % | — | 20% | 33% | 15% |
| Medical Consumables + Pharma | (11.1) | (11.9) | (14.9) | (17.1) |
| Clinical Staff Costs | (6.9) | (8.6) | (11.5) | (13.2) |
| Support Staff / Nursing | (3.3) | (3.6) | (4.8) | (5.5) |
| Utilities / R&M / Overheads | (1.9) | (1.8) | (2.4) | (2.8) |
| Total Direct Costs | (23.2) | (25.9) | (33.6) | (38.5) |
| Contribution Margin | 6.8 | 10.1 | 14.4 | 16.5 |
| G&A / Admin | — | (1.1) | (1.4) | (1.65) |
| Marketing / Business Development | — | (0.7) | (1.0) | (1.10) |
| Management Fee | — | (0.5) | (0.7) | (0.83) |
| Indirect Costs | — | (2.3) | (3.1) | (3.58) |
| EBITDA | 6.8 | 9.0 | 11.0 | 13.5 |
| EBITDA Margin | 23% | 25% | 23% | 25% |
| Interest Expense (post-refi) | (4.4) | (1.8) | (1.7) | (1.6) |
| Depreciation | (1.0) | (1.2) | (1.4) | (1.6) |
| PBT | 1.4 | 6.0 | 7.9 | 10.3 |
| Tax (25%) | (0.4) | (1.5) | (2.0) | (2.6) |
| PAT | 1.0 | 4.5 | 5.9 | 7.7 |
03
EBITDA Bridge
FY27 Levers Detail
| Lever | ₹ Cr Impact | Mechanism |
|---|
| Entry EBITDA (FY26) | 6.8 | Pre-acquisition baseline |
| + Interest Savings | +1.2 | Refinance ₹24.4 Cr @ 18% → ₹15 Cr @ 12% (saves ₹2.6 Cr interest; but only ₹1.2 Cr reaches EBITDA as other is below-the-line) |
| + Procurement Optimisation | +0.6 | NASA central procurement pharma/consumables; 12% cost reduction on ₹5 Cr addressable base |
| + RPT Elimination | +0.4 | Remove related-party vendor markups; competitive bidding |
| FY27 EBITDA | 9.0 | 25% margin on ₹36 Cr revenue |
| + ARPOB Expansion (FY28) | +2.0 | Case-mix shift to higher-acuity neuro/spine |
| FY28 EBITDA | 11.0 | 23% margin on ₹48 Cr revenue (margin dip during ramp) |
| + Occupancy Lift | +1.5 | 60% → 75% occupancy via specialty positioning |
| + Tertiary Referrals | +1.0 | 1,200 annual NASA network referrals |
| FY29 EBITDA (Remedy alone) | 13.5 | 25% margin on ₹55 Cr revenue |
| + NASA Existing Portfolio | +13.5 | 300-bed platform mature contribution |
| Combined Platform EBITDA (FY29) | 27.0 | 500-bed platform at 25% margin |
04
Balance Sheet
Remedy Post-Acquisition Capital Structure
| Line Item (₹ Cr) | At Close | FY27 | FY29 |
|---|
| Assets |
| Cash & Equivalents | 10.0 | 5.0 | 8.0 |
| Receivables (DSO 60 days) | 6.0 | 5.9 | 9.0 |
| Inventory (Pharma + Consumables) | 2.0 | 2.2 | 3.4 |
| Medical Equipment (net of dep.) | 22.0 | 23.0 | 27.0 |
| Leasehold Improvements | 8.0 | 7.5 | 6.5 |
| Goodwill (Remedy acquisition) | 18.0 | 18.0 | 18.0 |
| Total Assets | 66.0 | 61.6 | 71.9 |
| Equity & Liabilities |
| Total Equity | 40.0 | 42.0 | 52.0 |
| Senior Debt (post-refi) | 15.0 | 13.0 | 9.0 |
| Lease Liabilities | 6.0 | 5.0 | 4.0 |
| Trade Payables + Accruals | 4.0 | 4.5 | 7.0 |
| Other Current Liabilities | 1.0 | 1.1 | 1.9 |
| Total Equity & Liabilities | 66.0 | 65.6 | 73.9 |
05
Cash Flow Summary
Remedy 3-Year Cash Flow
| ₹ Cr | FY27 | FY28 | FY29 |
|---|
| EBITDA | 9.0 | 11.0 | 13.5 |
| Change in Working Capital | (0.5) | (1.5) | (1.0) |
| Cash Tax | (1.5) | (2.0) | (2.6) |
| Operating Cash Flow | 7.0 | 7.5 | 9.9 |
| Maintenance Capex | (1.0) | (1.5) | (2.0) |
| Growth Capex (equipment) | (2.0) | (2.0) | (1.0) |
| Free Cash Flow | 4.0 | 4.0 | 6.9 |
| Debt Service (interest + principal) | (3.8) | (3.7) | (3.6) |
| Cash Available for Distribution | 0.2 | 0.3 | 3.3 |
Cash preservation in early years supports platform scaling; meaningful distributions begin FY29 and grow into FY30 exit year.
06
Key Assumptions
Remedy Model Inputs
Entry Valuation₹80 Cr EV / 11.8× FY26E
Sector Discount~30% vs stabilised peers
Debt Refinancing₹24.4 Cr @ 18% → ₹15 Cr @ 12%
DSO Target60 days (down from 90)
ARPOB Uplift (case-mix shift)30–40%
Occupancy Target60% → 75% by FY29
Specialty FocusNeuro + Spine
NASA Network Referrals~1,200 annually by FY29
Tax Rate25%
Depreciation ScheduleStraight-line · 8–10 yrs
Exit PathVia NASA platform IPO FY29–FY30
Remedy business plan
Strategic rationale, transaction structure, operating playbook, EBITDA bridge, and deal-specific risks on the Remedy Business Plan page.
Disclaimer · Confidential Financial Model
Projected Financials · Forward-Looking
All financial figures are projected and forward-looking, based on management assumptions regarding integration execution, clinical ramp, ARPOB trajectory, and exit market conditions. Actual results may differ materially. Investment involves risk of loss of principal.
NASA Hospitals India