Medicover India hospitals to be profitable in 18 months, eyes 20-25% margins

Medicover's India business expects all 25 of its hospitals to turn profitable within 18 months, Business Recorder reported, citing a top executive who spoke on Wednesday. The turnaround is being fuelled by rising occupancy and stronger demand for specialised care. Of the 25 hospitals, 19 are already profitable.

KKR agreed earlier this month to buy the India unit for €1.2 billion ($1.40 billion), subject to regulatory approvals. Executive Director Harikrishna P told Reuters that mounting debt had become hard to manage, prompting talks with private equity and strategic partners. The proceeds will fund expansion of existing facilities and more operational beds, and the business will be renamed after approvals.

The group expects core profit margins to climb to 20-25% from 14% within the next 12 to 18 months. It also plans to lift occupancy by 67%, to 4000 beds, over the same 18-month horizon. KKR's deal follows its earlier investments in Baby Memorial Hospital and Healthcare Global, reflecting wider private equity interest in Indian healthcare amid a heavy chronic disease burden and rising insurance uptake.