Jupiter Life Line in Rs 1,400-crore expansion push in Maharashtra, to double capacity by 2029

Jupiter Life Line Hospitals is on an aggressive expansion spree in Maharashtra, with Rs 1,400-crore capital expenditure aimed at doubling its capacity through three new hospitals, as demand for quality tertiary care in underserved urban clusters rises.

The company, which operates 1,061 beds, is aiming to reach 2,500 beds, over the next four years. Two of the hospitals are coming up in Thane’s Dombivli and Mira-Bhayandar towns and one in Pune’s Bibwewadi.

“We are halfway through the Rs 500-crore Dombivli project, which will be our largest facility at 8 lakh square feet,” Jupiter Hospital joint managing director and CEO Dr Ankit Thakker said in an interview to Moneycontrol. “We’ve already spent Rs 200 crore and expect to commission the first phase with 200–250 beds by Q1FY27.”

Jupiter Hospital is a prominent multi-specialty tertiary and quaternary care healthcare provider based in western India.

The Pune II hospital will follow, with construction beginning in Q3FY26 and a similar 500-bed capacity. Mira-Bhayandar, which is seeking regulatory clearances, is expected to be operational by 2029.

Combined, the three facilities will add 1,300–1,400 beds, with Phase II expansions staggered to avoid operational bottlenecks and financial drag. The company already has a hospital each in Thane, Pune and Indore.

Dombivli and Mira-Bhayander facilities would be the largest in the pockets, which don’t have a large quaternary care corporate hospital, and patients often have to travel to Mumbai for specialised and sometimes complex treatments.

Jupiter wants to replicate its successful model in Thane, where it spotted an early opportunity in the Mumbai suburb, which is expanding rapidly but lacks a large quality multi-specialty hospital, Thakker said.

The Thane hospital isn’t just a flagship for Jupiter, but it has turned out to be a landmark in Thane, he Thakker.

Jupiter plans to fund the Phase-2 capex of its new hospitals primarily through internal accruals and debt.

The company remains net cash positive, with Rs 325 crore in debt and Rs 600 crore in cash reserves, giving it flexibility to fund Phase-2.

Contrarian bet

Jupiter Hospitals follows a contrarian business model by prioritising long-term, asset-heavy greenfield projects over rapid expansion fuelled by private equity. It takes more than three years to identify a land parcel, acquire it, get regulatory approvals, complete construction, hire doctors and staff and get the operations rolling.

“In a greenfield project, I control the location, I control architecture, design, quality of construction, quality of technology, quality of people, culture — everything,” Thakker said.

Many hospital chains follow an asset-light model, where they lease the real estate for long periods, saving on upfront costs. Some hospital chains, especially PE-backed, prefer outright acquisitions, which may be costly but give a head start.

Greenfield projects avoid legacy issues and compromises often associated with acquisitions and better align with the company’s long-term vision, he said.

Healthcare is a hyperlocal service and building hospitals in underserved, densely populated areas ensures optimal utilisation and return on capital, the CEO said.

“Unlike M&A-driven growth, which may be influenced by short-term private equity timelines, Jupiter’s model is designed for sustainable, flagship-scale development with efficient capex and minimal operational dilution,” he said.

Jupiter’s focus is on hyperlocal, avoiding both 1,000 bedded mega-hospitals or 100-150 smaller ones, instead of favouring 300–500 bed facilities that cater to a 45-minute catchment area, he said.

“Healthcare is not Bollywood. It’s a local service,” he said. “If you build a 1,000-bed hospital, you’re essentially building two hospitals. Better to place them in different locations,” Thakker said.

Thane, Pune, Indore in focus

Jupiter is also exploring expansion of its existing hospitals, which enables a quick ramp-up without major investments.

Thane may see a 10 percent capacity bump if environmental clearances come through, while Indore — currently at 50 percent occupancy — has room for another round of bed additions once it crosses the 60–65 percent threshold.

“We’ve already added 80–90 beds in Indore this year. Once we hit the right occupancy, we’ll expand further,” Thakker said. “Across Thane, Pune, and Indore, we can add another 100 beds, taking the total to around 1,200.”

Funding strategy

Thakker ruled out an immediate equity raise but left the door open for future capital infusion.

“For the current six-hospital plan, we don’t need equity,” he said. “But if a seventh project or an acquisition comes up that we believe is too good to miss, we may consider raising equity. We’re keeping our eyes open,” he said.

Jupiter reported a 20.5 percent year on year rise in Q1FY26 revenue at Rs 347.6 crore, with EBITDA at Rs 78.1 crore (22.5 percent margin). However, profit after tax declined 1.6 percent to Rs 43.9 crore due to higher depreciation and finance costs from recent capex.

“While EBITDA margins will be preserved, the gap between EBITDA and PAT will widen this year,” Thakker said. “We expect Dombivli to be EBITDA-negative in its first year but breakeven should happen by year two.”Average revenue per occupied bed (ARPOB) rose to Rs 67,300, driven by inflation-linked price hikes and case mix optimization, especially in Indore. Occupancy across the network stood at 60.1 percent, diluted by the addition of new beds but up 5 percent in absolute terms.