Lakeshore Hospital Annual Reports, Balance Sheet and Financials

Lakeshore Hospital and Research Centre Limited Consolidated Balance Sheet (Rs in Crores)

Lakeshore Hospital and Research Centre Limited Consolidated Profit & Loss Statement (Rs in Crores)

Lakeshore Hospital and Research Centre Limited Consolidated Cash Flow Statement (Rs in Crores)

Summary of Cash Flow Statement for the years 2026 and 2025:

Cash Flow from Operating Activities

The company generated ₹56.53 crore from operating activities in FY 2025-26 compared with ₹60.08 crore in FY 2024-25, showing a decline of around 5.9%. Although profit before tax increased substantially from ₹52.73 crore to ₹71.42 crore, operating cash flow did not increase correspondingly. Operating cash flow before working-capital changes rose from ₹74.58 crore to ₹94.20 crore, indicating stronger underlying earnings and cash-generation capacity. However, working-capital movements adversely affected cash flows, mainly due to a ₹7.61 crore increase in receivables and a ₹13.32 crore decrease in trade and other payables. Higher direct tax payments of ₹17.10 crore also reduced operating cash flow. Overall, operating activities remained a strong source of cash, but the decline in cash conversion despite higher profits indicates the need for better working-capital management.

Cash Flow from Investing Activities

Investing activities resulted in a net cash outflow of ₹34.31 crore in FY 2025-26 compared with only ₹7.62 crore in FY 2024-25. The major reason was the substantial increase in capital expenditure, with additions to property, plant and equipment rising from ₹22.69 crore to ₹35.46 crore. The company also invested ₹5.95 crore in fixed deposits, whereas the previous year had witnessed an ₹8.22 crore release from fixed deposits. These outflows were partly compensated by interest received of ₹7.10 crore. The significant increase in capital expenditure suggests that the company is investing heavily in hospital infrastructure and assets, which may support future growth, although it has placed considerable pressure on current-year cash flows.

Cash Flow from Financing Activities

Financing activities generated a net cash outflow of ₹21.01 crore in FY 2025-26 compared with ₹17.94 crore in FY 2024-25. The principal outflow was the ₹19.98 crore dividend payment, which increased from ₹17.02 crore in the previous year. The company also made payments towards lease liabilities of ₹0.96 crore and interest of ₹0.08 crore. The higher dividend payment reflects continued shareholder distributions and indicates that the company was confident enough in its cash-generating ability to return cash to shareholders. However, these distributions, combined with increased capital expenditure, limited the overall increase in the company 's cash balance.

Net Increase in Cash and Cash Equivalents

The company recorded a net increase in cash and cash equivalents of ₹1.20 crore during FY 2025-26, compared with a much higher increase of ₹34.51 crore in FY 2024-25. Consequently, closing cash and cash equivalents increased only marginally from ₹44.45 crore to ₹45.65 crore. The small increase was mainly due to the absorption of operating cash by heavy investment expenditure, increased fixed deposits, and dividend payments. Despite the low net increase, the company maintained a healthy closing cash balance because its core operations continued to generate substantial cash. Overall, the cash flow position indicates that the company had adequate liquidity and strong operating cash generation, while FY 2025-26 saw greater deployment of cash toward capital investment and shareholder returns.

Financial ratios of Lakeshore Hospital and Research Centre Limited

Summary of Financial Ratios for the year 2026 and 2025:

Current Ratio

The Current Ratio increased from 2.25 in 2024-25 to 2.58 in 2025-26, showing a strengthening of the company’s short-term financial position. This indicates that Lakeshore Hospital and Research Centre Limited had a greater level of current assets available to meet its current liabilities during 2025-26. The improvement suggests better liquidity and a comfortable ability to meet short-term obligations.

Debt-Equity Ratio

The Debt-Equity Ratio remained unchanged at 0.01 in both 2024-25 and 2025-26. This indicates that the company has very limited debt in relation to shareholders’ funds and is primarily financed through its own capital. The consistently low ratio reflects a conservative financial structure, lower financial risk, and limited dependence on external borrowings.

Debt Service Coverage Ratio

The Debt Service Coverage Ratio declined from 59.74 in 2024-25 to 55.64 in 2025-26. Although there was a marginal decrease, the ratio remained exceptionally strong, indicating that the company generated sufficient earnings to comfortably meet its interest and debt repayment obligations. Therefore, the company continues to have a strong debt-servicing capacity with relatively low solvency risk.

Return on Equity Ratio

The Return on Equity Ratio increased from 0.10 to 0.12, indicating an improvement in the return generated on shareholders’ funds. This suggests that the company utilized shareholders’ capital more effectively during 2025-26 and generated higher returns for its owners. The increase reflects an improvement in overall profitability and efficiency in the use of equity capital.

Inventory Turnover Ratio

The Inventory Turnover Ratio improved from 10.80 to 12.01, indicating that inventory was utilized and replenished at a faster rate during 2025-26. The increase suggests more efficient inventory management and better utilization of resources. For a hospital business, this may indicate improved management of medicines, medical supplies, and other inventory items, reducing the possibility of excessive stock accumulation.

Trade Receivables Turnover Ratio

The Trade Receivables Turnover Ratio decreased significantly from 13.38 to 9.98. This indicates that the company collected its trade receivables less frequently during 2025-26 compared with the previous year. The decline may point towards a longer collection period and increased funds being tied up in receivables. Therefore, the company may need to strengthen its credit and collection procedures to improve cash flow.

Trade Payables Turnover Ratio

The Trade Payables Turnover Ratio increased from 3.27 to 3.86, indicating that the company settled its trade payables at a faster rate during 2025-26. This reflects improved management of obligations towards suppliers and creditors. However, the company should maintain an appropriate balance between timely payments and effective utilization of available working capital.

Net Capital Turnover Ratio

The Net Capital Turnover Ratio marginally declined from 4.55 in 2024-25 to 4.43 in 2025-26. This indicates a slight decrease in the efficiency with which the company utilized its net working capital to generate revenue. Although the decline is small, it suggests that the increase in net working capital was proportionately higher than the increase in revenue. The company could therefore focus on optimizing working capital utilization.

Net Profit Ratio

The Net Profit Ratio increased from 0.10 to 0.12, indicating that the company earned a higher proportion of net profit from its revenue in 2025-26. This improvement suggests better overall profitability and possibly improved cost management, operational efficiency, or revenue generation. The increase is a positive indicator of the company’s financial performance.

Return on Capital Employed

The Return on Capital Employed increased from 0.12 in 2024-25 to 0.16 in 2025-26, indicating a significant improvement in the company’s ability to generate operating returns from the capital employed in the business. The increase suggests more efficient utilization of long-term funds and stronger operational performance. This is a positive sign for the company’s overall financial efficiency.