30th October 2025, Kathmandu
Medicare Hospital, a pioneering name in Nepal’s private healthcare landscape for nearly three decades, has announced a robust 10.52 percent cash dividend for its shareholders from the profits of the fiscal year 2081/82 (2024/25).
Medicare Hospital Announces Dividend
This decision, approved by the Board of Directors, underscores the hospital’s exceptional financial health, operational efficiency, and commitment to providing tangible returns to its investors. The proposed dividend, amounting to NPR 47.36 million (Rs. 4 crore 73 lakh 68 thousand 421) on a paid-up capital of NPR 450 million, will be presented for final shareholder endorsement at the upcoming 28th Annual General Meeting (AGM) scheduled for Mangsir 6 in Kathmandu.
Financial Resilience and Consistent Revenue Growth
The dividend declaration is a direct reflection of Medicare Hospital’s ability to maintain a strong and consistent upward trajectory in its financial performance, demonstrating resilience in a competitive and evolving sector.
Steady Turnover Growth: The hospital has successfully increased its annual turnover year-on-year, reflecting both efficient management and growing demand for its services. Revenue climbed from NPR 472 million in FY 2022 to NPR 501 million in FY 2023, and then to NPR 549 million in FY 2024. This consistent growth validates the hospital’s strategy of balancing service expansion with cost-effective operations.
Strong Profitability: The generous cash dividend payout, relative to the paid-up capital, confirms that Medicare Hospital maintained a healthy profit margin in FY 2081/82 (2024/25). Such dividend decisions are often supported by healthy profitability margins, which were recently noted by a credit rating agency to be around 19% PAT margin (Profit After Tax) in recent years, indicating a strong capacity to generate returns for its shareholders while funding its operations.
Governance and Transparency: The upcoming AGM agenda, which includes the approval of the Board of Directors’ annual report and the review of the auditor’s report, highlights the hospital’s adherence to standard governance practices. This commitment to transparency and accountability is crucial for maintaining investor confidence and ensuring long-term institutional stability.
The Role of Medicare Hospital in Nepal’s Healthcare Ecosystem
Medicare Hospital is more than just a profitable enterprise; it represents a significant success story for private sector participation in Nepal’s medical infrastructure.
A Legacy of Trusted Service: Established in 1996, the hospital has built a nearly three-decade legacy of offering reliable and affordable healthcare services. Its 87-bed facility in Kathmandu provides essential care across multiple disciplines, including general medicine, surgery, pediatrics, and diagnostics, addressing a crucial service gap for the urban population.
Promoter Strength and Stability: The hospital benefits from the joint management and investment of the Sanima Group and Mahto Group. These conglomerates bring financial muscle and expertise from sectors like banking and industry, reinforcing the hospital’s credibility and providing a stable foundation for capital expansion and operational risk management.
Addressing Healthcare Demand: The private healthcare sector in Nepal is vital, with an increasing burden of non-communicable diseases and a growing demand for high-quality medical services. The sector is expected to continue growing, with forecasts suggesting health sector contribution to GDP will rise. Institutions like Medicare Hospital play a key role in bridging the service gap and absorbing a significant portion of patient flow, as evidenced by the hospital’s increasing annual turnover figures.
Outlook: Sustained Investment and Ethical Practice
The cash dividend declaration is a strong indicator of the management’s balanced approach: rewarding investors while simultaneously committing to reinvestment in core healthcare operations.
Investor Confidence: A cash dividend directly provides a tangible return, making the hospital’s shares attractive to investors who seek consistent income streams. In Nepal’s current investment climate, this move reaffirms confidence in the hospital’s stability and growth trajectory and differentiates it from companies that opt solely for bonus shares or no dividend distribution.
Sectoral Significance: The success of Medicare Hospital highlights the growing financial viability of the private healthcare sector in Nepal. While the public health system strives for universal coverage, private hospitals are instrumental in offering specialized and super-specialized services, which is increasingly becoming a focal point for both domestic and foreign investment.
Future Focus: With a history of operational excellence, the hospital is well-positioned to leverage the increasing per capita healthcare spending and rising health awareness in Nepal. The upcoming AGM is expected to set the stage for continued innovation, infrastructure expansion, and improved patient services, ensuring Medicare Hospital remains a leader in both financial performance and medical excellence.
This dividend announcement secures Medicare Hospital’s reputation as a financially stable and service-oriented healthcare institution, poised for continued growth in the years to come.
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