UAE private healthcare provider Burjeel Holdings reported a Q3 EBITDA margin improvement to 24.4% as procurement savings, workforce productivity and stronger patient volumes improve earnings despite geopolitical headwinds and recruitment.
EBITDA rises 21.3% YoY
The group’s EBITDA excluding one-off items rose 21.3% year-on-year to AED 892M ($243M) in the nine months to September 2026, significantly outpacing revenue growth of 5.6% to AED 4.33B.
Net profit excluding one-offs increased 42.1% to AED 412M, while third-quarter revenue growth accelerated to 7.9%, reaching AED 1.54B equivalent to 24.4% uptick YoY for Q3 FY26.
Speaking to Finance Middle East, Burjeel Group CFO Reuben Joseph attributed the widening gap between revenue and profitability to structural improvements in the group’s operating model, rather than temporary gains.
“So it’s actually an amazing thing that [EBITDA] is expanding faster, but fortunately all of it is structural,” the CFO said.
Structural improvements
The improvement reflects procurement efficiencies, tighter workforce cost management and a stronger case mix across the healthcare network.
Drug and consumables costs delivered a four-percentage-point improvement as a proportion of revenue during the quarter, according to the CFO, who attributed the savings to the group’s negotiating power with suppliers.
“In spite of all the geopolitical uncertainties around us, we have been able to push our vendors hard, we’ve been negotiating hard and the power of the network which gives us the negotiating power has helped us push the prices down even further” said Joseph.
Earnings rise despite recruitment and conflict
Personnel costs also declined as a proportion of revenue despite continued recruitment.
The group hired 350 employees during the quarter, including 39 doctors, while doctor and salary costs fell by approximately one percentage point as a share of revenue which means that the “productivity has still improved over the quarter,” said the CFO.
The results provide evidence of operating leverage as Burjeel expands its clinical capacity while seeking to improve returns from its existing network.
Nine-month EBITDA margin improved to 24.4% from 22.5% a year earlier while third-quarter EBITDA excluding one-offs rose 17% to AED 375M.
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