Max Healthcare Institute (543220) Q1 26/27 earnings summary

Executive summary

• Achieved 16% year-on-year revenue growth and 15% operating EBITDA growth in Q1 FY 2027, driven by network momentum, capacity expansion, and digital initiatives.

• Operationalized 202 new beds at Max Smart and 50% of new beds at Nanavati Max, with further beds to be commissioned within the quarter.

• Acquired 58.28% stake in Kalinga Hospital Limited for ₹29,797 lakhs and 100% in Yerawada Properties Private Limited, expanding the group's footprint in Bhubaneswar and Pune.

• Board approved entry into the medical education business, launching a standalone Max Research Centre and expanding medical education initiatives.

• Senior management changes included new appointments and a resignation effective August 31, 2026.

Financial highlights

• Network gross revenue reached ₹2,982 crore, up 16% year-on-year and 12% quarter-on-quarter; operating EBITDA was ₹704 crore, up 15% year-on-year, with a margin of 24.8%.

• Profit after tax stood at ₹357 crore, compared to ₹345 crore in Q1 last year and ₹387 crore in the previous quarter.

• Free cash flow generated was ₹397 crore; net debt increased to ₹2,384 crore, with net debt/EBITDA ratio below 1.

• International patient revenue grew 18% year-on-year to ₹247 crore, accounting for 9% of hospital revenues.

• Consolidated revenue from operations for Q1 FY27 was ₹236,617 lakhs, with consolidated net profit at ₹32,296 lakhs.

Outlook and guidance

• Continued ramp-up in occupancy and ARPOB at new and acquired facilities expected, with EBITDA improvement anticipated over the next few quarters.

• Oncology revenue expected to normalize from Q3 onwards as business mix stabilizes.

• Ongoing capacity additions across multiple locations, with several projects scheduled for commissioning through FY 2030, including Tower 3 at Vaishali.

• Medical education business to be funded through internal accruals, with commercial operations expected to start in the next few years.