Narayana Hrudayalaya (NH) Q4 25/26 earnings summary

Executive summary

• Strong margin expansion in India driven by high-end procedures, payer mix optimization, and technology adoption, with flagship Bangalore center leading in complex surgeries and robotics.

• U.K. acquisition integration ongoing; cost synergies and technology upgrades expected to improve profitability, with Practice Plus Group Hospitals Limited consolidated from November 6, 2025.

• Cayman Islands business saw rapid insurance premium growth but incurred higher-than-expected initial losses; price increases and client rationalization planned.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved, with the statutory auditors issuing an unmodified opinion.

• A final dividend of ₹4.50 per share was recommended for FY26, subject to shareholder approval.

Financial highlights

• Consolidated revenue from operations for FY26 was ₹78,960.35 million, up from ₹54,829.77 million in FY25.

• Q4 FY26 consolidated EBITDA was ₹5,392 Mn (20.8% margin); FY26 EBITDA was ₹17,169 Mn (21.7% margin).

• Consolidated net profit for FY26 was ₹8,104.59 million, compared to ₹7,898.19 million in FY25.

• India hospital EBITDA margin rose from 21.5% to 25.1% year-over-year, attributed to volume growth, payer mix, and advanced procedures.

• Net debt to equity ratio at 0.49 as of March 31, 2026.

Outlook and guidance

• Ongoing expansion with new greenfield and brownfield projects in Bangalore, Kolkata, and Raipur, targeting significant bed additions by FY30.

• No specific forward guidance on ARPOB or margin, but management expects continued healthy growth and margin sustainability, tempered by new center ramp-up losses.

• Insurance business losses in India and Cayman expected to moderate over the next few quarters as scale and pricing improve.

• Digital transformation and ESG initiatives to drive operational efficiency and sustainability.

• The company continues to monitor regulatory changes and expects no immediate impact from ongoing mergers and demergers on current results.