Max Healthcare Institute (543220) Q2 24/25 earnings summary

Executive summary

• Achieved strong growth in Q2 and H1 FY25, driven by acquisitions, integration of new hospitals, and launch of MSSH Dwarka, with network revenue reaching INR 2,228 crores, up 22% year-on-year and 10% quarter-on-quarter.

• Acquired a controlling stake in Jaypee Healthcare Ltd, adding major hospitals in Noida and Chitta, and commenced operations at a new 303-bed greenfield hospital in Dwarka.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY25, with unmodified review reports.

• International patient revenue grew 12% year-on-year and quarter-on-quarter to INR 178 crores, despite lower footfall from Bangladesh and Yemen.

• Digital revenue contributed INR 524 crores (~23% of total), with website traffic up 37% year-on-year.

Financial highlights

• Network operating EBITDA (excluding extraordinary items) was INR 591 crores, up 19% year-on-year and 17% quarter-on-quarter, with a margin of 28.2%.

• Profit after tax (excluding extraordinary items) stood at INR 383 crores, up 13% year-on-year; consolidated PAT for Q2 FY25 was INR 349 crores.

• Free cash flow from operations was INR 464 crores in Q2, with INR 217 crores deployed towards expansion and upgrades; net cash position improved to INR 313 crores at September 2024.

• Consolidated revenue from operations for Q2 FY25 was ₹170,746 lakhs, up from ₹136,316 lakhs in Q2 FY24.

• EBITDA per bed (annualized) was INR 75.5 lakhs in Q2 FY25.

Outlook and guidance

• Operational bed capacity targeted to increase from 376 to 430 by March and over 480 by December 2025, with further expansion in Jaypee Hospital and MSSH Dwarka.

• Plans to set up a 250+ bedded super specialty hospital in Zirakpur, Punjab, under a long-term lease.

• Focus on brownfield, greenfield, and asset-light expansion, targeting ~2x bed capacity in 4-5 years.

• ROCE threshold of 20-25% within 4-5 years post-acquisition for new units.