Max Healthcare Institute (543220) Q2 25/26 earnings summary

Executive summary

• Network revenue grew 21% year-on-year for Q2 FY26, with operating EBITDA up 23%, marking 20 consecutive quarters of growth.

• Divestment of Jaypee hospitals in Bulandshahr and other non-core hospitals completed to focus on super specialty care in larger cities.

• NCLT approved the merger of Crosslay Remedies Limited with Jaypee Healthcare Limited, effective October 2024, resulting in significant deferred tax credits and a one-time benefit of INR 149 crore.

• Brownfield expansions advanced, with new towers commissioned or near commissioning in Mohali, Nanavati Max, and Max Mart; a 130-bed hospital in Dehradun is scheduled for 2028.

• Major clinical milestones achieved, including rare surgeries and advanced oncology treatments.

Financial highlights

• Q2 FY26 gross revenue: INR 2,692 crore, up 21% year-on-year and 5% sequentially; operating EBITDA: INR 694 crore, up 23% year-on-year and 13% sequentially; EBITDA margin: 26.9%.

• Q2 FY26 PAT: INR 554 crore (includes INR 149 crore one-time tax benefit); adjusted PAT: INR 406 crore, up 16% year-on-year.

• H1 FY26 gross revenue: INR 5,266 crore, up 24% year-on-year; operating EBITDA: INR 1,308 crore, margin 25.9%.

• Free cash flow for Q2: INR 291 crore; net debt increased to INR 2,067 crore due to expansion and dividend payout.

• ROCE for Q2 FY26: 23.2% (existing units: 26.1%, excluding CWIP: 32.2%).

Outlook and guidance

• CGHS and related government rate increases to drive incremental revenue and EBITDA, with 85-90% flow-through expected.

• Plans to double bed capacity in 4–5 years through brownfield, greenfield, and asset-light expansions.

• Focus on high-ROCE projects, digital platforms, and capital-light adjacencies.

• ARPOB growth for existing units expected to remain in the 6-7% range.