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

Executive summary

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

• Divestment of Jaypee hospitals in Bulandshahr completed in September 2025 to focus on super specialty care in larger cities.

• NCLT approved the merger of JHL and CRL, both wholly owned subsidiaries, effective October 2024, resulting in a one-time INR 149 crore tax benefit.

• Brownfield expansions advanced, with new towers at Mohali and Nanavati Max commissioned or nearing completion.

• Board approved a lease for a new 130-bed hospital in Dehradun, scheduled for 2028.

Financial highlights

• Q2 FY26 gross revenue: INR 2,692 crore (up 21% YoY, 5% QoQ); H1: INR 5,266 crore (up 24% YoY).

• Q2 FY26 operating EBITDA: INR 694 crore (up 23% YoY, 13% QoQ), margin 26.9%; H1 EBITDA: INR 1,308 crore (margin 25.9%).

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

• Free cash flow in Q2: INR 291 crore; net debt at end of Q2: INR 2,067 crore, up from INR 1,755 crore in June 2025.

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

Outlook and guidance

• CGHS and related government rate revisions 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.

• CapEx for H2 expected to be around INR 1,100 crore, higher than H1.

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