Max Healthcare Institute (543220) Q3 24/25 earnings summary

Executive summary

• Achieved over 30% year-on-year growth in revenue, EBITDA, and occupied bed days, driven by recent acquisitions and strong organic performance, including the acquisition of Jaypee Healthcare Limited, expanding the network to over 5,000 beds.

• Greenfield hospital in Dwarka reached EBITDA break-even within six months of launch; Jaypee Healthcare Limited became a wholly-owned subsidiary.

• Board approved expansion of Zirakpur hospital to 400 beds and a new 500-bed hospital in Thane, both to be commissioned by FY28.

• Board approved significant capital infusions, guarantees, and financial assistance to subsidiaries and related entities to support expansion and development.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved, showing continued growth in revenue and profitability.

Financial highlights

• Network gross revenue for Q3 was ₹2,381 crores, up 34% year-on-year and 7% sequentially; operating EBITDA was ₹622 crores, up 32% year-on-year.

• EBITDA margin for the network stood at 27.3%; existing units improved margin by 70 bps to 28.6%.

• Profit after tax before exceptional items was ₹390 crores, up 15% year-on-year; exceptional charge of ₹74 crores related to Jaypee acquisition.

• Free cash flow from operations in Q3 was ₹303 crores; net debt stood at ₹1,608 crores at December 2024.

• Nine-month gross revenue was ₹6,636 crores, up 25% year-on-year; operating EBITDA for nine months was ₹1,687 crores, margin 26.6%.

Outlook and guidance

• Confident in accelerated growth with upcoming brownfield expansions, new hospitals in Zirakpur and Thane to be commissioned by FY28, and continued pursuit of inorganic opportunities.

• Expect significant capacity ramp-up in the next 12 months, especially from Nanavati, Mohali, and Max Smart.

• Focus on optimizing existing infrastructure, digital platforms, and capital-light adjacencies.

• High capacity utilization (>75%) across the network supports the rationale for aggressive expansion.