Max Healthcare Institute (543220) Q3 25/26 earnings summary

Executive summary

• Achieved 21st consecutive quarter of year-on-year growth in Q3 FY26, with revenue up 10% and operating EBITDA up 4% year-over-year despite seasonal softness and external disruptions.

• Acquired 100% stake in Yerawada Properties Pvt. Ltd. for a 450-bed hospital in Pune, commissioning in 2030, expanding Western India presence.

• Commissioned new beds in Mohali and Nanavati Max brownfield towers, with high occupancy and strong EBITDA margins; further expansions in Dwarka and Max Smart underway.

• Amalgamation of Crosslay Remedies Ltd and Jaypee Healthcare Ltd completed, enhancing operational structure.

• Divested two hospitals in Bulandshahr to focus on super specialty care in larger cities.

Financial highlights

• Q3 FY26 gross revenue: ₹2,608 crore, up 10% year-over-year; digital revenue contributed ₹803 crore (31% of total).

• Operating EBITDA: ₹648 crore, up 4% year-over-year; EBITDA margin at 26.1% (down from 27.3% last year).

• Profit after tax: ₹344 crore, up from ₹316 crore last year; nine-month PAT: ₹1,244 crore, up 30% year-over-year.

• Free cash flow for Q3: ₹281 crore; net debt at ₹2,166 crore as of Dec'25.

• Nine-month gross revenue: ₹7,874 crore, up 19% year-over-year; operating EBITDA: ₹1,956 crore, up 16% year-over-year.

Outlook and guidance

• Expectation of sustained growth as cashless insurance services are restored, CGHS tariff revisions take effect by April 2026, and new capacity becomes margin accretive.

• Full impact of CGHS/ECHS rate revisions and super specialty rates to be realized from Q1 FY27, with partial benefits in Q4 FY26.

• Brownfield and greenfield expansions, including Pune, Gurgaon, and Lucknow, to double bed capacity in 4-5 years.

• Focus on digital revenue growth, asset-light models, and M&A for future expansion.

• Board approved extension of services agreement for Max Dwarka, with ~260 additional beds to be added within 24 months.