Narayana Hrudayalaya (NH) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated operating revenue reached ₹15,073 Mn, up 15.4% YoY and 2.2% QoQ, with EBITDA at ₹3,607 Mn (23.9% margin) and PAT at ₹1,961 Mn (13.0% margin).

• Core hospital operations grew, with new facilities and service lines ramping up, especially in Cayman and India.

• Integrated Care and insurance businesses are expanding but currently loss-making, with break-even expected in coming quarters.

• Major clinical milestones included new facility operationalizations, complex surgeries, and digitalization initiatives.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were reviewed and approved by the Board and auditors.

Financial highlights

• Consolidated revenue from operations was ₹15,073 Mn, up from ₹13,063 Mn YoY; EBITDA at ₹3,607 Mn (23.9% margin); PAT at ₹1,961 Mn (13.0% margin).

• India hospital margins expanded, while Cayman hospital business maintained profitability despite international segment revenue decline.

• ARPP/ARPOB increased due to price hikes, improved payor mix, and higher-value procedures.

• Insurance segment reported about 6,000 policyholders, with gross written premium showing seasonality.

• Net debt to equity ratio at 0.09 as of June 30, 2025; consolidated debt-equity ratio at 0.58.

Outlook and guidance

• Hospital business margins expected to remain stable; Integrated Care margins will be lower but are projected to break even by year-end or early next year.

• Ongoing expansion with bed capacity targets exceeding 7,600 by FY30, with several greenfield and brownfield projects underway.

• Digital transformation and ESG initiatives remain key strategic priorities.

• Oncology is targeted to reach 20-25% of revenue in the next five years.

• Board is seeking approval for increased debt issuance, indicating plans for future capital raising.