Narayana Hrudayalaya (NH) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw consolidated operating revenue of ₹16,438 Mn, up 20.3% YoY, with strong EBITDA and PAT growth, led by Cayman and India businesses, and supported by new hospital commissioning, payer mix optimization, and high-end procedures.

• Consolidated EBITDA reached ₹4,265 Mn (25.9% margin), and PAT was ₹2,583 Mn (15.7% margin), with India operations achieving 20% EBITDA growth and Cayman business posting 70% revenue growth YoY.

• Received international recognition for clinical governance and safety, and expanded clinical capabilities with new technology, including robotic surgeries and bone marrow transplant services.

• Unaudited standalone and consolidated financial results for the quarter and six months ended September 30, 2025, were approved and reviewed by the Board and Audit Committee.

• Losses in clinics and insurance segments are declining, with expectations for further improvement in FY2027.

Financial highlights

• Total operating revenue grew to ₹16,438 Mn from ₹13,667 Mn YoY, with consolidated EBITDA at ₹4,309 Mn and PAT at ₹2,583 Mn.

• Cayman hospital margins remain robust at 43%-44%, while the insurance business is nearing breakeven.

• India business reported a 23.8% margin for the quarter, and Mumbai hospital showed early negative EBITDA but improved performance in October.

• Net debt to equity ratio at 0.06 as of September 30, 2025; consolidated debt-equity ratio at 0.58.

• International business, mainly Bangladesh, saw a 27% QoQ increase but is not a strategic focus.

Outlook and guidance

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

• Cayman hospital growth expected to moderate to high single digits after ramp-up; insurance business has room to grow but will be reassessed periodically.

• India clinics and insurance are expected to continue positive momentum, balancing profitability and growth investments.

• New 100-bed facility in Bangalore is on track for commissioning in Q1 FY2027.

• CGHS rate hikes projected to add INR 25M/month to revenues, with a potential total impact of INR 30-50 crore annually if other schemes follow.