Narayana Hrudayalaya (NH) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue was ₹28,439.89m, up 73.0% YoY; EBITDA was ₹6,054.15m and continuing-operations net profit ₹3,011.53m.

• India hospital growth was driven by higher volumes and price mix; management prioritizes patient access and volume over targeting a specific margin.

• International operations are pursuing cost efficiencies and integrated care, with UK revenue recovery and insurance profitability key execution priorities.

• H1 FY27 consolidated revenue was ₹55,276.23m, EBITDA ₹11,105.93m and continuing-operations net profit ₹5,084.23m.

Financial highlights

• Q2 consolidated EBITDA was ₹6,054.15m, up 42.0% YoY; EBITDA margin was 21.3% versus 25.9% in Q2 FY26.

• Continuing-operations net profit was ₹3,011.53m versus ₹2,584.95m a year earlier; net profit margin was 10.59% versus 15.71%.

• India hospital EBITDA margin was 26.8%, or 23.6% excluding other income; doctor and nursing costs fell 1.8% through operating leverage.

• India inpatient volumes rose 4% YoY and outpatient footfall 12% YoY; inpatient footfall was up 6% QoQ and nearly 4% YoY.

• Combined India insurance and clinic losses fell to INR 20 crore from INR 33 crore in the prior quarter; India insurance reported a ₹151m PAT loss in Q2.

Outlook and guidance

• Management expects stronger India inpatient and outpatient footfalls in Q3 and Q4, supported by recent volumes and patient funnels across regions.

• India average length of stay is targeted to move toward 4.0–4.1 days over four to six quarters, subject to high-acuity and transplant case mix.

• UK returns should be assessed over five to seven years; management expects to bridge the 4%–5% group ROCE dilution from the UK over roughly five years.

• Cayman plans major insurance repricing in July 2027 and expects to exit most unprofitable books from then; losses are expected to become negligible before that.

• Bed capacity target is 7,800+ by FY30; FY27 capex plans are ₹4,600m for greenfield/inorganic projects and ₹2,700m for replacement and maintenance.