Narayana Hrudayalaya (NH) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw strong operational and financial performance, with consolidated operating revenue reaching INR 13,667 Mn, up 13.5% YoY, and EBITDA at INR 3,254 Mn (23.8% margin).

• Notable clinical achievements included 93 robotic cardiac surgeries and 34 TAVI procedures in Bengaluru, and a rare mechanical thrombectomy in Kolkata.

• Digital transformation advanced with 75% patient documents digitized and a patient app surpassing 2.4 million installs.

• Strategic investments included a 4% stake in a Bahamas hospital and an additional USD 1.5 million investment in Cayman operations.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board on February 14, 2025.

Financial highlights

• Combined EBITDA margin for new Indian hospitals improved to 9% in Q3 FY25 from 3% in Q3 FY24, with revenue from these hospitals totaling approximately INR 130 crores.

• Cayman business margins rebounded to near historical run rates, with 85% of new facility costs absorbed by Q3 revenue growth.

• India operations revenue was INR 11,677 Mn, up 13.4% YoY; international revenue was INR 803 Mn, up 98.8% YoY.

• Standalone revenue from operations for Q3 FY25 was ₹8,650.43 million, with consolidated revenue at ₹13,666.80 million, both up year-over-year.

• Consolidated net profit for Q3 FY25 was ₹1,930.54 million, up from ₹1,881.10 million year-over-year.

Outlook and guidance

• All service lines in the new Cayman facility are expected to be operational by March, with further margin improvement anticipated.

• Expansion plans include adding over 2,000 beds by FY30, with major greenfield and brownfield projects in Bangalore, Kolkata, and Raipur.

• Organic revenue growth is expected to continue, with incremental uplift from new capacity and Cayman expansion in upcoming quarters.

• The Board approved a merger scheme for Meridian Medical Research & Hospital Ltd. with an appointed date of April 1, 2024, pending regulatory approvals.

• Insurance and clinic businesses are in early stages, with significant growth targets and investments planned for the next year.