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), with PAT at INR 1,931 Mn (14.1% margin).

• New facilities in Cayman and India contributed to revenue growth, with outpatient services in Cayman starting in December and further service lines being commissioned in Q4.

• 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.

• 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 for the quarter.

• 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, up from ₹7,705.66 million in Q3 FY24; consolidated revenue was ₹13,666.80 million, up from ₹12,036.37 million YoY.

• EBITDA for the quarter stood at ₹1,653.16 million (standalone) and ₹3,253.74 million (consolidated), both showing YoY growth.

• Cayman EBITDA for Q3 estimated at INR 135 crores, with significant cost absorption as new services ramp up.

Outlook and guidance

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

• All service lines in the new Cayman facility expected to be operational by March, with full manpower hiring completed by February.

• Q4 expected to see further improvement in performance for new Indian hospitals, especially Gurugram.

• Organic revenue growth trajectory to continue, with uplift from new capacity in Cayman and Indian hospitals.

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