Narayana Hrudayalaya (NH) Q3 25/26 earnings summary

Executive summary

• Consolidated operating revenue rose 61.2% year-over-year to ₹21,512 Mn in Q3 FY26, with EBITDA up 19.9% to ₹3,904 Mn and PAT at ₹1,281 Mn, reflecting strong growth and the impact of the UK acquisition.

• India delivered strong profit growth for the second consecutive quarter, driven by transformation programs and payer mix optimization.

• UK operations, consolidated from November 2025, contributed significant revenue and assets but remain less profitable than India and Cayman; operational improvements and payer mix changes are underway.

• Cayman business continues to grow, with focus shifting from book expansion to underwriting and process optimization.

• Major clinical milestones included a 35% QoQ increase in robotic cardiac surgeries and the first heart transplant in Ahmedabad.

Financial highlights

• Consolidated revenue for Q3 FY26 was ₹21,511.70 million, up from ₹13,345.90 million in Q3 FY25; nine-month revenue was ₹53,022.29 million.

• Adj. EBITDA for Q3 FY26 was ₹4,662 Mn (+43.1% YoY), margin at 21.7%; Adj. PAT was ₹2,548 Mn (+31.6% YoY), margin at 11.8%.

• India revenue: ₹11,796 Mn (+11.8% YoY); Cayman: ₹4,991 Mn (+70% YoY); UK: ₹4,902 Mn (newly consolidated).

• UK acquisition (Practice Plus) operates at 8.5%-9% normalized EBITDA margin pre-IFRS, with post-IFRS at 12%.

• Cayman hospital revenue at $45 million, with further market share potential.

Outlook and guidance

• Expansion plans target over 7,600 beds by FY30, with multiple greenfield and brownfield projects underway in key regions.

• India business aims to sustain double-digit revenue growth until new hospitals are commissioned, barring major adverse events.

• Digital transformation and ESG initiatives are expected to drive operational efficiency and sustainability.

• UK margins expected to improve through operational efficiencies and increased private payer mix, with early results anticipated within a few quarters.

• No immediate plans for further international acquisitions; focus remains on consolidating core markets.