Narayana Hrudayalaya (NH) Q3 25/26 earnings summary

Executive summary

• Strong profit growth in India for the second consecutive quarter, driven by transformation programs, payer mix optimization, and technology adoption, especially in flagship clusters like Bangalore.

• Q3 FY26 saw consolidated operating revenue rise 61.2% year-over-year to ₹21,512 Mn, with EBITDA up 19.9% to ₹3,904 Mn and PAT at ₹1,281 Mn, reflecting strong growth and recent UK acquisition impact.

• UK operations were consolidated from November 2025, contributing significant revenue and assets, but profitability remains below India and Cayman.

• Oncology is now the second highest specialty by revenue and is the fastest growing department; cardiac and oncology expected to account for over half of future revenue.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025 were approved and reviewed by the Board and Audit Committee on 13 February 2026.

Financial highlights

• Consolidated revenue for Q3 FY26 was ₹21,511.70 million, up from ₹13,345.90 million in Q3 FY25; India revenue: ₹11,796 Mn (+11.8% YoY); Cayman: ₹4,991 Mn (+70% YoY); UK: ₹4,902 Mn (newly consolidated).

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

• Standalone revenue from operations for Q3 FY26 was ₹9,687.81 million, up from ₹8,650.43 million in Q3 FY25.

• Cayman hospital revenue at $45 million, with room for further market share gains; Cayman insurance business grew revenue but faced sequentially higher losses due to volatility in claims.

• UK business EBITDA margin in the 8.5%-9% range pre-IFRS, with Birmingham asset losses expected to reduce over time.

Outlook and guidance

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

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

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

• Oncology and cardiac to remain key revenue drivers; oncology could rise another 20% in revenue share over coming years.

• No plans for further international acquisitions; focus remains on consolidating and improving current UK and Cayman operations.