Max Healthcare Institute LimitedPharmaceuticals & HealthcareMAXHEALTH
Q1 FY27 earnings callMax Healthcare Institute Limited
Max Healthcare posted strong revenue growth and continued its capacity expansion while embarking on a new medical education business.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Network Gross Revenue | INR 2,982 crore | 16% YoY, 12% QoQ | |
| Network Operating EBITDA | INR 704 crore | 15% YoY, 3% QoQ | |
| Network Operating EBITDA Margin | 24.8% | — | |
| Profit After Tax (PAT) | INR 357 crore | — | |
| Average Revenue Per Occupied Bed (ARPOB) | INR 81,900 | 5% YoY, 5% QoQ | |
| Network Average Occupancy | more than 75% | — | |
| International Patient Revenue | INR 247 crore | 18% YoY | |
| Digital Revenue | INR 941 crore | — |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹1,868.31 Cr+40% YoY+9.4% QoQ | ₹238.80 Cr-17.5% YoY-15.3% QoQ | ₹2.46-17.4% YoY-15.2% QoQ |
| Q2 FY25 | ₹1,707.46 Cr+25.3% YoY+10.7% QoQ | ₹281.81 Cr+1.9% YoY+19.3% QoQ | ₹2.90+1.8% YoY+19.3% QoQ |
| Q1 FY25 | ₹1,542.95 Cr+20.1% YoY+8.4% QoQ | ₹236.27 Cr-1.6% YoY-6.1% QoQ | ₹2.43-1.6% YoY-6.2% QoQ |
| Q4 FY24 | ₹1,422.90 Cr+17.2% YoY+6.6% QoQ | ₹251.54 Cr+0.2% YoY-13.1% QoQ | ₹2.590% YoY-13.1% QoQ |
| Q3 FY24 | ₹1,334.97 Cr+17% YoY-2.1% QoQ | ₹289.34 Cr+30.1% YoY+4.6% QoQ | ₹2.98+30.1% YoY+4.6% QoQ |
TL;DR
- Network revenue grew 16% YoY and 12% QoQ to INR 2,982 crore.
- Operating EBITDA grew 15% YoY but margins were muted at 24.8% due to new capacity commissioning.
- Occupancy remained above 75% despite a 13% increase in operational beds.
- Acquired Kalinga Hospital in Bhubaneswar, targeting significant improvement in its 50% occupancy and INR 35,000 ARPOB.
- Board approved new medical education business, expecting over 25% ROCE.
- Multiple brownfield and greenfield expansion projects are on track for commissioning over the next few years.
Said on the call
“We are efficient providers of healthcare... I believe as far as efficiency is concerned; we are outliers.”
From the Q&A
| Topic | What management said |
|---|---|
| Parliamentary Committee Report | Abhay Soi believes the report focuses on affordability but the need for new beds and investment viability must be balanced; the company is not reassessing its expansion plans. |
| Kalinga Hospital Turnaround | Management sees a 50-80% headroom for growth from the current 50% occupancy and INR 35,000 ARPOB, targeting a turnaround over the next 12 months through renovation and clinical program upgrades. |
| Max Smart & Nanavati Ramp-up | Commissioned beds at Max Smart are at 80% occupancy; profitability ramp-up follows a standard trajectory of first occupancy, then revenue, then EBITDA, expected over the next couple of quarters. |
| Insurance Renewals | Ongoing negotiations with GIPSA and other insurers; a previously agreed 6% automatic price revision is due, and discussions are ongoing for inflation-linked increases. |
| Medical Education Business | The board has given in-principle approval; a 150-seat college requires ~INR 300 crore capex, expected to deliver >25% ROCE, and will be funded through internal accruals. |
| Oncology Business Pressure | Oncology revenue was impacted by discontinuation of high-value chemo drugs for institutional patients; normalization is expected from Q3 FY27 onwards as the impact annualizes. |
| Institutional Revenue Share | Management stated the share of institutional business is coming down as a result of concerted effort and this trend is expected to continue. |
| Free Cash Flow & DSO | Lower free cash flow conversion (56% vs typical 62-65%) was due to a INR 250 crore build-up in accounts receivable (DSO increased from 87 to 95 days), partly from CGHS portal issues, which is expected to normalize. |
Guidance
- Remaining 50% of 400-bed brownfield tower at Max Smart to be handed over in current quarter.
- Remaining 50 beds at Nanavati Max to be operationalized in current quarter.
- Phased commissioning of 500-bed Gurgaon Sector 56 facility expected by end of this year.
- Kalinga Hospital (Bhubaneswar) turnaround targeted over next 12 months.
- Oncology business to start normalizing from Q3 FY27.
- Medical college commercial operations expected to start in the next few years.
Source
Summary written from the transcript filed by Max Healthcare Institute Limited for the call held on 20 Aug 2026; published 20 Aug 2026, 23:24 IST.