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Informist, Monday, May 19, 2025

By P. Madhu Kumar

MUMBAI – A combination of strong volume growth, better case mix skewed toward high-end specialties, and improving contributions from newly acquired hospitals is expected to drive robust financial performance for Max Healthcare Institute Ltd. for the March quarter, according to analysts tracking the company. The company is expected to post its strongest quarterly results for 2024-25 (Apr-Mar), with net profit likely to rise over 67% on year.

Max Healthcare is expected to report a consolidated net profit of INR 4.20 billion, according to the average of estimates from seven brokerages. The highest estimate for its bottom line is INR 4.86 billion from JM Financial Institutional Securities Pvt. Ltd. and the lowest is INR 3.61 billion by Emkay Global Financial Services Ltd.

The company's consolidated revenue is projected to grow 64% on year to INR 23.34 billion, led by increased elective procedures and improved occupancy at hospitals, both that are to be used and facilities that are in expansion stage, especially in Lucknow, Nagpur, and Dwarka. The highest estimate for revenue is INR 24.45 billion by HDFC Securities and the lowest is INR 22.83 billion by Centrum Broking.

Brokerages noted that while the overall occupancy in the company's hospitals might decline slightly due to ramp-up effects at newly commissioned facilities, the absolute number of operational bed days is expected to increase significantly, driven by growth in operating beds. Emkay Global expects operational bed days to grow 27% on year.

The company's earnings before interest, taxes, depreciation, and amortisation is expected to grow in line with revenue, supported by scale benefits and improving performance at newly expanded facilities. Some analysts project a margin contraction of 50–60 basis points due to the initial lower profitability at recently acquired or greenfield hospitals. The highest EBITDA estimate is INR 6.69 billion from HDFC Securities and the lowest is INR 5.89 billion from Centrum Broking. According to the consensus estimate by brokerages, the EBITDA of the company is expected to grow 30% to INR 4.78 billion in Jan-Mar. 

While revenue growth is expected to be broad-based, analysts see continued traction from the integration of acquired assets such as the hospitals in Lucknow, Noida, and Nagpur. A ramp-up in greenfield facilities such as those at Dwarka and improved performance at Max Lab are also likely to support earnings. Max Lab is a fully integrated subsidiary of Max Healthcare, which provides diagnostic and pathology services.

Investors will closely watch the company's commentary on new bed additions in key growth markets including Dwarka, Lucknow, Nagpur, and Mumbai, along with updates on specialty mix and profitability of new units. Max Healthcare is scheduled to report its financial results for the March quarter on Tuesday. At 1140 IST, the company's shares were at INR 1,189.40, up 2% on the National Stock Exchange.

Below are the Jan–Mar earnings estimates for Max Healthcare based on reports from seven brokerages, in descending order of estimated net profit (INR million): 

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Edited by Tanima Banerjee

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