Earnings Outlook
Max Healthcare Q1 consol PAT seen surging on unit ramp-up
This story was originally published at 22:44 IST on 12 August 2025
Register to read our real-time news.Informist, Tuesday, Aug. 12, 2025
By Muskan Lodhi
MUMBAI – Max Healthcare Institute Ltd. is expected to report an exceptional on-year growth in both its top line and bottom line for the June quarter, according to analysts tracking the company. The 50% plus growth in revenue and net profit is expected to stem from the steady performance of its hospitals, increased bed capacity, and expanded operations in acquired hospitals.
Max Healthcare is expected to report a consolidated net profit of INR 3.74 billion for the June quarter, up 58% on year and up 17% sequentially, according to the average of estimates from eight brokerages. The highest estimate for the company's bottom line is INR 4.29 billion from Motilal Oswal Financial Services Ltd. and the lowest is INR 3.54 billion from Kotak Institutional Equities.
The Delhi-headquartered company's consolidated revenues are projected to climb over 57% on year and grow 27% sequentially to INR 24.31 billion. The highest estimate for revenue is INR 24.99 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 23.88 billion from HDFC Securities Ltd. The expected on-year jump in the company's top line comes on the back of a 10% on-year growth in revenue from existing hospitals and a significant ramp-up in the new units in Lucknow, Nagpur, Noida, and Dwarka, according to Emkay Global Financial Services Ltd.
The company's business verticals Max@Home and Max Lab will likely contribute strongly to its revenue. "We expect Max Lab and Max@Home to post 20% yoy and 15% yoy sales growth [in revenue], respectively," Kotak said. Max Lab provides pathology services outside the hospital network while Max@Home offers health and wellness services at home.
The company's revenue growth is also likely to be boosted by the increase in bed capacity to 4,700 units, up 24% from the year-ago quarter, Centrum Broking Ltd. said. Emkay expects the overall occupancy to rise 120 basis points on year to 76.2% and operating bed days to rise 26% on year. Operating bed days are the total number of days that hospital beds are occupied by patients.
However, some brokerages expect the company to report flat to marginal on-year growth in average revenue per occupied bed due to an increase in the share of hospitals with poor case mix and payor mix. Case mix refers to the variety and complexity of medical cases treated by hospitals while payor mix refers to the distribution of patients based on whether the patient is a self-paying patient or an insured patient.
Max Healthcare's consolidated earnings before interest, tax, depreciation, and amortisation for the June quarter are estimated at INR 6.10 billion, up 27% on year but down marginally on quarter, according to the average of estimates from seven brokerages. The highest EBITDA estimate is INR 6.25 billion from Motlilal Oswal and the lowest is INR 5.88 billion from Kotak.
Some brokerages project the EBITDA margin for the June quarter will decline sequentially due to poor contribution from new hospital units which are operating at lower margins. The company's EBITDA per bed is expected to contract 150 bps on year while most of its peers will likely report growth, according to Centrum Broking. "Overall EBITDA growth will be below revenue growth as Q1 has elevated cost related to personnel," Prabhudas Lilladher Pvt. Ltd. said.
The company plans to add 1,400-1,500 beds by the third quarter of 2025-26 (Apr-Mar) through brownfield expansion at its Ville-Parle facility in Mumbai and its Saket and Mohali facilities. The units were to commence operations in the reporting quarter and will likely aid the company's operational leverage and margins, according to Anand Rathi.
Investors will closely watch the company's commentary on new bed additions, ongoing projects in acquired units, and updates on growth plans for its subsidiaries Max Labs and Max@Home.
Of the nine brokerage reports on the company available with Informist, six have a "buy" rating on the stock with an average target price of INR 1,318. Two brokerages have a "sell" rating and one has a "hold" rating on the stock. The company will detail its earnings for the June quarter on Wednesday.
On Tuesday, shares of Max Healthcare closed at INR 1,260.60 on the National Stock Exchange, down marginally. The stock has risen over 8% since the company announced its March quarter earnings.
Following are the estimates for the company's June quarter earnings based on reports from eight brokerage firms in the descending order of the estimate of net profit:
Brokerage Firms | Net Interest Income (in INR million) | Net Profit (in INR million) | EBIDTA (in INR million) |
Motilal Oswal Financial Services Ltd. | 24,413.00 | 4,285.00 | 6,250.00 |
Anand Rathi Share and Stock Brokers Ltd. | 24,985.00 | 3,749.00 |
|
Emkay Global Financial Services Ltd. | 24,224.00 | 3,732.00 | 6,230.00 |
Centrum Broking Ltd. | 24,489.00 | 3,698.00 | 6,147.00 |
JM Financial Institutional Securities Pvt. Ltd. | 24,300.00 | 3,670.00 | 6,050.00 |
Prabhudas Lilladher Pvt. Ltd. | 23,923.00 | 3,642.00 | 6,052.00 |
HDFC Securities Ltd. | 23,882.00 | 3,576.00 | 6,069.00 |
Kotak Institutional Equities | 24,238.00 | 3,540.00 | 5,884.00 |
Average | 24,306.75 | 3,736.50 | 6,097.43 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT.
Edited by Deepshikha Bhardwaj
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