Analyst Concall
Max Health sees project debt go up further in rest of FY26
This story was originally published at 16:38 IST on 14 August 2025
Register to read our real-time news.Informist, Thursday, Aug. 14, 2025
Please click here to read all liners published on this story
--Max Health: Apr-Jun operating EBITDA down QoQ due to annual increments
--CONTEXT: Comments by Max Health's mgmt in post-earnings investor call
--Max Health: Operating EBITDA declined QoQ due to manpower for new units
--Max Health: Net debt will go up in FY26 on execution of projects at hand
--Max Health:Project-related debt seen up INR 4-5 bln from now till FY26 end
By Rajesh Gajra
NEW DELHI – The total debt for project purposes of Max Healthcare Institute Ltd. may go up by another INR 4 billion-INR 5 billion between now and the end of current financial year 2025-26 (Apr-Mar), the company's management told investors and analysts in a post-June quarter earnings conference call Thursday. The net debt will go up "because we have tied up some funds for the projects underway," a top executive said in the call.
Max Healthcare's net debt had increased by INR 1.79 billion to INR 17.55 billion at the end of June from INR 15.76 billion at the end of March, according to the company's June quarter earnings-related investor presentation. During the June quarter, the company spent INR 4.35 billion towards ongoing expansion and upgrading of facilities at newer units, the company said in its earnings press release Wednesday. Apart from this, the company spent INR 1.31 billion towards purchase of land for expansion of Max Super Specialty Hospital in Vaishali, near Delhi.
The free cash from operations declined to INR 3.89 billion in the June quarter from INR 4.22 billion in the March quarter. The management provided the status of the company's expansion projects in the investor call. It said the company was in advanced stages of commissioning basement to third floor, along with the seventh floor, in the 268-bed phase 1 expansion at Nanavati Max Hospital in Mumbai in the next few weeks.
The interior works and mechanical, electrical, and plumbing fit-out works are going on in the expansion project at Max Smart, Saket, in Delhi, a top executive said in the call. With regard to Max Hospital, Lucknow, the company expects the capacity of hospital beds to increase to 520 beds by the end of FY26 from 413 beds. The structural mechanical, electrical, and plumbing work at the 500-bed hospital in Sector 56, Gurugram, is currently in progress with high-side equipment under installation, a top executive said.
The company's operating earnings before interest, tax, depreciation, and amortisation at the overall network level rose 23% on year to INR 6.13 billion in the June quarter. But compared to the trailing quarter, the network operating EBITDA declined 3%. The network operating EBITDA margin was 24.9% in the June quarter, lower than 27.2% in the March quarter and 25.8% in the year ago quarter.
The management said the quarter-on-quarter decline in operating EBITDA was on account of annual increments effected in April and additional manpower hired for new capacities. New units contributed INR 270 million to the June quarter network operating EBITDA, a top executive said. As per the investor presentation, the aggregate gross revenue at these two new units at Max Super Specialty Hospital, Dwarka, and Max Super Specialty Hospital, Noida, was INR 2.31 billion and their EBITDA margin was 12.2%.
The like-for-like operating EBITDA per bed for existing units was INR 7.5 million for the June quarter, reflecting a 7% on-year growth, the management of Max Healthcare said in the call. The operating EBITDA per bed was INR 7.4 million in the trailing quarter, up 1.4%, according to the investor presentation. The management said on a like-for-like basis the year-on-year revenue growth in existing units was 16% "driven by an increase of 10% in occupied bed days," and increase of 5% in average revenue per occupied bed.
The company had announced its June quarter earnings Wednesday. Its consolidated net profit increased 30% on year and fell 3.5% on quarter to INR 3.08 billion in the June quarter. The revenue from operations rose 31% on year and 6.2% on quarter to INR 20.28 billion.
On Thursday, shares of the company closed 3.7% lower at INR 1,220.70 on the National Stock Exchange. End
Edited by Subhojit Sarkar
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
