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Informist, Thursday, May 21, 2026

 

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--Max Health Jan-Mar consol net profit INR 3.42 bln
--Analysts saw Max Health Jan-Mar consol net profit at INR 4.39 bln
--Max Health Jan-Mar consol revenue INR 21.43 bln
--Analysts saw Max Health Jan-Mar consol revenue at INR 26.33 bln
--Max Health Jan-Mar consol PAT INR 3.42 bln vs INR 3.19 bln year ago
--Max Health Jan-Mar consol revenue INR 21.43 bln vs INR 19.10 bln yr ago
--Max Health to pay INR 2 per share final dividend
--Max Health to build 712-bed capacity hospital in Lucknow
--Max Health to spend INR 14 bln in phase-I of building Lucknow hospital
--Max Health FY26 consol PAT INR 14.42 bln vs INR 10.76 bln yr ago
--Max Health FY26 consol revenue INR 83.73 bln vs INR 70.28 bln yr ago
--Max Health Q4 free cash from operations INR 5.81 bln vs INR 4.22 bln yr ago
--Max Health Q4 network operating EBITDA INR 6.82 bln, up 8% on year
--Max Health Q4 avg revenue per occupied bed INR 77,900 vs INR 77,100 yr ago

 

By Eshitva Prakash and Gunjan Rajput

 

MUMBAI – Max Healthcare Institute Ltd.'s consolidated net profit in the March quarter rose marginally from a year ago, but fell short of Street expectations. Muted revenue growth, a largely unchanged average bed occupancy rate, and a double-digit rise in expenses were a major drag on the company's bottom line. The company continued to add bed capacity through brownfield and greenfield expansions across the country.

 

The private healthcare company reported a 7% on year increase in its consolidated net profit to INR 3.42 billion in the March quarter. This was sharply lower than analysts' estimate of INR 4.39 billion and was the slowest growth in net profit in five quarters. The company's revenue rose over 12% on year to INR 21.43 billion, sharply lower than the consensus estimate of INR 26.33 billion. This slowdown in revenue growth began in the previous quarter, when Max Healthcare's top line rose just 11%. The current and last quarters represent the slowest top-line growth the company has seen in three years.

 

The company reported an average occupancy of 75% in the March quarter, unchanged from the year-ago quarter. Its earnings before interest, tax, depreciation, and amortisation per bed fell to INR 7.34 million from INR 7.39 million a year ago. Its average revenue per occupied bed for the quarter improved to INR 77,900 from INR 77,100 a year ago. Its operating margin for the March quarter compressed to 26.8% from 27.2% in the corresponding quarter of last year.  

 

The company's total expenses for the quarter rose over 11% on year to INR 17.26 billion. The hospital chain's costs on account of professional and consultancy fees, mostly spent on doctors and healthcare professionals, rose over 16% on year to INR 4.73 billion. Employee expenses rose nearly 8% on year to INR 3.40 billion. Expenses related to the purchase of drugs, consumables, and implants rose nearly 6% on year to INR 4.33 billion, and other expenses rose over 6% on year to INR 2.84 billion. 

 

Max Healthcare plans to build a 712-bed greenfield hospital in Lucknow at a cost of INR 14 billion. The new hospital, spread across five acres, is expected to be commissioned by 2029-30 (Apr-Mar). The company's free cash flow from operations was INR 5.81 billion in the March quarter compared with INR 4.22 billion a year earlier. Max Healthcare has "adequate headroom for mergers and acquisitions driven by strong free cash flows and low leverage," the company said in an investor presentation. 

 

Max Healthcare commissioned a 400-bed brownfield tower at Max Smart Super Speciality Hospital in April, of which 156 beds have already been handed over to operations. The remaining beds are expected to be operationalised progressively in the next quarter. Further, a 160-bed brownfield tower at MSSH Mohali has been fully commissioned and operationalised. At Nanavati Max, 116 of the planned 280 beds in the brownfield tower are operational, with the remaining beds expected to become operational within the next three months, the company said. 

 

Among adjacencies, Max Lab, the non-captive pathology business, reported revenue of INR 520 million in the March quarter, up 14% on year. The diagnostic network is now present across more than 60 cities and offers over 2,700 tests. Max@Home reported gross revenue of INR 730 million during the quarter, up 30% on year, led by growth in physiotherapy and rehabilitation, nursing care and attendant services, as well as sample collection and medicine delivery services.
 

Max Healthcare's consolidated net profit for FY26 rose over 34% on year to INR 14.42 billion from INR 10.76 billion a year ago. Its revenue rose over 19% on-year to INR 83.73 billion from INR 70.28 billion.

 

The company's board approved a final dividend of INR 2 per share for FY26. Thursday, the company's shares ended at INR 1,091.10 on the National Stock Exchange, up 1.4% from the previous close. Max Healthcare announced its March-quarter results after market hours.  End

 

Edited by Saji George Titus

 

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