Analyst Concall
Narayana Hrudayalaya to focus on existing clusters for now
This story was originally published at 17:28 IST on 3 August 2026
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--Narayana Hrudayalaya: Not looking to enter new regions
--Narayana Hrudayalaya: Focusing on already established regions
--Narayana Hrudayalaya: To spend INR 30 bln over 2-3 yrs on new projects
--Narayana Hrudayalaya: Clarity on UK business after next four quarters
--CONTEXT:Narayana Hrudayalaya mgmt's comments at post-earnings analyst call
--Narayana Hrudayalaya: See expansion in core operating margins going ahead
By Narayana Krishna and Astha Oriel
HYDERABAD/NEW DELHI – Bengaluru-based healthcare services provider Narayana Hrudayalaya Ltd. is not looking to enter new regions in the country at present, focusing more on its current operating clusters, the company management said at a post-earnings analyst conference call.
The hospital chain posted a consolidated net profit of INR 2.07 billion for the June quarter, up 5% on year, while its revenue from operations increased 78% on year to INR 26.84 billion. A rise in patient footfall across hospitals, along with increased high-value operations, helped the company report better revenue for the quarter, the company management said.
Narayana Hrudayalaya's core focus was on Bengaluru, while it has presence in Kolkata and Raipur. It is also operating hospitals in the Cayman Islands and the UK.
The company said the June quarter performance was led by its existing capacity and by leveraging its strengths, with improved volumes. "We have seen good traction in terms of volumes coming across the network across all the regions. And it has been a good combination of volumes as well as realisations. And going forward, we would strive towards continuing with such a combination in the quarters to come," the company said.
The company said its earnings before interest, tax, depreciation, and amortisation margins may not see a significant jump in the coming quarter, but it will work on expanding core operating margins going forward by leveraging its current capacities. "It is not possible to give a projection on that, but what we can definitely see is that we will see expansion in the core operating margin of the business given the leverage benefit that we will enjoy," management said.
Narayana Hrudayalaya is expanding its capacities and several ongoing projects are at various stages. The company is planning to spend around INR 30 billion on new projects in the next 2-3 years, using a combination of cash reserves and debt. As of Jun.30, the company had a cash balance of INR 19.93 billion.
The company, which currently has a total operating capacity of 5,955 beds, is planning to take this to over 7,600 by 2029-20 (Apr-Mar). Declining to provide an outlook for its acquired hospitals business in the UK, Narayana Hrudayalaya management said it may take at least four more quarters to get clarity on returns on capital employed on that project.
In November 2025, Narayana Hrudayalaya acquired UK-based Practice Plus Group hospitals in an all-cash deal for INR 22 billion. On Monday, the company's shares ended at INR 1,919.70 on the National Stock Exchange, down 5.4% from its previous close. End
Edited by Saji George Titus
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