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Informist, Monday, Aug. 10, 2026

 

By Gunjan Rajput

NEW DELHI – Max Healthcare Institute Ltd. is expected to report strong growth in consolidated net profit and revenues for the June quarter, supported by higher bed occupancy, contribution from recently added beds, recovery in cashless volumes after insurer pricing issues were resolved, and a ramp-up of brownfield expansions. However, higher clinician costs and the lower-margin profile of new hospitals are likely to limit expansion in the company's operating margin.

 

The company is expected to report a consolidated net profit of INR 3.95 billion, up over 28% on year, according to the average of estimates from 11 brokerages. Revenues are seen up 34% on year at INR 27.2 billion. Sequentially, net profit and revenues are expected to rise over 15% and nearly 27%, respectively.

The highest estimate for the bottom line is INR 4.31 billion from Motilal Oswal Financial Services Ltd. and the lowest is INR 3.15 billion from Axis Securities Ltd. The highest estimate for the top line is INR 27.94 billion from Kotak Securities Ltd. and the lowest is INR 24.95 billion from Axis Securities.

Higher patient volumes, improved occupancy at recently commissioned facilities, and contribution from brownfield expansions at Mohali in Punjab, Nanavati Hospital in Mumbai, Lucknow in Uttar Pradesh, and Max Smart Delhi are expected to support Max Healthcare's revenue growth, according to brokerages. Recovery in cashless services following the resolution of insurer pricing issues is also expected to boost performance, according to Emkay Global Financial Services Ltd.

The average revenue per occupied bed is expected to post marginal year-on-year growth due to the discontinuation of patented chemotherapy drugs for scheme patients, offsetting any benefits from case mix improvement in existing hospitals, according to Kotak Securities. Motilal Oswal expects average revenue per occupied bed to be INR 78,800, supported by the addition of institutional and corporate patients. The company had posted average revenue per occupied bed of INR 78,000 a year ago.

 

Max Healthcare's revenues are also expected to be supported by contributions from other businesses, such as Max Lab and Max@Home. In Max Lab, the company is expected to post 11-17% revenue growth for the June quarter, according to two brokerages. An on-year growth of 8% in test volumes and 3% improvement in realisations are likely to drive revenue growth in Max Lab, Motilal Oswal said. For Max@Home, the company is expected to post 20-25% on-year revenue growth, according to two brokerages. Kotak Securities expects 14% on-year and 11% sequential growth in revenues from network hospitals in the reporting quarter.

The company's earnings before interest, tax, depreciation, and amortisation are pegged at INR 6.88 billion, according to the average of 10 estimates. The company had posted an EBITDA of INR 6.13 billion for the year-ago quarter. The highest EBITDA estimate is INR 7.40 billion from Emkay Global and the lowest is INR 6.07 billion from Axis Securities.

 

However, higher doctor and clinician costs, lower utilisation of newly added beds, and the impact of changes in oncology drug prices are expected to limit expansion in operating margin for the reporting quarter. HDFC Securities Ltd. expects the EBITDA margin to expand 80 basis points on year to 25.7% due to the integration of acquired hospitals and new beds. Nuvama Wealth Management Ltd. expects the margin to contract 30 bps to 24.6%, reflecting a rise in clinician costs, pressure from oncology drug pricing, and bed mix. ICICI Securities expects the margin to expand to 25.9%. The company had posted an EBITDA margin of 24.9% for the year-ago quarter.

 

Max Healthcare will detail its June quarter results Thursday. Investors will focus on progress in brownfield expansions, reimbursement rates for key oncology drugs, occupancy and average revenue per occupied bed trends, and commentary on bed expansion timelines and recent acquisitions.

 

Monday, shares of the Nifty 50 company ended at INR 1,069 apiece on the National Stock Exchange, marginally down from Friday. The stock is up over 4% since the company reported its March quarter results. Of the eight brokerage reports on the company available with Informist, seven have a "buy" recommendation on the stock with an average target price of INR 1,182. This is nearly 11% higher than the current market price. The eighth brokerage has a "sell" recommendation on the stock with a target price of INR 969.

 

Following are the June quarter earnings estimates for Max Healthcare Institute from 10 brokerages, in descending order of the estimate of net profit, in INR billion:

 

Brokerage name	Net Sales	Net Profit	EBITDA
Motilal Oswal Financial Services Ltd.	27.33	4.31	7.00
Emkay Global Financial Services Ltd.	27.83	4.26	7.40
Kotak Securities Ltd.	27.94	4.24	7.12
ICICI Securities Ltd.	26.39	4.16	6.98
Anand Rathi Share and Stock Brokers Ltd.	27.42	4.11
HDFC Securities Ltd.	27.36	4.06	7.04
JM Financial Institutional Securities Pvt. Ltd.	27.70	3.88	6.90
Antique Stock Broking Ltd.	26.78	3.82	6.56
Nuvama Wealth Management Ltd.	27.93	3.76	6.88
Bank of America Global Research	27.62	3.71	6.82
Axis Securities Ltd.	24.95	3.15	6.07
Average	27.20	3.95	6.88

 

End

 

Edited by Shubhayan Bhattacharya

 

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