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Informist, Friday, May 22, 2026

 

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--Max Health: Gurgaon greenfield facility will see breakeven in FY28 
--CONTEXT: Max Health mgmt comments in post-earnings analysts concall 
--Max Health: Focus on expanding more outpatient departments 
--Max Health: Yet to accrue part of govt health plan price revision benefits 
--Max Health: Max Noida occupancy up by 65% in FY26 
--Max Health: Net benefit of central govt health plan INR 1.4 bln in FY26 
--Max Health: Added 20% new capacity in last 5 months 
--Max Health: Dwarka oncology centre to start next month 
--Max Health: Most units breakeven at 55% occupancy, 65% onwards you do well 
--Max Health: Planning brownfield 200-plus beds in Dwarka 
--Max Health: To open a new hospital at Shaheed Path, Lucknow, with 700 beds 
--Max Health: Labour shortfall may see Gurgaon project delayed by 2 months 

 

By Gunjan Rajput and Sunil Raghu

NEW DELHI/AHMEDABAD – Max Healthcare Institute Ltd. is looking to deepen its presence across key geographies through a mix of brownfield and greenfield expansions in Lucknow, Dwarka, Noida and Bhubaneswar, as the hospital chain targets sustained growth in occupancy and profitability, the company's management said in post-earnings analyst call. 

 

The company said its board has approved an investment of INR 14 billion for a 700-bed greenfield hospital at Shaheed Path in Lucknow. It will also expand capacity at its existing Gomti Nagar facility to 570 beds over the next two quarters. The management said the Lucknow market could eventually support over 2,000 beds over the next decade. "See over the next decade, even probably Gomti Nagar...going close to.. perhaps close to 2,000 beds. We are going to do it in a phased manner," the management said.

 

For the March quarter, Max Healthcare Institute reported a consolidated net profit of INR 3.42 billion on revenues of INR 21.43 billion.

In the National Capital Region, the company is advancing multiple projects, including a 260-bed expansion at Dwarka and ramp-up of operations at its Noida facility. The management said Noida occupancy in the financial year 2025-26 (Apr-Mar) was up to 64-65% and could eventually improve to reach network-level occupancy of over 75%, while Dwarka is already operating at 80-85% utilisation and may require another brownfield expansion. It also expects the Dwarka oncology centre to become operational next month.  

 

The company said it is adding beds in phases across hospitals to match occupancy ramp-up and improve operating leverage. It has already initiated phased commissioning of nearly 20?ditional brownfield capacity across facilities in Mohali and Mumbai. The management also added that the Gurugram greenfield facility will see a breakeven point in FY28. The management said most hospital units break even at around 55% occupancy, while profitability improves materially once occupancy crosses 65%.  
 

Max Healthcare management further said it is yet to accrue the full benefit from the revised rates under the central government health scheme. The company estimated the net benefit from the revision at around INR 1.4 billion annually after accounting for tax impact.

 

The management also said discontinuation of select high-value chemotherapy drugs under the central government health scheme pricing framework reduced oncology revenue contribution and affected occupied bed days during the quarter. The company said the annual impact from the discontinuation of such chemotherapy drugs could be around INR 2 billion in revenue. The management added that the issue has led to patient inconvenience, as some beneficiaries have to source medicines from the central government health scheme dispensaries directly.

 

The management also said labour shortages linked to elections and cooking gas supply disruptions could delay commissioning of its Gurgaon greenfield hospital project by around two months, though it continues to target operationalisation by the end of the current financial year.

 

At 1343 IST, shares of the company traded at INR 1,032.65 on the National Stock Exchange, down over 5%.   End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Vandana Hingorani

 

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