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    Max Healthcare Institute Limited

    MAXHEALTH
    Healthcare·21 Nov 2025
    Management Summary

    Max Healthcare reported a strong Q2 FY26 with network revenue growing 21% YoY to INR 2,692 crore and operating EBITDA up 23% YoY to INR 694 crore. Adjusted PAT increased 16% YoY to INR 406 crore, despite higher finance costs and depreciation from new units. The company is actively expanding capacity, with key brownfield projects nearing completion, and anticipates a significant revenue boost from CGHS rate revisions.

    Highlights

    6

    • Network gross revenue grew 21% year-on-year to INR 2,692 crore, and 5% quarter-on-quarter.

    • Operating EBITDA increased 23% year-on-year to INR 694 crore, with a robust margin of 26.9%.

    • Adjusted PAT (excluding one-time tax benefit) grew 16% year-on-year to INR 406 crore.

    • Existing Units showed strong performance with 14% like-for-like revenue growth and 19% EBITDA growth.

    • Significant capacity expansion underway, with Nanavati-Max and Max Smart brownfield towers nearing commissioning.

    • CGHS rate revision expected to add INR 200 crore in revenue with an 85% flow-through to EBITDA.

    Concerns

    3

    • PAT growth (16%) lagged revenue (21%) and EBITDA (23%) due to higher finance costs and depreciation from new, lower-margin hospitals and borrowings.

    • ARPOB growth for the network was subdued at 1% YoY, primarily due to the mix effect of newly acquired hospitals.

    • Cash flows were impacted by a buildup of accounts receivable in the institutional segment, though management expects recovery next quarter.

    What Changed2

    vs Q3 FY26

    Guidance items3 → 11 (+8)Q&A highlights0 → 8 (+8)

    Key financials

    Single quarter

    06 metrics
    1. 01Network Gross Revenue₹2,692 Cr+21%YoY
    2. 02Network Operating EBITDA₹694 Cr+23%YoY
    3. 03Network Operating EBITDA Margin26.9%
    4. 04Adjusted PAT₹406 Cr+16%YoY
    5. 05Average Revenue Per Occupied Bed (ARPOB)₹77,300+1%YoY

    Segment breakdown

    Existing Units
    14.0% Revenue Growth (like-for-like)19% EBITDA Growth (like-for-like)27.5% EBITDA Margin3% ARPOB Growth (like-for-like)79% Occupancy Levels76 lakhs EBITDA per bed
    New Units
    ₹144 Cr Revenue Contribution₹23 Cr EBITDA Contribution
    Max@Home
    ₹63 Cr Revenue20% EBITDA Margin
    Max Lab
    ₹54 Cr Revenue16% EBITDA Margin
    List

    Capital allocation

    4
    CategoryHeadline
    Capex

    ₹2,000 crores

    Debt

    Net ₹2,067 crores

    M&A

    Hospitals in Chitta and Anoopshahr

    divestment · Other

    M&A

    Crosslay Remedies Ltd. and Jaypee Healthcare Ltd.

    merger · Other

    Guidance & targets

    11
    CategoryTargetPriority
    Revenue
    Additional revenue from CGHS revision
    INR 200 crore
    		High
    Profitability
    EBITDA flow-through from CGHS revenue
    85%
    		High
    Profitability
    Noida margins
    mid 25%
    		Medium
    Capacity
    Max Lucknow bed capacity
    550 beds
    		High
    Project Completion
    Max Nagpur project completion
    within 24 months
    		High
    Project Completion
    Patparganj project completion
    by FY '28
    		High
    Project Completion
    Max Vikrant (Saket) project completion
    within 40 months
    		High
    Project Completion
    Zirakpur, Mohali project completion
    end of calendar year 2027
    		High
    Project Completion
    Max Vaishali project completion
    in 24 months
    		High
    Project Completion
    Thane project delivery
    in 42 months
    		High
    Project Completion
    Pitampura project completion
    36 months
    		High

    CGHS rate revision full implementation

    by end of November 2025
    CurrentPartially implemented, super specialty rates pending
    TargetFull implementation of super specialty rates and associated revenue impact

    Why it matters

    Full implementation of CGHS rate revisions is expected to add INR 200 crore in revenue with 85% EBITDA flow-through, significantly boosting profitability.

    I think some of it has already started from 13th October. But I think there is a super speciality rate that will also kick in, I think, by the end of this month. I mean, we do not know how much time it will take, but I think the expectation is that by the end of November, that rate should also be up and working. (Page 21, Yogesh Sareen)

    How to verify

    guidance_and_targets[category='Revenue'][metric='Additional revenue from CGHS revision']

    Risks & concerns

    3
    RiskSeverity

    Lumpiness in institutional payments impacting cash flow

    Institutional payments are historically lumpy, leading to temporary build-up of accounts receivable, but not a cause for concern as budgets are replenished. — Analyst downplayed

    medium

    Temporary impasse with insurance renewals affecting cashless facilities

    An impasse with certain insurance players temporarily stopped cashless facilities, but it has been resolved, and such situations are expected once every few years. — Management acknowledged

    low

    Slower ARPOB growth for the network

    Overall ARPOB growth was 1% YoY, but this was primarily due to the mix effect of new hospitals; existing units showed 7% YoY ARPOB growth. — Analyst acknowledged

    low

    Q&A highlights

    8

    “You would have seen that the finance costs have gone up, and depreciation has gone up as well because we have added new hospitals in Q3 last year. And their EBITDA margins are lower. We have also taken borrowings to fund these acquisitions.”

    Explains the divergence in profit growth metrics, attributing it to new hospital acquisitions and associated costs.

    asked by Andrey Purushottam

    2 min read7 chapters

    Detailed Narrative

    01

    Q2 FY26 Performance Overview

    Max Healthcare reported a strong Q2 FY26, with network gross revenue growing 21% year-on-year to INR 2,692 crore and 5% quarter-on-quarter. Operating EBITDA increased by 23% year-on-year to INR 694 crore, achieving a margin of 26.9%. Adjusted Profit After Tax (PAT), excluding a one-time📎 benefit of INR 149 crore from subsidiary mergers, stood at INR 406 crore, reflecting a 16% year-on-year growth.

    02

    Capacity Expansion and Commissioning

    The company is actively expanding its capacity through brownfield projects. The new 160-bed brownfield tower at Max Mohali has been commissioned. The new 268-bed brownfield tower at Nanavati-Max is expected to be commissioned this week, and the 400-bed brownfield tower at Max Smart will be ready within the next 30 days. Several other projects, including Max Lucknow (550 beds by FY26 end) and Patparganj (397 beds by FY28), are progressing as planned.

    03

    Strategic Initiatives and Corporate Structure

    Max Healthcare streamlined its corporate structure by completing the divestment of hospitals in Chitta and Anoopshahr in September 2025. Additionally, the merger of two wholly-owned subsidiaries, Crosslay Remedies Ltd. and Jaypee Healthcare Ltd., was approved, resulting in a one-time📎 tax benefit of INR 149 crore during the quarter. The company continues to focus on high-acuity care and enhancing service offerings.

    04

    Digital and International Business Growth

    Digital revenue, driven by online marketing and web-based appointments, rose to INR 803 crore, accounting for approximately 30% of overall revenue. Website traffic crossed 79 lakh sessions, growing 53% year-on-year. International patient revenue reached INR 231 crore, registering a 25% year-on-year growth, primarily driven by volume rather than ARPOB increases in this segment.

    05

    Segmental Performance

    Existing Units, operational prior to Q3 FY25, demonstrated strong performance with 14% like-for-like revenue growth and 19% EBITDA growth, achieving an EBITDA margin of 27.5%. New Units contributed INR 144 crore to revenue and INR 23 crore to EBITDA. Max@Home reported INR 63 crore in revenue with 20% YoY growth and an EBITDA margin of 20%, while Max Lab generated INR 54 crore in revenue with 16% YoY growth and a 16% EBITDA margin.

    06

    CGHS Rate Revision and Insurance Updates

    The CGHS has revised its prices effective October 13th, with a full implementation expected to add over INR 200 crore in revenue, with an estimated 85% flow-through to EBITDA. The company also resolved an impasse with certain insurance players regarding renewals, which had temporarily affected cashless facilities. Management noted that such impasses occur periodically but are typically resolved without long-term impact on patient flow.

    07

    Capital Allocation and Debt Profile

    The company deployed INR 456 crore towards capacity expansion and facility upgrades in Q2, with a total of INR 900 crore spent in H1 FY26. The full-year capex is projected to be around INR 2,000 crore. Net Debt for the network stood at INR 2,067 crore, up from INR 1,755 crore at the end of June 2025. INR 146 crore was distributed as dividend during the quarter.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.