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    Max Healthcare

    MAXHEALTH
    Healthcare·27 May 2025
    Management Summary

    Max Healthcare delivered a strong Q4 and full year FY25 performance, marked by significant revenue and EBITDA growth driven by successful acquisitions and disciplined execution. The company achieved rapid breakeven for Max Dwarka and is aggressively expanding its bed capacity with approximately 1,500 new beds expected by year-end. While new units initially show lower profitability metrics, management is confident in future margin expansion through higher-end medical programs and increased occupancy.

    Highlights

    5

    • Network gross revenue for Q4 FY25 increased 29% year-on-year to INR 2,429 crore, reflecting strong top-line growth.

    • Network operating EBITDA for Q4 FY25 stood at INR 632 crore, a 26% year-on-year growth, with a margin of 27.2%.

    • Max Dwarka, a newly operationalized asset-light hospital, achieved EBITDA breakeven in a record 6 months and exited Q4 with 73% occupancy on 235 beds.

    • Max Lucknow demonstrated exceptional growth with 56% YoY revenue and 102% EBITDA growth, while Max Nagpur reported 23% YoY revenue and 86% EBITDA growth in their first year.

    • The company is on track to commission approximately 1,500 new beds by the end of this year through brownfield and greenfield expansions.

    Concerns

    3

    • Institutional ARPOB degrew by 3-4% quarter-on-quarter, though management stated this was temporary.

    • Geopolitical unrest in regions like Bangladesh and Yemen led to contraction in international patient footfalls, despite overall growth.

    • EBITDA per bed for New Units is currently 43% of the rest of the network, indicating a drag on overall average profitability metrics initially.

    What Changed3

    vs Q4 FY25

    Guidance items2 → 13 (+11)Risks discussed4 → 3 (-1)Q&A highlights3 → 7 (+4)

    Key financials

    Single quarter

    06 metrics
    1. 01Network Gross Revenue₹2,429 Cr+29.0%YoY
    2. 02Network Operating EBITDA₹632 Cr+26%YoY
    3. 03Network Operating EBITDA Margin27.2%
    4. 04PAT (excl. exceptional)₹376 Cr+21%YoY
    5. 05Network Occupancy75%

    Segment breakdown

    New Units (Q4 FY25)
    ₹353 Cr Gross Revenue₹67 Cr EBITDA Contribution19.4% EBITDA Margin
    Existing Units (Q4 FY25)
    12% Revenue Growth28.5% EBITDA Margin7.0% ARPOB Growth84 lakhs EBITDA per bed
    Max@Home
    ₹56 Cr Top Line22% Growth
    Max Lab
    ₹46 Cr Revenue19% Growth
    List

    Capital allocation

    8
    high confidence
    CategoryHeadline
    Capex

    ₹390 crores

    mostly through internal accruals

    Debt

    Net ₹1,576 crores · 2.5x EBITDA

    Cost 8.0%

    Returns FYTD

    ₹146 crores

    M&A

    Jaypee Hospital

    acquisition · closed · Consideration ₹NaN (cash)

    M&A

    Alps Hospital Limited and Max Hospitals & Allied Services Limited

    merger · closed

    Guidance & targets

    13
    CategoryTargetPriority
    Capacity
    Nanavati Phase I beds commissioning
    268 beds
    		High
    Capacity
    Mohali new beds commissioning
    155 beds
    		High
    Capacity
    Max Smart (Saket Complex) commissioning
    400 beds
    		High
    Capacity
    Sector 56 Gurgaon commissioning
    500 beds
    		High
    Capacity
    Dwarka Onco block commissioning
    —
    		High
    Capacity
    Total new beds
    approximately 1,500 beds
    		High
    Capacity
    Max Nagpur project completion
    127 beds
    		High
    Capacity
    Max Vikrant (Saket Complex) project completion
    550 beds
    		High
    Capacity
    Zirakpur (Mohali) project completion
    400 beds
    		High
    Capacity
    Vaishali brownfield project completion
    140 beds
    		High
    Capacity
    Total beds
    9,000 beds
    		Medium
    Debt
    Net debt to EBITDA ratio
    2.5x
    		High
    Profitability
    ROCE for M&A
    20-25%
    		High

    Nanavati Phase I Commissioning

    within 90 days (Q1 FY26)
    CurrentInterior work in progress
    TargetCommissioned (268 beds)

    Why it matters

    Adds significant capacity to the network and contributes to revenue growth.

    268 beds at Nanavati in Phase I: Interior work is in progress and we expect to commission this facility within 90 days.

    How to verify

    guidance_and_targets[category='Capacity'][metric='Nanavati Phase I beds commissioning']

    Risks & concerns

    3
    RiskSeverity

    Geopolitical unrest impacting international patient footfalls

    Contraction in patient footfalls from Bangladesh and Yemen due to continuing political unrest, and recent Pakistan airspace closure, despite overall 28% YoY growth in international patient revenue. — Management acknowledged

    medium

    Initial lower profitability metrics from new units

    EBITDA per bed for New Units is 43% of the rest of the network, and institutional ARPOB degrew 3-4% QoQ, potentially impacting overall average metrics in the short term. — Management acknowledged

    low

    Competition from new hospitals in key markets

    A peer is opening a new hospital in Gurgaon with a similar number of beds and premium location, but management is confident due to Max Healthcare's strong network and performance. — Analyst downplayed

    low

    Q&A highlights

    7

    “Significant. This is only the first year of acquisition. By the time you put the building blocks in place, which you must appreciate takes some time. Just to give you an example, in Lucknow, you had expansion of EBITDA by 102%, yet, there is no radiation oncology there. There is no bunker. And that bunker is going to come into play at the end of H1 this year.”

    Clarifies the significant upside potential for margin improvement in newly acquired assets like Lucknow, Nagpur, and Noida, driven by strategic investments and operational enhancements over the next 1-2 years.

    asked by Amey Chalke

    2 min read6 chapters

    Detailed Narrative

    01

    Robust Q4 and Full Year FY25 Financial Performance

    Max Healthcare reported strong financial results for Q4 FY25, with network gross revenue growing 29% YoY to INR 2,429 crore and operating EBITDA increasing 26% YoY to INR 632 crore, achieving a margin of 27.2%. For the full fiscal year, network gross revenue reached INR 9,065 crore, a 26% YoY increase, and overall network operating EBITDA grew 22% YoY to INR 2,319 crore, with a margin of 26.8%. PAT, excluding exceptional item📎s and one-off📎 tax gains, grew 21% YoY to INR 376 crore in Q4.

    02

    Acquired Assets Performance & Strategy

    Recent acquisitions played a key role in growth, with Max Lucknow demonstrating 56% YoY revenue growth and 102% EBITDA growth, and Max Nagpur reporting 23% YoY revenue and 86% EBITDA growth in their first year. Max Noida, acquired in November '24, contributed INR 228 crore in gross revenue and INR 48 crore in operating EBITDA with a 21% margin. Management expects significant margin expansion from these units as they mature and introduce higher-end medical programs, such as radiation oncology in Lucknow by H1 FY26.

    03

    Max Dwarka's Rapid Breakeven and Expansion Plans

    The newly operationalized Max Dwarka hospital achieved EBITDA breakeven in a record 6 months. It exited Q4 FY25 with approximately INR 30 crore in monthly revenue and 73% occupancy on 235 beds. The company plans to open the remaining 68 beds soon and commission the Onco block by Q3 this year, further enhancing its capacity and service offerings.

    04

    Aggressive Capacity Expansion Pipeline

    Max Healthcare is on track to add approximately 1,500 beds by the end of this calendar year through a mix of brownfield and greenfield projects. Key upcoming commissions include 268 beds at Nanavati Phase I and 155 beds at Mohali within 90 days, 400 beds at Max Smart (Saket Complex) by Q2 FY26, and 500 beds at Sector 56 Gurgaon by the end of the calendar year. Additionally, projects in Max Nagpur, Patparganj, Max Vikrant, Zirakpur, and Vaishali are progressing with timelines ranging from 24 to 30 months.

    05

    Strategic Capital Allocation and Debt Management

    The company deployed INR 390 crore in Q4 FY25 and INR 1,182 crore for the full year towards capacity expansion and upgradation. Net debt decreased by INR 32 crore to INR 1,576 crore at the end of March '25. Management is comfortable with a net debt to EBITDA ratio of up to 2.5x and aims for a 20-25% ROCE on M&A, noting that FY25 ROCE was 26% overall. INR 1,447 crore in free cash flows from operations for FY25 supports these growth initiatives.

    06

    Resilient International Patient Business and SBU Growth

    International patient revenue grew 28% YoY to INR 202 crore in Q4, despite geopolitical challenges impacting footfalls from Bangladesh and Yemen. The company's strategic business units also demonstrated strong growth, with Max@Home reporting a 22% YoY increase in top line to INR 56 crore, and Max Lab achieving 19% YoY revenue growth to INR 46 crore, expanding its presence across 50 cities.

    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.