MAXHEALTHNSEAugust 21, 2025

Max Healthcare Institute Limited

7,206words
112turns
8analyst exchanges
2executives
Management on call
Abhay Soi
Chairman and Managing Director; Mr. Yogesh
Keshav Gupta
Senior
Key numbers — 40 extracted
27%
Call. We are pleased to report a strong start to the financial year, with year-on-year growth of 27% in revenue and 23% in operating EBITDA for the Network. This marks the 19th consecutive quarter of
23%
sed to report a strong start to the financial year, with year-on-year growth of 27% in revenue and 23% in operating EBITDA for the Network. This marks the 19th consecutive quarter of year-on-year growt
rs,
e is driven, in part, by the successful integration of the hospital acquisitions made in recent years, which have significantly bolstered both our top and bottom-line results. Looking ahead, our focus
80%
100 meters from our existing 220-bed Max Dehradun facility, which reported over 80% occupancy in Q1 FY '26. The new facility is expected to be commissioned by the end of 2028 and wil
Rs. 40 crore
d geographies, we have executed a binding term sheet to divest Chitta and Anoopshahr hospitals for Rs. 40 crores, with completion expected by September ‘25. Of the two, only Chitta hospital was operational and
Rs. 5 crore
cted by September ‘25. Of the two, only Chitta hospital was operational and reported approximately Rs. 5 crores in revenue and Rs. 1 crore of EBITDA loss in Q1 FY '26. These assets were part of the overall Jay
Rs. 1 crore
e two, only Chitta hospital was operational and reported approximately Rs. 5 crores in revenue and Rs. 1 crore of EBITDA loss in Q1 FY '26. These assets were part of the overall Jaypee Healthcare acquisition
76%
and Max Dwarka are categorized as the “New Units”. 1) Average occupancy for the Network stood at 76% compared to 75% in both Q1 last year and the trailing quarter. However, Existing Units achieved oc
75%
re categorized as the “New Units”. 1) Average occupancy for the Network stood at 76% compared to 75% in both Q1 last year and the trailing quarter. However, Existing Units achieved occupancy levels
78%
Q1 last year and the trailing quarter. However, Existing Units achieved occupancy levels of over 78%. 2) Occupied bed days increased by 26% year-on-year and 4% quarter-on-quarter. 3) Average reven
26%
However, Existing Units achieved occupancy levels of over 78%. 2) Occupied bed days increased by 26% year-on-year and 4% quarter-on-quarter. 3) Average revenue per occupied bed for the quarter was R
4%
ts achieved occupancy levels of over 78%. 2) Occupied bed days increased by 26% year-on-year and 4% quarter-on-quarter. 3) Average revenue per occupied bed for the quarter was Rs. 78,000, growing
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Guidance — 20 items
Abhay Soi
opening
“We expect to add approximately 1,000 brownfield and 500 greenfield beds.”
Abhay Soi
opening
“• Max Lucknow – The current capacity of the hospital stands at 413 beds, and we expect this to increase to 520 beds by end of the financial year.”
Abhay Soi
opening
“We expect to commission the facility by the end of this financial year.”
Abhay Soi
opening
“• 100 beds at Max Nagpur – We are currently awaiting formal environmental clearance, while the project has been otherwise approved.”
Abhay Soi
opening
“Civil contract has been awarded and we expect to complete the project within 24 months.”
Abhay Soi
opening
“In any case, this project is to start upon commissioning of the 400 beds at Max Smart by the end of this year.”
Abhay Soi
opening
“The project is expected to be completed within the next 24 months.”
Abhay Soi
opening
“We expect to complete this project within the next 30 months.”
Abhay Soi
opening
“Detailed drawings for the hospital are being prepared, and we expect submissions to begin by the end of this quarter.”
Yogesh Sareen
qa
“Also, I want to mention that in that case, the growth in ARPOB will be 7% instead of 5% that Abhay mentioned over the Existing Units.”
Risks & concerns — 3 flagged
613 crores, reflecting a growth of 23% year-on-year and a 3% dip quarter-on-quarter, primarily due to the impact of annual increments and additional manpower hired for new capacities.
— Abhay Soi
Then it's difficult to say that, look, in a brownfield, the earlier beds are growing by this much and the newer beds are growing by that much.
— Abhay Soi
So, from Q4 to Q1, I understand this is seasonally weak.
— Abhay Soi
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Q&A — 8 exchanges
Q
Like we mentioned, Dwarka opened in July’24, and Jaypee Noida was acquired in Oct-November’24. If we just take these two facilities out, then the growth in revenue has been 16%. Tushar Manudhane: And that is driven again by further sort of optimizing payor mix? Or is it a combination of --?
Yogesh Sareen
Basically, for the Existing Units, that means including the Lucknow and Nagpur hospitals, the growth has been 16% and 18% in revenue and operating EBITDA, as Abhay mentioned. If we take out these two new hospitals, i.e., Lucknow and Nagpur, the acquisitions of which happened in the Q4 FY '24, in that case, the growth would be around 13% in revenue and around 15% in operating EBITDA, excluding one-time donation. So that means even the base level of existing hospitals, after taking out Lucknow and Nagpur, has seen quite a robust growth. Also, I want to mention that in that case, the growth in AR
Q
My first question is on your focus on the oncology segment. So, this is largest for you, and year-on-year also I think it has gone up. So, it's already 25%, 26% of your total hospital revenue. And I understand in newer hospitals also you are trying to offer these services. So, in terms of further growth from current level, what kind of headroom do you think is available here?
Abhay Soi
First and foremost, some of the newer hospitals, particularly Dwarka and Lucknow, do not offer radiation oncology at this point of time, because the bunkers are not there. But in the third quarter, we are expecting the bunkers to come through in both of these hospitals. Therefore, you will see a larger share of oncology certainly in these hospitals, and that will impact the overall share as well. We do not believe that there is any reason for the growth in oncology to abate. These are structural factors and we are essentially catering to the market. Essentially, the market is growing at what i
Q
Hi, guys. Thank you so much for the opportunity. So, one question which I want to understand, you made a comment Abhay also that direct cost has gone up, and it's largely because of the New Units. But is this going to be stable from here? For example, I can see that your direct cost is Rs. 1,000 crores right now from Rs. 917 crores to Rs. 1,015 crores. So now the growth of this unit would be inflationary or there will be more additions will be that? And the subsequent impact on the margin. So, from Q4 to Q1, I understand this is seasonally weak. But if direct cost shouldn't go up, then one sho
Keshav Gupta
On the direct cost specifically going to about Rs. 1,000 crores. Yes, a bunch of doctors have joined, which are part of the system that was basically a prebuild up for the new capacities coming in. But a lot of them will also join alongside when the capacities get commissioned phase by phase. They will go in tandem to the revenues kicking in as well. Yes. But there's no negative impact of that. Shaleen, also as we progress into the coming quarters, the share of the institutional beds will come down as far as these hospitals are concerned. Because you know that our strategy is to fill up the be
Q
First question, Abhay, when does Nanavati’s new block fully become operational? You said that we are currently operationalizing one of the floors and I think the basement. When can we see the unit becoming, let's say, fully operational from a bed perspective?
Abhay Soi
The basement is also used for onco services, nuclear medicine, etc. So, we will be starting over the next few weeks with a couple of floors. And then by October- November ‘25, we should be starting the rest of the beds, including operation theatres, etc. Okay. Understood. And my second question is, if I look at the New Units numbers that you have given for fourth quarter versus this quarter, it seems like its broadly similar to what we did in the fourth quarter. I thought that Dwarka had achieved breakeven last quarter, and that should be positive. So, is it just a seasonality thing? Because I
Q
Just continuing on the Dwarka and Noida thing. I think the total EBITDA contribution is around Rs. 23 crore or something?
Yogesh Sareen
It is Rs. 37 crores. Total contribution for Dwarka and Noida, which we have mentioned, the new hospitals, it is Rs. 27 crores, of which we are saying Rs. 24 crore is Noida, right? No. You will also need to consider that the unit EBITDA will be 2.5% higher because we also cross-charge the HO cost when we report numbers to the investors. But when you see a unit performance, then it will be 2.5% higher in terms of EBITDA margin. 2.5% of the revenue is allocated to units as HO cost. So, this Rs. 27 crore is unallocated? Rs. 24 crore that I mentioned is the unit EBITDA. And which would come down to
Q
I have a question on ARPOB growth. It has been flat overall. So how should we think of overall ARPOB in the near term?
Abhay Soi
Well, it has grown. For existing hospitals, it has grown by 7%. If you add the two hospitals that we acquired 15 months ago, then it has grown by 5%. If you look at all of the hospitals, then it looks flat. If you are going to start a new hospital or you acquire a new hospital, the ARPOB of that particular hospital is going to be lower. Therefore, it is going to bring the average down. Otherwise, for the existing hospitals, ARPOB and occupancy have gone up significantly. So, the overall ARPOB growth will take some time to reflect, right? Yes. When you acquire a new hospital, you acquire it bec
Q
Yes. Firstly, I want to appreciate the entire Max Healthcare team. At this scale expanding so rapidly while maintaining profitability is not easy task. And my all question is already asked and answered. So not any question I have to ask.
Abhay Soi
Thank you.
Q
Yes. Earlier in the call, you mentioned that at the end of FY '26, the net debt will be and you gave some figure for that. I was not able to catch that number. Can you please repeat that, the net debt level at the end of FY '26?
Abhay Soi
What Yogesh mentioned is that between now and end of the year, your total debt for project purposes may go up by another Rs. 400-500 crores. Okay. Alright. That’s it. Thank you very much. Thank you. As there are no further questions, I will now hand the conference over to the management for closing comments. Thank you once again. We appreciate all your time and look forward to connecting with you next quarter. Thank you so much. Disclaimer: This is a transcription and may contain transcription errors. The transcript has been edited for clarity. The Company takes no responsibility for such erro
Speaking time
Abhay Soi
35
Yogesh Sareen
24
Kunal Dhamesha
15
Moderator
9
Shaleen Kumar
8
Neha Manpuria
5
Mohammed Patel
5
Damayanti Kerai
3
Rajat Shah
3
Rajesh Gajra
2
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Opening remarks
Suraj Digawalekar
Thank you, Nirav. Good afternoon, everyone. And thank you for joining us on Max Healthcare's Q1 FY '26 Earnings Conference Call. We have with us Mr. Abhay Soi – Chairman and Managing Director; Mr. Yogesh Sareen – Senior Director and Chief Financial Officer; and Mr. Keshav Gupta – Senior Director, Growth, M&A and Business Planning. We will begin the call with opening remarks from the management, following which we will have the forum open for an interactive Q&A session. Before we begin, I would like to point out that some statements made in today's discussion may be forward-looking in nature, and a disclaimer to this effect has been included in the earnings presentation shared with you earlier. I would now like to invite Abhay to make his opening remarks. Thank you, and over to you, Abhay.
Abhay Soi
Good morning, everyone, and thank you for joining us on Max Healthcare's Q1 FY '26 Earnings Call. We are pleased to report a strong start to the financial year, with year-on-year growth of 27% in revenue and 23% in operating EBITDA for the Network. This marks the 19th consecutive quarter of year-on-year growth, underscoring the success of our strategy and strong execution capabilities of the team. This performance is driven, in part, by the successful integration of the hospital acquisitions made in recent years, which have significantly bolstered both our top and bottom-line results. Looking ahead, our focus remains on commissioning the new bed capacities scheduled to come on stream during the course of the year. We expect to add approximately 1,000 brownfield and 500 greenfield beds. Trial runs have already been initiated at the new 160-bed brownfield tower at Max Mohali. In addition, our Board has recently approved the execution of an agreement-to-lease for a “built-to-suit” 130-bed
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