MAXHEALTHNSENovember 21, 2025

Max Healthcare Institute Limited

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Key numbers — 40 extracted

21%

strong growth momentum through the first half of FY'26. For the second quarter, revenue grew by 21% year-on-year, while operating EBITDA increased by 23%, thereby extending our track record to 20 c

23%

26. For the second quarter, revenue grew by 21% year-on-year, while operating EBITDA increased by 23%, thereby extending our track record to 20 consecutive quarters of consistent growth. Importantly,

14%

ts the continued strength of our core operations, with Existing Units achieving revenue growth of 14% and EBITDA growth of 19%. Building on this strong performance, we continued to enhance our capaci

19%

of our core operations, with Existing Units achieving revenue growth of 14% and EBITDA growth of 19%. Building on this strong performance, we continued to enhance our capacity and service offering

INR 149 crore

garh Bench with an appointed date of October 5, 2024, which has resulted in a one-time benefit of INR 149 crore during the quarter. After long last, CGHS has revised the prices effective October 13th. While so

INR 200 crore

effective October 13th. While some of it is yet to kick in, we expect a favourable impact of over INR 200 crore once fully implemented. Further, with regard to insurance renewals, there was an impasse with c

77%

le Jaypee Hospitals are categorized as “New Units”. 1. Average occupancy for the Network stood at 77% compared to 79% in Q2 last year and 76% in the trailing quarter. Existing Units reported occupanc

79%

als are categorized as “New Units”. 1. Average occupancy for the Network stood at 77% compared to 79% in Q2 last year and 76% in the trailing quarter. Existing Units reported occupancy levels of ov

76%

w Units”. 1. Average occupancy for the Network stood at 77% compared to 79% in Q2 last year and 76% in the trailing quarter. Existing Units reported occupancy levels of over 79%. 2. Occupied bed

orted occupancy levels of over 79%. 2. Occupied bed days (OBDs) were up by 19% year-on-year and 4% quarter-on- quarter. 3. Average Revenue Per Occupied Bed (ARPOB) for the quarter was INR 77,300,

INR 77,300,

year and 4% quarter-on- quarter. 3. Average Revenue Per Occupied Bed (ARPOB) for the quarter was INR 77,300, registering 1% growth year-on-year. For the Existing Units, like-for-like ARPOB grew by 3% year-on

uarter. 3. Average Revenue Per Occupied Bed (ARPOB) for the quarter was INR 77,300, registering 1% growth year-on-year. For the Existing Units, like-for-like ARPOB grew by 3% year-on-year and rema

Guidance — 20 items

Abhay Soi

opening

“We are pleased to report that the Network has maintained its strong growth momentum through the first half of FY'26.”

Abhay Soi

opening

“At Nanavati-Max, the new 268-bed brownfield tower is set to be commissioned this week, and at Max Smart, the new 400-bed brownfield tower will be ready for commissioning within the next 30 days.”

Abhay Soi

opening

“While some of it is yet to kick in, we expect a favourable impact of over INR 200 crore once fully implemented.”

Abhay Soi

opening

“Please note that the term “Existing Units” hereafter refers to the Network facilities that were operational prior to Q3 FY'25, while Jaypee Hospitals are categorized as “New Units”.”

Abhay Soi

opening

“• Max Lucknow – The current capacity of the hospital stands at 413 beds, and we expect this to increase to 550 beds by end of this financial year.”

Abhay Soi

opening

“The onco radiation program, including PET-CT, will be launched in the next two weeks.”

Abhay Soi

opening

“• 501 beds at Sector 56, Gurgaon – The project is progressing well at site, while GRAP had some impact on the pace of work.”

Abhay Soi

opening

“We expect to complete the project within 24 months, post receipt of the CTE.”

Abhay Soi

opening

“The project is expected to be completed by FY '28.”

Abhay Soi

opening

“• 550 beds at Max Vikrant (Saket) – The project work will start immediately upon commissioning of the 400 beds at Max Smart.”

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Risks & concerns — 10 flagged

While some of it is yet to kick in, we expect a favourable impact of over INR 200 crore once fully implemented.

— Abhay Soi

This includes one-time favourable tax impact of INR 149 crore pursuant to the merger of Crosslay Remedies Ltd.

— Abhay Soi

But it also includes the impact of the new hospitals that we acquired and started last year.

— Yogesh Sareen

It is basically the impact of the mix that is bringing this number down since the share of the new hospitals (Lucknow, Nagpur and Dwarka) has gone up in this quarter compared to Q2 last year.

— Yogesh Sareen

If I take out the impact of the new hospitals that we added in Q4 FY'24, then the ARPOB increase in the existing units is 6.8%.

— Yogesh Sareen

It is basically the impact of the new hospitals that got added into the existing hospitals, which has brought down the overall growth to 3%.

— Yogesh Sareen

The first being that when we say that ARPOB of this quarter was subdued, that was largely due to the insurance issues and the impact of the new hospitals, right?

— Gourav Bhama

And the second question regarding the impact of CGHS, the INR 200 crore positive impact that we are expecting.

— Gourav Bhama

So, given that we have added a substantial number of beds over the past 18 months, where the flow-through of the profitability can be higher and will negate any negative impact of these new beds.

— Shaleen Kumar

As a new bed, because largely what is coming is brownfield, which does not necessarily have a drag on EBITDA that you are trying to subsidize via your previous expansion.

— Abhay Soi

Q&A — 14 exchanges

Hi. Thank you for the opportunity. My first question is to Abhay. So what we have heard, there has been some senior doctor departure from your team in NCR hospitals. So first, have you rehired the required doctors? And what kind of impact was there, if any?

Abhay Soi

Yes, that level of iteration is normal. You have certain teams always sort of move out, and new teams come in almost immediately. And that is what has happened. So, we do not expect any impact. So approximately, like what is the attrition rate in your doctor's team, which you said is in line with the normal trend? Less than 1% of the doctors. When the new facility comes, another 0.5% happens. Yes, so you could say, between 1% to 1.5% at best. I mean anecdotally, if two or three doctors' leave or certain doctors leave, it does not have any major impact. We have got close to 6,000 doctors, right

Most of it was volume growth. I do not think there is any increase in the ARPOB in that segment. So, you can assume that 25% is entirely volume growth. Tushar Manudhane: And more so, sort of -- if you could also elaborate in terms of the geographies, like in terms of diversification.

Abhay Soi

Broadly, the geographies remain the same. Like we mentioned in the past, it is Middle East, Eastern Europe, African cluster, etc. We do not want to give any specific countries because it is privileged information. Tushar Manudhane: Got it, sir. And lastly on this clarity, the MSSH Saket 400 bed hospital in terms of the time line for the commissioning? Or is -- I missed -- I probably missed it on the opening remarks, if you have already highlighted. Currently, there is deep cleaning happening at Nanavati-Max, and we are expecting it to be commissioned within this week. Max Smart will be commiss

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. As their EBITDA growth comes in level with the other hospitals, you will find that the PAT growth number will also start to follow the same pattern.

Abhay Soi

Yes. Last year, Jaypee was not there, right? So that is about INR 2,000 crore of acquisition that we have done. Andrey Purushottam: Okay. My second question was, I wanted your view on ARPOB. Are you getting a feeling on what is the internal discussion in the company that the ARPOB is kind of -- the rate of growth of ARPOB is becoming slower, at least that is what optically it looks like? I first want to know whether this assessment from our side is something that you share. And if so, is there any discussion on what to do about ARPOB going forward? ARPOB growth is 3% y-o-y. But it also include

My first question is on insurance. I think you have spoken about the issues in insurance that we had this quarter. And because of that, our growth in insurance has actually been one of the lowest amongst all our peers. And then you have mentioned that the cashless has been reinstated. Can you confirm that for December quarter, like we have already -- we have done with half of November and October, are we back on track? I mean, with industry level growth in insurance business?

Abhay Soi

I think you need to look at it on an overall basis. Insurance growth may have come down, but your self-pay growth has gone up. If you are not providing cashless, it is not necessary that you lose the patient. The patient gets converted to self-pay, because he can get it reimbursed later. He does not necessarily change the hospital. That’s why you need to look at what is the overall occupancy between cash and insurance, and what was the impact? You will not see any major impact on the occupancy of the hospital. Right. Just by -- I mean, my only worry is that are we doing more institutional busi

Thank you. Congratulations on a strong quarter. My first question is that you have an occupancy of over 75% and a consistent trend on the ARPOB because of the strategic push in your high-acuity care like the new oncology-focused hospital. Since the case mix naturally increases the average length of stay, how are you balancing its trade-off to maintain patient throughput at your already busy hospitals?

Abhay Soi

You do it by opening new capacities, improving patient services, reducing discharge times and such. Having said that, you have to keep it in mind one thing. Unlike a hotel, when a hospital is full and there are people sitting in the emergency, I cannot send them away by saying, my hotel is fully booked, please go somewhere else, right? There will be a point of diminishing returns where patients will wait in emergency, wait for a bed sometimes for 6 hours or even 1-1.5 days. Then the complaints increase. You try to do your best, but we are also in the job of serving every patient who is coming

Yes. Thanks for taking my question. Abhay, last call, you had mentioned that in probably 6 months' time, we should start seeing traction in Noida with insurance empanelment. So is that on track? Should we start seeing that improvement in Noida, let us say, in the December, March quarter? And at what point do you see Noida getting to, let us say, mid 25% margins?

Yogesh Sareen

Noida is currently around 18%. Insurance empanelment has already happened as far as Noida is concerned. Well, on Q-on-Q, you see that there is 8% growth in Noida, right? And the EBITDA margin has also grown compared to last quarter. We do expect that to continue. And if we pick up the revenue of this hospital since January of this year, every month has been higher than the previous month. So, we are seeing the traction. We hope that, you know, this will also come up to Network level. I think it was not insurance empanelment. You know, it was licenses for various clinical programs, which had to

Hi, good afternoon. Thanks for taking my question. The first is like what was the growth on the ARPOB growth of the segments, be it international or institutional -- for the ARPOB growth of the segment basically be it cash or institutional mix, what was the ARPOB growth?

Yogesh Sareen

The walk-in business, both insurance and the self-pay, grew by around 8% to 10%, on a like-to-like basis. It is basically the impact of the new hospitals that got added into the existing hospitals, which has brought down the overall growth to 3%. Yes. So, no, so with respect to institutional mix like have we witnessed any ARPOB growth? No, ARPOB growth is flattish in the institutional. We will have growth coming in, going forward, right? And because the rate got revised only in October, so in Q2, there is no growth in the institutional ARPOB. But in the self-pay and insurance, the growth is in

The present one (Sector 128) we have in Noida is 18 acres of land. You can imagine we can keep building over there. It is a contiguous land parcel. Similarly, in Lucknow, it is 27 acres of land. So we can go for another 2,000 - 2,500 beds there. We also have another land parcel in Lucknow. At Noida, in addition to that, we have land in Greater Noida. Prashant Kshirsagar: So that is what I am seeing. So the location is different from the existing...

Keshav Gupta

Greater Noida and Noida are separate locations. So, in your question, the 700-bed site, which is a very faraway project, is adjacent site to the recently acquired Noida Hospital, the Jaypee Noida Hospital. And what you mentioned as a 500-bed site, that is a separate site in Greater Noida. Prashant Kshirsagar: So this sector 128 is adjacent… It is the same complex, yes. It is the 18-acre complex that we mentioned. Prashant Kshirsagar: Yes, that is the 18-acre complex. Yes. Okay. That is what I wanted to clarify. Thanks a lot, sir.

Hi. Thank you for the opportunity. One clarification. Can you please share the international patient bed share for this quarter?

Abhay Soi

Yes, so similar to what it used to be earlier -- yes, it would be around 5-5.5%. And sir, for the other channels, for self-pay and TPA? Can you also share for those? Self-pay is around 26-27%, insurance is around 34-35%. And international, as we mentioned, is 5.5%. The rest is institutional. Right. Okay. Second one for Mr. Soi on the sorting of issues with the insurance. So sir, how should we think now with whatever negotiation which would have gone between you and the insurance companies for the next 1 or 2 years, for us, the procedure rates, do we keep getting similar hikes with what we had

Yes, thanks so much, sir. Just a quick question. What was the network capex intensity in the first half?

Yogesh Sareen

We spent around INR 900 crore. Okay. And second half would be a similar number? A bit higher probably. Hopefully around INR 1,100 crore. All right. Okay. Got it. Thank you so much.

Yes. Hi, sir. Good morning. First of all, congratulations on a good set of numbers. I just wanted clarification on two fronts. The first being that when we say that ARPOB of this quarter was subdued, that was largely due to the insurance issues and the impact of the new hospitals, right?

Abhay Soi

Not so much the insurance, I would say. Like I said, any reduction in insurance perhaps was made up because we had that many people shifting to self-pay. But I think, it was perhaps because of the new hospitals. Understood. And the second question regarding the impact of CGHS, the INR 200 crore positive impact that we are expecting. I know you answered it before, but there were some disturbances. Just wanted to clarify again, what is the estimated timeline we are expecting for that to reflect in our numbers? I think some of it has already started from 13th October. But I think there is a super

Thanks for taking the question. Just following up on the CGHS question, sir, the CGHS impact you talked about, it is largely for CGHS or you have also included possible, I mean, the expectation is similar rate revisions will happen for all other central government agencies also. So, is that over and above this?

Abhay Soi

All central government agencies are linked to CGHS. So, this number we mentioned is for CGHS and CGHS-like accounts. So, new rates, including super speciality rates, etc. are also expected on ECHS & others accounts because they are normally in- line with CGHS. However, they have to go through the paperwork. Okay. So, that essentially, our estimate pretty much includes that inflation also? That is right. So, this is CGHS and CGHS-linked accounts. Okay. Thank you so much.

Yes. Hi. So, just continuing regarding the past participant. Is it fair to assume that the benefits start tinkering in from FY27? What are the benefits we should talk about of around INR 200 crore?

Abhay Soi

Of what? The CGHS pricing increased benefits. You know, you said in next 15-20 days we should resolve it. And then beyond CGHS also the similar CGHS-like institutions will follow it. So, FY27 is the year where we can expect the total benefit to come in? Yes. So, then what kind of a flow-through will it have on your operating profit EBITDA? Pretty much 85%. So, if you are looking at roughly INR 200 crore of top line, something like INR 150 crore, 160 crore of EBITDA addition can happen through this? We are looking at INR 200 crore and hopefully good numbers should flow through. Got it, sir. Got

Thank you everyone for joining us today. We appreciate all your time and look forward to interacting with you again next quarter. Thank you. Disclaimer: This is a transcription and may contain transcription errors. The transcript has been edited for clarity. The Company takes no responsibility for such errors, although an effort has been made to ensure a high level of accuracy.

Management

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Speaking time

Abhay Soi

Yogesh Sareen

Neha Manpuria

Moderator

Amit Thawani

Kunal Dhamesha

Shaleen Kumar

Damayanti Kerai

Sumit Gupta

Keshav Gupta

Opening remarks

Suraj Digawalekar

Thank you, Michelle. Good morning, everyone, and thank you for joining us on Max Healthcare’s Q2 and H1 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 Q2 and H1 FY’26 Earnings Call. We are pleased to report that the Network has maintained its strong growth momentum through the first half of FY'26. For the second quarter, revenue grew by 21% year-on-year, while operating EBITDA increased by 23%, thereby extending our track record to 20 consecutive quarters of consistent growth. Importantly, this performance reflects the continued strength of our core operations, with Existing Units achieving revenue growth of 14% and EBITDA growth of 19%. Building on this strong performance, we continued to enhance our capacity and service offerings through brownfield expansions. At Max Mohali, the new 160-bed brownfield tower has been commissioned, including the additional radiation oncology program. At Nanavati-Max, the new 268-bed brownfield tower is set to be commissioned this week, and at Max Smart, the new 400-bed brownfield tower will be ready for commissioning within the

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