Max Healthcare Institute

“Yes, that should be the case because you are coming off a lower base.”

“We have commenced renovation of this facility, and the first part will start rolling out towards the end of the year.”

“Encouraged by these quick ramp-ups, we continue to explore opportunities to add capacity at our existing hospitals.”

“250 beds at Max Bhubaneswar: renovation of existing facility is underway, and we expect phased completion over the next 12 to 15 months, with the first part of the renovation being delivered by the end of this current calendar year.”

“85 beds at Max Noida: will be commissioned by December 2027.”

“100 beds at Max Nagpur: Project work continues to be on track, and we expect commissioning by December 2027.”

“400 beds at Zirakpur, Mohali: Project is on schedule, and we expect commissioning it by December 2027.”

“200 beds at Pitampura: Project is on track, and we expect commissioning in FY29.”

“The hospital reported a revenue of INR 38 crore and EBITDA of INR 4 crore for the quarter.”

“Occupancy and revenue across all 3 brownfield expansions, namely Max Nanavati in Mumbai, Max Mohali and Max Smart at Saket, Delhi, have ramped up very well and in line with our expectations.”

“International patient revenue was INR 307 crore, registering significant growth of 33% year-on-year and now accounts for 10% of healthcare revenue from hospitals.”

“Max@Home reported revenue of INR 86 crore”

“Max Lab reported revenue of INR 66 crore, reflecting year-on-year growth of 24%.”

“Demand for quality healthcare remains strong across the hospital Network, with occupancy holding steady at 77%, despite a 14% year-on-year increase in operational bed capacity.”

“And you have seen that it is not as if other diseases are not growing. They have all grown by around 20% year-on-year, right?”

“We have not seen a reduction in occupied bed days of any particular specialty.”

“I think 40% of our business is still upcountry.”

“However, the initial ramp-up of these beds did create a drag on EBITDA of Saket Complex during Q2. Excluding the Saket complex, revenue grew by 20% and EBITDA by 25%.”

“Operating EBITDA margin was 26.8%, similar to Q2 FY26, despite 14% increase in operational bed capacity, and reflected an improvement of around 200 basis points over the trailing quarter.”

“Operating EBITDA margin was 25.9%, similar to H1 FY26. This is despite total bed capacity increasing by 20% year-on-year.”

“But by next quarter, it comes back to normalcy, right? Because whatever drag has to happen, the maximum burden you face is preoperative immediately upon operations.”

“For the new brownfield facilities that have been commissioned, there will obviously be operating leverage.”

“The Network generated free cash flow of INR 500 crore during the quarter, of which INR 292 crore was invested in ongoing capacity expansion in projects and INR 195 crore was disbursed towards dividend.”

“Net debt for the Network stood at INR 2,369 crore compared to INR 2,384 crore at the end of June 2026, while the net debt-to-EBITDA ratio continued to remain below 1.”

“In the first half, we generated INR 897 crore of free cash flow from operations, after interest, tax, working capital changes and routine capex. INR 629 crore was deployed towards ongoing expansion projects and facility upgrades at new units”

“Following the rights issue by Kalinga Hospital Limited, our shareholding has increased to 66%.”

“INR 386 crore was spent towards the acquisitions of Kalinga Hospital Limited (Bhubaneswar) and Yerawada Properties Private Limited (Pune), and INR 195 crore was distributed as dividend.”

“A new leadership team has taken charge of Max Bhubaneswar and clinical teams have been added across gastroenterology, GI surgery, neurosurgery and orthopaedics.”

“We said last time that the overall impact of chemotherapy drugs being discontinued is roughly around INR 100 crore in a year. But nevertheless, we had a net gain of INR 200 crore from the CGHS price revisions.”

“Due to the discontinuation of select high-value chemotherapy drugs for institutional patients, as a result of CGHS rate revisions last year, the share of oncology for in-patient revenues dropped to 21%, from 26% in Q2 FY26.”

“So, we de-empanelled BLK in May for CGHS and then the Railways, etc., because they were not paying us. We also de-empanelled ECHS at Shalimar Bagh.”

“We have not. We are working it out. Like I said, only part we know is that the CGHS impact won’t be there because that impact already happened last year.”

“I think the position of the sector has been put across in the court. The matter is sub judice.”

“But historically, it’s been a product-based pricing industry rather than a services-based pricing industry. So, we will have to possibly recalibrate that going forward depending on the pulls and pushes.”

“We gained momentum in the second quarter, with revenue growing by 20%, operating EBITDA by 18% and PAT by 10%.”

“Occupied bed days (OBDs) were up by 13% year-on-year”

“Average revenue per patient (IP ARPP) for the quarter stood at INR 2.31 lakhs, growing by 8% year-on-year. This growth was partly driven by a decline in institutional bed share to 29%, from 34% last year.”

“Network gross revenue stood at INR 3,219 crore compared to INR 2,692 crore in Q2 last year and INR 2,982 crore in the previous quarter.”

“Excluding oncology, gross revenue grew by 25% and ARPP grew by 11%”