Max Healthcare Q1 FY27 Results (NSE: MAXHEALTH)
Signal: Growth reaccelerated
The read
The operating trajectory remains expansion-led: network revenue grew +16% YoY on +10% occupied bed days, ARPOB rose +5% to ₹81.9k and 630 beds were added, but network margin slipped 10bps YoY to 24.8% and PAT rose only 3% on the network basis as new capacity, KHL integration and higher depreciation and finance costs absorbed much of the operating growth; this is the first quarter after Q3FY26 to show margin expansion in the statutory history, but the network margin remains 200bps below Q4FY26.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,366.17 Cr | 16.7% | N/A |
| EBIT | ₹507.31 Cr | 11.4% | |
| Net profit | ₹322.96 Cr | 4.9% | |
| EPS | ₹3.32 | 4.7% | |
| EBIT margin | 27% |
P&L walk
Consolidated revenue rose to ₹2366.17 Cr, +16.7% YoY, with EBITDA at ₹638.97 Cr, +14.2%, but PAT grew only +4.9% to ₹322.96 Cr as EBIT growth of +11.4% did not fully translate through the higher depreciation, finance-cost and integration burden described for newly commissioned capacity and acquisitions.
Segments
The consolidated group materially outperformed the parent: consolidated revenue grew +16.7% YoY and PAT +4.9%, versus standalone revenue growth of +12.8% and PAT growth of +0.9%; KHL contributed ₹19 Cr revenue and approximately ₹2 Cr EBITDA post-acquisition, while standalone PAT was supported by ₹92.1 Cr of other income.
Key positives
- Network gross revenue was ₹2,982 Cr, +16% YoY, led mainly by +10% occupied bed days rather than only pricing; ARPOB also increased +5% to ₹81.9k.
- Operational capacity reached 5,379 beds, up 630 beds YoY, with 202 beds of the Max Smart brownfield tower already operational and 198 more planned for phased handover in Q2FY27.
- International patient revenue rose +18% YoY to ₹247 Cr, while Max@Home revenue grew +32% YoY to ₹78 Cr and Max Lab revenue grew +20% YoY to ₹58 Cr.
- Network free cash from operations increased to ₹397 Cr from ₹389 Cr YoY despite ₹386 Cr deployed for KHL and YPPL acquisitions and ₹337 Cr invested in expansion.
Key concerns
- Network operating margin fell to 24.8% from 24.9% YoY and 26.8% QoQ, with management attributing the muted margin to recently commissioned brownfield capacity and KHL acquisition.
- Network PAT grew only 3% YoY to ₹357 Cr despite revenue growth of 16% and EBITDA growth of 15%, due primarily to higher depreciation and finance costs from new capacity.
- Net debt rose to ₹2,384 Cr from ₹1,908 Cr at March 2026, including ₹153 Cr added through consolidation of KHL and YPPL and financing for acquisitions.
- Average occupancy was 75%, down from 76% YoY, so the thesis depends on filling the 630 recently added beds and improving KHL's 50% post-acquisition occupancy.
- Standalone EBITDA grew only 2.6% YoY on 12.8% revenue growth, and standalone other income of ₹92.1 Cr represented 40.8% of PBT, making parent-level earnings quality weaker than consolidated operating performance.
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