Narayana Hrudaya Q1 FY27 Results (NSE: NH)
Signal: Margin pressure
The read
Consolidated revenue growth of 78% YoY is impressive but masks margin pressure from insurance subsidiary ramp-up; standalone hospital business delivered 24.6% EBITDA margin (+390bps YoY) showing core strength. The sharp QoQ decline is seasonal after Q4FY26 high base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹268.36 Cr | 78.0% | -66.0% |
| EBIT | ₹34.91 Cr | 26.3% | |
| Net profit | ₹20.72 Cr | 5.4% | |
| EPS | ₹10.2 | 5.4% | |
| EBIT margin | 18.8% |
P&L walk
Consolidated revenue surged 78% YoY to ₹2,684 Cr but EBITDA margin contracted to 18.8% (-400bps YoY) on higher opex including employee costs; PAT grew only 5.4% YoY as other income declined sharply QoQ, while finance costs rose 10% YoY.
Segments
Single operating segment 'Medical and Healthcare Related Services'; consolidated result includes insurance subsidiaries contributing to top-line but dragging margins.
Key positives
- Standalone revenue +16.3% YoY with EBITDA margin at 24.6% (+390bps YoY) driven by operating leverage
- Consolidated revenue growth of 78% YoY shows traction from new businesses including insurance
- EPS diluted at 10.2 with no dilution; clean PAT-to-EPS tracking
Key concerns
- Consolidated EBITDA margin contracted 400bps YoY to 18.8% despite 78% revenue growth
- Consolidated PAT grew only 5.4% YoY vs 78% revenue growth due to margin compression and other income decline
- Finance costs rose 10% YoY to ₹336.66 million
Research and educational content only. Not investment advice.