Narayana Hrudayalaya Ltd: Q2FY26 Result Update
05-12-2025

Performance Overview

• Narayana Hrudayalaya delivered a strong quarter with Net Sales growing 20% YoY to Rs. 1,643 crore, driven by healthy patient volumes, better case mix and continued momentum in complex procedures. 

• EBITDA grew 30% YoY to Rs. 431 crore, with margins improving by 160 bps to 26% on the back of operating leverage and tighter cost control. 

• PAT rose 29.6% YoY to Rs. 258 crore, supported by stronger operating performance and stable finance costs. Profitability remained robust with PAT margin improving to 15.7%.

Business Segments

India Operations:

•  India hospitals posted steady 11–12% YoY growth, supported by stronger realizations, an improving payer mix, and growth in robotic, minimally invasive and high-acuity specialties. ICU occupied bed-days remained healthy, and ARPP improved across most regions. 

• Flagship units in Bangalore and Kolkata drove most of the margin gains, supported by higher contribution from insured and walk-in patients.

International- Cayman Islands:

•  Cayman operations continued to scale well. Hospital revenue grew sharply YoY, driven by strong uptake of cardiac, ortho and tertiary procedures. Insurance revenue showed a major jump as more large employers shifted to NH’s plan, resulting in better volume traction across OP and IP segments.

•  Core hospital margins remained high, with more room for optimization as newer departments mature.

Integrated Care & Insurance: 

• Integrated Care revenue rose to Rs. 155.7 million for the quarter with over 1.54 lakh patient transactions. The insurance business continues to scale with rising GWP and improving loss ratios.

•  Management expects losses to narrow further as the business gains scale and SME offerings expand across NH markets.

Acqusition in UK- Practice Plus Group

• Narayana Hrudayalaya acquired UK-based Practice Plus Group Hospitals for ~Rs. 2,197 crore* (GBP 183 mn), valuing it at ~9.2x FY25 pre-IFRS EBITDA of GBP 43 mn. The network operates 330 IP/OP beds with strong 5-year growth trends: revenue CAGR 12% and centre EBITDA CAGR 12.5%. 

• Funded largely through ~Rs. 1,800 crore* debt (GBP 150 mn), the asset-light platform offers stable NHS-linked volumes and meaningful margin upside through Athma-driven operational efficiencies. 

• The structure is a leveraged buyout, so the target company carries the full GBP 150 mn debt. The business is cashflow positive and management has guided that the loan will be serviced entirely from PPG’s operating cash flows.

  *Note- Converted at GBP/INR = 120.03

CAPEX Update

• NH continues to execute its multi-year expansion plan across key regions: Greenfield hospitals at HSR (Bangalore) and Rajarhat (Kolkata) are progressing as per schedule.

• Brownfield expansion in Raipur and leased facilities in Central and South-West Bangalore are underway.
  Around 200 beds have been added YTD, and multiple projects for FY28–FY30 remain on track.

• The company remains well-capitalised with a light balance sheet and strong cash generation to support ongoing capex.