Max Healthcare Institute Ltd

Financial Performance

• Average network occupancy >75% despite 13% YoY bed-capacity expansion.
• OBDs up 10% YoY and 5% QoQ.
• ALOS down 4% QoQ.
• ARPOB INR 81,900 in Q1 FY27, +5% YoY and QoQ.
• Network gross revenue INR 2,982 crore; +16% YoY, +12% QoQ.
• In-patient oncology share 22% vs 26% in Q1 FY26.
• International patient revenue INR 247 crore; +18% YoY; 9% of hospital revenue.
• Digital revenue INR 941 crore; ~32% of revenue; website sessions 97 lakh (+41% YoY).
• Network operating EBITDA INR 704 crore; +15% YoY; +3% QoQ.
• EBITDA margin 24.8% for Q1 FY27; 24.9% LY; 26.8% trailing quarter.
• Annualized EBITDA per bed INR 71 lakh; vs 68 LY; 73 QoQ.
• PAT INR 357 crore; vs 345 LY; 387 QoQ.
• Free cash flow INR 397 crore; INR 386 crore deployed to Kalinga/Yerawada; INR 337 crore to capacity expansion.
• Net debt INR 2,384 crore; net debt-to-EBITDA < 1; 153 crore toward Kalinga and Yerawada put option.
• CSR: free treatment to 56,000 economically weaker patients valued at INR 78 crore; CSR spend ~INR 6 crore.
• Max@Home revenue INR 78 crore; +32% YoY; 56% repeat transactions.
• Max Lab revenue INR 58 crore; +20% YoY; services across 60+ cities; >6 lakh patients.

Operating Update

• Kalinga acquisition SPV is now a subsidiary; board approved capex for Vaishali tower.
• Standalone Max Research Centre established; MIME educates 12,000 professionals annually; 180 programs; 600 DNB students.
• Medical education business approved in-principle; board-level endorsement to pursue; funded via internal accruals.

Projects and Capex

• INR 425 crore capex for a new brownfield 202-bed tower at Max Vaishali; commissioning before FY30.
• 100 beds at Max Lucknow to be commissioned over next two quarters.
• 500 beds at Sector 56 Gurgaon to start phased commissioning by year-end.
• 250 beds at Bhubaneswar (Kalinga) renovation to complete within 12 months.
• 100 beds at Nagpur targeted for commissioning by FY28.
• 400 beds at Zirakpur, Mohali; commissioning by FY28.
• Onco day care block at Max Dwarka Phase 2 complete; awaiting occupancy certificate.
• 260 beds at Dwarka next phase; commissioning by FY30.
• 200 beds at Pitampura; commissioning by FY29.
• 400 beds at Patparganj; commissioning by end-FY29.
• 271 beds at Nanavati Phase 2; commissioning in FY30.
• 450 beds at Pune; IOD received; commissioning by FY30.

Balance Sheet and Cash Flow

• Net debt INR 2,384 crore; debt/EBITDA below 1.
• Increase mainly due to INR 153 crore toward Kalinga and Yerawada put option.
• Free cash flow realization supported by operating performance; CAPEX funded from cash flows.

Q&A Highlights

• Parliamentary Committee recommendations on affordability and bed-viability; management says both factors must co-exist; no immediate reassessment of expansion plans.
• Kalinga turnaround headroom: occupancy 50%, ARPOB INR 35,000; potential 50-80% uplift in both; plan to renovate and expand over ~1 year.
• Max Smart and Nanavati: Phase 1 beds at Max Nanavati ~80% occupancy; Phase 2 about 2.5 years; revenue ramp precedes EBITDA ramp.
• CGHS progress: payments improving; left-out portion lumped; June onward CGHS portal processing started; run-rate INR 140 crore discussed.
• For-profit medical colleges: ROCE >25-30%; plan to start PG programs; funded by internal accruals; for-profit colleges allowed per new draft guidance.

Outlook and Guidance

• No formal annual revenue guidance disclosed in this chunk; focus on expansion execution and sustainable growth.
• Medical education venture to be funded via internal accruals; PG courses to start; ROCE target 25–30%.
• Capex plan includes INR 425 crore Vaishali tower; commissioning before FY30; capacity addition 202 beds.

Litigation status

• NCLT hearing on Aug 19, 2026 adjourned at the request of BRS Capital Two Pte Limited.
• Next hearing date set for Sept 8, 2026.
• Parties: BRS Capital Two Pte Limited vs Kalinga Hospital Ltd, subsidiary of Max Healthcare.
• Kalinga Hospital Ltd is the subsidiary and the other shareholder from whom the company acquired the majority stake.
• No settlement terms or financial amounts disclosed in this update.
• No changes to management or governance reported.

Business overview

• Hospital network spans 21 facilities with 6,100+ beds, primarily in North India.
• Operates Max Lab diagnostics and Max@Home homecare services.
• Merged Radiant Life Care assets; pursuing capital-light adjacencies and growth.
• Strategic priority: integration of acquisitions and profitability.

Operational highlights

• Q1 FY27 net revenue ₹2,835 Cr; YoY growth 15%.
• Operating EBITDA ₹704 Cr; EBITDA margin 24.8%.
• PBT ₹472 Cr; PAT ₹357 Cr in Q1 FY27.
• Max Bhubaneswar post-acq revenue ₹19 Cr; EBITDA ₹2 Cr.
• Bhubaneswar occupancy 50%; ARPOB ₹₹35K.
• Acquired ~1,300 beds in 18 months and integrated.
• Expansion plan: ~8,300 beds; 4,000 beds in 3–4 years.
• 9 upcoming network facilities announced.

Financial performance

• Net revenue from operations: ₹2,835 Cr in Q1 FY27.
• YoY net revenue growth: 15%.
• Operating EBITDA: ₹704 Cr; margin 24.8%.
• Profit before tax: ₹472 Cr; profit after tax: ₹357 Cr.
• Cash & cash equivalents: ₹1,122 Cr (Sep 2025); gross debt: ₹2,737 Cr.

Capital structure & liquidity

• Gross debt rose to ₹2,737 Cr (Sep 2025) from ₹2,492 Cr (Mar 2025).
• Cash and bank balance ₹1,122 Cr (Sep 2025).
• Total liabilities ₹16,382 Cr; shareholders’ equity ₹12,088 Cr (Sep 2025).
• No equity issue disclosed; liquidity supported by operating cash flow.

Strategic priorities & outlook

• Expansion target: up to 8,300 beds; 4,000 beds in 3–4 years.
• Greenfield Pune (450 beds) and brownfield Shaheed Path (312 beds).
• Land banks with bed potential in Delhi, Noida, LKO, Mohali.
• Digital & AI focus: Max MyHealth, radiology AI, data lake.
• Strong M&A track record; ongoing integration of acquisitions.

Risks & mitigation

• Integration risk with PHFs and partner facilities; mitigated by consolidation.
• Execution risk of capex expansion; mitigated by experienced management.
• Regulatory/macroeconomic risk; mitigated by diversified footprint and governance.

Governance & leadership

• Independent directors: 5 of 8; robust governance framework.
• Sustainability Committee formed; ISO 27001 certification achieved.
• IiAS Next Leader recognition; Great Place to Work accolades.
• Strong talent development and leadership initiatives across the network.

Key Q1 FY27 Highlights

• Gross revenue for Q1 FY27 was ₹2,982 Cr, up 16% YoY.
• Network Operating EBITDA was ₹704 Cr, up 15% YoY.
• EBITDA margin on network stood at 24.8%.
• PAT for Q1 FY27 was ₹357 Cr.
• Free cash from operations was ₹397 Cr; ₹386 Cr deployed for KHL/YPPL.
• Net debt at end of Jun'26 was ₹2,384 Cr.
• Acquired KHL for ₹298 Cr on May 18, 2026.
• Acquired Yerawada Properties (YPPL); 100% voting rights and ~50.22% equity.
• Capex ₹425 Cr for MSSH Vaishali brownfield tower adds 202 beds; commissioning FY30.
• Operational bed capacity at end-Jun'26: 5,379 beds; 630 net beds added in 12 months.
• International patient revenue ₹247 Cr, up 18% YoY; ~9% of revenue.
• Max Lab revenue ₹58 Cr; Max@Home ₹78 Cr; digital revenue ₹941 Cr (~32% of gross).

Consolidated results

• Consolidated revenue from operations ₹2,36,617 lakh; total income ₹2,40,669 lakh; expenses ₹1,97,038 lakh.
• PBT ₹43,631 lakh; tax ₹11,335 lakh; PAT ₹32,296 lakh.

Standalone results

• Standalone revenue from operations ₹78,292 lakh; total income ₹87,502 lakh; PAT ₹16,760 lakh.
• Standalone EPS: Basic ₹1.72; Diluted ₹1.71 for quarter ended June 30, 2026.

Capex & capacity expansion

• Vaishali Tower 3 capex ₹425 crore; commissioning by Nov 2029.
• Existing capacity 6,100+ beds; Tower 3 adds ~202 census beds + 48 non-census beds.

M&A and corporate actions

• Kalinga Hospital Ltd: 58.28% stake acquired on May 18, 2026; becomes subsidiary.
• Yerawada Properties: acquired all Class A shares on June 30, 2026; subsidiary.
• In-principle approval to explore medical colleges; MOA amendment approved.

Senior management and governance

• Ajay Vij appointed Director - Chief Supply Chain & Procurement Officer; effective Aug 14, 2026.
• Pawan Kumar Marella appointed Senior Director - Chief Experience & Brand Officer; effective Aug 17, 2026.
• Dr. N. Venkatesan resigns as Senior Director & CPO; last working day Aug 31, 2026.

ESOP grant details

• NRC approved grant on Aug 13, 2026 of 3,61,827 MHIL ESOP-2022 stock options.
• Two grant tranches: 1,61,827 options at ₹800; 2,00,000 options at ₹350 per option.
• Total shares covered: 1,61,827 and 2,00,000 equity shares respectively.
• Vesting subject to pre-vesting conditions, between 1 and 5 years from grant.
• Exercise window: 3 years from vesting.
• Options governed under MHIL ESOP-2022, administered by Nomination and Remuneration Committee.
• Scheme complies with SEBI SBEB Regulations, 2021.
• No options exercised or cash realized reported yet.

Meeting Details

• Date: August 18, 2026; meeting type: One-on-one and group.
• Mode: Physical; Location: Grand Hyatt, Mumbai.
• Organizer: Motilal Oswal 22nd Annual Global Investor Conference.

Participants

• Company participants: EVP - Company Secretary and Compliance Officer.

Purpose

• Purpose: Investor conference participation and general investor interaction.

Additional Notes

• Disclosure to be hosted on the company's website.

Meeting Details

• Date and time: August 14, 2026 at 11:00 AM IST.
• Mode: virtual group conference call for investors and analysts.
• Organizer: Max Healthcare Institute Limited earnings call.

Participants

• Key participants: Senior Management team from the company.

Purpose

• Purpose: Discuss Q1 FY27 results; follow with Q&A.

Availability

• No explicit mention of recording or transcript.

Meeting Details

• Board meeting on Aug 13, 2026 to consider unaudited standalone and consolidated quarterly results (June 30, 2026).

Key Agenda Items

• Approval of unaudited standalone and consolidated financial results for the quarter ended June 30, 2026.

Other Notes

• Trading window closed for designated persons and their immediate relatives until 48 hours after results declaration.
• Disclosure of the board meeting will be hosted on the company's website.