Max Healthcare Institute Q1 FY26 earnings call: Revenue & Margins

Max Healthcare reported a strong 27% year-on-year revenue growth in Q1 FY '26, driven by successful hospital acquisitions and integrations. - Existing units showed a 16% revenue growth, with like-for-like ARPOB growth of 5% year-on-year. - Occupancy in base hospitals is around 80%, indicating capacity constraints; growth is expected from new bed additions. - Approximately 1,000 brownfield and 500 greenfield beds are expected to be commissioned in FY '26, driving volume growth. - New hospitals like Lucknow and Nagpur are contributing significantly, with Lucknow showing 97% revenue growth year-on-year. - Noida and Dwarka facilities are expected to see acceleration in performance post-integration. - International patient revenue grew by 32% year-on-year, bolstered by expanded marketing and new geographies. - Net debt poised to increase by Rs. Max Healthcare reported 27% YoY growth in revenue and 23% growth in operating EBITDA in Q1 FY26, marking 19 consecutive quarters of YoY growth, indicating strong ongoing momentum. - Management expects continued EBITDA margin improvement in FY26, driven by better occupancy and utilization across hospitals, despite some margin pressures from superior clinical and payor mix. - EBITDA per bed and Return on Capital Employed (ROCE) are highlighted as more relevant metrics, expected to improve with new expansions and acquisitions. - New brownfield and greenfield bed capacities (~1,000 brownfield and 500 greenfield beds) are expected to start commissioning, further driving revenue and earnings growth. - Net debt is expected to increase modestly by Rs.

Max Healthcare Institute Ltd currently shows a neutral. The stock trades at a P/E of 65.6 with a market cap of ₹98,161 Cr. Investors should review the full earnings analysis for detailed insights.

Max Healthcare is actively expanding with ongoing and planned projects including: - 268 beds at Nanavati Phase 1, commissioning basements to third floors, starting soon. - 400 beds at Max Smart, Saket Complex, with phased commissioning expected by end Q2 FY '26. - Expansion at Max Lucknow to increase capacity from 413 to 520 beds by FY end. - 500 beds under construction at Sector 56 Gurgaon, expected commissioning by FY end. - 100 beds at Max Nagpur, awaiting environmental clearance; project to complete within 24 months. - 397 beds at Patparganj, environmental clearance received, construction underway. - 550 beds at Max Vikrant, Saket Complex, pending Forest Department clearance. - 400 beds at Zirakpur, Mohali under fast construction, expected completion in 24 months. - 140 beds expansion at Max Vaishali, demolition underway, completion in 30 months. - New 130-bed built-to-suit hospital in Dehradun, Board-approved lease agreement. - Rs.