Max Healthcare Institute Ltd

- Max Healthcare is undertaking multiple expansion projects: - 268 beds at Nanavati (Phase I) with commissioning expected within 90 days. - 155 beds at Mohali with commissioning also expected within 90 days; plans to add 45 more beds post-tower completion. - A built-to-suit hospital in Gurgaon (Sec-56) to be completed by end of calendar year. - Brownfield expansions at Max Smart and other locations adding approximately 1,500 beds in FY '26. - 18 acres of land in Noida with potential to add 1,000+ beds; current occupancy at 50%. - Land acquisition of around 1 acre adjacent to fully occupied Vaishali hospital; brownfield expansion expected within 30 months. - Environmental clearance and tendering in progress for 397 beds at Patparganj, 550 beds at Max Saket, and 400 beds at Zirakpur (Mohali). - Overall focus on asset-light expansion, brownfield additions, and internal accrual funding; no major debt increase planned unless acquisitions occur.

- Max Healthcare expects strong growth driven by recent acquisitions (Lucknow, Nagpur, Jaypee Noida) and new facilities (Dwarka, brownfield expansions). - FY '25 revenue saw a 26% YoY growth and 22% growth in EBITDA. - New brownfield expansions adding around 1,500 beds in FY '26 are expected to ramp up quickly, improving occupancy and margins. - Greenfield projects like Gurgaon will take longer to mature but contribute incremental revenue over time. - Average Revenue Per Occupied Bed (ARPOB) is growing (~7% YoY growth in existing hospitals). - Increased institutional and international business will contribute, though international patients may not move the needle significantly at new locations initially. - Network operating EBITDA margin was 27.2% for Q4 FY '25, with potential margin expansion from brownfield expansions. - Overall, the company is targeting capacity tripling over the next 5 years backed by ongoing expansions and acquisitions.

- Strong earnings and EBITDA growth expected driven by capacity expansion and acquisitions. - Brownfield expansions (~1,400-1,500 beds in FY26) to deliver higher EBITDA margins due to lower incremental fixed costs. - Newly acquired units (Lucknow, Nagpur, Noida) showing robust revenue and EBITDA growth, with further margin expansion potential as capacity and specialties ramp up. - Greenfield facilities like Dwarka achieved record EBITDA breakeven within 6 months; similar trajectory expected for Gurgaon facility. - Network-wide EBITDA margin was 27.2% this quarter; Existing units margin at 28.5%, with scope for improvement from expansions. - Management confident of continued strong cash flows and ROCE (FY25 ROCE at 26%), supporting capacity doubling over next 4-5 years. - Guidance indicates a growing bed capacity target (9,000 beds by 2028, likely to increase with acquisitions), supporting long-term earnings growth. - Positive ARPOB growth (7% YoY for existing units) and sustained occupancy at ~75% underpin revenue and profit growth.

- The transcript does not explicitly mention a specific current or expected order book or pending orders. - It does detail ongoing and upcoming expansion projects including: - 397 beds at Patparganj with environmental clearance and tendering underway. - 550 beds at Max Vikrant (Saket Complex) pending forest department clearance, expected completion by 2028. - 400 beds at Zirakpur (Mohali), awaiting environmental clearance, with a 30-month completion timeline. - 140 beds at Vaishali brownfield project planned, expected completion within 30 months. - The company plans to add around 1,500 beds in FY26 through brownfield expansions and greenfield projects like Nanavati (268 beds), Mohali (155 beds), Max Smart, and Gurgaon Sec-56. - Expansion is mostly funded through internal accruals with leverage room up to 2.5x net debt to EBITDA. - The company generated INR 1,447 crore free cash flow and is actively deploying capital into expansion and acquisitions.

- The company has very little leverage on its balance sheet currently and is happy to go up to 2.5x net debt to EBITDA. - Expansion will mostly be funded through internal accruals, with more than enough room to acquire with existing cash and balance sheet capacity. - Recent increase in interest cost is primarily due to INR 1,000 crore borrowed for the Jaypee acquisition and INR 600 crore loan for the Sahara acquisition. - Unless there are major acquisitions, no significant change in interest cost or additional borrowing is expected. - The company remains open to acquisitions if they meet ROCE and strategic criteria but does not provide guidance until deals are closed. - No specific mention of immediate planned new fundraising via debt or equity beyond current borrowings for acquisitions and ongoing expansions.