Manipal Hospitals has announced a significant strategic shift toward greenfield expansion, planning to build 80% of its 2,426-bed expansion pipeline through new hospital construction. According to the company's first annual report following its public listing on August 5, the hospital chain will add around 1,943 greenfield beds and 483 brownfield beds by 2030. This represents a clear pivot from its acquisition-heavy growth strategy over recent years, with greenfield beds accounting for 80.1% of the planned capacity. The expansion will focus primarily on markets where Manipal already has a presence, including Karnataka, Maharashtra, Goa, and eastern India, while also evaluating acquisitions in Delhi-NCR, Telangana, Kerala, Andhra Pradesh, and Chhattisgarh. The company has identified the Mumbai-Pune corridor as a key growth opportunity and is considering acquisitions to consolidate its position in Delhi-NCR.
The company's FY26 results reflect the mixed impact of its expansion strategy and recent acquisitions. As reported by Business Standard, consolidated revenue from operations increased 25.4% to ₹10,335.75 crore from ₹8,242.26 crore in the previous year, primarily driven by the Sahyadri acquisition. However, profit after tax declined 15.3% to ₹916.59 crore from ₹1,081.67 crore, impacted by higher finance costs, depreciation, and taxes. Finance costs rose 68.9% to ₹864.29 crore due to increased borrowings for acquisitions and expansion, while depreciation increased 34.1% to ₹679.55 crore reflecting the larger asset base. Earnings before interest, tax, depreciation and amortisation rose 22.1% to ₹2,644 crore, though EBITDA margin narrowed to 25.6% from 26.3%. Tax expense also rose to ₹261.51 crore from ₹160.64 crore. The acquisition and expansion programme increased net debt, including lease liabilities, to 3.7 times EBITDA in FY26 from 2.0 times in FY25, reflecting the substantial investment in growth initiatives.
The acquisition of Sahyadri Hospitals, completed in stages beginning October 2025, significantly boosted Manipal's scale. According to reports from Business Standard, Manipal paid around ₹5,255 crore during FY26 for a stake of nearly 90% and has committed another ₹574 crore for a further tranche. The acquisition added 10 hospitals and 1,606 licensed beds in Maharashtra, contributing to the overall revenue growth. The consolidation of Sahyadri, along with higher patient volumes, helped drive the strong revenue performance despite margin pressures. Manipal's existing hospitals also provide room for growth, with occupancy standing at 64.5% in FY26 compared with 67.1% in the previous year, even as operational beds increased 20.2% to 6,227 from 5,179.
Despite the challenging financial environment, Manipal's operational performance showed improvement across key metrics. As reported by Business Standard, average revenue per occupied bed (ARPOB) increased 8.8% to ₹68,900 per day from ₹63,300, while inpatient volumes grew 19.9% to 527,227. Outpatient volumes also rose 16.2% to 5.48 million. The company's specialty segments, classified as CONGO-R (cardiac sciences, oncology, neurosciences, gastro sciences, orthopaedics and renal sciences), contributed 64.3% of gross inpatient revenue, up from 62.6% in FY25. Oncology recorded the strongest growth among these specialties. Manipal's shares listed at ₹652 on the National Stock Exchange, gaining a 10.5% premium to the issue price of ₹590, and closed at ₹725.20 on September 4, gaining around 11.2% from listing price.
The expansion strategy comes with substantial capital requirements, as highlighted by Managing Director Dilip Jose. According to Business Standard, a greenfield hospital of around 250 beds typically requires an investment of ₹380-390 crore, excluding land and building costs, with additional spending of around ₹1.5 crore per bed on medical equipment and technology. The planned 1,943 greenfield beds could entail an investment of approximately ₹2,915 crore at current benchmarks. The company generally begins assessing additional capacity when a hospital approaches 70% occupancy, allowing time for construction before existing facilities become constrained. The expansion plan follows a period of rapid inorganic growth, with Manipal adding 5,548 beds through acquisitions between FY21 and FY26, including Columbia Asia, Vikram Hospitals, AMRI, Medica Synergie and Sahyadri Hospitals.
