Max Healthcare Institute delivered mixed Q3FY26 results with network gross revenue jumping 9% year-on-year to ₹2,484 crore, compared with ₹2,484 crore in the previous year. According to the latest financial results, network net revenue grew 9% YoY to ₹2,484 crore, while network operating EBITDA increased 4% to ₹648 crore. Profit After Tax (PAT) grew 9% YoY to ₹344 crore, though this figure accounts for exceptional items of ₹55 crore related to the Code on Wages, 2019, and stamp duty on amalgamation. However, EBITDA margins contracted to 25.5% from 26.4% in Q3 FY25, reflecting operational challenges despite the revenue growth. The sequential performance showed weakness with revenue declining from ₹2,580 crore, EBITDA falling from ₹694 crore, and profit dropping sharply from ₹554 crore.
The company's nine-month FY26 performance demonstrated even stronger momentum with network net revenue growing 19% YoY to ₹7,524 crore and network PAT surging 30% YoY to ₹1,244 crore. Management expressed strong confidence in achieving significant capacity ramp-up in Q4 FY26 and FY27, driven by new hospital bed additions and solid operational performance. The strategic direction focuses on optimizing existing infrastructure, pursuing both brownfield and greenfield expansions, and leveraging capital-light adjacencies like Max Lab and Max@Home. A long-term vision aims to double the company's bed capacity within the next 4-5 years.
The company faced operational headwinds with occupancy declining to 74% compared with 77% in the previous quarter and 75% a year ago. As reported by CNBC TV18, average revenue per occupied bed (ARPOB) rose 3% year-on-year to ₹77,900, remaining broadly flat quarter-on-quarter, while EBITDA per bed (annualised) stood at ₹71.3 lakh. International patient revenue showed resilience with 14% YoY growth to ₹230 crore, contributing around 9% of hospital revenues. The primary concern from the results is the compression in EBITDA margins, which decreased by approximately 120 basis points YoY, despite PAT growth outpacing EBITDA growth. Company officials attributed the performance dip to temporary cashless disruptions, an increased proportion of lower-reimbursement public sector undertaking (PSU) patients, and the discontinuation of certain patented chemotherapy drugs.
On a quarter-on-quarter basis, the company experienced significant softness with revenue declining from ₹2,580 crore, EBITDA falling from ₹694 crore, and profit dropping sharply from ₹554 crore, according to CNBC TV18. The company flagged temporary cashless disruptions, a higher PSU patient mix, and the discontinuation of certain patented chemotherapy drugs as factors impacting revenue and margins. The CGHS tariff hike is expected to be fully implemented by April 2026, potentially delaying margin recovery. Key challenges highlighted include the potential impact of Central Government Health Scheme (CGHS) tariff revisions and pre-commissioning expenses that are expected to affect margins in the near term.
Max Healthcare continued its aggressive expansion strategy with operational beds increasing to 4,853, up 387 year-on-year. The company deployed ₹408 crore in capex during the quarter and is pursuing strategic acquisitions, including the acquisition of Yerawada Properties Pvt. Ltd. for a new ~450-bed hospital in Pune, expected to be commissioned by 2030. The company signed an SPA for the Pune facility and is commissioning several new towers, including the 400-bed Max Smart brownfield tower. Ancillary businesses remained strong with Max@Home revenue up 23% YoY and Max Lab revenue rising 13%, while the company's aggressive expansion plans present significant execution risks that investors will closely monitor.
