Max Healthcare Institute shares declined 7.31 percent to an intraday low of ₹1,011.30 per share on the NSE on Friday, following the company's March quarter earnings announcement. According to reports from Moneycontrol, the stock had opened 2.09 percent lower and the decline came after seven consecutive sessions of gains following the company's quarterly results announcement after market hours on Thursday. The latest decline reflects investor disappointment over the earnings miss despite the company reporting revenue growth.
In the fourth quarter of FY26, Max Healthcare's network revenue, including trust business, rose 10.2 percent year-on-year to ₹2,540 crore, which was lower than the brokerage's estimate of ₹2,660 crore. As reported by Moneycontrol, the earnings miss was attributed to a higher tax rate by analysts at domestic brokerage Motilal Oswal Financial Services. The company faced challenges from higher operating expenses and softer margins that weighed on profitability, leading to negative investor sentiment. The bed occupancy during the quarter stood at 75 percent, while occupied bed days (OBDs) increased 8 percent year-on-year.
According to the company's results, average revenue per occupied bed (ARPOB) for Q4 FY26 stood at ₹77,900 compared with ₹77,100 in the corresponding quarter of the previous fiscal. For the financial year ended March 31, 2026, network gross revenue stood at ₹10,538 crore. Network profit after tax, after exceptional items, rose 22 percent to ₹1,631 crore in FY26 from ₹1,336 crore in FY25.
Chairman and Managing Director Abhay Soi highlighted that the network delivered its 22nd consecutive quarter of year-on-year growth, with revenue increasing 10 percent. As reported by Moneycontrol, the company has started phased commissioning and ramp-up of brownfield expansions across Mohali, Mumbai and Delhi, representing around 20 percent capacity addition. Soi also announced plans to augment capacity by another 10 percent with the commissioning of the greenfield Gurgaon facility by the end of the year. However, analysts remained cautious over valuation concerns and the pace of future earnings growth.
The company announced its new hospital in Lucknow will be spread across five acres and is expected to be commissioned in FY30 to cater to rising demand for quality healthcare services in Uttar Pradesh. According to Moneycontrol, this will be the company's second hospital in the city. The expansion plans demonstrate the company's continued focus on geographic diversification and capacity enhancement across key markets.
