Healthcare
Hospitals
from 1,009 today
Revenue grew 15% YoY to INR 28bn with ARPOB up 5% YoY, and EBITDA grew 13% YoY to INR 7bn with margins impacted by recent bed commissioning and Kalinga acquisition.
Fuelled by a 13% YoY increase in operational bed capacity and 5% surge in ARPOB, Max Healthcare's Q1FY27 revenue growth accelerated to 15.3%. We raise our FY27/28E EBITDA by ~3% to factor in higher margins from the ramp-up of newly operationalised brownfield beds and maintain BUY with a higher TP of INR 1,275.
Max Healthcare reported a strong Q1FY27 with net revenue up 15% YoY, driven by solid OBD growth and steady ARPOB, though margins were muted by capacity commissioning and integration costs. The multi-year growth outlook remains intact, supported by aggressive capacity expansion, revised CGHS tariffs, and upcoming insurance price revisions.
Max Healthcare delivered broadly in-line 1QFY27 performance with growth momentum intact, supported by capacity expansions and asset-light businesses. Rolling forward valuation, we upgrade the stock to BUY with a revised target price of INR 1,230.
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