Max Healthcare Institute Ltd.Strong Core Growth Amid Expansion

Max Healthcare delivered robust Q1 FY27 performance with network gross revenue rising 16% YoY to ₹2,982 crore and operating EBITDA growing 15% YoY to ₹704 crore, though margins compressed 200 bps QoQ to 24.8% due to brownfield ramp-ups and the Kalinga acquisition.

Excluding oncology headwinds from chemotherapy drug discontinuation, underlying revenue accelerated 20% YoY with 9% ARPOB growth, demonstrating strong pricing power. Management expects oncology normalization from Q3 FY27 onwards, adding approximately 400 bps to reported growth in H2. Brownfield expansions at Max Smart and Nanavati are ramping successfully at 80% occupancy with remaining capacity commissioning in Q2 FY27.

The company announced strategic entry into medical education business targeting 25-30% ROCE with ₹300 crore capex for a 150-seat medical college at Lucknow, funded through internal accruals. Digital revenue reached 32% of total revenue while international patients contributed 9%, growing 18% YoY. The 500-bed Gurgaon greenfield remains on track for end-FY27 commissioning, and Kalinga Hospital turnaround targets 50-80% improvement in occupancy and ARPOB over twelve months.