Narayana Hrudayalaya Ltd.Record India Margins Amid Expansion

Narayana Hrudayalaya delivered exceptional performance in its India hospital business during Q4 FY26, achieving record EBITDA margins of 25.1%, a robust 360 basis points expansion year-over-year, driven by quaternary care scale and operational efficiencies.

India revenue grew 10.2% despite no bed additions since listing, with Bangalore cluster achieving industry-leading ARPP of over ₹2.5 lakh powered by 100 robotic cardiac surgeries monthly. However, consolidated margins normalized to 22% due to UK acquisition costs and Cayman insurance losses of USD 5 million quarterly, with management expecting significant reduction over the next three quarters through pricing corrections affecting 30-35% of accounts from June 2026.

The company announced ambitious ₹3,000 crore greenfield capex deployment across FY27-FY29, acknowledging near-term ROCE dilution but emphasizing long-term value creation. UK PPG integration remains complex but cash-positive, while clinic expansion continues with plans to double from 11 facilities. Management maintains a cautious yet confident tone, requesting investors allow 2-3 quarters for operational stabilization across international ventures.