Health sector major Narayana Hrudayalaya Ltd on Friday (October 30) reported a 16.5% year-on-year increase in net profit to ₹301 crore for the second quarter, compared with ₹258 crore in the year-ago period, while operating revenue surged 73% to ₹2,844 crore, largely due to the acquisition of its UK business.
Revenue surged 73% to ₹2,844 crore from ₹1,644 crore a year earlier.
EBITDA increased 37.6% year-on-year to ₹553.8 crore, compared with ₹402.5 crore in the corresponding quarter last year. EBITDA margin, however, contracted to 19.5% from 24.5% a year ago.
On an underlying basis, excluding the UK business, revenue grew 22.6% year-on-year to ₹2,015.6 crore, and EBITDA increased 27.8% to ₹545.2 crore. The EBITDA margin expanded to 27% from 25.9% a year ago. Excluding the UK, PAT stood at ₹335.9 crore, with a margin of 16.7%.
For the quarter, consolidated revenue increased 6% sequentially, EBITDA rose 19.8%, and PAT was up 45.3%. Excluding the UK, revenue grew 8.5% quarter-on-quarter, EBITDA increased 26.1%, and PAT rose 42.6%.
India Business
India’s operating revenue rose 16.6% year-on-year to ₹1,440.2 crore and 8.7% sequentially. EBITDA increased 30.8% to ₹354.8 crore, while PAT grew 36.2% to ₹189.9 crore. The EBITDA margin at India hospitals expanded to 26.8% from 23.8% in the year-ago quarter.
India hospital revenue, excluding the ATHMA and Medha businesses and net of inter-company eliminations, stood at ₹1,438.8 crore, up 16.7% year-on-year and 9% sequentially. Domestic revenue was ₹1,344.2 crore, including ₹18.6 crore from clinics. International patient revenue rose 75.7% year-on-year and 41.2% sequentially to ₹90.1 crore.
Higher patient volumes, complex procedures and growth in international patient revenue contributed to the India business. By specialty, cardiac sciences accounted for around 33% of India hospital revenue, followed by oncology at 15%, medicine and gastro sciences at 14%, renal sciences at 9%, neurosciences at 8% and orthopaedics at 5%.
Domestic self-paying patients contributed around 43% of revenue, insured and corporate patients 33%, government schemes — including CGHS, ESIS and state schemes — 18%, and international patients 7%.
Bengaluru remained the largest cluster, accounting for 37% of India hospital revenue and recording 18% growth. Kolkata contributed 26% of revenue, with growth of 16%. North India, comprising Gurugram, New Delhi and Jaipur, accounted for 13% and grew 12%.
The Eastern Peripheral cluster contributed 10%, with 16% growth, while the Southern Peripheral cluster accounted for 9%, growing 10%. West India contributed 5%, with growth of 12%.
India hospitals’ EBITDA increased to ₹379.9 crore, with a margin of 26.8%, compared with ₹290.3 crore and 23.8% in Q2 FY26 and ₹322.9 crore and 24.8% in Q1 FY27. Including clinics, the margin stood at 26%. EBITDA margin excluding other income improved to 23.6% from 22.2% a year ago, aided by lower doctor and nurse costs at 25.9% of revenue against 26.7%, and lower consumables costs at 22.2% against 23.4%. Higher other expenses at 18.3% compared with 17.1% partly offset the improvement.
Cayman Islands and UK operations
In the Cayman Islands, operating revenue increased 28.2% year-on-year and 8.9% sequentially to $63.4 million. EBITDA rose 23.8% year-on-year and 46.4% quarter-on-quarter to $22.1 million, while profit after tax increased 20.9% year-on-year and 62.9% sequentially to $16.6 million, with a margin of 26.2%.
Cayman Hospital revenue was $49.3 million, up 18.4% year-on-year and 9.9% sequentially. Outpatient visits rose 5.5% year-on-year to 12,979, while discharges increased 4.8% year-on-year and 5.5% sequentially to 823. Reported Cayman revenue excludes $2.7 million of inter-company transactions.
The Cayman insurance business reported revenue of $16.8 million, up 80.2% year-on-year and 8.8% sequentially. Its EBITDA loss narrowed to $1.1 million from $3.7 million in Q1 FY27. Combined hospital and insurance EBITDA increased to $22.1 million from $17.9 million a year ago and $15.1 million in the previous quarter.
In the UK, revenue stood at £64.4 million, down 0.9% sequentially. EBITDA after IFRS 16 was £4.7 million, with a margin of 7.2%, compared with £5.7 million and 8.8% in Q1 FY27. EBITDA before IFRS 16 was £1.9 million. These figures exclude one-time acquisition costs and include £0.8 million of losses at the new centre. The UK business reported a net loss of £2.7 million, compared with a loss of £2.2 million in Q1 FY27.
Expansion and capacity addition
Narayana Hrudayalaya plans to increase its total bed capacity to more than 7,800 through six projects in India, adding around 1,555 beds at a combined project cost of approximately ₹2,990 crore. Construction at HSR, Raipur and Rajarhat is on schedule. The Banashankari hospital in south-west Bengaluru commenced operations in the last week of September 2026, while a 120-bed hospital at Park Street in Kolkata was added to the expansion pipeline.
The company operated 12 integrated care clinics as of September 30, 2026, after opening the Nagarabhavi clinic in Bengaluru in the last week of September. Clinic outpatient footfalls increased 27% year-on-year to around 81,000, while clinic revenue rose 19% to ₹18.6 crore.
For FY27, Narayana Health has planned growth capital expenditure (capex) of ₹460 crore and maintenance capex of ₹270 crore. It had spent ₹95.5 crore on growth capex and ₹68.1 crore on maintenance capex as of September 30, 2026.
Insurance business
In India, Narayana Hrudayalaya insurance wrote gross premiums of ₹7.8 crore in Q2 FY27, compared with ₹7 crore a year ago. Net incurred claims of ₹21.1 crore against net earned premiums of ₹13.3 crore resulted in a claims ratio of 159%. The insurance business reported a loss after tax of ₹15.1 crore, compared with ₹4.2 crore in Q2 FY26. Its solvency ratio improved to 162% from 155%.
Debt and cash position
The company’s net debt stood at ₹1,883 crore as of September 30, 2026, with a net debt-to-equity ratio of 0.38, down from 0.42 as of June 30, 2026. This included foreign currency-denominated debt of $114 million and £150 million.
Dr Emmanuel Rupert, Managing Director and Group CEO, Narayana Hrudayalaya, said, “Q2 FY27 has been a strong quarter for the Group, with consolidated EBITDA growing 42% YoY and margins improving sequentially in India and Cayman. India delivered robust growth, driven by higher patient volumes and a richer mix of high-end and complex procedures, which also translated into healthy margin expansion.
During the quarter, we commissioned our Banashankari hospital in Bengaluru and signed an asset-light agreement for a 120-bed hospital at Park Street, Kolkata, further strengthening our presence in our core clusters.
Our Integrated Care ecosystem continues to deepen patient engagement, with clinic footfalls up over 25% YoY and improving claims experience in our insurance business. Our Cayman business continued its strong performance, with healthy growth in the hospitals business and the One Health insurance platform significantly narrowing its losses, resulting in a marked improvement in overall profitability.
Our UK business delivered stable revenues, with margins reflecting near-term separation-related costs that we expect to normalise over time. We remain focused on driving operational efficiencies and growing our self-pay and insured patient business to strengthen margins. With a strong first half behind us, we thank the investor community for their continued faith and remain confident of delivering on our expectations for the year.”
Shares of Narayana Hrudayalaya Ltd ended at ₹1,700.00, down by ₹14.25, or 0.83%, on the BSE.