Max Healthcare Q2 FY26: Sustained Growth and Strategic Expansion Drive Strong Performance

Max Healthcare Institute Limited, a prominent player in India's healthcare sector, has reported a robust financial and operational performance for the second quarter and half year ended September 30, 2025. The company's Network gross revenue for Q2 FY26 reached 2,692 crore, marking a significant 21% year-on-year (YoY) growth and a 5% quarter-on-quarter (QoQ) increase. This impressive top-line expansion was primarily fueled by an increase in Occupied Bed Days (OBDs), which rose by 19% YoY.

Operational efficiency remained a key highlight, with Network Operating EBITDA growing by 23% YoY to 694 crore. The EBITDA margin for the Network stood at 26.9%, an improvement from 26.6% in Q2 FY25 and 24.9% in Q1 FY26. Profit After Tax (PAT) saw an even more substantial surge, increasing by 59% YoY to 554 crore. This PAT figure includes a one-time favorable tax impact of approximately 149 crore, resulting from the merger of Crosslay Remedies Limited (CRL) and Jaypee Healthcare Limited (JHL). Excluding this one-time impact, the normalized PAT stood at 406 crore, reflecting a healthy 16% YoY growth.

Strategic Initiatives and Capacity Expansion

Max Healthcare has been proactive in its strategic initiatives, focusing on both organic growth through brownfield expansions and optimizing its corporate structure. The company completed the divestment of its hospitals in Village Chitta and Anoopshahr in September 2025, a move aimed at sharpening its focus on super specialty care in larger urban centers. Concurrently, the Hon'ble NCLT Chandigarh Bench approved the scheme of amalgamation of JHL and CRL, both wholly-owned subsidiaries, with an appointed date of October 5, 2024. This merger contributed to the favorable tax impact observed in the quarter.

Capacity expansion remains a core pillar of Max Healthcare's growth strategy. The 160-bed brownfield tower at MSSH Mohali, which includes an additional radiation oncology program, has been successfully commissioned. Furthermore, the 268-bed brownfield tower at Nanavati-Max, Mumbai, is slated for commissioning in the coming week, and a 400-bed brownfield tower at Max Smart is expected to be ready within the next 30 days. These brownfield projects are anticipated to provide immediate operating leverage, contributing to future financial and operational metrics.

Management also provided updates on several other expansion projects. Max Lucknow's capacity is expected to increase from 413 to 550 beds by the end of the current financial year, with a new onco radiation program launching soon. Other significant projects include 501 beds at Sector 56, Gurgaon, 100 beds at Max Nagpur, 397 beds at Patparganj, 550 beds at Max Vikrant (Saket), 400 beds at Zirakpur, Mohali, 140 beds at Max Vaishali, 500 beds at Thane, and 250 beds at Pitampura, Delhi, all with defined timelines for completion.

Diversified Revenue Streams and Operational Highlights

Beyond its core hospital operations, Max Healthcare's strategic business units, Max Lab and Max@Home, continued to demonstrate strong performance. Max Lab, the non-captive pathology vertical, reported a revenue of 54 crore, growing by 16% YoY and 11% QoQ. Its services are now available across more than 60 cities, offering over 2,700 tests. Max@Home's gross revenue stood at 63 crore, reflecting a 20% YoY and 6% QoQ growth, driven by services like physio & rehab, critical care, and medicine delivery.

International patient revenue also saw a healthy increase, reaching 231 crore, a 25% YoY and 11% QoQ growth, accounting for approximately 9% of the hospital revenue. Digital initiatives are also gaining traction, with digital revenue from online marketing activities and web-based appointments reaching 803 crore, representing about 30% of the Gross Revenue. Website traffic grew by 53% YoY, indicating strong digital engagement.

Outlook and Management Commentary

Mr. Abhay Soi, Chairman and Managing Director, emphasized the company's strong performance and the nearing completion of the integration of Max Super Speciality Hospital, Noida. He highlighted that the commissioning of brownfield capacities would further bolster the company's leadership in quality healthcare. The management also addressed the impact of CGHS tariff revisions, expecting a favorable impact of over 200 crore in revenue with an 85% flow-through to operating EBITDA once fully implemented.

Despite a buildup of accounts receivable in the institutional segment impacting cash flow from operations, the company generated 291 crore in free cash flows. Net Debt stood at 2,067 crore at the end of the quarter. The overall pre-tax ROCE for Q2 FY26 was 23.2%, with existing units demonstrating a robust 32.2% ROCE (excluding CWIP).

Max Healthcare's Q2 FY26 results underscore its strategic clarity, sustained growth, and disciplined execution. The company's focus on expanding capacity, optimizing operations, and leveraging diversified service offerings positions it well for continued leadership in the Indian healthcare market.