Manipal Health Q2 revenue rises 37% while profit falls 10%

For the quarter ended September 30, 2026, Manipal Health Enterprises Limited reported revenue from operations of Rs 3,399.35 crore, up 37% year on year, while net profit fell 10% to Rs 284.98 crore as exceptional items became a Rs 95.18 crore charge.

Why did Manipal Health profit decline despite higher revenue?

Manipal Health’s reported profit declined because exceptional items shifted from Rs 5.12 crore of income in the quarter ended September 30, 2025 to a Rs 95.18 crore charge in the September 2026 quarter. Profit before exceptional items and tax still rose 13% year on year to Rs 466.74 crore from Rs 412.67 crore, indicating that the reported-profit decline followed this measure.

The exceptional-item movement reduced profit before tax to Rs 371.56 crore from Rs 417.79 crore a year earlier. Total tax expense declined to Rs 86.58 crore from Rs 100.01 crore, but this did not offset the larger exceptional charge. Net profit attributable to Manipal Health’s owners was Rs 269.79 crore, compared with Rs 311.09 crore in the prior-year quarter.

The September-quarter exceptional charge was also larger than the Rs 15.47 crore charge recorded in the quarter ended June 30, 2026. Revenue from operations rose 10% sequentially from Rs 3,090.63 crore in June to Rs 3,399.35 crore in September, while net profit increased 17% from Rs 243.43 crore, although it remained below the September 2025 figure.

What drove Manipal Health’s revenue and cost growth?

Manipal Health’s revenue from operations increased by Rs 923.93 crore year on year to Rs 3,399.35 crore in the September 2026 quarter. Other income rose to Rs 99.73 crore from Rs 47.96 crore, taking total income to Rs 3,499.08 crore, compared with Rs 2,523.38 crore in the corresponding quarter of 2025.

Total expenses increased to Rs 3,032.34 crore from Rs 2,110.71 crore. Other expenses rose by Rs 415.13 crore to Rs 1,357.74 crore, purchases of medical consumables and pharmacy items rose to Rs 695.67 crore from Rs 514.09 crore, and employee-benefit expense increased to Rs 486.76 crore from Rs 352.31 crore.

Finance costs were Rs 300.11 crore in the September 2026 quarter, against Rs 156.07 crore a year earlier. Depreciation and amortisation increased to Rs 204.87 crore from Rs 150.85 crore. These cost increases did not prevent growth in profit before exceptional items and tax, but that measure rose at a slower rate than revenue from operations.

For the six months ended September 30, 2026, revenue from operations rose 38% to Rs 6,489.98 crore from Rs 4,713.05 crore. Net profit for the half year fell 8% to Rs 528.41 crore from Rs 571.82 crore, while exceptional items widened to a Rs 110.65 crore charge from a Rs 13.28 crore charge in the previous corresponding period.

What did the IPO and NCD redemption cost Manipal Health?

Manipal Health disclosed that subsidiary Manipal Hospitals Private Limited recognised a one-time prepayment fee of Rs 79.70 crore under exceptional items upon redeeming non-convertible debentures, or NCDs. The Rs 5,310 crore NCDs were fully redeemed on September 16, 2026 following the mandatory redemption event triggered by Manipal Health’s initial public offering, or IPO, on August 5, 2026.

The Group also recognised Rs 30.95 crore during the six months ended September 30, 2026 for the amortised portion of a discretionary one-time employee incentive. The incentive was agreed during the year ended March 31, 2026, was linked to continued employment and was subject to eligibility conditions.

The IPO comprised a fresh issue of Rs 8,000 crore and an offer for sale of Rs 1,275 crore by selling shareholders. The six-month cash-flow statement recorded Rs 8,000 crore of proceeds from equity shares, Rs 100.74 crore of issue transaction costs, Rs 5,310 crore of NCD redemption and Rs 739.65 crore of interest and processing charges paid.

The September 2026 exceptional-item charge of Rs 95.18 crore was therefore largely associated with the disclosed NCD prepayment fee, alongside the employee-incentive amortisation. The filing reported exceptional charges of Rs 110.65 crore for the six-month period, compared with Rs 13.28 crore a year earlier, which explains why first-half profit did not follow revenue growth.

How did Manipal Health’s balance sheet and cash flows change?

Manipal Health’s non-current borrowings declined to Rs 5,381.75 crore at September 30, 2026 from Rs 9,948.80 crore at March 31, 2026, following the NCD redemption. Equity attributable to owners rose to Rs 16,706.71 crore from Rs 8,426.13 crore over the same period, reflecting the equity issuance recorded in the cash-flow statement.

Cash and cash equivalents stood at Rs 559.31 crore at September 30, 2026, compared with Rs 299.36 crore at the beginning of the six-month period. Bank balances other than cash and cash equivalents were Rs 2,038.26 crore at September 30, compared with Rs 23.86 crore at March 31, 2026.

Net cash generated from operating activities rose to Rs 1,191.50 crore for the six months ended September 30, 2026 from Rs 942.10 crore a year earlier. However, cash used in investing activities increased to Rs 3,370.71 crore from Rs 877.83 crore, including Rs 1,295.08 crore spent on property, plant, equipment and intangible assets.

Total assets increased to Rs 28,969.54 crore at September 30, 2026 from Rs 24,864.51 crore at March 31, 2026. Property, plant and equipment rose to Rs 6,433.45 crore from Rs 5,840.78 crore, while capital work-in-progress increased to Rs 1,368.80 crore from Rs 795.30 crore.

Conclusion

Manipal Health delivered 37% year-on-year growth in September-quarter revenue from operations and increased profit before exceptional items and tax by 13%. Reported net profit nevertheless declined 10% because exceptional items changed sharply from income in the prior-year period to a Rs 95.18 crore charge, while finance costs rose to Rs 300.11 crore.

The next disclosed matter to watch is Manipal Health’s commitment to acquire a further 9.84% stake in Sahyadri Hospitals Private Limited on December 1, 2026, subject to conditions in the share-purchase agreement. The Group is also monitoring final rules and clarifications under India’s labour codes, and after September 30 entered a 29-year-and-11-month lease for land in Gurugram, Haryana.