Manipal Hospitals Q2 FY27 revenue rose 37.3% on volumes

Manipal Hospitals reported Q2FY27 revenue of Rs 3,399 crore, up 37.3% from Q2FY26, as inpatient volumes increased 35.0% to 169,000 and occupancy reached 70.1%, up 160 basis points. The quarter included Rs 375 crore of revenue and 29,000 inpatient cases from Sahyadri, which Manipal Hospitals acquired on October 3, 2025.

How did Manipal Hospitals perform financially in Q2FY27?

Manipal Hospitals generated revenue of Rs 3,399 crore in Q2FY27, compared with Rs 2,475 crore in Q2FY26 and Rs 3,091 crore in Q1FY27. Revenue therefore increased by Rs 924 crore year on year and Rs 308 crore sequentially. Sahyadri contributed Rs 375 crore to the Q2FY27 total, while the Q2FY26 comparator did not include Sahyadri.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, were Rs 882 crore, up 29.8% from Rs 680 crore a year earlier and above Rs 749 crore in Q1FY27. EBITDA margin was 26.0%, compared with 27.5% in Q2FY26 and 24.2% in Q1FY27. Sahyadri contributed Rs 73 crore of quarterly EBITDA, and Manipal Hospitals reported a 26.8% EBITDA margin excluding Sahyadri.

Profit after tax, or PAT, excluding exceptional items, was Rs 380 crore in Q2FY27, up 21.6% from Rs 313 crore in Q2FY26 and compared with Rs 259 crore in Q1FY27. PAT margin was 11.2%, below 12.6% a year earlier but above 8.4% in the preceding quarter. Manipal Hospitals also presented PAT of Rs 455 crore excluding the Rs 75 crore net-of-tax impact of Sahyadri non-convertible debenture, or NCD, interest.

What drove Manipal Hospitals' revenue increase?

Manipal Hospitals' reported revenue growth reflected Sahyadri's inclusion and higher patient activity across the operating network. Inpatient, or IP, volumes rose to 169,000 from 126,000 in Q2FY26, an increase of 43,000 cases or 35.0%, and rose from 155,000 in Q1FY27. Sahyadri accounted for 29,000 IP cases in the Q2FY27 total.

Outpatient, or OP, volumes increased to 1.74 million in Q2FY27, from 1.37 million in Q2FY26 and 1.55 million in Q1FY27. The year-on-year increase was 27.2%, or 372,000 visits. IP volume growth of 35.0% exceeded OP volume growth of 27.2% in the quarter, while both measures also increased from Q1FY27.

Average revenue per occupied bed, or ARPOB, was Rs 70,600 a day in Q2FY27, unchanged from Q2FY26 and below Rs 71,500 a day in Q1FY27 on a reported basis. Excluding Sahyadri, ARPOB was Rs 76,600 a day, which Manipal Hospitals said was 8.5% higher year on year. The difference between reported and ex-Sahyadri ARPOB reflects the acquired network's inclusion in the consolidated measure.

How did occupancy and hospital capacity change?

Manipal Hospitals reached 70.1% occupancy in Q2FY27, compared with 68.5% in Q2FY26 and 65.0% in Q1FY27. The year-on-year improvement was 160 basis points and the sequential increase was 510 basis points. Average occupied beds rose to 5,137 in the quarter from 3,719 a year earlier and 4,657 in Q1FY27.

Average operational beds increased to 7,331 in Q2FY27 from 5,430 in Q2FY26 and 7,164 in Q1FY27. This represented an addition of 1,901 beds year on year and 167 beds sequentially, while occupied beds increased by 1,418 and 480 respectively. Average length of stay, or ALOS, was 2.8 days, compared with 2.7 days in both Q2FY26 and Q1FY27.

The quarter's utilisation was reported within a network with 13,440 licensed beds as of September 30, 2026, including 7,331 average operational beds in Q2FY27. The group listed 9,655 owned licensed beds and 3,785 operation-and-management, or O&M, beds. Bengaluru had 13 hospitals and 2,879 beds, compared with five hospitals and 1,513 beds in Kolkata and nine hospitals and 1,284 beds in Pune.

What changed in margins, debt and earnings adjustments?

Manipal Hospitals' Q2FY27 EBITDA margin of 26.0% was 150 basis points below the 27.5% reported in Q2FY26, although EBITDA increased by Rs 202 crore. It was also 180 basis points above Q1FY27's 24.2% margin. The Rs 882 crore of reported EBITDA included Rs 73 crore from Sahyadri, while the presentation states that EBITDA excludes other income and ESOP expenses.

Net debt, excluding lease liabilities, was Rs 343 crore in Q2FY27, compared with Rs 8,447 crore in Q1FY27 and Rs 2,366 crore in Q2FY26. Net debt to EBITDA, calculated on an annualised basis, was 0.10 times in Q2FY27, down from 2.82 times in Q1FY27 and 0.87 times a year earlier. The presentation gives these balances and ratios but does not state the reason for the sequential movement.

The Q2FY27 PAT figure of Rs 380 crore excludes exceptional items of Rs 95 crore, according to the presentation. Separately, Sahyadri NCD interest had a Rs 75 crore net-of-tax effect, producing the Rs 455 crore PAT measure excluding that interest. These are separate disclosed adjustments, so the reported PAT comparison and interest-adjusted comparison are on different bases.

Conclusion

Manipal Hospitals' Q2FY27 results combined a larger reported business base with greater use of operating capacity. Revenue increased 37.3% to Rs 3,399 crore, IP volumes rose 35.0% to 169,000 and occupancy reached 70.1%, while EBITDA grew 29.8% to Rs 882 crore. The EBITDA margin of 26.0% remained below the 27.5% reported in Q2FY26 but improved from 24.2% in Q1FY27.

The disclosed developments to watch include utilisation of the 300-licensed-bed Manipal Hospital at Electronic City, Bengaluru, launched in Q2FY27, and the continuing effect of Sahyadri on reported metrics. Sahyadri contributed Rs 375 crore of Q2FY27 revenue and Rs 73 crore of EBITDA, while its NCD interest had a Rs 75 crore net-of-tax impact on PAT.