Max Healthcare Q3 profit jumps 26% as revenue rises

What Max Healthcare reported in Q3

Max Healthcare Institute reported a sharp rise in third-quarter profit, helped by growth in international and outpatient consultations. Consolidated net profit rose 26% year-on-year to ₹3.01 billion, compared with ₹2.39 billion in the same quarter last year, according to a Reuters report datelined Bengaluru. The quarter also featured strong operating momentum, with network revenue and EBITDA both growing at a faster pace than costs in the period described in the note.

The company’s performance comes at a time when listed hospital operators are being closely tracked for volume growth, pricing power and expansion execution. For Max Healthcare, management commentary and analyst notes in the provided text repeatedly point to case mix changes, payor mix shifts, and ramp-up at newer units as key drivers that could influence average revenue per occupied bed (ARPOB) and margins.

Revenue and EBITDA: growth rates and key drivers

In the quarter highlighted, Max reported network revenue growth of 21% year-on-year to ₹25.7 billion, which was described as in line with Street expectations. Inpatient volumes rose 22.5%, while overall ARPOB increased 1.4% year-on-year. EBITDA was reported at ₹6.7 billion, up 24% year-on-year, and EBITDA margin increased by 53 basis points year-on-year.

The cost line items mentioned in the text show that expenses grew but remained below the revenue growth rate. Employee costs increased 17% year-on-year and other expenses rose 18% year-on-year, but the company still delivered margin improvement as revenue growth outpaced the rise in operating costs.

Separately, a Q1FY26 update in the provided material noted revenue and EBITDA growth of 27% and 23% year-on-year, respectively, but flagged that margin trajectory could remain volatile in the near term due to commissioning and hiring for upcoming projects.

Profitability, cash flows, and leverage snapshot

Beyond headline profit, the note provides details on adjusted profitability and financing costs. Adjusted profit after tax (Adj PAT) was reported at ₹4.1 billion, up 16% year-on-year, despite an increase in depreciation and amortisation of 26% year-on-year and an increase in interest costs of more than eight times. The text also reports free cash flow (FCF) of ₹2.9 billion and net debt of ₹20.7 billion as of Sep-25, with capital expenditure of ₹4.6 billion.

For Q1FY26, the note cites FCF of ₹3.9 billion, net debt of ₹17.6 billion as of Jun-25, and capex of ₹4.4 billion. Another section states that net debt is expected to increase by ₹4 to ₹5 billion by FY26-end for ongoing projects, while net debt to EBITDA is expected to remain below 1x.

Insurer issues and CGHS rate hike: what changed

The provided text flags two operational and pricing related tailwinds. First, it says cashless facilities that were stopped earlier by insurers have now been resolved, with services resumed for all four insurers. Second, it states that a CGHS rate hike is yet to be fully baked in and is expected to boost annual revenue by ₹2 billion from FY27, with around 80% expected to flow through to EBITDA.

For hospital operators, institutional pricing and insurer relationships can affect patient mix and realisations. The mention of CGHS also matters because the uplift is described in explicit revenue and EBITDA terms in the note, rather than as a general demand trend.

Hospital-level updates: Noida Jaypee and Dwarka

The text includes brief operating updates from specific units. For Noida Jaypee, it reports 64% occupancy and an 18% EBITDA margin in Q2, with consistent month-on-month growth since Jan-25, and adds that empanelments and licenses are in place. For Dwarka, it reports 81% occupancy and a 15% margin, with an expectation mentioned in the note that the unit could reach company-level margins by FY27, aided by operationalisation of oncology.

The material also notes that the company is focusing on advanced oncology, including radiation therapy, and expects an increase in oncology revenue share with the addition of radiation oncology bunkers in Q3 at Dwarka and Lucknow.

Expansion pipeline: beds, brownfield focus, and capex

Capacity additions are a recurring theme in the provided text. One note says Max Healthcare is slated to add around 1,500 beds over the next 18 months, with most additions expected to be brownfield, which typically ramps up occupancy faster than greenfield facilities. Another portion says the company is likely to add around 1,100 beds in FY26E.

The expansion list in the text includes a first phase at Nanavati of 268 beds, a Thane project with 500 new beds under an asset-light model, and an increase in planned capacity at Mohali Zirakpur to 400 beds from 250 beds. The note also states that for brownfield expansions in Nanavati and Max Smart, management expects EBITDA breakeven almost immediately upon commissioning. H2FY26 capex is estimated at ₹11 to ₹12 billion.

Valuation signals and broker views cited in the text

The material includes multiple recommendations and target prices from different notes. One analyst note retains an ADD rating with an unchanged Sep-26E target price of ₹1,250, based on a sum-of-the-parts method, implying 31x Sep-27E EV to EBITDA and a 25% premium to the sector average.

Other sections mention BUY recommendations with target prices of ₹1,315 per share, ₹1,425 per share, and ₹1,450 per share, each linked to EV to EBITDA multiples (including 35x for FY27E or 1HFY28E in the cited excerpts). The text also includes a separate view maintaining a Hold rating, with valuation references such as 51x FY27E EPS of ₹20 and 30x FY27E EV to EBITDA, and in another line 61x FY27E EPS of ₹19 and 36x EV to EBITDA.

Key numbers table

Why the update matters for investors

The combination of 20% plus revenue growth and mid-20% EBITDA growth in the cited quarter suggests Max Healthcare is scaling volumes while keeping costs in check, at least in the periods described. However, the text also highlights a recurring near-term issue: margins can move around due to commissioning, one-offs, and staffing additions ahead of bed launches.

From a fundamentals perspective, the explicitly stated levers include improving case mix and payor mix at hospitals such as Lucknow, Dwarka and Noida, plus a sharper focus on international patients. The other key swing factor is execution on brownfield capacity additions, where management expects near-immediate EBITDA breakeven at some commissioned expansions.

Conclusion

Max Healthcare’s third-quarter update combines a 26% year-on-year rise in net profit with strong network revenue and EBITDA growth, supported by higher inpatient volumes and improving operating leverage. The company’s near-term narrative in the text remains centred on brownfield bed additions, insurer issue resolution, and a CGHS rate hike that is expected to start supporting annual revenue from FY27. Investors are also watching the pace of capex and debt changes, including the H2FY26 capex estimate of ₹11 to ₹12 billion and the stated expectation that net debt to EBITDA will remain below 1x.