Max Healthcare Q4 FY26: Growth holds steady as brownfield expansions ramp up

Max Healthcare Institute Limited closed Q4 FY26 with another quarter of year-on-year growth, even as it absorbed the operational noise of multiple capacity additions coming on stream together. On a network basis, gross revenue rose to INR 2,664 crore, up 10% year on year, while operating EBITDA increased to INR 682 crore, up 8%. Profit after tax for the network was INR 387 crore, up 3% year on year.

The quarter’s operational picture was steady. Bed occupancy remained at 75%, while occupied bed days grew 8% year on year. ARPOB stayed broadly flat at INR 77.9k. The company, however, highlighted that ALOS was temporarily higher versus the prior year, reflecting the reality of phased commissioning across several sites at the same time.

Q4 FY26 performance in context

The underlying drivers of revenue growth were volume-led. Network revenue growth was mainly driven by higher OBDs, with international patient revenue of INR 227 crore growing 12% year on year and contributing about 9% of hospital revenue.

Profitability was resilient but not fully insulated from expansion-related cost build-up. The operating margin was 26.8% versus 27.2% a year ago. Management attributed the increase in direct costs partly to higher doctor compensation costs, stating clinician costs were up about 230 bps year on year and 120 bps quarter on quarter due to aggressive hiring to support future growth and new capacity.

A notable mix shift this quarter was oncology. Due to discontinuation of select high value chemotherapy drugs for institutional patients because of new MoU conditionalities, the share of oncology in inpatient revenues dropped to 21% from 26% a year ago. The company stated that excluding oncology, gross revenue growth was stronger at 15% year on year.

Capacity additions and why FY27 is about ramp-up

The strategic centre of gravity for Max Healthcare is clearly capacity expansion, with a strong focus on brownfield additions where demand is already proven. Over the last six months, the company has rolled out phased commissioning of nearly 20% additional brownfield capacity across Mohali, Nanavati-Max in Mumbai, and Max Smart in Delhi.

The operational details underline how staggered the commissioning is. The 400-bed brownfield tower at Max Smart was commissioned in April 2026, but 156 beds have been handed over to operations so far, with the remainder expected to be progressively handed over over the next quarter. Mohali’s 160-bed brownfield tower has been fully commissioned and operationalized. At Nanavati-Max, 116 beds out of the planned 280-bed Phase 1 tower are operational, with the balance expected over the next three months.

Management’s stance on profitability during ramp-up is consistent with its historical approach: costs are not linear with beds. As more beds become operational and fill up, operating leverage should show up more meaningfully.

The next meaningful addition is the greenfield Gurugram facility. In the earnings call, management reiterated that the 500-bed facility in Sector 56 is targeted to be commissioned by the end of the year and is expected to be operationalized in phases, similar to the approach taken at Dwarka.

Portfolio expansion: Kalinga acquisition and a second Lucknow hospital

Alongside organic additions, the company has continued to use acquisitions to build regional clusters. On May 18, 2026, Max Healthcare consummated the acquisition of a 58.28% controlling stake in Kalinga Hospital Ltd, a 250-bed hospital in Bhubaneswar on a 10-acre land parcel. Management described this as an entry into Eastern India and indicated that integration has already begun, with plans being firmed up for revamp and expansion. In the call, management also stated Kalinga is already profitable, with about INR 10 crore annual EBITDA.

For Lucknow, the board has approved a large greenfield investment of around INR 1,400 crore for a 712-bed hospital at Shaheed Path. The company guided that it is expected to be commissioned in FY30. Management also discussed a multi-location strategy in the city, with ongoing expansion at the existing Gomti Nagar site alongside the new Shaheed Path development.

Adjacent businesses: diagnostics and homecare keep scaling

Two non-hospital verticals continued to show healthy growth. Max Lab, the non-captive pathology business, reported revenue of INR 52 crore in Q4 FY26, up 14% year on year, with an EBITDA margin of 17% for the quarter as presented. Max at Home reported gross revenue of INR 73 crore, up 30% year on year, driven by physiotherapy and rehab, nursing care and attendants, and transactional services like sample collection and medicine delivery.

Takeaways

Max Healthcare’s Q4 FY26 was defined by stable core operating metrics, strong cash generation, and a clear near-term execution agenda. The next phase hinges on how quickly new brownfield beds mature into higher occupancy and stronger operating leverage, while the company simultaneously integrates Kalinga and progresses large greenfield projects like Gurugram and Lucknow. The oncology mix reset due to chemotherapy drug billing economics is an important operational change, and management indicated the network will backfill that space through other specialties rather than expecting oncology share to revert.