Narayana Health India hospital margin reaches 26.8% in Q2

Narayana Health reported a 26.8% earnings before interest, tax, depreciation and amortisation (EBITDA) margin for its India Hospitals in the second quarter of fiscal year 2027 (Q2 FY27), up from 23.8% a year earlier. EBITDA reached Indian rupees (Rs) 379.9 crore, while India operations revenue increased 16.7% year on year to Rs 1,438.8 crore.

How did NH India Hospitals profitability change in Q2 FY27?

NH India Hospitals increased its EBITDA margin to 26.8% in Q2 FY27, from 24.8% in Q1 FY27 and 23.8% in Q2 FY26. EBITDA was Rs 379.9 crore, compared with Rs 322.9 crore in the preceding quarter and Rs 290.3 crore a year earlier. This represented a sequential increase of Rs 57 crore and a year-on-year increase of Rs 89.6 crore.

The presentation’s measure including India Hospitals and clinics showed a 26.0% EBITDA margin in Q2 FY27, against 23.4% in Q1 FY27 and 22.5% in Q2 FY26. NH India EBITDA was Rs 354.8 crore at a 24.6% margin in Q2 FY27. EBITDA excluding other income for NH India Hospitals was 23.6%, compared with 23.2% in Q1 FY27 and 22.2% in Q2 FY26.

What drove NH India operations revenue growth?

NH India operations revenue was Rs 1,438.8 crore in Q2 FY27, 16.7% above Rs 1,233.1 crore in Q2 FY26 and 9.0% above Rs 1,319.6 crore in Q1 FY27. The total excludes ATHMA and Medha and is adjusted for inter-company eliminations. Revenue increased by Rs 205.7 crore year on year and by Rs 119.2 crore sequentially.

Domestic revenue was Rs 1,344.2 crore in Q2 FY27, including Rs 1,325.6 crore from hospitals and Rs 18.6 crore from clinics. Hospital revenue rose from Rs 1,170.7 crore in Q2 FY26 and Rs 1,238.1 crore in Q1 FY27. International revenue reached Rs 90.1 crore, up 75.7% year on year from Rs 51.3 crore and 41.2% sequentially from Rs 63.8 crore.

Owned hospitals accounted for 74% of operating revenue excluding NHIC, while operated hospitals accounted for 25%. Heart centres and the clinic business each represented 1% of revenue. Cardiac Sciences was the largest specialty at 33% of revenue, followed by Oncology at 15% and Medicine and GI sciences at 14%.

How did NH India patient volumes and revenue per patient move?

NH India recorded higher outpatient visits and inpatient discharges in Q2 FY27, while average length of stay remained 4.3 days. Hospital outpatient footfalls were 744,000, compared with 662,000 in Q2 FY26 and 674,000 in Q1 FY27. Clinic outpatient footfalls reached 81,000, up from 64,000 a year earlier and 67,000 in the preceding quarter.

Inpatient footfalls, measured by discharges, were 60,000 in Q2 FY27, versus 58,000 in Q2 FY26 and 57,000 in Q1 FY27. Intensive care unit (ICU) occupied bed days increased to 102,000, from 96,000 in both comparative periods. The 4.3-day average length of stay was unchanged across all three reported quarters.

Average outpatient revenue per patient was Rs 5,200 in Q2 FY27, compared with Rs 4,800 in Q2 FY26 and Rs 5,100 in Q1 FY27. Average inpatient revenue per patient rose to Rs 1.634 lakh from Rs 1.494 lakh a year earlier and Rs 1.626 lakh in the preceding quarter. Average revenue per occupied bed was Rs 1.95 crore, compared with Rs 1.75 crore in Q2 FY26.

How did NH India’s cost structure change?

NH India Hospitals reduced doctors-and-nurses costs to 26% of operating revenue in Q2 FY27, from 28% in Q1 FY27 and 27% in Q2 FY26. The presentation defines this category as employee benefits plus professional fees to doctors. The two-percentage-point sequential change accompanied the increase in the India Hospitals EBITDA margin to 26.8%.

Consumable expenses were 22% of operating revenue, down from 23% in both Q2 FY26 and Q1 FY27. These expenses include medical consumables, drugs and surgical equipment, net of changes in related inventories. Other manpower cost was 10%, compared with 11% a year earlier and 10% in Q1 FY27, while rental or revenue share stayed at 2% in all three periods.

Other expenses increased to 18% of operating revenue in Q2 FY27 from 17% in Q2 FY26 and Q1 FY27. NH India defines other expenses as overhead expenses and all other expenses. The presentation states that the cost structure does not consider the effect of Indian Accounting Standard benefits.

Which NH India clusters contributed most to hospital revenue?

NH India’s Bangalore cluster was the largest contributor to hospital operating revenue in Q2 FY27, representing 37% with 1,490 capacity beds. Kolkata was second at 26% with 1,453 beds, followed by the Northern cluster at 13% with 882 beds. Bangalore and Kolkata together accounted for 63% of hospital operating revenue under the presentation’s cluster split.

Bangalore recorded 18% year-on-year revenue growth, the highest among the six clusters, compared with 16% for Kolkata and Eastern Peripheral, 12% for Western and Northern, and 10% for Southern Peripheral. Its outpatient average revenue per patient was Rs 6,100 and inpatient average revenue per patient was Rs 2.51 lakh, the highest figures among the listed clusters.

Eastern Peripheral accounted for 10% of hospital operating revenue, had 745 capacity beds and recorded the highest year-on-year discharge growth at 6%. Northern represented 13% of revenue and reported 5% discharge growth. The cluster analysis covers owned and operated hospitals and heart centres in India, rather than clinics.

Conclusion

NH India’s Q2 FY27 performance combined 16.7% year-on-year growth in India operations revenue with a 3.0-percentage-point rise in the India Hospitals EBITDA margin from Q2 FY26 to 26.8%. The reported quarter also showed higher outpatient visits, discharges and revenue per patient, alongside lower doctors-and-nurses and consumables ratios.

The next operating update will include Banshankari Hospital and Nagarabhavi Clinic metrics from Q3 FY27, after both began operations in the last week of September 2026. Subsequent disclosures will show whether the 74% owned-hospital revenue share, Bangalore’s 18% revenue growth and the 26% doctors-and-nurses cost ratio continue.