Narayana Health revenue rises 73% as UK loss widens

Narayana Health reported consolidated operating income of Rs 2,844 crore in Q2 FY27, up 73.0% year on year, while profit after tax rose 16.6% to Rs 301.2 crore. The result combined higher earnings in NH India and HCCI with a GBP 2.7 million profit-after-tax loss at NHUK, where post-IFRS EBITDA declined sequentially.

Why did NH Group operating income rise 73% in Q2 FY27?

NH Group operating income rose to Rs 2,844 crore in Q2 FY27 from Rs 1,643.8 crore in Q2 FY26 and Rs 2,683.6 crore in Q1 FY27. The presentation reports year-on-year growth of 73.0% and quarter-on-quarter growth of 6.0%. Earnings before interest, tax, depreciation and amortisation, or EBITDA, reached Rs 605.4 crore, compared with Rs 426.5 crore a year earlier.

NH Group profit after tax, or PAT, was Rs 301.2 crore, up from Rs 258.3 crore in Q2 FY26 and Rs 207.3 crore in Q1 FY27. EBITDA grew 42.0% year on year, exceeding the 16.6% increase in PAT. Depreciation and amortisation increased to Rs 162.9 crore from Rs 87.5 crore, while finance costs rose to Rs 96.7 crore from Rs 42.3 crore.

How did NH India and HCCI contribute to Q2 FY27 results?

NH India reported operating revenue of Rs 1,440.2 crore in Q2 FY27, up 8.7% from Rs 1,324.7 crore in Q1 FY27 and 16.6% from Rs 1,234.7 crore in Q2 FY26. Its EBITDA increased 22.3% sequentially to Rs 354.8 crore, while PAT rose 44.2% to Rs 189.9 crore from Rs 131.7 crore in Q1 FY27.

HCCI recorded operating revenue of US$63.4 million, EBITDA of US$22.1 million and PAT of US$16.6 million in Q2 FY27. Revenue increased 8.9% quarter on quarter and 28.2% year on year, while EBITDA rose 46.4% sequentially and 23.8% year on year. The presentation says HCCI consolidated revenue requires a US$2.7 million inter-company elimination adjustment.

What changed in the Cayman Islands operations during Q2 FY27?

Cayman Islands hospital revenue was US$49.3 million in Q2 FY27, up 9.9% from US$44.8 million in Q1 FY27 and 18.4% from US$41.6 million in Q2 FY26. Insurance revenue was US$16.8 million, increasing 8.8% sequentially from US$15.4 million and 80.2% year on year from US$9.3 million.

Hospital and insurance EBITDA in the Cayman Islands was US$22.1 million, compared with US$15.1 million in Q1 FY27 and US$17.9 million in Q2 FY26. Out-patient visits were 12,979, below 13,194 in the preceding quarter but above 12,301 a year earlier. Discharges increased to 823 from 780 in Q1 FY27 and 785 in Q2 FY26.

Why did NHUK report a wider quarterly loss?

NHUK reported a PAT loss of GBP 2.7 million in Q2 FY27, compared with a GBP 2.2 million loss in Q1 FY27. Operating revenue declined 0.9% quarter on quarter to GBP 64.4 million from GBP 65.0 million. The financial-summary table does not provide a Q2 FY26 comparator for NHUK, so it reports no year-on-year change for the segment.

NHUK post-International Financial Reporting Standards, or IFRS, EBITDA declined 18.5% sequentially to GBP 4.7 million from GBP 5.7 million. Pre-IFRS EBITDA fell 41.7% to GBP 1.9 million from GBP 3.3 million, and post-IFRS EBITDA margin fell to 7.2% from 8.8%. The presentation includes GBP 0.8 million of new-centre losses in both EBITDA measures and excludes one-time acquisition costs from EBITDA.

What does NH Group's September 2026 balance sheet show?

NH Group reported shareholder equity of Rs 5,005.4 crore as of September 30, 2026, with borrowings plus lease liabilities of Rs 6,075.3 crore. Net block plus capital work in progress was Rs 4,968.5 crore, goodwill was Rs 1,413.3 crore, and cash and bank balances were Rs 1,939.8 crore. Current investments totalled Rs 1,045.1 crore.

Consolidated gross debt was Rs 4,964.8 crore and cash and cash equivalents were Rs 3,081.8 crore, resulting in net debt of Rs 1,883 crore. India had net debt of Rs 850.1 crore, while the Cayman Islands reported net cash of Rs 678.1 crore. The United Kingdom recorded net debt of Rs 1,711.1 crore, the largest regional net-debt amount in the table.

What capacity expansion does NH plan through FY30?

NH plans to exceed 7,800 beds by FY30, compared with current capacity of 5,879 beds as of September 30, 2026. Listed additions comprise 215 beds at HSR Bangalore, 350 at Rajarhat Kolkata, 220 in Central Bangalore, 350 in South Bangalore, 300 in Raipur, 120 at Park Street Kolkata and 400 pipeline beds, totalling 1,955 beds.

For FY27, NH lists planned greenfield and inorganic capital expenditure of Rs 460 crore and planned replacement and maintenance expenditure of Rs 270 crore, against actual amounts of Rs 95.5 crore and Rs 68.1 crore, respectively. HSR Bangalore and Raipur are scheduled for FY28 completion, Rajarhat Kolkata and Central Bangalore for FY29, and South Bangalore for FY30. The Banashankari Hospital project in South-West Bangalore began operations in the last week of September 2026.

Conclusion

NH's Q2 FY27 performance combined 73.0% growth in operating income to Rs 2,844 crore with a 42.0% increase in EBITDA to Rs 605.4 crore. NH India and HCCI increased reported revenue and earnings, but NHUK recorded lower quarterly revenue, lower EBITDA and a wider PAT loss of GBP 2.7 million.

The next disclosed milestones are FY28 completion targets for HSR Bangalore and Raipur, FY29 targets for Rajarhat Kolkata and Central Bangalore, and the more than 7,800-bed FY30 objective. NHUK's subsequent results will indicate whether its GBP 0.8 million new-centre loss and the decline in post-IFRS EBITDA margin to 7.2% continue.