NephroPlus H1FY27 revenue rises 23.6% as adjusted EBITDA margin falls

NephroPlus reported H1FY27 revenue of Rs 585.2 crore, up 23.6% year on year, as treatments rose 12.6% to 21.01 lakh and revenue per treatment increased 9.7%; adjusted EBITDA margin fell 165 basis points to 23.0% amid investment in clinical talent and network expansion.

How did NephroPlus perform in H1FY27?

NephroPlus reported revenue from operations of Rs 585.2 crore in H1FY27, compared with Rs 473.5 crore in H1FY26. Adjusted earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 15.3% to Rs 134.4 crore from Rs 116.5 crore, but its growth was slower than revenue growth. As a result, adjusted EBITDA margin declined to 23.0% from 24.6%, a reduction of 165 basis points, or bps.

Adjusted profit after tax, or PAT, rose 34.7% to Rs 76.1 crore from Rs 56.5 crore, and adjusted PAT margin increased 107 bps to 13.0%. NephroPlus defines adjusted PAT as PAT after adding back Saudi operations and joint-venture items, employee stock-option plan, or ESOP, expenses, and the stated finance-cost effect of compulsorily convertible preference shares, or CCPS, conversion.

Reported EBITDA was Rs 131.3 crore in H1FY27, versus Rs 111.5 crore in H1FY26, after Rs 3.1 crore of ESOP expense. Reported PAT was Rs 65.5 crore, compared with Rs 14.2 crore in the prior-year half, while profit before tax increased to Rs 81.4 crore from Rs 27.9 crore.

What drove NephroPlus revenue growth in H1FY27?

NephroPlus delivered 21.01 lakh treatments in H1FY27, up 12.6% from 18.66 lakh in H1FY26, while guests at the end of the period increased 9.6% to 38,814. Revenue per treatment, or RPT, rose 9.7% to Rs 2,785 from Rs 2,538, meaning both treatment volumes and revenue recorded per treatment increased during the half.

The Q2FY27 figures showed the same pattern. Treatments grew 12.0% year on year to 10.70 lakh and RPT increased 10.3% to Rs 2,835, helping Q2 revenue reach Rs 303.4 crore, up 23.5% from Rs 245.7 crore. Q2 RPT was Rs 50 above the H1FY27 average of Rs 2,785.

NephroPlus also reported growth in its operating metrics across earlier periods. Guest numbers increased from 22,890 in FY23 to 36,981 in FY26, before reaching 38,814 in H1FY27; the presentation states an approximately 17.3% compound annual growth rate, or CAGR, over the displayed series. Treatments rose from 22.90 lakh in FY23 to 38.40 lakh in FY26, with stated CAGR of approximately 18.9%.

RPT increased from Rs 1,912 in FY23 to Rs 2,598 in FY26 and Rs 2,785 in H1FY27. NephroPlus describes the displayed FY23 to H1FY27 trend, which has an approximately 10.8% CAGR, as continued pricing and mix momentum. The presentation does not split the H1FY27 RPT increase between pricing and treatment-mix effects.

Why did NephroPlus adjusted EBITDA margin decline?

NephroPlus adjusted EBITDA margin declined because revenue increased by Rs 111.7 crore while the listed operating cost lines rose by a combined Rs 93.8 crore, leaving adjusted EBITDA up by Rs 17.9 crore. Cost of materials consumed increased by Rs 20.1 crore, employee cost by Rs 19.9 crore, healthcare professional and hospital fees by Rs 16.6 crore, and other expenses by Rs 37.2 crore.

Management said NephroPlus was investing in clinical talent and network expansion while reporting the 23.0% H1FY27 adjusted EBITDA margin. In Q2FY27, adjusted EBITDA rose 3.3% year on year to Rs 68.9 crore from Rs 66.7 crore, while margin declined 443 bps to 22.7% from 27.1%.

Finance cost fell to Rs 5.3 crore in H1FY27 from Rs 51.1 crore in H1FY26. The prior-year adjusted PAT reconciliation included a Rs 37.2 crore add-back for the finance-cost impact of CCPS conversion, whereas H1FY27 had no such add-back; depreciation increased to Rs 52.2 crore from Rs 43.0 crore and other income rose to Rs 15.1 crore from Rs 10.5 crore.

How is NephroPlus expanding its network?

NephroPlus had a network of 570 clinics across six countries in H1FY27, according to Group Chief Executive Officer Rohit Singh. The company entered Kazakhstan through the acquisition of two clinics with 34 machines in Almaty, which management described as a starting point for assessing the wider Central Asian opportunity before scaling the network.

In the Philippines, NephroPlus completed 10 acquisitions during H1FY27, taking its network there to 55 clinics. In Saudi Arabia, its Riyadh clinic became operational and home dialysis commenced in Riyadh and Jeddah. Group Chief Financial Officer Prashant Goenka said the company spent Rs 102 crore on capital expenditure during the half, adding 40 clinics in India and 11 in the Philippines while entering Saudi Arabia and Kazakhstan.

International business accounted for 47% of Q2FY27 revenue, while India represented 53%. Within the international share, the Philippines contributed 34.5 percentage points, Uzbekistan 11 percentage points and other markets 1.5 percentage points. Management also said NephroPlus converted 69% of EBITDA into cash during H1FY27 and had more than Rs 500 crore of liquidity.

What is NephroPlus planning after H1FY27?

NephroPlus launched the NephroPlus International Dialysis Academy to train nurses from India and the Philippines for international expansion. The company is also piloting peritoneal dialysis in Punjab, where nearly 50 guests had been onboarded, and has begun centre-level analysis of barriers to twice-weekly sessions and earlier vascular access.

Chairman and Managing Director Vikram Vuppala said NephroPlus had technically qualified for a Saudi Arabia Ministry of Health tender and was among 12 providers eligible to bid for four regions. He said management expected the process to be competitive, while the presentation gave no award date, expected contract value or revenue contribution.

Conclusion

NephroPlus combined 12.6% treatment growth with a 9.7% increase in RPT to lift H1FY27 revenue by 23.6% to Rs 585.2 crore. Adjusted PAT grew faster than revenue at 34.7%, but adjusted EBITDA rose 15.3%, resulting in a 165-bps margin decline as the company added clinical talent and expanded its network.

The next disclosures to watch are the margin and cash effects of the Rs 102 crore H1FY27 capital-expenditure programme, progress in Kazakhstan and Saudi Arabia, and the Saudi Ministry of Health tender. Management has said margins and returns will move during the ramp-up of new markets, while its nurse-training initiative is intended to support further international expansion.