NephroPlus H1FY27 revenue rises 23.6%, PAT up 34.7%

Nephrocare Health Services Limited reported H1FY27 consolidated revenue of Rs 585.2 crore, up 23.6% year on year, while adjusted profit after tax rose 34.7% to Rs 76.1 crore. The result reflected 12.6% growth in treatments to 21.01 lakh and a 9.7% increase in revenue per treatment, despite a 165-basis-point decline in adjusted EBITDA margin.

How did NephroPlus perform in H1FY27?

NephroPlus increased consolidated revenue to Rs 585.2 crore in H1FY27 from Rs 473.5 crore in H1FY26, while adjusted earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 15.3% to Rs 134.4 crore from Rs 116.5 crore. Adjusted profit after tax, or PAT, increased 34.7% to Rs 76.1 crore from Rs 56.5 crore.

Revenue grew 8.3 percentage points faster than adjusted EBITDA, resulting in adjusted EBITDA margin of 23.0% in H1FY27 versus 24.6% in H1FY26. The 165-basis-point decline came as NephroPlus said it was investing in clinical talent and network expansion. A basis point equals one-hundredth of a percentage point. Adjusted PAT margin rose 107 basis points to 13.0% from 11.9%.

What drove NephroPlus revenue growth in H1FY27?

NephroPlus attributed its H1FY27 revenue growth to higher treatment volumes and higher revenue per treatment. Treatments increased 12.6% to 21.01 lakh in H1FY27 from 18.66 lakh in H1FY26, while revenue per treatment increased 9.7% to Rs 2,785 from Rs 2,538. Guest numbers were 38,814, up 9.6% from 35,425.

Q2FY27 revenue was Rs 303.4 crore, a 23.5% increase from Rs 245.7 crore in Q2FY26. Q2FY27 treatments grew 12.0% to 10.70 lakh from 9.56 lakh, and revenue per treatment rose 10.3% to Rs 2,835 from Rs 2,571. The quarterly revenue per treatment was Rs 50 higher than the H1FY27 average of Rs 2,785.

International business accounted for about 47% of H1FY27 revenue, according to NephroPlus. The network reached 570 clinics across six countries following entry into Kazakhstan. Management said growth came from new-market entries, acquisitions and continuing volumes in established networks.

Why did NephroPlus adjusted EBITDA margin decline?

NephroPlus reported adjusted EBITDA margin of 23.0% in H1FY27, down from 24.6% in H1FY26, while it invested in clinical talent and network expansion. H1FY27 adjusted EBITDA excluded employee stock option plan, or ESOP, expenses of Rs 3.1 crore, compared with Rs 5.0 crore excluded in H1FY26.

The quarterly margin movement was larger, with Q2FY27 adjusted EBITDA margin at 22.7% versus 27.1% in Q2FY26, a fall of 443 basis points. Q2FY27 adjusted EBITDA was Rs 68.9 crore, 3.3% above Rs 66.7 crore a year earlier. Management also said Q2FY27 adjusted EBITDA rose 5.8% quarter on quarter, though the release did not state the preceding-quarter amount in its financial table.

Adjusted PAT includes further exclusions beyond ESOP costs. The H1FY27 adjusted PAT of Rs 76.1 crore excludes Rs 7.5 crore of share of loss from a joint venture and Rs 3.1 crore of ESOP expense. The H1FY26 adjusted PAT excludes Rs 5.0 crore of ESOP expense and Rs 37.2 crore of finance-cost impact related to compulsorily convertible preference share conversion.

How did NephroPlus expand its network in H1FY27?

NephroPlus expanded to 570 clinics across six countries in H1FY27, entering Kazakhstan through the acquisition of two clinics with 34 machines in Almaty. Management described the two clinics as a base for assessing the Central Asian market before scaling the Kazakhstan network.

In the Philippines, NephroPlus completed 10 acquisitions during H1FY27, taking its network there to 55 clinics. The company spent Rs 102 crore on capital expenditure during the half year, adding 40 clinics in India and 11 in the Philippines. It also opened in Saudi Arabia and Kazakhstan, while its Riyadh clinic became operational.

Home dialysis commenced in Riyadh and Jeddah, according to NephroPlus. The company is also piloting peritoneal dialysis in Punjab with nearly 50 guests onboarded. It launched the NephroPlus International Dialysis Academy to train nurses from the Philippines and India, which management said is intended to support international expansion.

What are NephroPlus management's disclosed plans?

Management said NephroPlus expects margins to remain in its stated healthy range while new markets ramp up, although margins and returns may move during that process. The company reported converting 69% of EBITDA into cash in H1FY27 and said it had more than Rs 500 crore of liquidity to fund its plans.

NephroPlus has technically qualified for Saudi Arabia's Ministry of Health tender and is one of 12 providers qualified to bid for four regions, according to management. Management expects the tender to be competitive. It also said H1FY27 revenue growth of 23.6% exceeded its stated guidance range of 15% to 20%.

Management said its technology work includes automated off-hours calls to collect guest feedback and speed query resolution. In-house agents are being used to shorten development and quality-assurance cycles. These initiatives accompany the network's expansion to six countries and the 47% international-revenue contribution reported for H1FY27.

Conclusion

NephroPlus reported H1FY27 growth in both treatment activity and revenue per treatment, lifting revenue by 23.6% to Rs 585.2 crore. Adjusted PAT increased faster than revenue, rising 34.7% to Rs 76.1 crore, while adjusted EBITDA grew 15.3% and its margin declined to 23.0% from 24.6% amid investment in people and network expansion.

The next disclosed developments are the ramp-up of the two acquired Kazakhstan clinics, integration of 10 Philippine acquisitions and progress in the Saudi Ministry of Health tender, where NephroPlus is among 12 qualified providers for four regions. Management also plans to use its nurse-training academy to support international growth and continues its Punjab peritoneal-dialysis pilot involving nearly 50 guests.