Max Healthcare Institute Limited posted a consolidated net profit of ₹322.96 crore for the quarter ended June 30, 2026, an increase of 4.9% from ₹307.97 crore in the corresponding period of FY25. Consolidated revenue from operations rose 16.7% year-on-year to ₹2,366.17 crore, driven by higher patient volumes and the inclusion of new acquisitions. The company’s basic earnings per share (EPS) stood at ₹3.32, compared to ₹3.17 a year ago.

Financial Performance

The growth in top-line revenue outpaced the rise in net profit, indicating margin compression during the quarter. Professional and consultancy fees, which constitute a significant portion of healthcare operating costs, increased 22.8% to ₹523.43 crore, while employee benefits expense rose 14.8% to ₹388.18 crore. Total expenses grew 18.4% to ₹1,970.38 crore, slightly higher than the revenue growth rate.

Standalone results showed a net profit of ₹167.60 crore, marginally up 0.9% from ₹166.03 crore in Q1FY25. Standalone revenue increased 12.8% to ₹782.92 crore.

Strategic Expansion and Capex

The Board of Directors, meeting on August 13, 2026, approved a capital expenditure of ₹425 crore for the construction of ‘Tower 3’ at Max Super Speciality Hospital, Vaishali. This expansion will add approximately 202 census beds and 48 non-census beds to the existing facility, with commissioning targeted for November 2029. The project is being financed through a combination of internal accruals and borrowings. The additional bed capacity aims to cater to healthcare needs in the Ghaziabad region.

Additionally, the Board granted in-principle approval to explore setting up medical colleges or institutions under the company or its subsidiaries. This move aligns with proposed amendments by the National Medical Commission (NMC), which would allow companies incorporated under the Companies Act, 2013, to pursue such activities. The Memorandum of Association was amended to include these enabling objects, subject to member approval.

Acquisitions and Management Changes

During the quarter, Max Healthcare acquired a 58.28% stake in Kalinga Hospital Ltd for ₹297.97 crore, integrating the 250-bed NABH-accredited facility in Bhubaneswar into its group from May 18, 2026. The acquisition was financed partly through External Commercial Borrowings (ECB). The company also completed its acquisition of Yerawada Properties Private Limited on June 30, 2026, for ₹87.92 crore, securing a 1.68-acre land parcel in central Pune.

In senior management changes, Dr. N. Venkatesan resigned as Senior Director & Chief Procurement Officer, effective August 31, 2026. He is succeeded by Mr. Ajay Vij, appointed as Director - Chief Supply Chain & Procurement Officer, effective August 14, 2026. Mr. Pawan Kumar Marella was appointed as Senior Director - Chief Experience & Brand Officer, effective August 17, 2026.

What the Numbers Show

A notable divergence exists between the growth in revenue and the growth in professional and consultancy fees. While revenue grew 16.7%, professional fees surged 22.8%, suggesting increased reliance on external specialists or higher fee structures that are currently outweighing operational leverage. Furthermore, other income contributed ₹40.52 crore to total income, representing approximately 1.7% of total revenue, indicating that core operations remain the primary driver of profitability despite the significant finance income component.

The board of directors at Max Healthcare Institute approved its unaudited consolidated financial results for the quarter ended June 30, 2026, on August 13, 2026. The healthcare services provider reported robust top-line growth, with network gross revenue rising 16% year-on-year to ₹2,982 crore from ₹2,574 crore in the corresponding quarter of FY25. This growth was supported by the inclusion of Kalinga Hospital Limited (KHL), acquired in May 2026, and strong operational performance across existing facilities. Net revenue stood at ₹2,835 crore, reflecting a 15% YoY increase.

Consolidated net profit after tax (PAT) for the quarter stood at ₹322.96 crore, marking a 4.9% increase from ₹307.97 crore in Q1FY25. However, the broader network PAT, which includes partner healthcare facilities, grew by 3% YoY to ₹357 crore from ₹345 crore. This moderation in profit growth relative to revenue was primarily due to increased depreciation and finance costs consequent to the commissioning of brownfield capacity expansions at MSSH Mohali, Nanavati-Max, and Max Smart, as well as the acquisition of KHL.

Financial Performance Highlights

What the Numbers Show

A key divergence in the quarter’s results is the disparity between revenue growth and margin stability. While gross revenue grew 16%, operating EBITDA margin contracted slightly to 24.8% from 24.9% in Q1FY26. This compression was driven by higher indirect overheads, which included ₹195 crore for new units including KHL. However, excluding oncology revenues—which dropped due to the discontinuation of select chemotherapy drugs for institutional patients—gross revenue grew by 20% YoY. This indicates that core operational volumes remained strong despite structural changes in high-value drug billing. Additionally, free cash from operations stood at ₹397 crore, with ₹386 crore deployed towards the acquisitions of KHL and Yerawada Properties Private Limited (YPPL), highlighting the company’s aggressive M&A strategy.

Segment Performance and Vertical Growth

Max Lab, the non-captive pathology vertical, reported gross revenue of ₹58 crore, recording a 20% YoY and 11% QoQ growth. Services are now available across 60+ cities. Max@Home reported gross revenue of ₹78 crore, reflecting a 32% YoY and 7% QoQ growth, driven by physio & rehab, nursing care, and transactional services.

MSSH Bhubaneswar (erstwhile Kalinga Hospital) contributed ₹19 crore in revenue and ~₹2 crore in EBITDA during the post-acquisition period in Q1FY27, with 50% occupancy and an average revenue per occupied bed (ARPOB) of ₹35,000. Prior to acquisition, the hospital generated revenue of ~₹154 crore in FY26.

Capital Expenditure and Expansion

The board approved a capital expenditure of ₹425 crore for the expansion of Max Super Speciality Hospital, Vaishali. The funds will be utilized for the construction of ‘Tower 3’ on an adjacent ~1-acre land parcel, adding approximately 202 census beds to the existing capacity of 387 beds. The project is expected to be commissioned by Q4 FY30. Additionally, 202 beds in the brownfield tower of Max Smart Super Speciality Hospital have been operationalized, with the remaining 198 beds expected to be handed over in Q2FY27.

Management Changes

Max Healthcare announced changes in its senior management team:

• Mr. Ajay Vij has been appointed as Director - Chief Supply Chain & Procurement Officer, effective August 14, 2026.
• Mr. Pawan Kumar Marella has been appointed as Senior Director - Chief Experience & Brand Officer, effective August 17, 2026.
• Dr. N. Venkatesan, Senior Director & Chief Procurement Officer, resigned to pursue other opportunities and will cease to be part of the senior management effective August 31, 2026.

S.R. Batliboi & Co. LLP, the statutory auditors, issued an unmodified limited review report on the financial results.