Narayana Hrudayalaya Limited has incorporated a new wholly-owned step-down subsidiary in the United Kingdom to support its healthcare infrastructure expansion plans. The company informed stock exchanges on March 13, 2026, about the formation of Practice Plus Group Property Ltd through its existing UK subsidiary.

Subsidiary Incorporation Details

Practice Plus Group Property Ltd was incorporated on March 11, 2026, under the Companies Act, 2006 of the United Kingdom as a private limited company. The new entity operates as a wholly-owned subsidiary of Narayana Hrudayalaya UK Ltd, which itself is a wholly-owned step-down overseas subsidiary of Narayana Hrudayalaya Limited.

Business Objectives and Operations

The newly incorporated subsidiary will focus on real estate and property operations specifically within the healthcare sector. Practice Plus Group Property Ltd will acquire, hold, develop and maintain immovable hospital infrastructure including land and buildings in the United Kingdom.

The subsidiary will operate under what is commonly referred to as an Opco/Propco structure, where:

• Property Company (Propco): Practice Plus Group Property Ltd will own and manage hospital infrastructure
• Operating Companies (Opco): Hospital operating entities within the group will use these facilities exclusively for captive purposes

Financial and Regulatory Framework

Narayana Hrudayalaya UK Ltd subscribed to 1000 ordinary shares in Practice Plus Group Property Ltd, each with a nominal value of GBP 1, representing a total investment of GBP 1000. The transaction was completed entirely through cash consideration.

Regulatory Compliance

The incorporation falls under related party transactions as Practice Plus Group Property Ltd is now a related party of Narayana Hrudayalaya Limited. However, the company clarified that promoters, promoter groups, and group companies have no direct interest in this transaction. No governmental or regulatory approvals were required for the incorporation process.

Strategic Implications

This incorporation represents Narayana Hrudayalaya's strategic approach to healthcare infrastructure development in the UK market. By establishing a dedicated property subsidiary, the company can efficiently manage its real estate assets while maintaining operational flexibility through the Opco/Propco structure. The newly formed entity will exclusively serve hospital operating entities within the group, ensuring captive utilization of healthcare infrastructure in the United Kingdom.

Narayana Hrudayalaya Limited held its Q3FY26 earnings conference call on February 17, 2026, with management providing comprehensive insights into the company's performance across India, UK, and Cayman Islands operations. The healthcare provider demonstrated strong momentum in its core India business while advancing its international expansion strategy.

Strong India Business Performance

The company reported exceptional performance in its India operations, marking the second consecutive quarter of significant profit growth. Management highlighted substantial margin expansion of 150-200 basis points on a year-on-year basis, driven by successful transformation programs and strategic initiatives.

Venkatesh R, Group Chief Operating Officer, emphasized that patients are increasingly opting for higher rate configurations while maintaining volumes and occupancy levels. The integration of advanced technology and increased robotic cardiac surgeries has meaningfully improved realizations, resulting in higher revenue and better margins.

Bangalore Cluster Excellence

The Bangalore cluster demonstrated particularly strong growth during the quarter, benefiting from the company's flagship hospital strategy. The management attributed this success to several factors:

• Enhanced focus on high-end robotic procedures across specialties
• Emphasis on urban and rural catchment areas in Karnataka
• Consolidation efforts on domestic volumes and revenues
• Advanced procedures including bone marrow transplants

Viren Shetty, Vice Chairman, noted that most business comes from within a 15-kilometer radius, though specialized procedures like bone marrow transplants attract patients from across the country, particularly from eastern India.

International Operations Update

UK Acquisition Integration

The company's acquisition of Practice Plus Group in the UK for £183 million is progressing as planned. The financing structure includes £150 million debt and £45 million equity, with a 2+5 year repayment schedule.

Dr. Anesh Shetty, Managing Director of Overseas Businesses, indicated that the integration is proceeding without negative surprises, with operational process changes and digital applications being scoped out for implementation.

Cayman Islands Performance

The Cayman operations continue to show steady performance with revenue of $45 million for the hospitals. The management noted opportunities for growth in both local and international markets, with the local government hospital still maintaining larger revenue share due to structural advantages.

Strategic Focus Areas

Integrated Care Expansion

The company is advancing its integrated healthcare model, combining hospitals, clinics, and insurance services. Ravi Vishwanath, CEO of NHIC, reported growth in the insurance business through:

• Expanded retail business productivity
• Geographic expansion to Kolkata, Raipur, and Mysore
• Entry into SME market with comprehensive care packages
• Integration of hospitalization and primary care services

Technology and Specialization

Management outlined plans for significant medical equipment investments, including four DaVinci robots to equip all hospitals with robotic surgery capabilities. The oncology department has emerged as the second-largest specialty and fastest-growing department, with expectations that oncology and cardiac services will account for more than half of future revenue.

Future Outlook and Strategy

The company's five-year vision focuses on building accessible, affordable healthcare while consolidating presence in core markets. Management aims to ensure patients in key markets like Bangalore and Kolkata are never more than 25 minutes away from a Narayana Health facility.

Expansion Plans

The management expressed confidence in sustaining double-digit revenue growth momentum through like-to-like hospital growth, supported by the company's transformation initiatives and market consolidation strategy.

Source: None/Company/INE410P01011/da3a974f-f29f-47be-b36e-856f2889469f.pdf