Narayana Hrudayalaya Limited has received credit rating reaffirmation from ICRA Limited, with the rating agency maintaining its [ICRA]AA (Stable) rating across the healthcare company's comprehensive credit facilities portfolio. The development was communicated to stock exchanges on January 19, 2026, highlighting the company's continued financial strength and market position.

Credit Rating Details

ICRA has reaffirmed ratings for Narayana Hrudayalaya's total credit facilities worth ₹5,195.00 crore across multiple instruments. The rating action covers various financial instruments including term loans, working capital facilities, and non-convertible debentures.

Strong Financial Performance

The rating reaffirmation reflects Narayana Hrudayalaya's robust financial profile characterized by consistent revenue growth and healthy margins. The company achieved revenue growth of 12.10% in FY2025 and 15.00% in H1 FY2026, supported by steady improvements in Average Revenue Per Occupied Bed (ARPOB), enhanced payor mix, and new facility launches.

Operating profit margins remained strong at 23.40% in FY2025 and 23.50% in H1 FY2026, despite losses from integrated care and insurance segments and initial operations at the new Cayman Islands facility. The company's Cayman hospital operations registered significant growth of 12.90% in FY2025 and approximately 38% in H1 FY2026.

Diversified Healthcare Network

Narayana Hrudayalaya operates an extensive network of 42 healthcare facilities with 5,554 operational beds as of September 30, 2025. The network includes 18 owned/operated hospitals with 5,257 beds, two heart centres with 132 beds, 20 primary healthcare facilities, and two hospitals in the Cayman Islands with 165 beds.

Expansion and Acquisition Strategy

The company has embarked on significant expansion plans with planned capital expenditure of ₹700-800 crore in FY2026 and ₹1,400-1,450 crore in FY2027. Narayana Hrudayalaya completed the acquisition of UK-based Practice Plus Group Hospitals Limited (PPGHL) in November 2026 for approximately ₹2,200 crore, funded through internal accruals and debt.

PPGHL operates 10 hospitals and surgical centres across the UK with 330 beds, expanding Narayana Hrudayalaya's international presence beyond the Cayman Islands. The company has six hospital projects in India with over 1,500 beds expected to commence operations between FY2027 and FY2029.

Credit Strengths and Market Position

ICRA highlighted several key strengths supporting the rating reaffirmation. The company maintains a healthy market position with established brand equity, particularly in cardiac and renal sciences segments. Narayana Hrudayalaya has expanded its speciality areas to include oncology, neurology, orthopaedics, and gastroenterology, developing comprehensive cancer care services across multiple locations.

The rating agency noted the company's geographically diversified operations with strong brand recognition in Karnataka and eastern India, along with emerging presence in western, central, and northern India. The favourable demand outlook for healthcare services, driven by improved affordability and widening medical insurance coverage, continues to benefit the company.

Financial Metrics and Outlook

Despite increased debt levels due to expansion activities, Narayana Hrudayalaya maintains healthy financial metrics. Total debt including lease liabilities increased from ₹1,678.40 crore in FY2024 to ₹2,463.80 crore in FY2025, with the TD/OPBITDA ratio improving to 1.60 times as of September 30, 2025.

The Stable outlook reflects ICRA's expectation that Narayana Hrudayalaya will maintain credit metrics commensurate with the current rating despite significant expansion plans, with timely ramp-up of new centres and effective debt level management.

Narayana Hrudayalaya Limited has announced the incorporation of a wholly owned subsidiary to strengthen its healthcare operations in northern India. The company disclosed this strategic development on January 16, 2026, under regulatory compliance requirements.

New Subsidiary Details

The newly incorporated entity, Narayana Healthcare North Private Limited, has been established with specific financial parameters and operational objectives:

Strategic Business Focus

The subsidiary will operate in the hospital and healthcare industry, with its main objectives centered on comprehensive healthcare delivery. The company's primary business activities will include:

• Operation and management of hospitals
• Provision of healthcare services
• Health and wellness management services

Narayana Hrudayalaya has identified significant potential in northern India, where it has already established a presence. The formation of this dedicated entity represents a strategic approach to optimize operations in the region through focused management and specialized attention to the northern market.

Financial Investment Structure

The parent company has made a direct cash investment in the new subsidiary through equity participation:

Regulatory Compliance

The incorporation has been disclosed in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has fulfilled all necessary regulatory requirements, with no additional governmental or regulatory approvals required for this incorporation.

As a newly incorporated entity that has yet to commence business operations, the subsidiary currently has no turnover or operational history. The company's strategic expansion through this subsidiary formation demonstrates its commitment to strengthening its healthcare network across different geographical regions in India.