Max Healthcare Institute faces regulatory scrutiny as it received a significant GST demand from Delhi authorities, while simultaneously reporting strong quarterly financial performance that underscores the company's operational resilience.

GST Demand Details

The healthcare provider received an order from the Office of the GST Officer, Department of Trade and Taxes, GNCT of Delhi, on December 30, 2025, regarding alleged excess availment of Input Tax Credit. The financial implications are substantial:

Max Healthcare is currently seeking rectification of the order and has indicated it may file an appeal before the appropriate authority if the outcome remains unfavorable. The management has acknowledged that the final resolution of these proceedings may impact the company's financials.

Strong Q2 FY26 Financial Performance

Despite regulatory challenges, Max Healthcare Institute delivered impressive second quarter results, demonstrating robust operational performance across key metrics:

The year-on-year growth was primarily driven by an increase in outpatient department visits, reflecting strong patient demand and operational efficiency improvements.

Operational Excellence and International Growth

Max Healthcare's operational metrics showed consistent improvement, with EBITDA per bed reaching ₹73.4 lakh in Q2 FY26, compared to ₹71.2 lakh in Q2 FY25 and ₹68.5 lakh in Q1 FY26. For existing units specifically, EBITDA per bed was ₹76.5 lakh, representing a 7% year-on-year increase.

International patient revenue demonstrated particularly strong momentum, reaching ₹231 crore with impressive growth rates:

• 25% year-on-year growth
• 11% quarter-on-quarter growth
• Accounting for approximately 9% of total hospital revenue

Market Response

Shares of Max Healthcare Institute ended at ₹1,046.60, declining by ₹17.50 or 1.64% on the BSE, likely reflecting investor concerns about the GST demand despite the strong quarterly performance. The market reaction suggests investors are weighing the potential financial impact of regulatory proceedings against the company's demonstrated operational strength and growth trajectory.

Max Healthcare Institute Limited has received another significant GST demand order from Delhi tax authorities, this time involving a substantially higher amount of ₹55.20 crores including interest and penalties. The latest order was received on December 30, 2025, marking another regulatory challenge for the healthcare provider.

Latest GST Order Details

The Office of The GST Officer (Ward-92&96), Department of Trade and Taxes, GNCT of Delhi issued the new order alleging excess availment of Input Tax Credit by the company. The order represents a significant escalation from previous GST matters.

The order was formally received by the company on December 30, 2025 at 3:01 PM IST, as disclosed in the regulatory filing.

Previous GST Matter

This development comes after the company had earlier received a GST demand order from the Office of the Principal Commissioner, Central Goods and Service Tax, Delhi South Commissionerate. That previous order involved a demand of ₹6.37 crores with an equal penalty amount, bringing the total liability to over ₹12.73 crores.

Company's Response Strategy

Max Healthcare Institute's management is currently in the process of seeking rectification of the latest order. In case of an unfavorable outcome from the rectification process, the company may file an appeal before the appropriate authority. This approach mirrors the company's strategy for addressing previous GST matters.

Regulatory Compliance and Disclosure

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company trades on both NSE (Symbol: MAXHEALTH) and BSE (Scrip Code: 543220), requiring timely disclosure of material developments that could impact investor interests.

Cumulative GST Exposure

With both orders combined, Max Healthcare Institute now faces potential GST-related liabilities exceeding ₹67 crores. The company will need to navigate multiple appeal processes while managing the financial implications of these demand orders. The final liability will depend on the outcomes of rectification processes and potential appeals before tax tribunals.