Max Healthcare Institute Limited , one of India's largest private healthcare providers, has reported robust financial results for the first quarter, with significant growth in revenue and profitability.

Strong Revenue Growth

The company's gross revenue soared to ₹2,574.00 crore in Q1, marking a substantial 27% year-on-year increase from ₹2,028.00 crore in the same quarter of the previous year. This growth was primarily driven by a 26% rise in occupied bed days (OBDs), reflecting strong patient volumes across the network.

Profitability and Operational Performance

Max Healthcare's operating EBITDA grew by 23% year-on-year to ₹613.00 crore, compared to ₹499.00 crore in the same quarter last year. The EBITDA margin stood at 24.9%, slightly lower than the 25.8% reported in the corresponding quarter of the previous year.

Profit after tax (PAT) for the quarter increased by 17% year-on-year to ₹345.00 crore, up from ₹295.00 crore in the same period last year.

Operational Highlights

Expansion and Strategic Initiatives

Max Healthcare continues to focus on expansion and strategic growth:

• The company's Board of Directors approved the execution of an agreement to lease for a built-to-suit ~130-bed hospital in Dehradun, expected to be commissioned by 2028.
• A new ~160-bed tower at Max Super Speciality Hospital, Mohali, is complete, with trial runs initiated on two floors in July.
• Jaypee Healthcare Limited, a wholly-owned subsidiary, has executed a binding term sheet to divest its hospitals in Chitta and Anoopshahr for ₹40.00 crore, aligning with the company's focus on super-specialty care in larger cities.

Non-hospital Business Performance

Max Lab, the company's non-captive pathology business, reported a 19% year-on-year revenue growth to ₹48.00 crore in Q1. The service is now available across 55+ cities, offering over 2,700 tests.

Max@Home, the company's home healthcare service, saw a 22% year-on-year revenue growth to approximately ₹60.00 crore, driven by physiotherapy, rehabilitation, critical care, and attendant services.

Management Commentary

Abhay Soi, Chairman and Managing Director of Max Healthcare Institute Ltd., commented on the results: "Our sustained growth is a reflection of our strategy and execution capabilities. The commissioning of 160 beds brownfield tower at Max Mohali, along with additional brownfield capacities coming online at Max Smart and Nanavati-Max shortly, will significantly enhance clinical and financial performance of the Network. In parallel, we are scaling up our clinical and support teams, while optimizing our service mix to ensure rapid and effective utilisation of the new capacities."

Max Healthcare's strong Q1 performance demonstrates its continued growth trajectory and strategic focus on expanding its healthcare network while improving operational efficiencies.

Max Healthcare Institute has announced plans for expansion and reported robust financial results for the first quarter. The company's board of directors approved several key decisions during their meeting on August 13.

New Hospital in Dehradun

Max Healthcare Institute has approved an agreement to lease with Goyal Agrim Infra Realty LLP for setting up a new 130-bed hospital in Dehradun, Uttarakhand. This built-to-suit facility will be located near the company's existing 220-bed hospital, which has been operational since 2012. The new hospital is expected to be commissioned by 2028 and will primarily focus on providing advanced oncology services, including radiation therapy.

The expansion comes as a response to the high demand for quality healthcare services in Dehradun. Max Healthcare's existing hospital in the city has reported over 80% occupancy in Q1, highlighting the need for additional tertiary care beds in the region.

Financial Performance

For the quarter ended June 30, Max Healthcare reported impressive financial results:

The company's revenue from operations grew by 31.4% year-over-year to ₹2,027.57 crore. EBITDA increased by 35.1% to ₹523.00 crore, with the EBITDA margin improving to 25.79% from 25.11% in the same quarter last year. Consolidated net profit rose by 30.3% to ₹307.97 crore.

Other Developments

Merger Progress

The company is proceeding with the merger of its wholly-owned subsidiaries, Crosslay Remedies Limited (CRL) and Jaypee Healthcare Limited (JHL). The National Company Law Tribunal (NCLT) has directed the issuance of notices to authorities under Section 230(5) of the Companies Act, 2013.

Land Acquisition

CRL has acquired a land parcel of approximately 4,000 sq. meters adjacent to its current hospital premises in Ghaziabad, Uttar Pradesh, for ₹120.00 crore. This acquisition will allow for the addition of about 150 beds at Max Super Specialty Hospital, Vaishali, over the next 30 months.

Divestment

JHL's board has approved the divestment of hospitals located in Bulandshahr district, Uttar Pradesh, aligning with the company's strategy to focus on super specialty hospitals in larger cities.

ESOP Allotment

During the quarter, Max Healthcare Institute allotted 4,790 ordinary shares under its Employee Stock Option Schemes.

Max Healthcare's expansion plans and strong financial performance demonstrate its commitment to growth and improving healthcare accessibility in India. The new hospital in Dehradun and the expansion of existing facilities are expected to further strengthen the company's position in the healthcare sector.