Archive · 29 Nov 2025
Max Healthcare Expands with Brownfield Growth Push
Max Healthcare had a great second quarter in 2025-26.
They made more money because more patients came to their hospitals, and they charged a bit more per bed.
They are planning to add more beds in their existing hospitals, which will help them grow faster and make more profit.
The company is also focusing on patients from other countries, which is helping them earn more.
Even though they are spending money to expand, they are managing their debt well.
Different experts think the company's stock will go up in the future.
Max Healthcare reported a 21% revenue growth in Q2FY26, driven by a 22.5% increase in patient volumes and a 1.4% rise in average revenue per operating bed (ARPOB).
International patient revenue grew by 25% year-on-year, contributing 9% to overall revenue.
The company plans to expand its bed capacity from 5,000 to 9,000-9,500 by FY28 through brownfield additions.
Despite a 125 basis points decrease in gross margins, operating profit margins increased by 53 basis points.
Analysts expect a 21% revenue growth over FY25-FY28, with occupied bed days and ARPOB growing by 18% and 3%, respectively, and margins improving by 200 basis points.
- Who
- Max Healthcare Institute
- What
- Strong financial performance and expansion plans
- When
- Second quarter (July-September) of 2025-26 (Q2FY26)
- Where
- India
- Why
- To improve revenues and margins through brownfield expansions and increased focus on international patients
- Revenue Growth
- 21%
- Patient Volume Growth
- 22.5%
- ARPOB Growth
- 1.4%
- International Patient Revenue Growth
- 25%
- Occupied Bed Days Growth
- 19%
- Gross Margin Change
- -125 bps
- Operating Profit Margin Change
- +53 bps
- Network Operating Profit Margin
- 26.9%
- Existing Units Operating Profit Margin
- 27.5%
- Expected Annual Revenue from CGHS Tariff Revision
- Rs 200 crore
- Current Bed Capacity
- 5,000
- Target Bed Capacity by FY28
- 9,000-9,500
- Beds to be Added by FY28
- 1,500
- Expected Revenue Growth (FY25-FY28)
- 21%
- Expected Occupied Bed Days Growth (FY25-FY28)
- 18%
- Expected ARPOB Growth (FY25-FY28)
- 3%
- Expected Margin Growth (FY25-FY28)
- 200 bps
- Q2FY26 Capex
- Rs 456 crore
- Net Debt
- Rs 2,067 crore
- Net Debt to Operating Profit
- 0.79 times
- Choice Equity Broking Target Price
- Rs 1,250
- Emkay Research Target Price
- Rs 1,250
- Axis Securities Target Price
- Rs 1,425