Shares of Max Healthcare Institute Ltd rose nearly 3 per cent on Thursday after the company’s board approved the acquisition of Yerawada Properties Private Limited (YPPL) for about ₹200 crore and cleared an investment of up to ₹1,020 crore to develop a 450-bed super-speciality hospital in Pune. The move marks a significant expansion of the hospital chain’s footprint in Maharashtra.
In a regulatory filing, Max Healthcare said it will acquire YPPL through a phased transaction. In the first tranche, the company will purchase all Class A equity shares, securing 100 per cent voting rights and a 50.22 per cent economic interest in the entity. The remaining economic interest, represented by 100 per cent of Class B equity shares, will be acquired over the next four years, subject to milestones such as the receipt of an occupancy certificate for the hospital building.
YPPL owns a 1.68-acre freehold land parcel in Yerawada, a centrally located and prime area of Pune, suitable for developing a large hospital facility. The planned investment of ₹1,020 crore includes land acquisition costs, construction, medical equipment, stamp duty and other related expenses.
The proposed hospital is expected to be developed over the next four years and will be funded through a combination of internal accruals and term loans. Max Healthcare noted that no regulatory approvals are required for the share acquisition.
The expansion comes at a time when Max Healthcare’s existing network is operating at high utilisation levels, with hospitals running at over 76 per cent capacity in the first half of FY26. As of September 30, 2025, the company had an operational bed capacity of around 5,200 beds.
The company clarified that the acquisition is not a related-party transaction and that neither the promoters nor the promoter group have any interest in YPPL. It added that Pune’s growing population, rising income levels and increasing demand for quality healthcare services make the city a strategic market for expansion.
For the September quarter, Max Healthcare reported a net profit of ₹491 crore, a 74.3 per cent increase from ₹282 crore in the year-ago period. Revenue rose 25 per cent year-on-year to ₹2,135 crore from ₹1,707 crore in Q2 FY25.
EBITDA increased 17.5 per cent to ₹575 crore compared with ₹451 crore a year earlier, while EBITDA margin improved marginally to 26.9 per cent from 26.4 per cent. International patient revenue stood at ₹231 crore, up 25 per cent year-on-year and 11 per cent quarter-on-quarter, contributing about 9 per cent of total hospital revenue.
Following the announcement, Max Healthcare shares were trading 2.2 per cent higher at ₹1,053.50 around 12:30 pm. The stock has declined 5.7 per cent over the past month.
