Max Healthcare Institute Ltd. is set for a significant expansion, with Chairman and Managing Director Abhay Soi stating that the company is on track to add 1,000 brownfield beds and 500 greenfield beds during FY26.
“We are largely meeting our targets. All 1,000 brownfield beds should be operational within this quarter. The greenfield project in Gurgaon is expected to be ready by the end of the financial year. We will be adding a substantial amount of capacity over the next six months,” Soi said.
He noted that the brownfield additions would strongly contribute to both revenue and profitability. While minor delays could occur due to pollution-related construction bans in Delhi during winter, he said these would not significantly affect the long-term timelines of the three-year projects.
Soi added that capacity expansion initially results in lower ARPOBs, but this metric is not a major concern as it improves over time. The key focus, he emphasised, is on Return on Capital Employed (ROCE).
“The goal is to ensure that the capital we deploy generates strong returns. Achieving a ROCE of over 20% is definitely feasible, in line with our performance over the past five to six years,” he said.
Looking ahead, he highlighted a strong long-term outlook for the healthcare sector, driven by India’s shifting demographics.
“India’s average age is 29. As this population ages, healthcare demand will rise significantly in the coming decade. It’s a developmental challenge for the sector, and it’s our responsibility to rise to it,” he said.
Max Healthcare Institute’s shares closed 0.57% lower at ₹1,115.2 on the NSE, while the Nifty50 fell 0.4% to end at 25,910.05.
