Narayana Health has unveiled a major investment plan, allocating ₹3,000 crore over the next three years to expand its capacity by 2,000 beds across India, according to Group CFO Sandhya J. Around 20% of this investment has already been utilized, primarily for acquiring land, and the company is now set to move into the construction phase.
Sandhya also noted that the capital expenditure for the company’s Cayman Islands operations has been completed, with only minor maintenance costs expected going forward. “We are actively exploring more expansion opportunities,” she added.
Operational Highlights
Among its hospitals, the Dharamshila unit has reached breakeven and is maintaining stable EBITDA, while the Gurugram facility achieved breakeven during the January-March 2025 quarter and is projected to deliver positive EBITDA in FY26. In FY25, the only capacity expansion occurred at the Cayman facility.
Revenue Growth and Patient Mix
Revenue growth has been driven not just by a modest price increase in January but largely by higher-value procedures and an improved payer mix. Notably, there was a rise in domestic patient volumes from Bangladesh during the January-March quarter.
Hospital occupancy levels remain between 60% and 65%, with a strategic emphasis on improving throughput rather than just adding beds. “We haven’t added beds in recent years, yet all performance indicators have shown improvement,” said Sandhya, pointing to better margins and a higher ARPP (Average Revenue Per Patient).
Financial Performance
In Q4 of FY25, the company’s India operations recorded an EBITDA margin of 21.5%, with expectations of further growth in FY26. At the group level, EBITDA margins currently stand at 25%, with the Cayman unit stabilizing at this level.
Sandhya emphasized the company’s strong financial position, with a net debt-to-EBITDA ratio at just 0.15. “We aim to keep this ratio under 2 during our capex phase,” she noted, while acknowledging that temporary deviations might occur if exceptional investment opportunities arise.
For the January-March 2025 quarter, Narayana Health posted a year-on-year revenue growth of 18.4%, reaching ₹1,475.43 crore, up from ₹1,246 crore in the same quarter the previous year.
The healthcare provider, currently valued at ₹36,497.82 crore in market capitalization, has seen its stock rise by over 44% in the past year.