Max Healthcare reports a 16% rise in quarterly revenue driven by hospital and digital expansion, but margin decline and higher debt levels signal challenges ahead, despite positive growth indicators and new capacity rollouts.
Max Healthcare Institute posted a solid rise in first-quarter revenue, but the latest results also showed that expansion is weighing on margins and pushing up debt. According to the company’s earnings call summary, network gross revenue rose 16% from a year earlier to INR2,982 crore in the June quarter, while operating EBITDA increased 15% to INR704 crore. Profit after tax edged up to INR357 crore, and free cash flow came in at INR397 crore.
The group’s core hospital business remained resilient. Average revenue per occupied bed reached INR81,900, up 5% from both a year earlier and the previous quarter, while occupancy stayed above 75% even after operational bed capacity expanded 13% year on year. Occupied bed days climbed 10% from a year ago, and international patient revenue rose 18% to INR247 crore, accounting for 9% of hospital revenue.
Beyond hospitals, Max Healthcare continued to build out adjacent businesses. Digital revenue was INR941 crore, or roughly 32% of total revenue, while MAX@Home grew 32% to INR78 crore and Max Lab rose 20% to INR58 crore. The company also pointed to a growing research footprint, with more than 750 clinical trials underway.
The quarter, however, was not free of pressure points. Operating EBITDA margin slipped to 24.8% from 26.8% in the previous quarter, reflecting the drag from newly commissioned capacity and the Kalinga Hospital acquisition. Net debt increased to INR2,384 crore from INR1,908 crore at the end of March 2026, as capital spending and acquisitions absorbed cash. The company also said accounts receivable rose, with days sales outstanding moving from 87 to 95 days, which helped explain why cash conversion lagged earnings growth.
Management remained upbeat about the medium-term outlook. The company said new capacity at projects including Vaishali and Max Smart is ramping up, with some newly opened beds already running at about 80% occupancy. It also said the Kalinga Hospital turnaround could lift occupancy and average revenue per occupied bed by 50% to 80% over the next 12 months. Max Healthcare is also preparing to enter medical education, a business it expects could generate returns on capital employed of more than 25%.
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