Manipal Health Enterprises
Manipal Health Enterprises is a healthcare service provider, operating a large network of multi-specialty hospitals, clinics, and diagnostic centres across the country. Backed by the legacy of the Manipal Group founded by Dr T M A Pai, the company offers a comprehensive portfolio of clinical services across multiple specialties, with a strong focus on tertiary and quaternary care.
Its key specialties include cardiac sciences, oncology, neurosciences, gastro sciences, orthopaedics and renal sciences, collectively referred to as CONGO-R. These specialties treat high-acuity, complex cases that require advanced clinical expertise and specialized treatment.
On a pro forma basis, Cardiac Sciences contributed 16.76% to FY26 revenue, Oncology 11.37%, Neurosciences 9.14%, Gastro sciences 7%, Orthopedics 12.64%, Renal sciences 7.18%, and Others 35.91%.
As of March 31, 2026, the company operated 49 hospitals with 13,037 licensed beds across 14 states and union territories. Licensed beds represent the total number of hospital beds approved by regulatory authorities in a facility.
As of March 31, 2026, the company also provided diagnostic services, including radiology and pathology services, across 18 states in India through its subsidiary, HealthMap Diagnostics, under the brand `ManipalTRUtest?.
Among private hospital chains in India, the company is the largest player in Karnataka, the Maharashtra-Goa region, and select eastern states including West Bengal, Odisha, Jharkhand and Sikkim, as of March 31, 2026.
Maintains a balanced presence across metros and non-metros, with 46.78% of licensed beds located in metros and 53.22% of licensed beds located in non-metros as of March 31, 2026.
The company served 76.3 lakh patients across its network (including O&M hospitals) in FY26, supported by a pool of 11,064 doctors as of March 31, 2026.
On a pro forma basis, operational beds stood at 6,878 in FY26, with a bed occupancy rate of 64.45%.
The Average Revenue per Occupied Bed (ARPOB) stood at Rs 68,937 per day in FY26. On a pro forma basis, ARPOB was Rs 66,144 per day.
In terms of payor-wise revenue mix, Cash patients contributed 30.33% to pro-forma FY26 revenue, Third Party Administrators / Insurance 49.51%, Government 14.03%, and others 6.13%.
On a pro forma basis, inpatient volumes grew 10.6% from 5.22 lakh patients in FY25 to 5.78 lakh patients in FY26. Outpatient volumes increased 12.37% YoY from 50.88 lakh patients in FY25 to 57.17 lakh patients in FY26.
CONGO-R specialties accounted for 64.3% of gross inpatient revenue in FY26, up from 62.6% in FY25. On a pro-forma basis, the contribution stood at 64.1% in FY26 and 62.1% in FY25. Despite increasing CONGO-R mix, which comprises complex specialty services that typically require longer hospital stays, its average length of stay (ALOS) decreased from 2.93 in FY24 to 2.88 in FY25 and further to 2.78 days in FY26, demonstrating focus on operational efficiency.
Growth has been driven by both organic expansion and strategic acquisitions. Key acquisitions over the last three fiscals include AMRI Hospital (September 2023), Medica Synergie (July 2024) and Sahyadri Group (October 2025). The hospital network expanded from 33 hospitals with 9,520 licensed beds as of March 31, 2024, to 49 hospitals with 13,037 licensed beds as of March 31, 2026.
The acquired hospitals have also delivered improved financial and operational performance. For instance, Columbia Asia Hospitals? EBITDA margin (excluding exceptional items) increased from 30.5% in FY24 to 33.8% in FY26. Going forward, selective acquisitions are expected to support entry into new markets and strengthen presence in existing ones.
Plans to add approximately 483 licensed beds across existing hospitals and around 1,943 licensed beds through greenfield projects by 2030 to support future growth.
Aims to continue enhancing clinical case mix by increasing the share of high-end and complex procedures within CONGO-R specialties.
Among the highest reported volumes of robotic-assisted spine surgery in India with approximately 1,750 surgeries completed as of March 31, 2026.
Expanding out-of-hospital care through telehealth, e-pharmacy and AI-enabled digital healthcare solutions to improve patient access and continuity of care.
Offer and its objects
The IPO comprises a fresh issue of equity shares aggregating up to Rs 8,000 crore and an offer for sale of 2,16,13,834 equity shares aggregating up to Rs 1,275.22 crore by existing shareholders, including Imperius Healthcare Investments, Manipal Education and Medical Group India, TPG SG Magazine and Seventy Second Investment Company LLC, among others.
Price band for the IPO is Rs 560 to Rs 590 per equity share of face value Rs 2 each.
The objectives for the fresh issue include Rs 5,552.75 crore for repayment/ prepayment, of certain outstanding borrowings, Rs 574 crore for acquisition of minority stake in its stepdown subsidiary, Sahyadri Hospitals, and remaining amount for general corporate purpose.
The promoters are Dr. Ranjan Ramdas Pai, Manipal Global Health Services, MEMG International, Kangto Investments, Imperius Healthcare Investments, and Kabru Investments. The promoters and promoter group hold an aggregate of 96,57,76,944 equity shares, aggregating to 81.86% of the pre-offer issued and paid-up equity share capital. Their post IPO shareholding is expected to be around 72.09%.
The issue, through the book-building process, will open on 29 July 2026 and will close on 31 July 2026.
Strengths
Largest pan-India multispecialty hospital network by bed capacity and the second largest hospital chain by number of hospitals as of March 31, 2026.
Leading position in Karnataka, the Maharashtra-Goa region and select eastern states, supported by a balanced presence across metro and non-metro markets. This enhances patient access, strengthens referral flows and improves network utilization.
High contribution from complex specialty care. In FY26, CONGO-R specialties contributed 64.09% to pro forma revenue in FY26.
Widely recognized brand and network of choice for patients, doctors and healthcare professionals.
Its hospitals are equipped with advanced infrastructure, medical equipment and technology, improving access to specialized tertiary and quaternary care. Performed 74,600 angiography and angioplasty procedures, 8,300 neuro surgeries, 5,800 cardiovascular surgeries, 25,400 gastro-intestinal surgeries, 10,000 joint replacements, 23,400 urology procedures, 620 transplants and 5,980 robotic surgeries in FY26.
Proven acquisition and integration capabilities. Recent acquisitions have delivered improved financial and operational performance.
Well-defined expansion plan is expected to support future demand and long-term growth.
Extensive experience of promoters and senior management personnel.
Weaknesses
A significant portion of revenue is derived from hospitals located in Karnataka, which contributed 43.85% of FY26 pro-forma revenue. Any slowdown in demand, regulatory changes or operational disruptions in this region could impact overall performance.
Acquisition-led expansion involves integration risks. Failure to effectively integrate future acquisitions or realize expected synergies could impact profitability and growth prospects.
Exposed to legal claims and regulatory actions arising from medical negligence claims, operational incidents and healthcare service-related risks, which could impact reputation and business.
New hospitals typically require time to achieve optimal occupancy and profitability. Delays in commissioning or slower-than-expected ramp-up of greenfield projects could impact growth plans.
Government regulations on pricing medicines, medical devices, consumables and clinical procedures may limit pricing flexibility and impact revenue growth and profitability.
Certain Subsidiaries have incurred net losses in the past and may continue to experience such losses in the future.
There are outstanding legal proceedings (including criminal) against the company, promoters, directors and subsidiaries. An adverse outcome in any of these proceedings may adversely affect business and reputation.
Statutory auditors have reported certain matters under CARO 2020 and other regulatory requirements. Any future adverse observations, qualifications or remarks in audit reports could impact reputation.
Valuation
Pro Forma net sales increased 18% to Rs 9,263.56 crore in FY26 as compared with FY25. OPM fell 23 bps to 24.84%, leading to 17% increase in OP to Rs 2,716.61 crore. OI increased 46% to Rs 211.85 crore. Interest cost rose 1% to Rs 1,154.39 crore. Depreciation costs went up 24% to Rs 720.8 crore. PBT before exceptional items increased 41% to Rs 1,053.27 crore. Exceptional items stood at negative Rs 93.60 crore compared with negative Rs 13.35 crore in the previous year. Tax expenses were Rs 274.78 crore as compared with Rs 196.82 crore. Minority interest was Rs 29.97 crore as compared with Rs 21.84 crore. Net profit increased 28% to Rs 654.93 crore.
The Pro Forma FY26 EPS (excluding extraordinary items and relevant tax) on post-issue equity works out to Rs 5.5. At the upper price band of Rs 590, P/E is 107.5.
Total outstanding borrowings amounted to Rs 11,185 crore as on May 31, 2026. As much as 50% of the debt will be repaid from the issue proceeds, bringing down interest costs substantially and boosting profit. The pro forma FY26 EPS works out to Rs 8.6 if 50% of its interest cost is removed, keeping all other items, including tax rate, same. The re-worked P/E at the upper price band moderates to 69.
Listed peers such as Apollo Hospitals Enterprise traded at FY26 P/E of 65, Fortis Healthcare at FY26 P/E of 67, and Max Healthcare Institute at FY26 P/E of 73 as on 27 July 2026. In FY26, Manipal Health Enterprises OPM stood at 24.84% (on a pro forma basis), while ROE stood at 10.57% (based on restated financials, as pro forma balance sheet information was not available). The corresponding OPM and ROE were 14.94% and 21.95% for Apollo Hospitals Enterprise, 22.84% and 11.08% for Fortis Healthcare, and 26.79% and 14.33% for Max Healthcare Institute, respectively.
| Manipal Health Enterprises: Issue Highlights | |
| For Fresh Issue Offer size (in no of shares) |
|
| - On lower price band | 14,28,57,143 |
| - On upper price band | 13,55,93,220 |
| Offer size (in Rs crore) | 8,000 |
| For Offer for Sale Offer size (in Rs crore) |
|
| - On lower price band | 1210.37 |
| - On upper price band | 1275.22 |
| Offer size (in no of shares) | 2,16,13,834 |
| Price band (Rs) | 560-590 |
| Minimum Bid Lot (in no. of shares) | 25 |
| Post issue capital (Rs crore) |
|
| - On lower price band | 264.52 |
| - On upper price band | 263.07 |
| Post-issue promoter & Group shareholding (%) | 72.09 |
| Issue open date | 29.07.2026 |
| Issue closed date | 31.07.2026 |
| Listing | BSE, NSE |
| Rating | 46/100 |
| Manipal Health Enterprises: Pro Forma Consolidated Financials | ||
|
| 2503 (12) | 2603 (12) |
| Sales | 9,263.56 | 10,935.62 |
| OPM (%) | 25.07% | 24.84% |
| OP | 2,322.82 | 2,716.61 |
| Other inc. | 145.56 | 211.85 |
| PBIDT | 2,468.38 | 2,928.46 |
| Interest | 1,141.84 | 1,154.39 |
| PBDT | 1,326.54 | 1,774.07 |
| Dep. | 581.57 | 720.80 |
| PBT | 744.96 | 1,053.27 |
| Share of Profit/(Loss) from Associates/JV | - | - |
| PBT before EO | 744.96 | 1,053.27 |
| Exceptional items | (13.35) | (93.60) |
| PBT after EO | 731.62 | 959.68 |
| Taxation | 196.82 | 274.78 |
| PAT | 534.80 | 684.90 |
| Minority Interest | 21.84 | 29.97 |
| Net Profit | 512.96 | 654.93 |
| EPS (Rs)* | 4.0 | 5.5 |
| * EPS is annualized on post issue equity capital of Rs 263.07 crore of face value of Rs 2 each | ||
| EO: Extraordinary items. EPS is calculated after excluding EO and relevant tax | ||
| Figures in Rs crore |
| |
| Source: Capitaline Corporate Database |
|
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| Manipal Health Enterprises: Restated Consolidated Financials | |||
|
| 2403 (12) | 2503 (12) | 2603 (12) |
| Sales | 6,171.63 | 8,242.25 | 10,335.75 |
| OPM (%) | 27.27% | 25.80% | 25.26% |
| OP | 1,683.06 | 2,126.53 | 2,611.17 |
| Other inc. | 93.54 | 120.54 | 184.77 |
| PBIDT | 1,776.60 | 2,247.07 | 2,795.94 |
| Interest | 454.93 | 511.87 | 864.29 |
| PBDT | 1,321.68 | 1,735.19 | 1,931.65 |
| Dep. | 397.02 | 506.84 | 679.55 |
| PBT | 924.66 | 1,228.36 | 1,252.10 |
| Share of Profit/(Loss) from Associates/JV | - | - | - |
| PBT before EO | 924.66 | 1,228.36 | 1,252.10 |
| Exceptional items | (179.63) | 13.95 | (74.07) |
| PBT after EO | 745.03 | 1,242.31 | 1,178.03 |
| Taxation | 211.83 | 160.64 | 261.51 |
| PAT | 533.20 | 1,081.67 | 916.52 |
| Minority Interest | (61.12) | 16.31 | 24.20 |
| Net Profit | 594.32 | 1,065.36 | 892.32 |
| EPS (Rs)* | 5.5 | 8.0 | 7.2 |
| * EPS is annualized on post issue equity capital of Rs 263.07 crore of face value of Rs 2 each | |||
| EO: Extraordinary items. EPS is calculated after excluding EO and relevant tax |
| ||
| Figures in Rs crore |
| ||
| Source: Capitaline Corporate Database |
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