Narayana Hrudayalaya drops after Q1 margin pressure offsets 78% revenue growth

Narayana Hrudayalaya dropped 5.18% to Rs 1,924.80 after announcing its Q1 FY27 results.

On a consolidated basis, the company's profit after tax increased 5.7% YoY but declined 9.2% QoQ to Rs 207.30 crore in Q1 FY27.

Revenue from operations jumped 78.0% YoY and 3.5% QoQ to Rs 2,683.60 crore in the quarter ended 30 June 2026.

EBITDA increased 40.0% YoY but fell 6.4% QoQ to Rs 505.20 crore. EBITDA margin contracted to 18.8% from 23.9% in Q1 FY26.

Total expenses rose 89.2% YoY to Rs 2,213.90 crore. Employee expenses (excluding doctors) surged 145.3% YoY to Rs 724.80 crore, other administrative expenses increased 99.4% YoY to Rs 647.80 crore, doctors' expenses rose 33.9% YoY to Rs 327.00 crore, consumption costs increased 68.2% YoY to Rs 514.30 crore. Finance costs climbed 92.0% YoY to Rs 86.80 crore, while depreciation and amortisation expenses rose 85.2% YoY to Rs 156.10 crore.

India operating revenue grew 17.0% YoY and 5.9% QoQ to Rs 1,324.70 crore. Cayman operating revenue increased 38.9% YoY but declined 1.8% QoQ to Rs 551.40 crore in Q1 FY27. The newly acquired UK business reported operating revenue of Rs 825.70 crore in Q1 FY27, up 2.1% QoQ. A YoY comparison is not available as the business was not part of the consolidated base in Q1 FY26.

Operationally, the company said India delivered robust growth despite the seasonally weaker first quarter, driven by higher patient footfall, increased complex procedures and continued demand. The Cayman business maintained strong momentum, supported by the One Health insurance platform, while the UK business remained stable with integration progressing as planned.

During the quarter, Narayana Institute of Cardiac Sciences, Bengaluru, performed 2,137 cardiac surgeries and 19 Pulse Field Ablation procedures for atrial fibrillation. Narayana Hospital, Gurugram, commissioned the CUVIS Ortho Robotic System and Thulium Laser System, while robotic surgeries expanded across multiple specialties.

As on 30 June 2026, net debt stood at Rs 1,967.10 crore, with a net debt-to-equity ratio of 0.42.

Narayana Hrudayalaya operates a network of 55 healthcare facilities across India, the Cayman Islands and the UK, with more than 5,900 operational beds.

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