Narayana Hrudayalaya Clarifies Katra Hospital Agreement, Transfer Set for April 2026

Narayana Hrudayalaya Limited has provided clarity on its Katra hospital Business Transfer Agreement (BTA) with the Shri Mata Vaishno Devi Charitable Society. The company confirmed this is an implementation of a prior arrangement, not a new material development.

The transition of hospital operations to the Society is set for April 1, 2026. Narayana's subsidiary, NVDSHPL, will continue to offer supervisory oversight until 2033.

Clarification on Katra Hospital Agreement

Narayana Hrudayalaya Limited addressed recent media reports concerning its Narayana Vaishno Devi Specialty Hospitals Private Limited (NVDSHPL) facility in Katra, Jammu. The company confirmed that the Business Transfer Agreement (BTA) executed by NVDSHPL with the Shri Mata Vaishno Devi Charitable Society is a formalization of an understanding previously disclosed to stock exchanges on March 28, 2025.

Investor Certainty Provided

This clarification aims to provide investors with much-needed certainty regarding the Katra hospital arrangement. By confirming the BTA as a continuation of a prior disclosure, Narayana Hrudayalaya seeks to de-risk the event and mitigate market speculation.

Background on the Katra Hospital Deal

Narayana Hrudayalaya, founded in 2000 by Dr. Devi Shetty, is known for its cost-effective cardiac care and asset-light business model. The company operates a significant hospital network across India and internationally.

The current BTA follows an earlier concessionaire agreement from 2014 with the Shri Mata Vaishno Devi Shrine Board. On March 28, 2025, Narayana Hrudayalaya's subsidiary, NVDSHPL, announced a revised understanding with the Shrine Board regarding the hospital's operation, extending the arrangement until 2033.

Key Changes in Hospital Operations

Under the new agreement:

• Direct operational management of the Katra hospital officially transfers to the Shri Mata Vaishno Devi Charitable Society from April 1, 2026.
• Narayana Vaishno Devi Specialty Hospitals Private Limited (NVDSHPL) will transition from direct operational control to a supervisory oversight role.
• This signifies the end of Narayana's direct operational involvement in the Katra facility, in line with the BTA terms.

Other Company Developments

Narayana Hrudayalaya recently received a GST penalty order of ₹22.2 million for the financial year 2021-22. The penalty relates to alleged non-payment of GST on exempted healthcare revenue. The company plans to appeal the order, stating it is not expected to have a material impact on its financials or operations.

Industry Landscape

Narayana Hrudayalaya operates within a competitive healthcare sector alongside major providers like Apollo Hospitals, Max Healthcare, and Fortis Healthcare. While competitors such as Apollo are considerably larger in market capitalization, Narayana Hrudayalaya distinguishes itself through its focus on cost-effective cardiac care and its "asset-light" expansion strategy, requiring less capital than many rivals.

Looking Ahead

Investors are advised to monitor the full disclosure documents on the Narayana Health website for detailed BTA terms. The successful execution of the operational transition on April 1, 2026, will be a key event. Additionally, performance across Narayana Hrudayalaya's other facilities, updates on the GST penalty appeal, and the company's strategic expansion plans in cities like Bengaluru, Kolkata, and Raipur will be important factors to watch.