Max Healthcare Institute's third-quarter performance presented a bifurcated picture, with top-line growth tempered by a decline in operating metrics. While revenue surged 9% year-on-year to ₹2,484 crore, this was primarily driven by higher realisations, as evidenced by a 3% increase in average revenue per occupied bed (ARPOB) to ₹77,900.
Sequential Weakness Surfaces
The sequential comparison revealed a more challenging environment. Revenue declined from the previous quarter's ₹2,580 crore, with EBITDA falling from ₹694 crore and net profit dropping sharply from ₹554 crore. Occupancy rates dipped to 74%, a decrease from 77% in the prior quarter and 75% a year ago. This softening in occupancy, alongside a moderation in EBITDA margins to 25.5% from 26.4%, signals headwinds.
Operational and Regulatory Headwinds
Company officials attributed the performance dip to several factors. Temporary cashless disruptions and an increased proportion of lower-reimbursement public sector undertaking (PSU) patients impacted revenue. The discontinuation of certain patented chemotherapy drugs also played a role. Furthermore, the full implementation of the CGHS tariff hike is not expected until April 2026, potentially delaying margin recovery.
Ancillary Strength and Expansion Momentum
Despite these pressures, ancillary businesses showcased resilience. Max@Home revenue climbed 23% year-on-year, and Max Lab saw a 13% increase. International patient revenue also grew 14% YoY, contributing 9% to overall hospital revenues. The company expanded its operational bed count to 4,853, adding 387 beds year-on-year. Significant capital expenditure of ₹408 crore was deployed during the quarter. Long-term growth prospects remain intact with a strategic acquisition for a ~450-bed hospital in Pune and ongoing brownfield expansions across multiple sites, including Mohali and Nanavati Max.