Narayana Hrudayalaya Stock Jumps 10% on Strong Q2 FY26 Earnings and Expansion Plans

Narayana Hrudayalaya, operating the Narayana Health network, experienced a substantial gain of up to 10% in its shares on Monday, November 17, following the release of its strong financial performance for the September quarter of FY26 (Q2 FY26).

The company demonstrated robust growth across key financial metrics.

Financial Highlights:

• Revenue: Increased by 20.3% year-on-year (YoY) to ₹1,643.79 crore, up from ₹1,366.68 crore in the same quarter last year. Sequentially, revenue grew by 9.1% from ₹1,507.27 crore in Q1 FY26.
• EBITDA: Surged 28.3% YoY to ₹426.49 crore, compared to ₹332.33 crore in Q2 FY25. Sequentially, EBITDA grew by 18.2% from ₹360.74 crore.
• EBITDA Margins: Expanded to 25.9% in Q2 FY26, an improvement from 24.3% in Q2 FY25 and 23.9% in Q1 FY26, indicating enhanced operational efficiency.
• Net Profit: Showed strong momentum, jumping 29.9% YoY to ₹258.83 crore, up from ₹199.29 crore in the prior year. Quarter-on-quarter (QoQ), net profit was up by 32.0% from ₹196.05 crore.

Future Expansion:

The company has outlined ambitious plans to increase its total bed capacity to over 7,650 by FY30, a significant rise from the current 5,750 beds.

Impact

This news is highly positive for Narayana Hrudayalaya shareholders and the healthcare sector. The strong financial performance and clear expansion strategy are expected to boost investor confidence and potentially drive further stock price appreciation. The company's growth trajectory indicates a healthy demand for its services and effective management. Rating: 8/10.

Definitions:

• YoY (Year-on-Year): A comparison of financial data from the current period with the same period in the previous year. For example, comparing Q2 FY26 revenue with Q2 FY25 revenue.
• QoQ (Quarter-on-Quarter): A comparison of financial data from the current quarter with the immediately preceding quarter. For example, comparing Q2 FY26 revenue with Q1 FY26 revenue.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A metric used to measure a company's operating performance before considering the impact of interest expenses, taxes, depreciation, and amortization. It provides a clearer view of a company's core operational profitability.
• EBITDA Margin: Calculated by dividing EBITDA by total revenue. It shows how much profit a company makes for every dollar of revenue generated from its operations.