Narayana Hrudayalaya Q2: net profit rises 16.7% YoY to ₹301 Cr as consolidated revenue surges 73% to ₹2,844 Cr
The company is operating under the Narayana Health brand and is one of India's leading healthcare service providers. The company operates a network of multispecialty hospitals, offering services across cardiac sciences, oncology, renal sciences, neurosciences and other medical specialities. Its operations extend beyond India, including healthcare facilities in the United Kingdom and the Cayman Islands.
The Nifty 50 closed at 23,440.80, up by 1.68%, while the Sensex gained to 75,692.78, up by 1.66% on Monday. The shares of Narayana Hrudayalaya closed at Rs. 1,834.20, up by 6.63%. The company has a market capitalisation of Rs. 37,483.86 crore. The stock’s 52 week high is Rs. 2,093.30 and its 52 week low is Rs. 1,589.00. In the past 6 months, the stock has delivered a return of 2.50%.
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What's the News?
Narayana Hrudayalaya announced its consolidated financial results for Q2 FY27, reporting strong year-on-year growth in revenue and profitability. The company's consolidated revenue from operations increased 73% to Rs. 2,844 crore compared with Rs. 1,644 crore in Q2 FY26. Net profit attributable to owners rose 16.7% to Rs. 301 crore from Rs. 258 crore in the corresponding quarter last year. EBITDA increased 42% to Rs. 605 crore from Rs. 425 crore, while EBITDA margin stood at 21.3% compared with 24.5% in the year-ago quarter.
The sharp revenue growth was supported by the contribution of its international operations, particularly its UK business, alongside continued growth in its Indian hospital network.
Financial Performance
Looking at the quarterly results of Narayana Hrudayalaya Limited, consolidated revenue from operations increased 73% to Rs. 2,844 crore in Q2 FY27 compared with Rs. 1,644 crore in Q2 FY26.
The company's consolidated net profit attributable to owners stood at Rs. 301 crore, rising 16.7% from Rs. 258 crore in the corresponding quarter last year.
EBITDA increased 42% to Rs. 605 crore from Rs. 425 crore, while EBITDA margin declined to 21.3% from 24.5%, reflecting a contraction of approximately 320 basis points year-on-year.
India Hospitals Business Records Growth
The company's India hospitals business continued to report healthy growth during the quarter. Revenue from India hospitals, excluding ATHMA and Medha businesses and after inter-company eliminations, increased 16.7% year-on-year to Rs. 1,439 crore.
International patient revenue also recorded strong growth, increasing 75.7% to Rs. 90.1 crore. The average revenue per occupied bed (ARPOB) increased 11.4% to Rs. 19,500 on an annualised basis. India hospitals EBITDA rose to Rs. 380 crore from Rs. 290 crore in Q2 FY26, with the segment's EBITDA margin improving to 26.8% from 23.8%.
International Operations Support Revenue Growth
The company's international operations played an important role in its consolidated revenue growth. The contribution from its UK healthcare business supported the higher revenue base following the integration of its international operations.
However, the consolidated EBITDA margin remained below the year-ago level, highlighting the impact of the changing business mix and the profitability profile of its expanded operations.
Improvement in Financial Position
Narayana Hrudayalaya reported a net debt-to-equity ratio of 0.38 times as of September 30, 2026, compared with 0.42 times at the end of June 2026. This indicates an improvement in its leverage position during the quarter, providing additional financial flexibility as the company continues to expand its healthcare operations.
Investor Perspective
Narayana Hrudayalaya delivered strong consolidated revenue growth in Q2 FY27, supported by its international operations and continued expansion of its India hospitals business. Net profit also increased, although the growth rate remained lower than revenue and EBITDA growth.
Investors may track the company's margin performance, profitability of international operations, occupancy levels and expansion plans in the coming quarters. Sustaining revenue growth while improving consolidated margins will remain important for its financial performance.
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