Max Healthcare January-March Profit Up 27%, Misses Estimates On Rising Expenses

Max Healthcare Institute Ltd. reported a 27% year-on-year rise in consolidated net profit for the March quarter to ₹3.19 billion, its strongest growth in seven quarters, but fell short of analysts’ forecast of ₹4.21 billion. Revenue grew 34% to ₹19.10 billion but also missed expectations.

The company’s total expenses increased over 37% to ₹15.54 billion, outpacing revenue growth. Major cost items included ₹4.10 billion spent on drugs, consumables, and implants (up 38%) and ₹4.06 billion on professional and consultancy fees (up 39%), the second-largest expense.

Operating EBITDA rose over 26% to ₹6.32 billion, with an operating margin of 27.2%, down 80 basis points year-on-year. Average revenue per occupied bed was ₹77,100, slightly up from ₹76,800 a year earlier.

Inpatient volume increased 35% to 78,685 and outpatient consultancies grew nearly 34%. Operational bed capacity rose by 188 beds during the quarter, mainly at Lucknow, Dwarka, and BLK Max Hospitals. Bed occupancy edged up to 75% from 74%.

Revenue from international patients rose to ₹2.02 billion from ₹1.58 billion, making up about 9% of total revenue. Free cash flow from operations was ₹4.22 billion, a 2% increase on year.

The board approved adding 100 beds to Max Super Speciality Hospital, Nagpur, by building two floors on the existing structure. It also approved selling its stake in Sandhya Hydro Power Projects Balargha Pvt. Ltd. to promoter Skyzen Infrabuild Pvt. Ltd. for ₹1.28 million after terminating the power purchase agreement.

For 2024-25, Max Healthcare’s net profit rose 2% to ₹10.76 billion, while consolidated revenue increased 30% to ₹70.28 billion. The company announced a dividend of ₹1.50 per share. Shares closed down 2% at ₹1,164.70.