Narayana Hrudayalaya (NH) Q2 FY26

Executive Summary Narayana Hrudayalaya has delivered a stellar performance for the quarter ended September 2025, posting robust double-digit growth across all key financial parameters. The stock surged 10% in response to strong operational leverage, margin expansion, and a clear strategic roadmap for capacity addition. Key Financial Highlights Robust Top-Line Growth: The company reported consolidated revenue of ₹1,643.79 Cr, registering a strong growth of 20.3% YoY (vs ₹1,366.68 Cr in Q2 FY25). On a sequential basis, revenue grew by 9.1%, indicating sustained demand momentum. Operational Efficiency (EBITDA): EBITDA surged significantly by 28.3% YoY to ₹426.49 Cr (up from ₹332.33 Cr). Sequential EBITDA growth stood at 18.2%, highlighting the company’s ability to manage costs effectively while scaling operations. Margin Expansion: Operational metrics improved considerably, with EBITDA margins expanding to 25.9%. This represents a healthy improvement over the 24.3% margin reported in the same quarter last year and 23.9% in Q1 FY26. Profitability (PAT): Net Profit witnessed a sharp uptick, climbing 29.9% YoY to ₹258.83 Cr. Sequentially, the bottom line jumped by 32.0% (vs ₹196.05 Cr in Q1 FY26), reflecting strong flow-through from the operational level to the bottom line. Strategic Outlook & Guidance Aggressive Capacity Expansion (FY26–FY30) Management has outlined a concrete roadmap for structural growth. To capture rising healthcare demand, Narayana Health plans to increase its total bed capacity to over 7,650 beds by FY30, a significant ramp-up from the current capacity of 5,750 beds. Investor Takeaway Narayana Hrudayalaya has delivered an "all-round beat" this quarter. The combination of 20%+ revenue growth, margin expansion to ~26%, and a clear capital expenditure plan provides strong earnings visibility. The immediate 10% market reaction underscores investor confidence in the company's execution capabilities and future growth trajectory.