MAX HEALTHCARE RISE 2.5% STRONG GROWTH OUTLOOK

Shares of Max Healthcare Institute climbed 2.5% in late-morning trade on Wednesday, emerging among the top gainers on the Nifty 50. The stock gained momentum after brokerage firm CLSA reiterated its ‘Outperform’ rating, citing strong revenue growth, ongoing capacity expansion and expectations of improving profit margins. Max Healthcare's network revenue increased 18% year-on-year in Q2, primarily driven by an expansion in operational bed capacity. Notably, operating margins remained broadly stable compared with the same period last year, despite significant additions to its hospital network. This indicates that the company has managed to limit the initial profitability impact of its expansion. For the September quarter, Max Healthcare reported a 16% year-on-year decline in consolidated net profit to ₹415 crore, compared with ₹491 crore in the corresponding quarter of the previous year. This marked the company's first quarterly profit decline in seven quarters. The decline was largely due to the absence of a one-time tax benefit of approximately ₹149 crore recorded in the year-ago period following the merger of Crosslay Remedies with the former Jaypee Healthcare. Meanwhile, revenue from operations increased 20.3% year-on-year, supported by higher patient volumes and the expansion of its hospital network. The company's operational bed capacity rose 16%, while occupied bed days increased 13% during the quarter. Max Healthcare has been expanding its hospital network to capitalise on rising domestic healthcare demand and India's growing position as a medical tourism destination.