Narayana Hrudayalaya Ltd reported sales of Rs 25.9bn for the quarter ended March 2026, up 76% year-on-year and 21% quarter-on-quarter, supported by the full integration of its UK business and strong performance across all regions. Organic sales, excluding the UK business, stood at Rs 18.1bn, rising 22% year-on-year and 9% sequentially.
Gross margin came in at 80.5%, up 116bps year-on-year and 47bps ahead of estimates, while EBITDA was Rs 5.1bn, increasing 43% year-on-year and 15% sequentially. EBITDA margin stood at 19.7%, down 458bps year-on-year and 93bps quarter-on-quarter, hurt by the UK business, which operated at a 10% EBITDA margin, and a sequential margin decline in Cayman.
Profit after tax was Rs 2279mn, up 11% year-on-year but down 10% quarter-on-quarter, and came in 15% below estimates. The company said the bottom line was affected by higher costs in employee expenses, interest and weakness in some overseas operations.
Domestic sales rose to Rs 12.5bn, up 13% year-on-year and 6% sequentially, with average revenue per patient growing 7%. Domestic EBITDA increased to Rs 3.1bn, up 32% year-on-year and 18% quarter-on-quarter, with margin improving to 24.8%.
Cayman sales stood at Rs 5.6bn, up 48% year-on-year and 17% sequentially, aided by insurance revenue growth of 588% year-on-year, which accounted for 23% of revenue in the segment. Cayman EBITDA came in at Rs 1.4bn, down 3% year-on-year and 10% quarter-on-quarter, with a margin at 25.7%.
The UK business, acquired through PPG Ltd, contributed Rs 8.1bn in sales and Rs 844mn in EBITDA, with an EBITDA margin at 10.4%. On the cash flow and balance sheet front, operating cash flow stood at Rs 16.2bn in FY26 compared with Rs 9.9bn in FY25, while net debt rose to Rs 22.4bn from Rs 5.3bn a year earlier.
At CMP of 1,856, the stock is trading at 24/22x on FY27/28E EV/EBITDA. The last target price stands at 1,730 for Sep’26, under review. The company has scheduled its earnings call for Tuesday, 26th May, 2026 at 03:00 p.m.
