Q1 2027 Max Healthcare Institute Limited Earnings Call Transcript
Key Points
- Revenue grew 16% YoY and operating EBITDA grew 15% YoY, with network gross revenue reaching INR2,982 crores.
- Average occupancy remained above 75% despite a 13% increase in operational bed capacity, with occupied bed days up 10% YoY.
- International patient revenue grew 18% YoY to INR247 crores, and digital revenue accounted for 32% of overall revenue.
- The company is expanding capacity with multiple projects, including a new 202-bed tower at Vaishali and the commissioning of 400 beds at Max Smart, which is already seeing 80% occupancy on opened beds.
- The acquisition of Kalinga Hospital (Bhubaneswar) is on track, with plans to enhance occupancy and ARPOB by 50-80% over the next 12 months, following a proven turnaround playbook.
- The company is entering the medical education business, expecting ROCEs of over 25%, leveraging existing campuses and clinical infrastructure.
- CGHS reimbursements are on track, with complex specialty rates flowing from June, and insurance renewals include an automatic 6% price revision.
- Free cash flow generation was strong at INR397 crore, and net debt-to-EBITDA remains below 1x.
- MAX@Home and Max Lab reported strong growth of 32% and 20% YoY, respectively.
- The company is strengthening its research ecosystem with over 750 clinical trials and recent grants from prestigious institutions.
- Operating EBITDA margin was relatively muted at 24.8%, down from 26.8% in the trailing quarter, due to new capacity commissioning and the Kalinga acquisition.
- Oncology inpatient revenue share dropped to 22% from 26% due to discontinuation of select high-value chemotherapy drugs for institutional patients, impacting overall growth.
- Net debt increased to INR2,384 crore from INR1,908 crore at the end of March 2026, partly due to acquisitions and put option liabilities.
- Free cash flow conversion was lower at 56% (vs. typical 62-65%) due to a buildup in accounts receivable, with DSOs rising from 87 to 95 days.
- The Kalinga Hospital acquisition has led to litigation with minority shareholders, who are seeking to force a buyout of their shares.
- The company faces regulatory uncertainty from a parliamentary committee report on healthcare affordability, which could impact sector viability.
- Institutional business remains loss-making and contributes only to fixed costs, with a concerted effort to reduce its share.
- Direct costs increased by 16% vs. 15% revenue growth, partly due to higher clinician costs.
- New brownfield capacities are still in ramp-up phase, with EBITDA contribution expected to improve only over the next few quarters.
- The company's expansion plans are capital-intensive, with significant CapEx commitments (e.g., INR425 crore for Vaishali) that may pressure near-term cash flows.
Ladies and gentlemen, good day, and welcome to Max Healthcare Institute Limited earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Anoop Poojari from CDR India. Thank you, and over to you, Mr. Poojari.
Thank you. Good morning, everyone, and thank you for joining us on Max Healthcareâs Q1 FY2027 earnings conference call. We have with us Mr. Abhay Soi, Chairman and Managing Director; Mr. Yogesh Sareen, Senior Director and Chief Financial Officer; and Mr. Keshav Gupta, Senior Director, Growth, M&A, and Business Planning of the company.
We will begin the call with opening remarks from the management, following which we will have the forum open for an interactive question and answer session. Before we start, I would like to point out that some statements made in todayâs call may be forward-looking in nature, and a disclaimer to this effect has been included in the earnings presentation shared with you earlier.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
