Synopsis: Narayana Hrudalaya jumped sharply after reporting strong Q2 results, where revenue increased 20% YoY to Rs 1,644 crore and profit was up 30% to Rs 258 crore during the same period. Also planned a capex to add over 1,800 beds by FY30.
The shares of this leading healthcare solutions provider engaged in providing economical healthcare services are in focus after reporting a stellar financial performance in this quarter. In this article, we will dive more into the details.
With a market capitalisation of Rs 39,362 crore, the shares of Narayana Hrudayalaya Ltd reached a day’s high of Rs 1,945 per share, up 11 percent from its previous day’s closing price of Rs 1753.55 per share. Over the past five years, the stock has delivered a robust return of 427 percent, outperforming NIFTY 50’s return of 102 percent.
Q2 Highlights
Narayana Hrudayalaya reported a core revenue of Rs 1,644 crore in Q2 FY26, a growth of 20 percent as compared to Rs 1,367 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 9 percent from Rs 1,507 crore.
Regarding its profitability, it reported a net profit of Rs 258 crore in Q2 FY26, a growth of 30 percent as compared to Rs 199 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it recorded a robust growth of 31 percent from Rs 197 crore.
The hospital showed a strong YoY improvement in Q2 FY26 across key metrics. Average Revenue Per Patient, with OP remaining stable, but the IP segment delivered a 10 percent growth to Rs 149.4k. However, Average Length of Stay (ALOS) declined from 4.5 days to 4.3 days in Q2 FY26.
On the other hand, Patient Footfalls didn’t perform well if compared to its previous year, but delivered a slight growth as compared to its previous quarter. And Average Revenue Per Occupied Bed (ARPOB) grew by 14 percent to Rs 1.75 crore in Q2 FY26.
Coming to its geographical highlights, its domestic operations reported a revenue growth of 12 percent YoY and 8 percent QoQ, reaching Rs 1,170 crore in Q2 FY26. Whereas, on the other hand, its International division reported a revenue decline of 33 percent YoY but a growth of 27 percent QoQ, reaching Rs 51.3 crore in Q2 FY26.
Coming to its revenue segmentation, Narayana Hrudalaya derives 73 percent of its revenue from Owned Hospitals, followed by 25 percent from Operated Hospitals, 1 percent from Heart Centres, and the remaining from Other Ancillary Business. It derives a massive 33 percent from its Cardiac Sciences division, only of which is one of the main specialties of this hospital.
Capex Highlights
The firm’s capex strategy illustrates how effectively the company is trying to extend its capacity in the main regions of the world with tight control of execution. Several greenfield, brownfield, and expansion projects are moving forward as per the timeline, thus supported by the already ongoing construction, design, and sanction milestones.
Their combined aim is to raise the total bed capacity from 5,750 to over 7,600 beds by the end of the fiscal year 2030, that is, through the addition of over 1,800 new beds, thus emphasizing the company’s determination to consolidate its leadership position in fast-growing healthcare markets.
Such capital expenditure allocation represents a well-balanced and sharply targeted investment approach. The budget for the 26th fiscal year planned the use of Rs 424 crore for greenfield or inorganic expansion, Rs 15.9 crore for brownfield additions, Rs 286.5 crore for replacement and maintenance, and Rs 45.7 crore for the Cayman operations.
Written by Satyajeet Mukherjee
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