Company Update : Max Healthcare Ltd by Motilal Oswal Financial Services Ltd
Broadly in-line performance
* In 2QFY26, Max network revenue (including the trust business) grew 21.4% YoY to INR25.7b (our est. INR26.0b).
* EBITDA margin slightly contracted by 10bp YoY to 26.7% (our est. 25.4%).
* EBITDA grew 21.2% YoY to INR6.9b (our est. INR 6.6b).
* In 2Q, Max recorded a one-time gain of INR1.5b from the merger accounting of CRL and JHL (both WoS).
* Adjusting for this one-time gain, ETR would be 21%.
* Accordingly, adj. PAT would be INR4.3b (our est: INR4.4b).
* EBITDA per bed (annualized) stood at INR7.3m for the quarter. Excluding recently added beds, EBITDA per bed was INR7.6m, up 7.4% YoY.
* In 1HFY26, revenue/EBITDA/PAT grew 24%/23%/17% YoY to INR50.2b/ INR13.0b/INR8.0
Key operating updates
* Hospital business, ARPOB stood at INR77.3k in 2Q (+1.4% YoY). Excluding added beds, ARPOB stood INR78.7k, up 3.3% YoY.
* Occupancy came in at 77% (vs. 79%/76% in 2QFY25/1QFY26), with occupied bed days (OBDs) up by +19% YoY and +4% QoQ.
* The payor mix changed as the cash segment’s revenue share rose 20bp YoY to 35.5%, institutional revenue share increased 300bp YoY to 21.5%, international revenue share grew 30bp YoY to 9.2%, and TPA and Corporate segment’s revenue share declined 350bp YoY to 33.8%.
* Max Lab's revenue was INR540m (+16% YoY).
* Max Home’s gross revenue was INR630m (+20% YoY).
* International patient revenue was INR2.3b (up by +25% YoY).
* Free cash from operations was INR2.9b vs. INR4.6b in 2QFY25 and INR3.9b in 1QFY26.
Other Updates
* Operational bed capacity as of Sep’25 end stood at 4,760, after adding 53 beds at MSSH Mohali, 24 at MSSH Shalimar Bagh and 30 at MSSH Dwarka, and reducing 100 beds following the divestment of Jaypee Hospital, Chitta.
* A 160-bed hospital is commissioned in Mohali. The 268-bed brownfield tower at Nanavati-Max would be commissioned next week.
* Net debt was INR20.7b as of 2Q end vs. INR15.8b as of FY25 end.
* To date, the network has performed 3,989 liver transplants, 5,276 kidney transplants and 2,151 bone marrow transplants.
* More than 670 clinical research projects have been completed so far, with ~150 currently underway.
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