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Strong revenue growth and margin expansion underpin a healthy EBITDA growth trajectory: 

Revenue momentum across the hospital coverage universe remained robust, with growth ranging from 10.1% to 75.8% YoY. NARH (75.8%), YATHARTH (46.6%) and PARKHOSP (30.1%) emerged as the key growth leaders. Margin performance was particularly strong at PARKHOSP (+342 bps) and NARH (+259 bps), driven by operating leverage gains and an improving business mix, whereas RAINBOW experienced temporary margin moderation owing to cost associated with new capacity ramp-up. Looking ahead, margin is expected to either improve further or sustain its current level as recentlycommissioned facilities scale up, supported by higher utilisation, operating leverage benefits and a more favourable payor and case mix. Overall, we expect the sector to deliver a healthy EBITDA CAGR of 25–30% over FY26– FY29E, backed by sustained demand momentum and disciplined execution across operators.

Improving case mix continues to drive ARPOB growth amid capacity addition:

ARPOB across the coverage universe registered healthy YoY growth, supported by an enhanced case mix and a rising contribution from complex specialty procedures. NARH reported ARPOB of INR 51,099 (10.1% YoY), followed by HCG at INR 47,848 (8.2% YoY), RAINBOW at INR 62,464 (7.6% YoY), YATHARTH at INR 33,283 (5.3% YoY) and MEDANTA at INR 66,687 (4.8% YoY). Occupancy trends also remained encouraging, led by MAXHEALT (76%), FORH and YATHARTH (68%), APHS (67%) and PARKHOSP (64.1%). Going forward, we expect ARPOB growth of 5–8% annually, while occupancy levels are likely to gradually normalise as newly commissioned facilities continue to ramp up operations.

Aggressive capacity expansion cycle sets the foundation for long-term growth:

India's hospital sector is witnessing one of its strongest capacity expansion cycles in recent years. ARTMSL plans to add 1,075 beds, APHS targets 2,200 additional beds by FY29, while MEDANTA aims to nearly double its capacity to ~6,855 beds by FY30. PARKHOSP intends to add 2,880 beds, FORH plans ~1,347 beds by FY29 and MAXHEALT is targeting a network exceeding 10,000 beds by FY30. HCG is expanding with nearly 750 beds by FY29, while YATHARTH plans to strengthen its Delhi-NCR footprint through the addition of ~700 beds over the next two years. RAINBOW continues to execute its regional expansion strategy with plans to add 810 beds by FY29. JSLL is also pursuing an ambitious growth agenda, targeting a total bed capacity of 7,000–10,000 over the next 3–5 years. This expansion remains concentrated in key urban markets and tertiary-care facilities, providing a strong foundation for long-term growth, operating leverage and sustained EBITDA expansion.

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