Max Healthcare Q3 PAT up 26%, revenue rises 10% despite margin compression
Max Healthcare's Q3 profit rose 26% on higher occupancies and overseas patients, even as margins narrowed due to regulatory changes and expansion costs
 "Max Healthcare Q3 PAT up 26%, revenue rises 10% despite margin compression")
Max Healthcare Institute reported a 26 per cent year-on-year rise in its consolidated net profit for the December quarter of the financial year 2025–26 (Q3 FY26), even as margins compressed due to regulatory actions and expansion-related costs.
The Delhi-based hospital chain posted a net profit of ₹301 crore in Q3, compared to ₹238.44 crore in the same period last year, despite a one-time exception expense of ₹55 crore linked to new labour codes and stamp duty from the amalgamation of Crosslay Remedies and Jaypee Healthcare.
The firm’s revenue from operations was ₹2,067.52 crore, up 10.6 per cent from ₹1,868.31 crore in Q3 FY25.
The company has earlier stated that three of its partner healthcare facilities in New Delhi — Max Balaji Hospital, Max Smart Super Speciality Hospital, and Max Saket Super Speciality Hospital — are not included in consolidated financial statements.
If the three facilities are considered, revenue for the whole entity stands at ₹2,468 crore, and net profit would be ₹344 crore, according to the company’s investor presentation.
The rise in revenues was aided by a 7 per cent year-on-year increase in occupied bed days (OBDs) and strong international patient demand.
“Revenue from international patients rose 14 per cent Y-o-Y to ₹230 crore, making up about 9 per cent of total hospital revenue,” the company said in its investor presentation for the December quarter.
Max also posted a 2.6 per cent Y-o-Y rise in the daily average revenue per occupied bed day (Arpob) at ₹77,900, up from ₹75,900 recorded in the same quarter last year.
On an operating basis, the chain’s earnings before interest, tax, depreciation and amortisation (Ebitda) rose 4 per cent to ₹648 crore.
However, operating margin slipped to 26.1 per cent in Q3 FY26, down from 27.3 per cent a year earlier.
The company attributed this margin compression to several factors, including the discontinuation of high-value patented chemotherapy drugs for institutional patients after restrictive pricing guidelines from the Central Government Health Scheme (CGHS), and pre-commissioning expenses as new brownfield capacity came online in Mohali, Nanavati Max, and Max Smart.
The firm also attributed this drop to rate changes in goods and services tax (GST).
Commenting on the results, Abhay Soi, chairman and managing director at Max Healthcare, said the company has operationalised new brownfield beds at Nanavati Max and MSSH Mohali, which have already demonstrated accretive margins.
“We expect a significant ramp-up in our capacity in Q4 and in FY27. Encouraging performance in existing network hospitals and new capacity additions has boosted our confidence to further pursue growth opportunities, including our entry into Pune,” he added.
On Thursday, Max Healthcare’s shares rose 1.4 per cent, closing at ₹1,040.70 apiece on the Bombay Stock Exchange (BSE).