Max Healthcare shares rise 2% after Q2 results; JM Fin upgrades rating

JM Financial upgraded the stock to an 'Add' rating after the company reported a 74 per cent jump in its September quarter net profit

Shares of Max Healthcare Institute Ltd. rose over 2 per cent on Tuesday as analysts remained constructive after the company reported a 74 per cent jump in its September quarter profit. 

 

The hospital's stock rose as much as 2.05 per cent during the day to ₹1,144.6 per share, the biggest intraday rise since November 12 this year. The Max Healthcare stock pared gains to trade 0.2 per cent higher at ₹1,123 apiece, compared to a 0.34 per cent decline in Nifty 50 as of 10:58 AM. 

 

Shares of the company rose for the third straight session and currently trade at 1.9 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 0.3 per cent this year, compared to a 9.6 per cent advance in the benchmark Nifty 50. Max Healthcare has a total market capitalisation of ₹1.09 trillion.   READ LATEST STOCK MARKET UPDATES LIVE

Max Healthcare Q2 results 

Max Healthcare Institute reported a 74.34 per cent jump in net profit to ₹491.30 crore for the quarter ended September 2025, compared with ₹281.81 crore in the same quarter last year. Revenue from operations rose 25.07 per cent to ₹2,135.47 crore, up from ₹1,707.46 crore in the year-ago period.

 

Ebitda per bed rose to ₹73.4 lakh, up from ₹71.2 lakh in Q2 FY25 and ₹68.5 lakh in Q1 FY26. Bed occupancy stood at 77 per cent for the quarter, while Occupied Bed Days increased 19 per cent year-on-year (Y-o-Y).

JM Financial on Max Healthcare earnings

The brokerage said Max Healthcare posted a strong performance in the second quarter of FY26, with the top line broadly in line with expectations, while profitability exceeded estimates due to a favourable tax impact. Excluding this one-off, profit grew 16 per cent Y-o-Y, it said.   ALSO READ | WeWork shares soars as Jefferies initiates coverage; 45% upside seen in bull case 

Growth was driven by existing hospitals, which reported a 14 per cent rise in revenue and 19 per cent Ebitda growth, supported by an 11 per cent increase in operating beds and a 3 per cent improvement in Average Revenue Per Occupied Bed (ARPOB). JM Financial also highlighted progress across expansion projects: the 160-bed Mohali brownfield tower has been commissioned, Nanavati’s 268-bed expansion is nearing launch, and the larger 400-bed Mohali expansion remains ahead of schedule.

 

The brokerage said strong operating momentum, an improving payer mix and visibility on multi-site expansions underpin a positive outlook on Max Healthcare’s growth and margins. It gave a target price of ₹1,181 per share and upgraded it to an 'Add' rating.