Narayana Hrudayalaya hits record high in subdued market; up 7% in 3 days

The company's management remains confident that the new hospital will become a strong engine of growth in Cayman over the next few years.

Shares of Narayana Hrudayalaya hit a new high of Rs 1,419, up 3 per cent on the BSE in Thursday’s intra-day trade, extending its past two-day gain in an otherwise subdued market. In the past three trading days, the stock of the Hospital company rallied 7 per cent. In comparison, the BSE Sensex was down 0.24 per cent at 75,757 at 03:00 PM.

 

After a strong second quarter, Narayana Hrudayalaya delivered a steady performance across business units, in the third quarter of the fiscal year (Q3FY25), with a healthy year-on-year (YoY) growth, aided by strong growth in realizations.

 

In Q3FY25, the company reported 13.5 per cent YoY growth in its consolidated revenue at Rs 1,366.7 crore. Consolidated profit after tax grew 2.6 per cent YoY at Rs 193.1 crore. EBITDA margin, however, contracted to 23.8 per cent from 24.7 per cent.

 

 

The patient footfall remained at stable levels despite a sharp drop in the company’s international patients’ volume. The quarter-on-quarter (QoQ) growth was also impacted on account of seasonality and festival-related holidays in the third quarter. Health City Cayman Islands (HCCI) continues to contribute significantly to the overall performance, maintaining healthy margins after a slight dip in the last quarter on account of up-front setup costs, the management said.

 

The management remains confident that the new hospital will become a strong engine of growth in Cayman over the next few years. Narayana Hrudayalaya Integrated Care has delivered another strong quarter of increased patient transactions and revenue growth. The management said the company remains on track to delivering on its expectations for the full fiscal year for all its businesses including the new ventures.

 

Cayman posted 14.4 per cent YoY and 20.4 per cent QoQ sales growth in INR terms, now contributing ~20 per cent of total revenue. Narayana Hrudayalaya began outpatient services at the new Cayman Bay facility during the quarter and launched IPD and emergency room services in January 2025. Obstetrics and Neonatal care services started in February. Management anticipates full commissioning of all services by March 2025. Choice Broking expects the hospital to ramp up fully, boosting both revenue and EBITDA from Q4FY25 onwards.

 

With no bed expansion in the India region (which accounts for 80 per cent of revenue) until FY28, the brokerage firm expects a slowdown in revenue growth. However, the ramp-up of the new Cayman Bay facility is expected to reduce high operational costs related to scaling the facility, thereby improving Narayana Hrudayalaya's overall EBITDA margin.