• Financial performance: Narayana Hrudayalaya reported a 76% increase in revenue to around 2,600 crore, a 43% rise in EBITDA to 510 crore, and a 16% growth in PAT to 228 crore, while overall margins contracted from 24% to 20%.
• Margin trajectory: Margin dilution was primarily driven by pre-acquisition costs and the lower-margin UK business (10% EBITDA margin compared to 25% in India); margins are expected to improve from the current baseline as UK and Cayman insurance operations stabilize.
• Cayman operations: Capital expansion in the Cayman Islands has reached a stable state following last year's hospital commissioning and substantial insurance penetration, with future performance expected to be driven by steady organic growth.
• FY27 growth strategy: Management targets meaningful growth and cash flow generation in FY27 primarily through organic throughput optimization across existing India, UK, and Cayman capacities, alongside six planned hospital additions.