Max Healthcare Institute Q1 Results: Revenue Up 20%, But Misses Estimates

Max Healthcare Institute Ltd.'s consolidated net profit was down 1.6% in the first quarter of fiscal 2025, and missed analysts' estimates.

The company posted a net profit of Rs 236 crore in the quarter-ended June, in comparison with Rs 240 crore in the year-ago period, according to an exchange filing on Thursday. Analysts tracked by Bloomberg had estimated a profit of Rs 344.73 crore.

Its revenue rose 20% to Rs 1,543 crore, as against an estimate of Rs 1,902.24 crore.

• Revenue up 20% to Rs 1,543 crore versus Rs 1,285 crore (Bloomberg estimate: Rs 1,902.24 crore).

• Ebitda up 14.8% to Rs 387 crore versus Rs 337 crore (Bloomberg estimate: Rs 510.88 crore).

• Margin at 25.1% versus 26.3% (Bloomberg estimate: 26.90%).

• Net profit down 1.6% to Rs 236 crore versus Rs 240 crore (Bloomberg estimate: Rs 344.73 crore).

Note: The company has three partner healthcare facilities: Balaji Society, GM Modi Society (Hospital) and Devki Devi Society, whose financials are not included in the consolidated financial statements. After considering the above three financials, the revenue for the whole entity stands at Rs 1,931 crore and net profit will be Rs 295 crore.

• Bed occupancy for existing units was 76.6%, with occupied bed days up by ~5% year-on-year, while new units reported occupancy of 59%. During the quarter, overall occupied bed days grew by ~14% YoY.

• Average revenue per occupied bed (ARPOB) for existing units improved by +7% YoY to Rs 80,100 in the first quarter of this fiscal versus Rs 74,800 in Q1 FY24 and Rs 78,100 in Q4 FY24. New units reported an average revenue per occupied bed of Rs 45,300.

• Improvement in ARPOB YoY was mainly driven by growth in oncology and general surgery, along with price revisions from self-pay, insurance and institutional segment.

• Launched 303-bedded Max Super Specialty Hospital at Dwarka, Delhi (Max Dwarka) on July 2.

• Executed agreement to lease for built-to-suit 250-bed hospital at Zirakpur, Mohali, to be developed as per company's specifications by FY28.

• International patient revenue was Rs 158 crore in Q1 FY25 as compared to Rs 143 crore over the same period last year and Rs 158 crore in Q4 FY24, reflecting growth of +11% YoY; accounting for ~8.3% of hospital revenue. Revenue from credit customer segment witnessed a drop due to credit risk management related actions.

• Free cash from operations was Rs 258 crore in Q1 FY25. Of this, Rs 213 crore was deployed on the ongoing expansion plans and for upgradation of facilities at new units. Net cash, as on June 30, stood at Rs 66 crore.

“With launch of Max Super Specialty Hospital, Dwarka, we have added over 900 beds to our capacity so far, and have successfully supplemented the momentum of growth in revenues and profitability before augmentation of bed capacity through brownfield expansion plans in FY26,” said Abhay Soi, chairman and managing director, Max Healthcare Institute.

"In the meanwhile, consistent performance in existing hospitals and encouraging response to our offerings at new units is providing us with confidence to further pursue growth opportunities, including newly entered built-to-suit arrangement in Mohali."

Shares of the company were trading 0.44% higher at Rs 926.3 apiece on the NSE, as compared with a 0.29% gain in the benchmark Nifty 50.