Max Healthcare Plans Robust Expansion, Rs 6,000-Crore Investment Over Three Years
Max Healthcare will fund the capex through internal accruals, which Abhay Soi said will "take our capacity up to close to 9,000 beds”.
Max Healthcare Institute Ltd. plans to invest Rs 6,000 crore over the next three and a half years to expand its network and increase its bed capacity to 9,000, Chairman and Managing Director Abhay Soi said.
In the second quarter of the current financial year, the private hospital chain reported a 25.3% year-on-year jump in revenue to Rs 1,701 crore, while net profit rose 1.9% to Rs 282 crore.
During this period, the company acquired Jaypee Hospitals in Noida and launched a new hospital in Dwarka, Delhi. The company also acquired two hospitals in Lucknow and Nagpur.
On plans going forward, Soi told NDTV Profit that the company aims to go big on expansion. “We are essentially spending about Rs 6,000 crore over the next three and a half years to fund our entire expansions.”
The company will spend this money through internal accruals, the top executive noted. “All of this is internal accrual-based and this should take our capacity up to close to 9,000 beds.”
Elaborating on the expansion plans, Soi said that the next 12 months will be "exciting" for Max Healthcare Institute. “We are coming up with about 1,100–1,200 beds, brownfield expansions. There are about 270 beds in Mumbai in April. At the same time, we are looking at 400 plus beds in Saket, in our main cluster in Delhi, which is also a brownfield. We are also looking at 200 beds in Mohali in April,” he said.
“So we have an exciting new financial year (FY26) coming up. We would be coming out with all these brownfield expansions at locations where we have run out of capacity,” revealed Soi.
The Max Healthcare Institute CMD claimed that the company will add another 500 beds to its hospital in Gurgram Sector 56 by December next year. “Jaypee, Lucknow, Nagpur—all of these today are operating at high capacity utilisation. We'll be doing further brownfields over there as well,” he said.
Shares of Max Healthcare were trading 0.47% higher at 1,083.8 per share, as of 9:59 a.m., compared with a 0.01% decline in the Nifty 50.
