Narayana Hrudayalaya Q2 FY27 Earnings Call Transcript

The document is a transcript of the Q2 FY27 earnings call held on Tuesday, November 02, 2026, following the company's results announcement.
The call duration was 1 hour, with the first 30 minutes dedicated to India business questions and the remaining time to international operations.
Management participants included: Mr. Viren Shetty (Vice Chairman), Dr. Emmanuel Rupert (CEO and MD), Ms. Sandhya Jayaraman (Group CFO), Mr. R. Venkatesh (Group COO), Dr. Anesh Shetty (MD of International Businesses), Mr. Ravi Vishwanath (Board Member), Mr. Nishant Singh (VP Finance and Investor Relations), and Mr. Vivek Agarwal (Deputy GM Finance and Investor Relations).
The company confirmed that the results presentation and financial statements were already uploaded on stock exchanges and the company website at https://www.narayanahealth.org/stakeholder-relations/earnings-call-audio-and-transcripts.
The call included forward-looking statements with associated uncertainties and risks.

India Business Performance:

India hospital EBITDA margins reached 26% in Q2 FY27
Revenue growth of 9% quarter-on-quarter
IP volumes increased 4% year-on-year
OP footfall grew 12.5% year-on-year
ARPOB increased from INR 17.5 million to INR 19.5 million (annualized) year-on-year
Doctors and nursing costs decreased by 1.9% QoQ due to operating leverage
IP footfalls grew 6% quarter-on-quarter and 4% year-on-year
International patients contribute 6-7% of hospital revenue, mainly from Bangladesh

Insurance and Clinic Businesses:

Combined loss reduced from INR 33 crores last quarter to INR 22 crores this quarter
Health insurance loss: INR 14 crores (down from INR 19 crores last quarter)
Clinic loss: INR 8 crores (down from INR 14 crores last quarter)
Clinic business will be merged into hospital business going forward
Cayman insurance losses reduced from $3.7 million to $1.1 million quarter-on-quarter

UK Operations:

Facing NHS revenue commissioning challenges and external patient acquisition issues
Focus on growing non-NHS revenue sources (private insurance and self-pay)
Implementing cost efficiencies through GCC setup and digital platform implementation
Working on regulatory certification for Athma digital platform (4-5 months away)

Cayman Operations:

Hospital business performing well but growth constrained by island size
Focusing on integrated care strategy and international patients from Caribbean region
Best days of growth are behind due to market size limitations

Other Business Updates:

Group ROCE between 15-16% due to investments in Cayman, UK, and India capex
635 beds planned for addition in FY28 (quarterly guidance to be provided one quarter in advance)
ALOS currently at 4.3-4.5 days, targeting 4-4.1 days over next 4-6 quarters
Occupancy traditionally calculated at 60-65% but company focuses on throughput model
Oncology represents ~15% of India hospital revenue; drug price caps effective November 9, 2026