Narayana Hrudayalaya (NARH IN) – Q2FY26 Result Update – EBITDA beat aided by India operations – BUY
Published on 19 Nov 2025
Narayana Hrudayalaya (NARH) reported strong EBITDA of Rs4.1bn (up 32% YoY) in Q2FY26, 8% above our estimates driven by robust performance across India and Cayman operations along with reduced losses in the insurance business. The Cayman business reported profitability of Rs1.56bn (up 58% YoY), adjusted for CIHL losses, up 61% YoY. India business reported healthy EBITDA adjusted for NHIC losses, up ~21% YoY. The management reiterated its aggressive capex plan and commitment towards growing throughput over the next 3-4 years through debottlenecking, refurbishment and better bed mix. In the medium term, NARH intends to add +1,500 beds expansion over next 3 years through greenfield and brownfield across Bengaluru, Kolkata and Raipur. Our FY27E and FY28E EBITDA stands increased by 15-17% as we factored in UK acquisition while PAT largely remain unchanged. We maintain ‘BUY’ rating with a TP of Rs2,100/share, based on 26x EV/EBITDA for India business and 15x EV/EBITDA for international operations based on Sept 2027E.
