Nephrocare Health Services – Management Meet Update – Dominant player in dialysis – Not Rated
Published on 20 Mar 2026
We recently met the management of Nephrocare Health Services (NEPHROPL IN) to discuss dialysis market opportunity, international expansion plans and profitability outlook. Led by its leadership position in an underpenetrated dialysis market, rapid clinic expansion and growing global footprint, NEPHROPL continues to see strong volume growth, improving utilization and operating leverage. EBITDA margin expanded ~1,280bps to 23.9% over FY23–9MFY26, and with a disciplined expansion strategy, NEPHROPL is well positioned for sustainable earnings growth and gradual ROCE improvement. The management has guided for 15–20% revenue CAGR over the next 3–4 years, supported by operating leverage, improving payor mix and maturing of new centers.
NEPHROPL reported strong growth in 9MFY26, with revenue/adj EBITDA/adj PAT surging by 36.6%/52.1%/103.3% YoY, alongside annualized pre-tax RoCE of ~24.7%. The company is currently trading at ~21x EV/EBITDA on FY26E. We don’t have a rating on the stock.
