Healthcare – Apr-Jun’26 Earnings Preview – Healthy quarter aided by bed additions
Published on 09 Jul 2026
Q1FY27 is expected to be healthy quarter for our coverage hospitals, driven by ramp up of recently added new beds, steady improvement in base-business and commercialization of new beds. We estimate the sector to deliver ~22% YoY EBITDA growth (up 3% QoQ), supported by new bed additions and steady ARPOB growth. Occupancy, however, is likely to see some near-term pressure from newly added beds alongside a hit to international footfalls from the Middle East conflict. Despite initial losses at new units, healthy ARPOB momentum, improving operating leverage, CGHS rate hikes and continued bed additions keep the medium-term growth outlook intact. Our top picks are APHS, FORH, HCG and RAINBOW.
