Hospitals – Oct-Dec’25 Earnings Preview – Healthy growth despite weak season
Published on 06 Jan 2026
Q3FY26 is seasonally weak for hospitals due to festive-led slowdown in elective procedures, leading to sequential softness in occupancies. Despite this, the hospital companies under coverage are expected to deliver healthy ~18% YoY EBITDA growth, supported by strong ARPOB growth and stable underlying demand. Sequentially, EBITDA is likely to decline ~4% QoQ, driven by 150–400 bps occupancy drop and losses from new and recently commissioned units. While Q3FY26 will reflect seasonal and capacity-led pressures, strong ARPOB momentum, improving operating leverage, CGHS rate hikes, and sustained capacity additions position the sector for accelerated growth over the medium term. Our top picks are MAXHEALT, ASTERDM, FORH and HCG.
