Narayana Hrudayalaya (NARH IN) – Q1FY27 Result Update – Strong India quarter offset by headwind in UK & Cayman – BUY
Published on 04 Aug 2026
Narayana Hrudayalaya (NARH) reported 39% YoY EBITDA growth at INR4.7bn, 9% below PLe, impacted by headwind in UK & Cayman business. We expect profitability to improve across UK and Cayman as Q1 operations have been impacted by seasonality. India business continues to register another strong quarter with 40% YoY EBITDA growth. The management reiterated its aggressive capex plan and commitment toward growing throughput over the next 3-4 years through debottlenecking, refurbishment and better bed mix. In the medium term, NARH intends to add ~1,535 beds over the next 3 years through greenfield and brownfield expansion across Bengaluru, Kolkata and Raipur. Our FY27E and FY28E EBITDA marginally stands cut by 1-3%. We maintain ‘BUY’ rating with TP of INR2,350/share, based on 25x EV/EBITDA for India business and 15x EV/EBITDA for international operations based on FY28E.
