Narayana Hrudayalaya (NARH IN) – Q3FY26 Result Update – Another strong quarter across India & Cayman – BUY
Published on 18 Feb 2026
Narayana Hrudayalaya (NARH) reported strong EBITDA of Rs4.4bn (up 44% YoY) adjusted for one time cost, 7% above our estimates driven by robust performance across India and Cayman operations along with consolidation of UK subsidiary. The Cayman business reported profitability of Rs1.88bn (up 42% YoY) adj for CHIL losses. India business reported healthy EBITDA adjusted for NHIC losses, up ~24% 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 6-7%. We maintain ‘BUY’ rating with a TP of Rs2,150/share, based on 23x EV/EBITDA for India business and 15x EV/EBITDA for international operations based on FY28E.
