Narayana Hrudayalaya Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Narayana Hrudayalaya Ltd filed with BSE on 02 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Narayana Hrudayalaya reported growth in India hospital margins to 25.1% for the quarter versus 21.5% a year earlier, while the UK (Practice Plus Group) business remains in a transition phase with reclassified costs and a consolidated EBITDA margin diluted to around 20%, which management said normalizes to slightly over 22% after excluding one-time acquisition costs. Management discussed the Cayman Islands insurance business posting losses of approximately USD 5 million for the quarter with a loss ratio of about 110% to 112%, alongside continued hospital revenue growth there. The company also addressed capex plans, clinic business losses, and expansion projects across Rajarhat, HSR, Raipur and Bangalore targeted for FY28.
2 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
India hospital margin: 25.1% (Q4 FY26)
p. 9
“That has been consistently increasing, like, let's say, for last year same quarter, you reported 21.5% margin, and now it's 25.1%.”
Raman, page 9 of the filed PDF · View the filing
Clinics and insurance losses: INR 66 crores (FY26)
p. 5
“If you look at the clinics and insurance losses, it has remained flat around INR 66 crores loss in FY26.”
Prithivaj, page 5 of the filed PDF · View the filing
Robotic cardiac surgery volume: almost 100 cases per month
p. 5
“So if you see that we have gone very high in the robotic cardiac surgery, we do almost 100 cases per month.”
Dr. Emmanuel Rupert, page 5 of the filed PDF · View the filing
Percutaneous aortic valve reimplantation procedures: around 160 procedures
p. 5
“We did around 160 procedures of that nature in the Bangalore facility alone.”
Dr. Emmanuel Rupert, page 5 of the filed PDF · View the filing
UK EBITDA margin: 10% (Q4 FY26)
p. 9
“And now at the end of the Q4, for the quarter ending this -- for the previous quarter, the margins have increased to 10%.”
Raman, page 9 of the filed PDF · View the filing
Cayman Islands insurance loss ratio: approximately 110% to 112%
p. 15
“So it's approximately about 110% to 112% is the loss ratio, which is essentially claims paid divided by premiums collected net of reinsurance.”
Anesh Shetty, page 15 of the filed PDF · View the filing
Overheads with UK: 23%
p. 19
“And with U.K., we'll see a 23% number.”
Sandhya J, page 19 of the filed PDF · View the filing
Consolidated EBITDA margin dilution: over 500 basis points (Q4 FY26)
p. 19
“the baseline EBITDA margin has dropped by over 500 basis points this quarter.”
Nishant Singh, page 19 of the filed PDF · View the filing
Normalized consolidated EBITDA margin: around 22%
p. 19
“So, the effective dilution is about 300 bps. So normalized margin around 22%.”
Sandhya J, page 19 of the filed PDF · View the filing
India revenue growth: 10.2% (FY26)
p. 20
“On Slide number 15 of the IR deck, India ops for FY '26, in spite of a 10.2% Y-o-Y growth, the other expenses in percent stays at 18% of revenue, why is operating leverage not showing up here?”
Nishant Singh, page 20 of the filed PDF · View the filing
Overheads growth: about 8% (FY26)
p. 20
“See, actually, with the 10% revenue growth, our overheads has gone up by about 8%.”
Sandhya J, page 20 of the filed PDF · View the filing
Other income (standalone): INR127 crores (Q4 FY26)
p. 20
“The next question is the other income stand-alone for Q4 is INR127 crores.”
Nishant Singh, page 20 of the filed PDF · View the filing
Dividend from Cayman to India within other income: INR 94 crores (Q4 FY26)
p. 20
“That INR127 crores has INR 94 crores of dividend that has been received from Cayman to India.”
Sandhya J, page 20 of the filed PDF · View the filing
FY26 greenfield capex: INR 109 crores (FY26)
p. 23
“The next question is FY26 greenfield capex is only INR 109 crores against INR 424 crores planned, 75% to 74% miss.”
Nishant Singh, page 23 of the filed PDF · View the filing
Total proposed project capex: INR 3,000 crores
p. 23
“The next is based on the disclosures in Slide 22 of the deck, the total capex for projects proposed INR 3,000 crores.”
Nishant Singh, page 23 of the filed PDF · View the filing
Greenfield organic capex: INR 460 crores
p. 23
“Same slide also mentions greenfield organic capex is INR 460 crores.”
Nishant Singh, page 23 of the filed PDF · View the filing
UK acquisition loan: GBP 150 million (7 years)
p. 12
“if I'm not mistaken, we took out the GBP 150 million loan for 7 years for the UK business acquisition, right?”
Shaswat Singh, page 12 of the filed PDF · View the filing
Northern cluster growth: 7%, 5% (FY26)
p. 23
“Northern cluster grew 7%, 5% in FY '26.”
Viren Shetty, page 23 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Cayman insurance losses — next 3 quarters
stated conditionally by Anesh Shetty
p. 15
“So, we should start seeing these come down significantly over the next 3 quarters or so.”
Anesh Shetty, page 15 of the filed PDF · View the filing
Cayman insurance price increases — 30% to 35% of the accounts · June
stated firmly by Anesh Shetty
p. 15
“but we have price increases kicking in, in June for about 30% to 35% of the accounts.”
Anesh Shetty, page 15 of the filed PDF · View the filing
Number of clinics — double the number of clinics
stated as an aspiration by Viren Shetty
p. 17
“We have a plan to double the number of clinics that we currently have, but the speed at which we do it would be balanced on the other side against the acquisition of those properties, negotiating the rent, doing the fit-outs and also maintaining a steady amount of cash losses in the business so that we don't go overboard.”
Viren Shetty, page 17 of the filed PDF · View the filing
Clinic expansion to Calcutta — FY27
stated firmly by Viren Shetty
p. 17
“And this year, meaning FY27, we will also be expanding to Calcutta.”
Viren Shetty, page 17 of the filed PDF · View the filing
Project commissioning timeline — Rajarhat, HSR, Raipur, Bangalore · FY28
stated firmly by Viren Shetty
p. 23
“The FY '28 goal still remains the case, and a lot of this work can pick up now that things have normalized.”
Viren Shetty, page 23 of the filed PDF · View the filing
SRCC Hospital Mumbai adult program — FY27
stated firmly by Viren Shetty
p. 22
“We will start expanding in SRCC Hospital in Mumbai and adding the adult programs in FY27.”
Viren Shetty, page 22 of the filed PDF · View the filing
UK private-pay revenue share — next 3 to 6 quarters
stated as an aspiration by Anesh Shetty
p. 21
“We hope the benefits will play in over the next 3 to 6 quarters or so.”
Anesh Shetty, page 21 of the filed PDF · View the filing
Kolkata growth deficit recovery — coming 2 to 3 quarters
stated as an aspiration by R. Venkatesh
p. 22
“I'm sure we will be able to cover up this growth deficit, which we have seen over the last few quarters successfully in the coming 2 to 3 quarters here in Eastern region.”
R. Venkatesh, page 22 of the filed PDF · View the filing
Mumbai hospital profitability
stated conditionally by Sandhya J
p. 24
“We do believe that we will be able to turn around the profitability profile of the Mumbai hospital once the adult program comes in.”
Sandhya J, page 24 of the filed PDF · View the filing
ROCE and ROE recovery — long-term
stated as an aspiration by Sandhya J
p. 24
“So we do believe that eventually the ROCE and ROE will recover on all 3 businesses put together, but we have to go through that phase to fuel growth and fuel expansion.”
Sandhya J, page 24 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management confirmed all pharmacies and related entities are part of the listed company's P&L or wholly owned subsidiaries.
Answered by Viren Shetty
Asked by Sajal Kapoor: Does the listed entity's shareholders benefit from pharmacy and related-party businesses like Samyat Healthcare?
p. 4
“All the pharmacies of all the hospitals and all the clinics are part of the P&L of the NHL listed entity.”
Viren Shetty, page 4 of the filed PDF · View the filing
Management explained losses persist due to new clinic additions and corporate overheads, expecting a similar cash burn to continue.
Answered by Sandhya J
Asked by Prithviraj: Why has the clinics and insurance loss not declined as expected?
p. 6
“So you have to assume that a similar run rate of cash burn will continue on the clinics going into next year as well because we still have a significant ambition in terms of growth of clinics in our core geographies.”
Sandhya J, page 6 of the filed PDF · View the filing
Management attributed gains to transformation initiatives, higher-end procedures, and technology, while noting caution due to macro headwinds.
Answered by R. Venkatesh
Asked by Raman: Where is the India business margin expansion coming from, and is 25% sustainable?
p. 10
“we are very confident in terms of the margins, and we can see that the gains are sustainable, but we also need to see that currently with a lot of headwinds, including the environment being volatile with several moving parts around us in terms of the cost of crude and the dollar.”
R. Venkatesh, page 10 of the filed PDF · View the filing
Management attributed discrepancies to reclassification of expenses and a partial quarter's data at acquisition.
Answered by J. Sandhya
Asked by Rajit Aggarwal: Why do UK cost figures across slides not reconcile cleanly?
p. 14
“we took a part quarter handover, so the costs on the baseline of Q3 are not representative of the underlying cost structures, which is why we requested a couple of more quarters for us to be able to report these numbers more accurately and be able to explain the movements.”
J. Sandhya, page 14 of the filed PDF · View the filing
Management said the business scaled faster than expected and losses should reduce with price increases and account changes.
Answered by Anesh Shetty
Asked by Prithvi Raj: What explains the scale of Cayman insurance losses and outlook going forward?
p. 14
“So the ramp-up in the insurance business has happened far quicker than we anticipated.”
Anesh Shetty, page 14 of the filed PDF · View the filing
Management said cash flow, not reported PAT, is used to assess loan servicing capability, citing non-cash amortization effects.
Answered by Sandhya J
Asked by Shaswat Singh: Are UK business profits sufficient to service the acquisition loan?
p. 13
“On a cash flow basis, if you see cash PAT, we are able to service the loan.”
Sandhya J, page 13 of the filed PDF · View the filing
Management declined to give explicit guidance but said they aim to maintain their pace of growth, aided by new hospitals.
Answered by Viren Shetty
Asked by Nishant Singh (reading investor question): What is the long-term revenue growth target?
p. 23
“Again, we're not giving guidance, but we're trying to maintain the pace of growth in our business.”
Viren Shetty, page 23 of the filed PDF · View the filing
Risks flagged
Currency and cost-baseline uncertainty in UK reporting due to partial-quarter data and ongoing IT/cost separation from the seller
p. 9
“We have not fully separated from the seller. IT separation is still underway and costs are still getting grounded for us.”
J. Sandhya, page 9 of the filed PDF · View the filing
Cultural and integration risks from the UK acquisition
p. 8
“there are cultural integration risks, understanding local nuances.”
Anesh Shetty, page 8 of the filed PDF · View the filing
High inflation in overheads including power costs and minimum wages eroding operating leverage
p. 20
“Power costs have gone up across the board and minimum wages have gone up across the board.”
Sandhya J, page 20 of the filed PDF · View the filing
Construction cost inflation impacting capex
p. 11
“the capex is higher for 2 reasons. One is just naturally construction cost today is 60% higher than it was 5 years ago.”
Viren Shetty, page 11 of the filed PDF · View the filing
Competitive intensity in the Northern cluster limiting growth
p. 23
“it is no surprise to us and to the investors that North has been extremely challenging region for us.”
Viren Shetty, page 23 of the filed PDF · View the filing
Delays in greenfield capex due to election-related labor shortages and permission delays
p. 23
“The miss was due to a lot of the election-related issues in that it was impossible to get construction workers to come for a large amount of time.”
Viren Shetty, page 23 of the filed PDF · View the filing
Cayman insurance business claims experience leading to slower client addition
p. 16
“Also, given the claims experience in the insurance business, we are slowing down the new client addition.”
Anesh Shetty, page 16 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.