ICRA has reaffirmed and revised Narayana Hrudayalaya Limited’s credit ratings. The long-term rating is reaffirmed at [ICRA]AA (Stable) and short-term rating revised to [ICRA]AA (Stable). The ratings reflect the company’s established position in the healthcare sector, brand equity, geographically diversified presence across India, and strong financial profile. Capacity expansion plans are underway, with projected capital expenditure of ₹700-800 crore in FY2026.
Revised Credit Ratings
ICRA has reaffirmed and revised Narayana Hrudayalaya Limited’s credit ratings. The long-term rating is reaffirmed at [ICRA]AA (Stable) and short-term rating revised to [ICRA]AA (Stable).
Key Rating Drivers
The ratings consider Narayana Hrudayalaya Limited’s established position in the healthcare sector and the significant brand equity of the ‘Narayana Health’ brand. The ratings also derive comfort from the geographically diversified presence of the Group across India. NHL enjoys a strong market position in the healthcare services industry as an established brand, especially in the cardiac and renal sciences segments.
Financial Performance
In FY2025 and H1 FY2026, NHL witnessed YoY revenue growth of 12.1% and 15.0%, respectively, supported by a steady increase in its ARPOB, improvement in the payor mix, and the launch of new hospitals and clinics. NHL’s operating profit margin (OPM) remained healthy at 23.4% in FY2025 and 23.5% in H1 FY2026.
Expansion Plans
The Group has started investing aggressively in capacity expansion and plans to incur capex of around ₹700-800 crore in FY2026 and ₹1,400-1,450 crore in FY2027. The company completed the acquisition of Practice Plus Group Hospitals Limited (PPGHL) in November 2026 for around ₹2,200 crore.
Rating Sensitivities
A significant improvement in earnings, debt metrics, and liquidity position may result in a long-term rating upgrade. Pressure on the ratings may emerge in case of a material deterioration in profitability and debt metrics. ICRA expects the Group to meet its near-term and medium-term commitments through internal accruals and incremental debt.
Source: BSE
