Narayana Hrudayalaya held its Q2 FY26 earnings call on November 17, 2025. Key topics included Cayman Islands’ strong revenue growth, payer-mix optimization, and capacity expansion plans. The company discussed its focus on efficiency, profitability, and strategic investments in technology and international markets. The management team addressed questions on margins, insurance business performance, and future outlook.
Cayman Islands Performance
The Cayman Islands operations are performing exceptionally well, with a 70% revenue growth. The insurance product has seen a very positive response with most large employers actively moving or considering moving to it. Revenue has doubled compared to the previous quarter. Revenue on the hospital side increased from $25 million to $40 million following the commissioning of the new hospital. A 50% increase in discharges was observed in volume terms.
India Business and Expansion
The India business is also experiencing scale-up in clinics and insurance revenue, with declining losses over the past few quarters. Expectation for FY27 is for a much lower loss number for clinics and insurance. The company reduced its total number of beds in India since listing. The company expects roughly INR 2 to 2.5 crore per month increase in pure revenues from CGHS (Central Government Health Scheme).
Strategic Initiatives
The company is focused on payer-mix optimization to improve realizations across hospitals. Transformation initiatives are positively impacting flagship hospitals, with patients opting for higher configuration beds, increasing realization while maintaining occupancy. Focus remains on domestic business. International business has lot of fluctuations.
UK Acquisition and Outlook
Practice Plus acquisition completed, with a focus on collaborative learning with existing management to add value. The acquisition costs will be in UK books at about 5% of the deal value. The integration will also use software and digital capabilities as proven in Cayman. There will be failed experiments along the way as we integrate processes. Investment guidance: over the next three years there is a plan to spend about 3000 crores in India.
Source: BSE