Narayana Hrudayalaya reports 13.5% revenue growth in Q3 FY25 amid healthcare expansion

Narayana Hrudayalaya Limited, one of India‘s leading healthcare providers, has reported a 13.5% year-on-year (YoY) increase in consolidated operating revenue, reaching ₹13,667 million for the third quarter (Q3 FY25) ending December 31, 2024. The company’s financial performance remains strong despite seasonal fluctuations, with earnings before interest, tax, depreciation, and amortisation (EBITDA) rising 9.6% YoY to ₹3,254 million, reflecting stable operational efficiency. Net profit (PAT) grew 2.6% YoY to ₹1,931 million, supported by steady patient volumes and robust revenue growth across Indian and international operations.

How Did Narayana Hrudayalaya’s Financial Performance Compare to Previous Quarters?

Narayana Hrudayalaya’s revenue growth has been primarily driven by steady patient volumes across its facilities in India and the Cayman Islands. In India, operating revenue reached ₹10,873 million, marking a 13.4% YoY increase. The Cayman Islands segment showed even stronger growth, reporting ₹2,935 million in revenue, up 14% YoY and 21.1% quarter-on-quarter (QoQ), highlighting the increasing contribution of its international business.

Despite these revenue gains, the EBITDA margin for Q3 FY25 stood at 23.8%, down from 24.7% in Q3 FY24, indicating slight cost pressures. Meanwhile, PAT margins declined from 15.6% to 14.1%, reflecting higher expenses and international patient volume fluctuations. On a sequential basis, total revenue dipped 2.4%, while EBITDA fell 2.0%, largely due to seasonal trends and holiday-related lower patient volumes.

The company maintains a healthy balance sheet, with a net debt position of ₹2,837 million and a debt-to-equity ratio of 0.08. A significant portion of this debt, US$85 million, is denominated in foreign currency, reflecting Narayana Hrudayalaya’s global footprint.

What Key Medical Advancements and Expansions Drove Growth?

Narayana Hrudayalaya continues to advance its clinical expertise and technological capabilities. The Narayana Institute of Cardiac Sciences (NICS) in Bengaluru has performed 93 robotic cardiac surgeries and 34 transcatheter aortic valve implantations (TAVI) during the quarter, reinforcing its position as a leader in cardiovascular care.

At Mazumdar Shaw Medical Centre (MSMC), Bengaluru, the hospital conducted its first-ever total shoulder replacement surgery and carried out 15 successful renal transplants, further strengthening its orthopedic and nephrology specializations. The Rabindranath Tagore International Institute of Cardiac Sciences (RTIICS) in Kolkata achieved a significant milestone by performing a mechanical thrombectomy on a critically ill patient on ECMO support, an exceptionally rare procedure with only five documented cases globally.

The group is also focusing on enhancing patient experience through digital integration. At MMI Narayana Super Speciality Hospital in Raipur, self-service kiosks for patient registration, payments, and appointments were introduced, leading to an 85% adoption rate for consultation bookings and a 5% increase in online payments, streamlining the patient journey and reducing wait times.

What Are the Management’s Views on Future Growth?

Dr. Emmanuel Rupert, Managing Director and Group CEO of Narayana Hrudayalaya, emphasized the company’s long-term strategy despite seasonal fluctuations impacting quarterly performance. He noted that while international patient volume saw a sharp drop in Q3, domestic patient footfall remained stable, ensuring steady revenue streams.

He highlighted the progress in the Cayman Islands, where the new hospital’s outpatient services were fully operational in December 2024, with inpatient facilities expected to be commissioned in phases. This facility is projected to become a key growth driver for Narayana Hrudayalaya’s international expansion in the coming years.

The company’s NH Integrated Care division continues to witness strong momentum, with increased patient transactions contributing to revenue expansion. Management remains confident that full-year financial targets will be met, underpinned by the performance of existing hospitals and the contribution from new ventures.

When and How Can Investors Join the Q3 FY25 Earnings Call?

Following the release of its financial results, Narayana Hrudayalaya has scheduled a conference call on Tuesday, February 18, 2025, at 3:00 PM IST, where senior management will discuss financial performance and business outlook. Investors and analysts can participate via Zoom, using Meeting ID: 817 3620 7431 and Passcode: 551153. The call will provide further insights into the company’s strategic direction, operational updates, and expansion plans.

What Sets Narayana Hrudayalaya Apart in the Healthcare Industry?

Founded in 2000 by Dr. Devi Prasad Shetty, Narayana Hrudayalaya has grown into a leading multispecialty healthcare provider in India, renowned for its affordable, high-quality medical care. Headquartered in Bengaluru, the company operates 19 hospitals and 2 heart centers across India, along with an expanding presence in the Cayman Islands. With over 5,900 operational beds and a total capacity exceeding 6,300 beds, the group is well-positioned for sustained growth.