Max Healthcare Expands Capacity Pipeline with Gurgaon and Lucknow Projects; Enters Eastern India Through Kalinga Hospital Acquisition

Published at : Sep 05, 2026 07:29 AM (IST)

Total Views : 59

Max Healthcare Expands Capacity Pipeline with Gurgaon and Lucknow Projects; Enters Eastern India Through Kalinga Hospital Acquisition

Max Healthcare is accelerating its expansion strategy with over 20% brownfield capacity rollout, a 500-bed Gurgaon greenfield hospital, and Board approval for a Rs. 1,400 crore, 700-bed hospital in Lucknow.

The company has also entered Eastern India through the acquisition of Kalinga Hospital in Bhubaneswar, while reporting its 22nd consecutive quarter of year-on-year growth in revenue and operating EBITDA.

The Print Times

Max Healthcare Institute Limited has outlined an aggressive expansion strategy encompassing brownfield and greenfield capacity additions, a major hospital acquisition in Eastern India, and sustained financial growth, according to Mr. Abhay Soi, Chairman and Managing Director, during the company's Q4 & FY26 Earnings Conference Call.

Max Healthcare Institute Limited (“Max Healthcare”) is one of India’s largest healthcare organisations. Max operates 21 Facilities, 6100+ Bed Capacity, 30+ Specialities, and 6200+ Clinicians across NCR Delhi, Haryana, Punjab, Uttarakhand, Maharashtra, and Uttar Pradesh. Almost 85% of our Bed Capacity is located in Metro and Tier-1 Cities. Apart from hospitals, Max Healthcare also operates a Homecare Business and a Pathology Business under the brand names Max@Home and Max Labs, respectively. Max@Home offers Health and Wellness Services at Home, while Max Labs provides Pathology Services outside our Hospital Network.

Mr. Soi said the company has commissioned, in phases, more than 20% additional brownfield capacity across its hospitals in Mohali, Nanavati (Mumbai), and Max Smart Hospital (Delhi) over the last two quarters. All the newly added beds are expected to become operational over the next two to three months.

He added that Max Healthcare expects to add another 10% capacity with the commissioning of its 500-bed greenfield hospital in Gurgaon during the year. The company has already recruited both clinical and non-clinical staff for these facilities and expects significant operating leverage as the new capacities are progressively ramped up.

Strengthening its national footprint, Max Healthcare has also completed the acquisition of a controlling stake in Kalinga Hospital Limited, marking its entry into Eastern India.

Kalinga owns and operates a 250-bed hospital on a 10-acre land parcel in Bhubaneswar, providing the company with an established clinical platform and substantial scope for future expansion. Mr. Soi said the company has finalized plans to revamp and expand the existing facility.

In another major investment decision, the Board has approved an investment of Rs. 1,400 crore for the construction of a 700-bed greenfield hospital at Shaheed Path, Lucknow. According to Mr. Soi, the investment reflects the company's confidence in the region following encouraging performance from its existing Lucknow operations. The proposed facility is expected to significantly expand bed capacity and strengthen Max Healthcare's presence in one of North India's key healthcare markets.

Commenting on the company's performance, Mr. Soi said Max Healthcare recorded its 22nd consecutive quarter of year-on-year growth, with network revenue increasing 10% and operating EBITDA rising 8% during Q4 FY26.

Looking ahead to FY27, the company's priorities include ramping up newly commissioned capacities, integrating Kalinga Hospital into the network, and advancing expansion projects, including the Gurgaon Sector-56 hospital. He noted that the company's existing hospital network continues to provide a stable foundation supported by strong clinical capabilities and disciplined execution.

During the quarter, the network maintained an average occupancy of over 75%, despite the increase in operational bed capacity, with most hospitals operating near optimal utilization levels.

Occupied Bed Days (OBDs) increased 8% year-on-year and 4% quarter-on-quarter, while the Average Length of Stay (ALOS) rose 9% compared with the corresponding quarter last year, primarily due to the simultaneous rollout of additional capacity across multiple locations.

The Average Revenue Per Occupied Bed (ARPOB) stood at Rs. 77,900 during the quarter, reflecting the impact of higher ALOS and the discontinuation of select high-value chemotherapy drugs for institutional patients.

Network gross revenue reached Rs. 2,664 crore, compared with Rs. 2,429 crore in the corresponding quarter last year and Rs. 2,608 crore in the previous quarter, representing 10% year-on-year and 2% sequential growth.

The company said the discontinuation of select high-value chemotherapy drugs reduced oncology's share in inpatient revenues to 21%, compared with 26% in Q4 FY25 and 24% in Q3 FY26. Excluding oncology, gross revenue grew 15% year-on-year and 5% quarter-on-quarter.

Max Healthcare's strategic business units also continued to deliver steady growth. Max@Home reported revenues of Rs. 73 crore, registering 30% year-on-year growth. The business now offers 16 specialised service lines across 15 cities, with more than 56% repeat transactions.

Meanwhile, Max Lab posted revenues of Rs. 52 crore, up 14% year-on-year. The diagnostics business now operates in more than 60 cities and served nearly six lakh patients during the quarter.
 

Published at : Sep 05, 2026 07:29 AM (IST)

Total Views : 59