Record-Breaking Quarterly Performance
Narayana Hrudayalaya witnessed a significant surge in its share price, climbing over 7 percent during intra-day trading on Monday, November 17. This impressive stock movement came as a direct response to the company's outstanding financial results for the second quarter of fiscal year 2026, ending September 2025. The healthcare services provider announced what it described as its strongest-ever financial performance both in India and at the consolidated level.
Financial Metrics Show Robust Growth
The company demonstrated remarkable financial strength across key parameters. Net profit surged by 29.6 percent year-on-year, reaching ₹258 crore compared to ₹199 crore in the same quarter last year (Q2FY25). This substantial increase was accompanied by an improvement in PAT margin, which expanded to 15.7 percent from the previous year's 14.6 percent.
On the revenue front, Narayana Hrudayalaya posted equally impressive numbers. Consolidated operating revenue grew by 20.3 percent year-on-year to ₹1643.8 crore, up from ₹1366.7 crore in Q2FY25. The company also showed strong sequential growth with revenue increasing by 9.1 percent compared to the previous quarter.
The profitability metrics further underscored the company's strong operational performance. Consolidated EBITDA reached ₹426.5 crore, representing a 28.3 percent increase from ₹332.3 crore recorded in the same period last year. The EBITDA margin also showed improvement, climbing to 25.9 percent versus 24.3 percent in Q2FY25.
Business Segments Driving Growth
The India business played a crucial role in the company's overall performance, with operating revenue increasing by 8.8 percent year-on-year to ₹1234.7 crore. This growth was primarily driven by consistent patient footfalls, an improved payor mix, and successful expansion of the clinics outreach model.
Meanwhile, the Cayman Islands business emerged as a powerful growth engine, delivering spectacular results. Operating revenue from the Cayman operations skyrocketed by 78.1 percent year-on-year to ₹431.6 crore, compared to ₹242.3 crore in Q2FY25. The company reported that both its Cayman hospital and insurance business in the region achieved record-breaking revenues.
The company's financial stability was further evidenced by its debt position. As of September 30, 2025, net debt stood at ₹246.6 crore, resulting in a healthy net debt-to-equity ratio of just 0.06.
Management Optimism and Future Outlook
Dr. Emmanuel Rupert, Managing Director and Group CEO, expressed considerable satisfaction with the quarterly results. He stated that the second quarter marked a period of strong acceleration across both Indian and international business operations.
"We are pleased to report the highest-ever revenue and profitability at both India and the Group level," Dr. Rupert commented. "Strong domestic footfalls, an improved payor mix and momentum in our Clinics outreach contributed to record margins. The Cayman region also delivered robust performance, supported by strong traction in the insurance business."
The CEO also highlighted the growing momentum in the Integrated Care business and domestic insurance vertical. He emphasized the company's commitment to continued investment in these areas, expressing optimism that they would become significant growth drivers for the Narayana Hrudayalaya ecosystem.
Currently, Narayana Hrudayalaya operates an extensive network of 18 hospitals and 2 heart centres across India, along with its international presence in the Cayman Islands. The healthcare provider's network comprises over 5,550 operational beds, with total capacity exceeding 5,900 beds.
Stock Performance Analysis
Following the Q2 results announcement, Narayana Hrudayalaya stock jumped as much as 7.43 percent to reach an intra-day high of ₹1883.90. Despite this recent surge, the stock remains approximately 20 percent below its 52-week high of ₹2,371.60, which it hit in June 2025.
The stock has demonstrated strong recovery momentum, having advanced 52 percent from its 52-week low of ₹1,238.45 recorded in November 2024. Over the past year, the scrip has delivered impressive returns to investors, jumping over 37 percent. More recently, it has added 7 percent in the last six months and 8 percent in the past one month, indicating sustained positive momentum.
