Narayana Hrudayalaya Q1 FY27 Results Analysis: PAT Jumps 58%, EBITDA Margin Compresses 511bps (NH)

Narayana Hrudayalaya Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 2,683.63 Cr (+78.05% YoY) and PAT growth of +5.72% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Standalone India business delivered strong 16.3% revenue growth and 57.8% PAT growth with expanding margins, indicating healthy core operations. However, consolidated results are weighed down by UK acquisition margin dilution (EBITDA margin compressed 511bps YoY) and a widening insurance loss (Rs.62.5 Cr per quarter). The UK integration trajectory and insurance turnaround are critical for future performance.

Key Investment Insights

Key Positives

• Standalone revenue grew 16.3% YoY to Rs.1,097 Cr
• Standalone PAT grew 57.8% YoY to Rs.137.85 Cr
• Standalone EBITDA margin expanded 385 bps YoY to 24.57%
• Consolidated revenue grew 78% YoY to Rs.2,683.6 Cr, driven by full quarter of UK acquisition
• Debt/equity improved sequentially from 1.29x to 1.24x
• No exceptional items in Q1 FY27; auditor's report clean
• Medical supplies cost improved to 19.16% of revenue from 20.29% YoY

Risk Factors

• Consolidated EBITDA margin compressed 511 bps YoY and 197 bps QoQ to 18.82%
• PAT-to-owners grew only 5.35% despite 78% revenue growth
• Insurance segment loss widened to Rs.62.5 Cr from Rs.24 Cr YoY, annualising ~Rs.250 Cr drag
• Medical segment margin compressed sequentially to 14.73% from 16.66%
• Finance costs rose 92% YoY to Rs.86.8 Cr due to UK acquisition debt