Narayana Hrudayalaya Ltd Q4 FY26 Results Analysis: Revenue Surges 75.8%, EBITDA Margin Compresses 530 bps

CompoundingAI Research Updated May 22, 2026 2 min read

Neutral

Narayana Hrudayalaya Ltd's Q4 FY26 numbers came in mixed, with revenue of Rs. 2,593.81 Cr (+75.80% YoY) and PAT growth of +13.50% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	May 22, 2026
Quarter	Q4 FY 2025-2026
Revenue (Q4)	Rs. 2,593.81 Cr (+75.80% YoY)
PAT (Q4)	Rs. 223.99 Cr (+13.50% YoY)
EBITDA margin	20.80% (-530 bps YoY)
EPS (Q4)	Rs. 11.02 (+13.50% YoY)
Market cap	Rs. 37,938.88 Cr
CMP	Rs. 1,854.35

Quarter Snapshot

NH posted strong 75.8% YoY revenue growth in Q4 FY26 driven by the UK Practice Plus acquisition, but EBITDA margin compressed 530 bps to 20.8% and PAT grew only 13.5% YoY, reflecting integration costs and higher finance burden. Cash flow quality was excellent with CFO/PAT at 2.01x and positive FCF of Rs.7,460 Mn, though debt/equity deteriorated to 1.29x and insurance losses widened 5x to Rs.1,242 Mn. The quarter was mixed — growth via acquisition vs margin dilution and elevated leverage.

Key Investment Insights

Key Positives

Revenue grew 75.8% YoY in Q4 FY26 to Rs.25,938 Mn, driven by UK acquisition consolidation and Cayman growth
Operating cash flow was Rs.16,212 Mn with CFO/PAT ratio of 2.01x, showing strong earnings quality
Free cash flow was positive at Rs.7,460 Mn despite heavy acquisition capex
Standalone business maintained healthy growth: revenue +13.6% YoY to Rs.39,751 Mn, PAT +26.3% YoY to Rs.5,031 Mn for FY26
Working capital management improved significantly: trade receivables reduced Rs.276 Mn after an increase of Rs.1,852 Mn in FY25
Net Debt/EBITDA of 1.28x was below the stated management target of <2.5x

Risk Factors

EBITDA margin contracted 530 bps YoY to 20.8% due to UK acquisition integration costs and lower NHS margins
PAT grew only 13.5% YoY vs revenue growth of 75.8% — severe earnings lag indicating cost overruns
Employee benefits expense grew 171.8% YoY, far outpacing revenue growth, reflecting UK staff costs
Finance costs increased 124.4% YoY due to debt-funded UK acquisition (GBP 150 Mn borrowings)
Insurance segment losses widened 15x to Rs.1,242 Mn in FY26 from Rs.251 Mn in FY25, with no break-even timeline provided
Debt/Equity deteriorated from 0.67x to 1.29x, with total borrowings jumping 120% to Rs.48,661 Mn