Narayana Hrudayalaya reports strong Q2 FY26 performance, driven by India and Cayman Islands

Narayana Hrudayalaya Limited reported 20% EBITDA growth for its India business in Q2 FY26, attributing this to optimization measures, increased patient footfalls, and higher-configuration bed utilization. The company saw a significant jump in revenue for its Cayman Islands hospital business, from $25 million to $40 million, following the commissioning of a new hospital in January 2025. This growth is expected to moderate to high single-digits after a few quarters.

The insurance product in Cayman has seen aggressive revenue growth, with the total market size estimated at around $300-350 million. While the insurance business is still in its early stages, it is showing signs of stabilization, with management taking a calibrated approach to market share. The company noted a ballpark revenue impact of INR 2 to 2.5 crore per month from CGHS rate hikes, with potential for further increases if other central agencies follow suit.

Strategic initiatives in India, including focus on payer-mix optimization and high-end surgeries, have contributed to increased realizations and improved EBITDAs across hospitals. The Mumbai hospital, transitioning from pediatric-only to a broader program, is expected to see positive EBITDA in Q3 FY26.