Synopsis: This mid-cap healthcare company’s management had given its guidance, in which they highlighted the wage hike, inflation, currency volatility, and international operations and how this will affect the company in the coming future. Let us see what more the company had to say about its future outlook.
This company ,which is engaged in providing economical healthcare services and has a network of multispecialty and superspecialty hospitals spread across multiple locations, had its management give guidance about the company’s future operational outlook with issues like the new labour laws.
With the market cap of Rs 37,400 crore, the shares of Narayana Hrudayalaya Ltd have closed at Rs 1,830. The shares have given a return of more than 310% over the last 5 years and are trading at a PE of 44, whereas their industry PE is 52.5.
Company guidance:
Narayana Health has indicated that it will take a careful and patient-focused approach to pricing in the coming year, keeping price increases in very low single digits despite rising costs. Management acknowledged that the healthcare sector continues to face pressure from both insured and cash-paying patients, making sharp price hikes difficult.
At the same time, wage inflation, which is driven by the new labour code and regular salary increases, along with currency volatility impacting imported medical equipment, is expected to remain a key cost challenge.
To offset these pressures, the company is seeing continued benefits from its investments in technology, which have helped improve efficiency and control costs. A growing share of complex and high-end medical procedures is also supporting overall pricing and margins.
On the insurer front, negotiations remain ongoing through the year and involve some push and pull, but management believes constructive dialogue has helped reach balanced outcomes. Industry bodies and government-led discussions are also helping address broader issues where insurer behaviour could affect patient access.
Internationally, Narayana Health said the integration of Practice Plus Group (PPG) in the UK is progressing well, with revenues showing a strong trend supported by leadership continuity. While the UK business currently operates at lower margins than India, management sees scope to improve profitability over time through better use of technology and an improved payer mix, including higher private-pay utilisation.
The company cautioned that consolidated margins may face near-term pressure due to UK integration costs and seasonal weakness in the third quarter but remains confident of a strong fourth-quarter performance in India.
The revenue from operations is at Rs 1,644 crore in Q2 FY26 versus Rs 1,367 crore in Q2 FY25, which is a growth of about 20 percent. Similarly, the net profit has increased from Rs 199 crore in Q2 FY25 to Rs 258 crore in Q2 FY26, which is a growth of about 30 per cent.
Narayana Hrudayalaya Limited is a well-established healthcare provider in India, operating a broad network of multi-specialty and super-specialty hospitals across the country. Since its incorporation, the company has been guided by a clear vision of improving the quality of healthcare available to citizens, with a strong focus on patient-centric and affordable care. It has built a reputation for clinical excellence, especially in specialised and critical treatments.
Alongside its hospital operations, the company is steadily expanding into health insurance and preventive care, reflecting its emphasis on long-term health outcomes.
By using its in-house hospital operating systems, Narayana Hrudayalaya has enhanced efficiency, enabled paperless operations, and improved access to patient data. Its focus on technology, specialised care programs, and integrated healthcare delivery continues to strengthen its position in India’s healthcare landscape.
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