Manipal Hospitals posted a 4.2% decline in net profit for the first quarter of the current financial year, while revenue jumped 38%. Consolidated net profit reached ₹243 crore in Q1FY27, down from ₹254 crore in the same period last year, as disclosed in results released on Thursday.
The drop in profit occurred despite a significant rise in revenue from operations, which increased to ₹3,091 crore from ₹2,238 crore a year earlier. These figures exclude ₹89 crore in post-tax interest on non-convertible debentures used to finance the Sahyadri Hospitals acquisition. After adjusting for this expense, profit after tax grew 30.9% to ₹332 crore.
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Higher patient volumes drove the revenue increase across the hospital network. Average Revenue per Occupied Bed, excluding the Sahyadri business, rose to ₹77,200 per day, an 8.7% year-over-year improvement. This gain indicates stronger income from existing capacity rather than expansion alone.
Operating earnings also improved, with EBITDA climbing 26.4% to ₹749 crore. When accounting for a ₹15 crore one-time gain in the prior-year quarter, the growth rate approached 30%, reflecting better underlying performance.
The quarter also followed Manipal Health Enterprises’ public-market debut. The company’s IPO was subscribed 4.92 times, with qualified institutional buyers bidding for 8.25 times the shares available in their category. Ahead of the issue, the company had raised ₹4,167.09 crore from anchor investors through the allotment of shares to 133 investors. The Sahyadri acquisition remains relevant to the company’s financial performance, with the interest cost on the acquisition-related non-convertible debentures excluded from the reported profit figure when calculating adjusted performance.
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For the full financial year ended March 2026, the company reported consolidated sales of ₹10,935.62 crore and a net profit of ₹654.93 crore.
Balancing growth with profitability remains a key challenge. The company’s expansion strategy has relied on acquisitions, but each deal introduces integration risks and financing costs. Improving operational efficiency across the enlarged network may determine whether the current revenue surge can sustain profit growth.
