Thank you, Michelle. Good morning, everyone, and thank you for joining us on Max Healthcare's Q2 and H1 FY26 earnings conference call.

We have with us Mr. Abhay Soi, Chairman and Managing Director; Mr.

Yogesh Sareen, Senior Director and Chief Financial Officer; and Mr. Keshav Gupta, Senior Director - Growth, M&A and Business Planning.

We will begin the call with opening remarks from the management, following which we will have the forum open for an interactive Q&A session. Before we begin, I would like to point out that some statements made in today's discussion may be forward-looking in nature and a disclaimer to this effect has been included in the earnings presentation shared with you earlier.

I would now like to invite Abhay to make his opening remarks. Thank you, and over to you, Abhay.

Good morning, everyone, and thank you for joining us on Max Healthcare's second quarter and first half of financial year 2026 earnings call. We are pleased to report that the network has maintained its strong growth momentum through the first half of FY26.

For the second quarter, revenue grew by 21% year on year, while operating EBITDA increased by 23%, thereby extending our track record to 20 consecutive quarters of consistent growth. Importantly, this performance reflects the continued strength of our core operations, with existing units achieving revenue growth of 14% and EBITDA growth of 19%.

Building on this strong performance, we continue to enhance our capacity and service offerings through brownfield expansions. At Mohali, the new 160-bed brownfield tower has been commissioned, including the additional radiation oncology program.

At Nanavati Max, the new 268-bed brownfield tower is set to be commissioned this week. At Max Smart, the new 400-bed brownfield tower will be ready for commissioning within the next 30 days.

Alongside our expansion efforts, we also streamlined our corporate structure. Divestment of hospitals in Chhitra and Anupshahr was completed in September 2025.

Further, the merger of our two wholly owned subsidiaries was approved by the Honorable NCLT, Chandigarh Bench, with an appointed date of October 5th, 2024, which has resulted in a one-time benefit of ₹149 crores during the quarter. After long last, CGHS has revised the prices effective October 13th.

While some of it is still to kick in, we expect a favorable impact of over ₹200 crores once fully implemented. Further, with regard to insurance renewals, there was an impasse with certain players leading to temporary stoppage of cashless facilities.

The same has been resolved. Now coming to the second quarter performance highlights, please note that the term existing units hereafter refers to the network facilities that were operational prior to Q3 FY25, while Jaypee Hospital are categorized as new units.

Average occupancy for the network stood at 77%, compared to 79% in second quarter last year and 76% in the trailing quarter. Existing units reported occupancy levels of over 79%.

Occupied bed days were up by 19% year on year and 4% quarter on quarter. Average revenue per occupied bed for the quarter was ₹77,300, registering a 1% growth year on year.

For the existing units, like-for-like ARPOB grew by 3% year on year and remained stable sequentially. Network gross revenue stood at ₹2,692 crores, compared to ₹2,228 crores in the second quarter last year and ₹2,574 crores in the previous quarter.

This reflects an increase of 21% year on year and 5% versus trailing quarter. Of this, new units contributed to ₹144 crores, while the existing units delivered a 14% like-for-like revenue growth, driven by an increase of 11% in occupied bed days and 3% in ARPOB.

Digital revenue from online marketing activities, web-based appointments and digital lead management rose to ₹803 crores, accounting for approximately 30% of the overall revenue. Website traffic crossed 79 lakh sessions during the quarter, growing by 53% year on year and 15% quarter on quarter.

International patient revenue reached ₹231 crores, registering a growth of 25% year on year and 11% quarter on quarter. Network operating EBITDA stood at ₹694 crores, reflecting a growth of 23% year on year and 13% quarter on quarter.

Of this, new units contributed ₹23 crores, while the existing units delivered 19% like-for-like growth in EBITDA. Network operating EBITDA margin was 26.9% for the quarter.

Existing units reported an EBITDA margin of 27.5%, higher by 90 basis points year on year and 200 basis points sequentially. Annualized EBITDA per bed for the network stood at ₹73 lakhs.

Like-for-like EBITDA per bed for existing units was ₹76 lakhs, reflecting a 7% year-on-year growth. Profit after tax for the network was ₹554 crores, against ₹349 crores in second quarter last year and ₹345 crores in the previous quarter.

This includes one-time favorable tax impact of ₹149 crore pursuant to the merger of Crosslay Remedies and Jaypee Healthcare. Excluding this impact, PAT stood at ₹406 crores, reflecting 16% year-on-year growth.

The network generated free cash flows of ₹291 crores during the quarter. There was a buildup of accounts receivable in the institutional segment, which impacted the cash flow from operations.

₹456 crores was deployed towards ongoing capacity expansion projects and facility upgrades at newer units, while ₹146 crores was distributed as dividend. As a result, net debt for the network stood at ₹2,067 crores, compared to ₹1,755 crores at the end of June 2025.

Continuing our effort to support the local communities, we provided free treatment to approximately 44,000 patients from economically weaker sections of the society worth ₹61 crores at hospital tariff. Both our strategic business units continue to deliver steady growth in revenue and profitability.

Max@Home reported revenue of ₹63 crores, reflecting a robust 20% year-on-year growth. It offers 15 specialized service lines across 15 cities with over 60% repeat transactions.

Max Lab reported a revenue of ₹54 crores, reflecting a 16% year-on-year growth. It provides services in over 60 cities and served more than 6 lakh patients during the quarter.

Now coming to the status of expansion projects: Max Lucknow: the current capacity of the hospital stands at 413 beds, and we expect this to increase to 550 beds by end of this financial year. The onco radiation program, including PET-CT, will be launched in the next two weeks.

500 beds at Sector 56, Gurgaon: the project is progressing well at site, while GRAP had some impact on the pace of work. 100 beds at Max Nagpur: we have received environmental clearance and are awaiting the consent to establish.

We expect to complete the project within 24 months post receipt of the CTE. 397 beds at Patparganj: all approvals have been received and barricading work is complete.

The project is expected to be completed by FY28. 550 beds at Max Vikrant, Saket: the project will start immediately upon commissioning of the 400 beds at Max Smart.

We expect to complete this project within 40 months. 400 beds at Zirakpur, Mohali: project is continuing faster than anticipated and is now expected to be completed by end of calendar year 2027.

140 beds at Max Vaishali: demolition of the existing structure is complete and approvals are in process. We expect to complete this project in 24 months post receipt of the requisite approvals.

500 beds at Thane: master plans for the site have been finalized by the partners. The project is expected to be delivered in 42 months.

250 beds at Pitampura, Delhi: the partner is expecting the building plan approvals during the quarter, post which the project is expected to take 36 months. Finally, moving on to the overview of the company's performance for the first half of financial year 2026: Network gross revenue stood at ₹5,266 crores, reflecting a growth of 24% year on year.

Of this, new units contributed ₹278 crores, while the existing units delivered a 17% like-for-like revenue growth. Overall network operating EBITDA grew by 23% year on year to ₹1,308 crores, translating to a margin of 25.9% and EBITDA per bed of ₹71 lakhs, while existing units delivered an EBITDA margin of 26.5% with EBITDA per bed of ₹74 lakhs.

In the first half, we generated ₹679 crores of free cash flow from operations, after interest, tax, working capital changes and routine capex. ₹891 crores was deployed towards ongoing expansion projects and facility upgrades at newer units.

₹131 crores was spent towards land purchases and brownfield expansions at Max Vaishali, and ₹146 crores was distributed as dividend. With this, we open the floor for any questions that you may have.

Thank you.

Hi. Thank you for the opportunity.

My first question is to Abhay. What we have heard, there has been some senior doctor departure from your team in NCR hospitals.

First, have you rehired the required doctors, and what kind of impact was there, if any?

That level of attrition is normal. You have certain teams always sort of move out, new teams come in almost immediately.

That is what has happened, we don't expect any impact.

Approximately what is the attrition rate in your doctors team, which you said is in line with the normal trend?

1% of doctors, less than 1% of the doctors.

When a new facility comes, another 0.5% happens with this.

Yeah. If some new facility comes, another 0.5%.

I

could say between 1% to 1.5% at best. Anecdotally, if two or three doctors leave or certain doctors leave, it doesn't change.

We've got close to 6,000 doctors, right?

Okay. No impact as such, and then it's a normal trend.

Okay. My second question is on your settlement with issues on the insurance company.

Has all the matters now been put to rest? Do you have any further contract which are coming up for negotiations and there might be some updates there?

Damayanti, first of all, we have whatever we have in terms of these three insurance companies, that we already sorted. Not only sorted for now, but we also sorted for future in the sense that when we conclude this agreement now, we also agreed the next revision with them, right?

Yes, there are other companies also which are up for renewal this time, for example, including GIPSA and other insurance companies. Those negotiations are underway, I would say.

These sort of impasses happen once every few years, and we don't expect a repeat of this.

Okay. We haven't heard such instances in recent past, so that's what I was a bit curious whether things are now put in place for permanently and then we might not see similar situations coming up.

We've had suspension of cashless facilities of others in the past also. That's happened 3 years ago, that's happened 7 years ago.

We had with GIPSA also one point of time.

Everyone has. They resolve.

They typically take a few days to a few weeks, and then it gets resolved.

Okay. One last question.

You said CGHS revision when it happens fully, for your portfolio exposure, that will be additional ₹200 crore kind of revenue which will come in.

That's right.

Okay. Approximately in your portfolio, what has been the tariff increase after this revision comes into effect, very broadly?

Damayanti, I can't give you the numbers of what the increase is, because obviously, it's a negotiation with the insurance companies. I think CGHS is a party player, right?

CGHS is around 10% of the overall revenue would draw off, right? We have around ₹2,000 crores of revenue.

We will have 10% jump up there because of this additional revenue. This is a net increase, because certain medicines, etc., also they've capped the rate.

This will be a net increase.

That's helpful. Thank you.

I'll get back in the queue.

Thanks for the opportunity, sir. Firstly on the international patients side, and such as [unclear]

Am I audible?

Okay. Sorry for that.

Just on the international patients side where the growth has been quite robust even this quarter, almost 25%, if you could just sort of help break down into volume and realization growth?

Most of it will be volume growth. I don't think there's any increase in the ARPOB in that segment.

You can assume that 25% is volume growth.

If you could also elaborate in terms of the geographies, in terms of diversification?

No, broadly the geographies remain the same, like we mentioned in the past. It's Middle East, it's Eastern Europe, it's African cluster and so on.

I don't want to give specific countries because that's privileged information.

Got it, sir. Just lastly on this clarity, the MSSH Saket 400 beds hospital, in terms of the timeline for the commissioning, I probably missed it on the opening remarks if you have already highlighted.

Perhaps you did. Both Max Nanavati, that's the Bombay hospital, is doing deep cleaning there, within this week we're expecting it to be commissioned.

Max Smart within the next 30 days.

Got it. Sir, how do you see the scale-up now that post commissioning not literally in terms of numbers, but in terms of the timeline in terms of ramp-up of occupancy or maybe the EBITDA break-even?

EBITDA break-even is almost immediate. We've stated that in the past also.

In brownfields, you don't have the EBITDA drag like in the greenfield.

Understood, sir. Thanks.

That's it from my side.

Hi. Congratulations for a consistent set of good results.

I had just two questions. One is that your profit growth after correcting is 16% year on year, which lags a little behind EBITDA and revenue growth.

Is there any insight you can provide to us on this?

Obviously you would have seen that the finance costs have gone up, right? Also depreciation has gone up because we have new hospitals added, right, in the quarter three last year.

Their EBITDA margin is lower, and we have borrowings to really fund those acquisitions. I think as the EBITDA growth comes in level with the other hospitals, you'll find that these numbers will also start to grow in the same pattern.

Last year Jaypee wasn't there, right? That's about ₹2,000 crores of acquisition was done.

Okay. My second question was, I wanted your view on ARPOB.

Are you getting a feeling or what is the internal discussion in the company that the rate of growth of ARPOB is becoming slower? At least that's what optically it looks like.

I just want to know whether you accept this assessment from outside is something that you share. If so, is there any discussion on what to do about ARPOB going forward?

The ARPOB growth, it's Y-o-Y 3%, but it's also the impact of the new hospitals that we acquired and we started last year, right? If I take that out for a minute and say all the existing hospital means the one which were operating before December '24, then the ARPOB growth is 7%, right?

It's basically the impact of the mix, which is bringing this number down, because last year Q2, the share of the new hospital has gone up now. For example, Lucknow and Nagpur and Dwarka, and that's what is bringing it down.

On like-to-like basis, we don't have any concerns. It's still in the range of 6% to 7% that we used to have earlier.

Thank you once again and congratulations for a good set of results. I also like the disclosures that you make in your presentations.

They are very comprehensive, we appreciate that as investors. Thank you.

Thank you.

Hi, thank you for taking my call. My first question is on insurance.

I think you have spoken about the issues in insurance that we had this quarter. Because of that, our growth in insurance has actually been one of the lowest amongst all our peers.

Then you have mentioned that the cashless has been reinstated. Can you confirm that for December quarter we've done with half of November and October, are we back on track with industry-level growth in our insurance business?

I think you need to look at it on an overall basis, right? Insurance growth may have come down, but your cash growth may have increased.

If you're not doing cashless, what happens? It's not necessary that you lose a patient.

The patient also just converts to cash-paying, right, because he goes and claims later. Doesn't necessarily change the hospital because of it.

I think what you need to look at is the overall occupancy between cash and this, what was the impact. You won't see any major impact on the occupancy of the hospital, right?

That's what you need to see.

Right. My only worry is that are we doing more institutional business because the insurance patient is not coming, but that doesn't seem to be the case.

That doesn't seem the case, and you see the cash business has moved up. You'll see what's the occupancy between cash and insurance, because that's fungible, right?

Right. That is fungible.

If you come to me as a doctor, okay, you'd use your insurance when you can. If you can't, then you just sort of pay cash, right?

There's no impact. If you do believe there was an impact, then the point is just that going forward, you'll see the benefit of it because all of it is now back to normal, right?

Got it. Our cash flows were weak and as you rightly mentioned, it's because of our institutional business.

Just wondering because now we are coming up with Nanavati and Saket, do we expect some kind of further deterioration because of this?

No. Institutional payments have historically also been lumpy, right?

They don't necessarily come on this thing. There's certain months they build up because various PSUs and so on and so forth, whether it's ECHS, CGHS and all, they run out of budgets, then they write to the ministry, get those budgets, get them replenished and then they pay.

They have been lumpy in the past as well, it's nothing to be sort of concerned about.

We don't expect further deterioration in the cash flows?

No, not at all. Even this is not a deterioration.

You see it as a one-time this thing. Next quarter, you'll probably see a larger amount of cash flows come through.

Full

year, okay, it'll pretty much be the same number of days. This sort of at a point of time, lumpiness happens in institutional payments.

Got it. I understood.

My last question is on Mohali. We added 160 beds, but the presentation shows an operational increase of 53 beds only.

Is it that the next 107 beds will move into operational in Q3? The Mohali is a O&M agreement with the government, because in O&M, the entire revenue doesn't get recognized.

Does that mean that these beds really don't have a material impact on our P&L?

No, two things. One is Mohali is a revenue share, right?

We say 5% of our revenues are given to the government. We're recognizing the whole thing.

That's one. Second is, as far as the beds are concerned, the entire tower has 160-odd beds.

Now, you don't wait for the last light to be put to commission the whole thing, okay? For example, on 160, if the first four floors are ready, I will start the first four floors, okay?

The rest of the floors, as and when they come online, you start them.

In Q3, how much will get operational in Mohali?

As we speak, there are 90 beds which are operational out of the 53, right? Out of that, 160.

53 was made operational on 1st of August. That means the impact in the quarter is around 35 beds, because we have to take the weighted average, right?

That's the reason why you see the number to operational capacity to be lower. Going forward, we've obviously not stopped beds there.

As we see the occupancy, we will open more beds.

Quarter three you'll be having all the beds ready.

Beds will be ready, but we will open them as we see the demand there, right?

Okay. Got it.

In Lucknow and Noida, we are seeing a lot of interest from a lot of our peers as well. They're coming out with some big capacities.

Any comments on the competitive intensity out there?

Not really. I think the Noida capacity, it doesn't come overnight, right?

It's been under construction for the last 4 years. Any competitor coming up with any capacity has been constructing it for the last 4 to 5 years, it's always been the this thing.

In fact, we purchased Jaypee later. That was we fell from the sky and purchased it, right?

That was a cold start.

Okay. My last question, on the ARPOB growth, Yogesh mentioned we are trending at about 6% now this quarter.

Is that a fair comment for our existing units? 7% plus.

We are around 7% ARPOB increase if I take the existing units. When I say the existing unit, that means units which were operating December '24 before.

This December quarter is clocking a 7% on our pre-existing units?

Not December quarter, I'm talking September quarter. We have not given any guidance on Q3.

I'm saying that the September quarter, that the number of 3.3% that we have ARPOB increase, if I take out the impact of the new hospital that we added, right, in quarter four of, FY25, then the increase in the existing hospital is 7% in the ARPOB, around 6.8%.

Understood. Thank you so much.

Thank you. Congratulations on a strong quarter.

My first question is that you have a occupancy of over 75% and a consistent trend on the ARPOB because of the strategic push in your high acuity care like the new oncology focused hospital. Since a mature case mix naturally increases the average length of stay, how are you balancing its trade-off to maintain patient throughput at your already busy hospitals?

Sorry, what's the question exactly? What we can say the occupancy throughput, right?

What I want to know is how are you balancing the trade-off to maintain the patient throughput because your average length of stay is really high. I just want to know about that.

You do it by opening new capacities. You do it through improving your patient services, your discharge times and so on and so forth, right?

Having said that, you have to keep in mind one thing. When a hospital is full, it's not a hotel.

It's not like people are sitting in the emergency and I say, "Look, 12:00 12:00, I can send them away by saying my hotel is fully booked. Please go somewhere else," right?

There will be a point of diminishing returns where people have really wait in emergency waiting for the beds, and they have to wait sometimes for 6 hours, sometimes for 1 day, for 1.5 days. Complaints increase.

You try to do your best, but we are also in the job of serving every patient who's coming over there. I think that is very important differentiation.

Okay. My second question is that for the first half of your FY26, can you quantify what percentage of your total hospital revenue came from the international patients and what is the yield profile of this business?

How does the ARPOB and the average length of stay for an international patient compare to that of a domestic patient portfolio?

It's about 9% of the revenue, and I think typical ARPOB is about 30% higher for international patients compared to our average. I think ALOS is what?

ALOS is 1.2 times. 1.2 times, because people who come for international this thing are coming for more acute diseases, right?

So All

right. Last question is that your asset-light divisions like the Max Lab and Max@Home are posting excellent revenue growth.

My question is about their profitability and capital efficiency. For the first half of FY26, what is the consolidated EBITDA margin?

What is your long-term margin target for these segments as it scales?

I think that's already there in the investor release, right? The Max Lab reports an EBITDA margin of around 15% 16%, right?

The Max@Home business, right, the EBITDA would be around 20%. If I take the global EBITDA, that'll be probably more than the hospital EBITDAs, all right?

That's the EBITDA margin that we have.

These are also subdued right now, because like you mentioned, we're growing at a fast pace because we're investing for their growth, right?

All right. Thank you.

I'll get back in the queue.

Thanks for taking my question. Abhay, last call you'd mentioned that probably 6 months' time we should start seeing traction in Noida with insurance empanelment.

Is that on track? Should we start seeing that improvement in Noida, let's say, in the December or March quarter?

At what point do you see Noida getting to, let's say, mid-25% margins?

I think Noida is already at 25% margin, no?

Noida is around 18% margin.

18% margin. I think insurance empanelment, all of that has happened as far as Noida is concerned.

On Q-on-Q you see that there is a 8% growth in Noida, right, and the EBITDA margin is also grown compared to last quarter. We do expect that if you pick up the revenue of this hospital since January of this year, every month is higher than the previous month.

I think we're seeing the traction. We hope that this will come to that level.

I think it wasn't insurance empanelment. I think it was licenses for various sort of clinical programs which had to come through, and so on and so forth.

All that has come through. Now we are seeing the higher clinical throughput.

What's the occupancy in Noida currently then?

It's around 62%.

62%. Okay.

64% in the quarter. Okay.

This therefore should improve as you've seen these new clinical programs getting added, right?

That's right.

That's right. That's right.

Understood. My second question is on Dwarka.

What's the occupancy in Dwarka on our operational bed, and what margins are Dwarka at currently?

I think we're doing about close to 80%. What is the Dwarka is 81% plus occupancy in the quarter.

We have 285 beds operational now. It's a 300-bedded hospital.

Once we get the oncology block, then we'll be able to rotate some oncology beds and move them there and have this hospital capacity restored to 300 beds. The EBITDA margin, you want to mention the EBITDA margin for this hospital?

I would say it'd be around 15%.

Okay.

Yeah.

Understood. I was just Sorry.

Trajectory for a greenfield would be that you sort of ramp up the occupancy, right? Then after that you see expansion of margins.

Yeah. It would then in that case, given that we are at 80% occupancy already for Dwarka, by next year, it should be in line with corporate average in terms of margins?

Would that be a fair assumption?

No, if that should be the case, yeah. Do keep in mind even oncology bunker is not operational over there right now, right?

Okay.

That will I think It has very high level of, I would say, the PSU bed occupancy. We have to bring that down, basically the idea was first to fill up this hospital, and then start to dilute the tariffs.

I think we are at a stage where we started to do that now. Yeah.

You're going to see higher ARPOBs, you're going to see expansion of margins, you're going to see that happening through both patient mix, clinical mix, including higher amount of share of oncology once the radiation oncology starts over there. You're also going to see us planning and implementing another 200 beds in that site.

I think the idea is to do the brownfield, because like I said, we already run out of capacity, right?

Understood. Okay.

Because I was just wondering about the ARPOB growth of 3% including all hospitals except for Noida, right? That's what your existing ARPOB growth that you mentioned.

Given that, I'm assuming Lucknow, Nagpur should have also seen very strong ARPOB growth, the 3% number, and the 7% that you mentioned for existing network, how should I read those two numbers?

By the way, the Dwarka ARPOB has come down. When we started it, we didn't have any institutional business, right?

The institutional business actually started. Actually it's come down.

All right. Understood.

Okay.

That's When you do a cold start, for you to get any institutional business takes you about 6 months, to sign that, to get empanelled with institutions, right?

Understood.

You start off immediately with high ARPOB, low occupancy. Only self-pay business.

Only self-pay business, because you don't even have insurance contracts in the first 6 months.

I'd assumed that you'd probably do more emergency cases which then moved to higher acuity.

That's right. The first two quarters, started in July last year till the end of the year, it was high ARPOB simply because you're not even NABH at that stage.

You don't have institutional empanelments, you don't have sort of insurance empanelments and so on. The cash-paying business, high ARPOB, low occupancy, and that starts changing thereafter.

That drags your ARPOB down as you get in this thing.

Okay. The CGHS, you said ₹200 crores upon completion, once fully completed.

What's the duration by which this will fully get reflected? Would it be a phased manner in which we will see the realization of these price increases?

No, they have a new category called super specialty hospitals.

Correct.

On their portal, they haven't completed the codes for that. That we are expecting in the next maybe 15, 20 days or whatever.

Okay. That's the only thing that is pending for this to be implemented.

It's more It's partially implemented. Partially, the super specialty rates will be implemented once they update their portal.

Got it. Okay.

Thank you so much.

Hi, good afternoon. Thanks for taking my question.

The first is what was the growth on the ARPOB growth of the segment, be it international or institutional?

Sorry?

ARPOB growth for the segments basically, be it cash or institutional mix, what was the ARPOB growth? For

which segment? The walk-in business, both insurance and the self-pay, has grew by around 7% to 8%, right, on a like-to-like basis.

It's basically the impact of the new hospital that are not added into the existing hospital now, which has brought the growth to 3.3%. Yeah.

Yes, sir. No, with respect to institutional mix, have you witnessed any ARPOB growth?

No, the ARPOB growth is flat-ish in the institutional. Institutional doesn't see has any ARPOB growth.

It will have going forward, right? Because the rates got revised only in October.

In quarter two, there's not a growth in the institutional ARPOB, but in the self-pay and the insurance will be in the range of 8% to 10% type.

Understood. Sir, second question, what was the performance of Lucknow and Nagpur unit in this quarter?

No, we don't share the hospital-wise performance, but suffice to say that the Lucknow did grew over the previous quarter. On a quarter-on-quarter, it's a 7%, 8% growth that we reported, and the EBITDA is also grown by more than 20%.

It's maintaining the 30% plus margins in Lucknow, we can expect this to sustain?

Yeah.

Okay. For Nagpur?

Again, we don't give specific hospital-by-hospital numbers.

Understood. Thank you, sir.

All the best.

My question is on Noida hospital facility. In one of the earlier presentations, you had mentioned you have land parcels with further bed potentials in Greater Noida 400 beds and Sector 128 Noida 700 beds.

I just wanted to ask you, is the land adjacent to the existing hospital facility or it's at a different location?

No, the present one we have in Noida is 18 acres of land, right? You can imagine we can keep building over there.

That's all adjacent. It's all contiguous land parcel.

Similarly, in Lucknow, it's 27 acres of land, we can pretty much keep going for the next another 2, 2.5 thousand beds. We have another location in Lucknow.

In Noida, of course, in addition to that, we have land in Greater Noida.

That's what I'm saying. The location is different from the existing land

parcel. Greater Noida and Noida are separate locations.

In your question, the 700-bed site, which is a very far project, is the adjacent site to the Noida Hospital, the Jaypee Noida Hospital, and what you mentioned as a 500-bed site, that's a separate site in Greater Noida.

This Sector 128 is adjacent? They are

the same complex. Yeah.

That's the 18-acre complex.

That's the 18-acre complex. Fine.

Yeah. You have 700 more beds.

Okay. That's what I wanted to clarify.

Thanks a lot, sir. All the best.

Hi, thank you for the opportunity. One clarification: can you please share the international patient bed share for this quarter?

It's similar to what it used to be earlier. It'll be around 6%, 6.5%.

6.5%. Sir, for other channel, we have just shared for institutional.

Can you also share for

Around 5.5%, yeah.

5.5%. Sir, for other channels like self-pay and TPA if we can share?

Self-pay is around 26% to 27%. The insurance is around 34% to 35%.

The institutional,

right? Right.

Thanks for that. Second one for Mr.

Soi on the sorting of issues with the insurance. Sir, how should we think now with whatever negotiation which would have gone between you and the insurance companies for the next 1 or 2 years, for us, the procedure rates, do we keep getting similar hikes what we had taken historically in the last 2, 3 years?

Is it going to be higher, lower? If you can share some color would be great.

I'm not going to give you specifics, but yeah, it's in line with what has been happening historically. It's not anything more than that.

Within the band, yeah. Then

sir, let's say the four insurance company which at least media suggested had suspended cashless, all four of them are now online? They are doing cashless?

That's right. For us,

are they material in terms of let's say out of our 35% insurance revenue, are they material in terms of contribution to our top line?

They are material. Like I said, you need to look at cash and TPA as a homogeneous body, right?

When you can't do cashless, then the question is, do the patients not come or do the patients come and pay out of pocket and then claim later from the insurance companies? The cashless gets suspended, not the insurance.

Sure. Patient did come.

It's just the change of the channel for now, and now it is reverted back.

We saw a spike in our cash patient.

Self-pay. Kunal, definitely the share of insurance came down and the share of self-pay went up in terms of bed share, right?

The overall OPDs also grew quarter on quarter. That means it's not a major impact, right?

Sure. Sir, the 7% ARPOB growth on a like-to-like basis, I know you shared that Dwarka has gone down a bit and hence the overall is 3%, but wouldn't the specialty mix also helped us given the medical bed patients are down quite a bit in this quarter on a year-on-year basis?

Yes, it takes into account that, right?

Right. Then, with medical going down, shouldn't the growth be higher for our existing hospitals is my question, because oncology has also gone up in terms of the contribution.

Shall we continue to maintain this around 7% plus or minus 1% going forward for existing hospital?

That's been historical as well, right? I don't see any changes there.

Sure, sir. Sure.

You take that, internal medicine is basically the impact that you continue to have in quarter two. The new hospital, the share of internal medicine is low.

While there is some impact, you can see in the earning update also, but I think it's not that big an impact.

You're saying new hospital it grew and existing hospital it went? Okay.

Lastly, sir, on the operationalized bed, because we are bringing capacity at Nanavati and Max Saket, how should we look at operational beds in Q3 and Q4, what the potential number from where we are in Q2?

It's tough to really give you that number, because we have to also see how many days do we open those beds for, when do we get the approvals, the OC, etc. I want to avoid any forward-looking statements so that

Okay. Let's say the trajectory should be in line with more like Dwarka is something like in 1 year we are almost up with all beds?

Greenfield versus a brownfield, right? It's a very different sort of this thing.

Because your occupancy ramp-up and your EBITDA ramp-up are two very different. Normally it's more positive in a brownfield, but yeah, I'm going to avoid giving any forward-looking statement.

Sure, sir. Thank you for all the clarity, and all the best.

Thank you.

Thanks so much. Sir, just a quick question: what was our network capex intensity in the first half?

We spent around ₹900 crores.

Okay. Second half would be a similar number?

A bit higher, probably. Hopefully around ₹1,100 crores, yeah.

All right. Got it.

Thank you so much.

Hi, sir. Am I audible?

We can hear you.

Hi, sir. Good morning.

Congratulations on a good set of numbers. I just wanted clarification on two fronts.

The first being that when we say that the ARPOB this quarter was subdued, that was largely due to the insurance issues and the impact of the new hospitals, right?

Not so much the insurance, I would say. Like I said, any reduction in insurance perhaps you made up because you had that much people shifting to cash patients.

I think, yeah, perhaps because of the new hospitals.

Understood. The second question regarding the, sir, impact of CGHS, the INR 200 crore positive impact that we are expecting, I know you answered it before, but there was some disturbances.

Just wanted to clarify again, what is the estimated timeline we are expecting for that to reflect in our numbers?

I think some of it has already started from 13th of October. I think there's a super specialty rate that should kick in.

That will kick in I think by the end of this month. We don't know how much time it'll take, but I think our expectation is that by end of November that rate should also be up and working, thank you.

Understood. Thank you, sir.

That's all from my end. Thank you for the opportunity.

Thanks for taking the question. Just following up on the CGHS question, sir, the CGHS impact you talked about, it is largely for CGHS, or the expectation is similar rate revisions will happen for other, say, central government agencies also.

Is that over and above this?

No, all central government agencies are linked to CGHS, okay? This is number for CGHS and CGHS-like accounts.

This includes ECHS, this includes others. Some of these like super specialty rates, some of the notifications, etc., on ECHS and all is expected because they are in line normally with this thing, but they have to go through their paperworks.

That essentially our estimate pretty much includes that inflation also.

That's right. This is CGHS and like accounts.

Linked accounts,

yeah. Thank you so much.

Hi. Just continuing regarding the past participant, is it fair to assume that the benefits start trickling in from FY27 for whole of the benefit which you spoke about of around ₹200 crores?

Of what?

The CGHS pricing increase benefits. You said in next 15, 20 days we should resolve it, and then beyond CGHS also the similar CGHS-like institutions will follow it.

FY27 is the year where we can expect the total benefit to come in?

Yes. Yeah, 100%.

What kind of a flow-through will it have on your operating profit, EBITDA?

Pretty much 85% to 90% flow-through. Yeah.

Sure.

If you're looking at roughly ₹200 crores of top line, something like ₹150, ₹160 crores of EBITDA addition can happen through this?

It'll be an impact of ₹200 crores, and hopefully, yeah, it's good numbers should flow through.

Got it, sir. Regarding our Smart and Nanavati, I understand both are brownfield, but there is a bit of a cost.

Is it fair to assume that a large part of cost is already in our P&L reflecting in 2Q, or can we expect some more increase in 3Q as well?

You're talking about fixed costs or variable costs?

Variable costs.

Variable costs of course will be related to the

Sorry, sorry, sorry, fixed costs. My mistake.

Fixed costs. Sorry, my mistake.

No, these are brownfields, right? Your fixed costs is largely covered by existing hospitals.

My point is right, because we've been in a process of keep on adding new beds, right? Our top line grows, then our EBITDA and then our PAT.

I think the point we will be there where most of our hospital reach a stage where our EBITDA start growing faster. I think we are reaching that stage.

Is it a fair assumption that even in 3Q, we should see the same kind of phenomenon that margin expansion despite starting to brownfield?

I didn't understand the question. You're right.

There will be a bit of operating leverage that will kick in once those brownfield towers start getting filled up. That may be 15 days here and there, but, yeah, operating leverage should kick in.

That's the whole concept of brownfield.

You should have expansion of margins with

brownfields

will give you higher margins than existing hospital beds.

There are two things happening, right, in our growth journey, right? One, our new hospitals, which we have added in past, they are significantly improving in their profitability.

At the same time, also, we are adding new hospitals, right, which are coming in at a lower margin, right? They are two balancing act.

Given that we have added substantial amount of beds over past 18 months, where does the flow-through of the profitability can be higher than and will negate any negative impact of these new beds? That's what I'm trying to understand.

That's right. My point is something even better, right?

That the new beds, because largely what is brownfield, don't necessarily have a drag on EBITDA that you're trying to subsidize via your previous expansion.

For sure. No, that I Would be

not only you will have expansion or benefits coming out of what you expanded of capacity addition of over the last 15 months or 17 months, that's about 30% capacity, but majority of the capacity coming up now, another 30%, is brownfield. That brownfield capacity should be soon after commissioning should get into higher EBITDA margin business to start with.

Got it. All right, sir.

That's it from myself, and thank you so much.

Thank you.

Thank you, everyone, for joining us today. We appreciate all your time and look forward to interacting with you again next quarter.

Thank you.

Thank you, members of the management. On behalf of Max Healthcare Institute Limited, that concludes this conference.

We thank you for joining us, and you may now disconnect your lines. Thank you.