Max Healthcare revenue rises, but sequential margin drops 3.01 percentage points
Expenses grew faster than revenue sequentially, while higher interest, depreciation and tax limited net-profit growth to 4.87% year on year.
Filed 13 Aug 2026, 14:27 IST · Max Healthcare Institute Ltd (MAXHEALTH)
Key takeaways
- Consolidated revenue rose 16.70% year on year, but expenses grew 17.48%, trimming operating margin by 0.50 percentage points.
- Sequentially, operating margin fell 3.01 percentage points to 25.29% as expenses grew 15.05% against 10.42% revenue growth.
- Net profit rose only 4.87% year on year as interest increased 29.44% and the tax rate rose 2.89 percentage points.
Price around the results
Revenue growth did not translate into profit momentum
Max Healthcare’s consolidated revenue grew +16.70% year on year, but operating profit increased only +14.45% as expenses rose faster at +17.48%. Net profit growth slowed to +4.87%, reflecting a 29.44% increase in interest and a 26.43% rise in depreciation. Other income accounted for 9.29% of pre-tax profit, so reported earnings were not entirely operating-led.
Sequential margin reversal reflects faster cost growth
Revenue increased +10.42% sequentially, while expenses rose +15.05%, resulting in a 3.01 percentage-point decline in operating margin. Interest also increased +6.51% sequentially, and depreciation rose +7.02%, contributing to the 5.63% fall in net profit. The tax rate was 0.36 percentage points lower sequentially, which provided only limited relief.
Margin remains above the healthcare peer median
The 25.29% operating margin was 2.34 percentage points above the 22.95% median for 69 healthcare peers that had reported the same quarter. The sequential decline reverses the improvement from 25.79% in Q1FY26 to 28.30% in Q4FY26, while the year-on-year margin also narrowed by 0.50 percentage points.
The initial stock move was smaller than its usual results reaction
The stock was up +0.58% on the results date, with a +0.04% opening gap and a +0.74% move relative to the market measure. Across the last eight results reactions, it rose six times and fell twice, with a median absolute move of 1.84%, making this an ordinary but smaller-than-usual response.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,366 cr | ₹2,143 cr | +10.42% | +16.70% |
| Other income | ₹41 cr | ₹48 cr | -15.28% | +10.98% |
| Expenses | ₹1,768 cr | ₹1,536 cr | +15.05% | +17.48% |
| Operating profit | ₹598 cr | ₹606 cr | -1.32% | +14.45% |
| Operating margin (%) | 25.29% | 28.30% | — | — |
| Interest | ₹71 cr | ₹67 cr | +6.51% | +29.44% |
| Depreciation | ₹132 cr | ₹123 cr | +7.02% | +26.43% |
| Profit before tax | ₹436 cr | ₹465 cr | -6.09% | +8.96% |
| Tax | ₹113 cr | ₹122 cr | -7.36% | +22.59% |
| Net profit | ₹323 cr | ₹342 cr | -5.63% | +4.87% |
| EPS (₹) | ₹3.32 | ₹3.52 | -5.68% | +4.73% |
Operating margin of 25.29% compares with a Healthcare sector median of 22.95% across 69 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.58% | +0.74% |
Volume on the results session was 1.77× its 20-day average.
What to watch
- Whether operating margin recovers from 25.29% after the 3.01 percentage-point sequential decline.
- Whether expense growth moderates from +15.05% sequentially against +10.42% revenue growth.
- Whether interest and depreciation growth slow from +6.51% and +7.02% sequentially.