Narayana Health Banks On Domestic Revenue To Drive Growth

Narayana Health, one of India’s leading hospital chains, aims to substitute international business with domestic revenue in the long run, according to the company’s Group CFO, Sandhya J.

“The thing with international business is that it's not a book of business that we are actively chasing. Our endeavour is over a period of time to be able to constantly substitute that revenue with domestic revenue. So, we do believe that on an ongoing basis, also this business will either stabilise at this level or maybe eventually it will taper down,” she said in an interview with NDTV Profit on Tuesday. 

According to Sandhya J, the company is also not going to gain from the government’s proposed visa-on-arrival policy for medical tourism.

Highlighting Narayana Health’s domestic-first strategy, she said, “International is not a strategic avenue that we are chasing. We are focusing on the domestic market. Therefore, I am not able to comment on any upside coming in from the international business for us.”

On capacity expansion, she confirmed that Narayana Health is not going to add any new hospital in H2FY26.  “It is not fair to give a forward-looking statement. We are not adding any capacity in the second half. So, whatever growth has to come, has to come out of the existing hospitals and also out of improved throughput and continuing to create value for customers,” the top executive underscored.

Narayana Health reported a 20.3% year-on-year (YoY) rise in consolidated revenue from operations at Rs 1,643.8 crore in Q2FY26 from Rs 1,366.8 crore in Q2FY25. Consolidated profit after tax rose 29.6% YoY to Rs 258.3 crore in Q2FY26 from Rs 199.3 crore in Q2FY25.

“Q2 is a very strong quarter for healthcare. Healthcare is a seasonal business. So, Q1 and Q3 tend to be a little weak. Q1, because of the holidays and vacations which come and Q3, because of the festivals. Normally, Q2 is when some of the pent-up demand from Q1 catches up and people have put away maybe discretionary surgeries that catch up in Q4.”

Shares of Narayana Health were trading 2.66% lower at Rs 1,954.7 apiece on the NSE at around 3:18 p.m., while the benchmark Nifty50 stood at 25,896.35, down 0.45%.