Manipal Health Enterprises reported a mixed performance for the September quarter, with revenue and operating earnings registering strong growth, even as its reported net profit declined amid a significant exceptional loss and higher finance costs.
The hospital operator's consolidated profit after tax fell 10.3% year-on-year to Rs 285 crore in Q2 FY27, compared with Rs 318 crore in the corresponding quarter last year.
The decline came despite a healthy expansion in its operating performance. Revenue from operations surged 37.3% to Rs 3,399 crore from Rs 2,475 crore a year ago, supported by sustained patient demand, higher volumes across specialties and the integration of Sahyadri Hospitals into its network.
The company's EBITDA increased 29.8% to Rs 882 crore against Rs 680 crore in the year-ago quarter. However, EBITDA margin contracted to 26% from 27.5%, indicating some pressure on operating profitability despite the strong growth in revenue.
According to the company's investor presentation, the consolidated results for the current quarter include Sahyadri Hospitals, which was acquired on October 3, 2025. The acquisition's contribution was absent from the corresponding year-ago period.
A key factor behind the decline in reported profit was the exceptional loss of Rs 95 crore during the quarter, compared with an exceptional gain of around Rs 5 crore in the corresponding period last year.
The company's finance costs also increased sharply to Rs 300 crore from Rs 156 crore a year earlier. This included the interest burden associated with non-convertible debentures raised to finance the Sahyadri acquisition.
Excluding exceptional items, however, the company's profit after tax stood at Rs 380 crore, marking a 21.6% increase from Rs 313 crore in Q2 FY26. Further excluding the post-tax impact of Rs 75 crore in interest on Sahyadri acquisition-related NCDs, profit stood at approximately Rs 455 crore, up 45.6% year-on-year.
Other income nearly doubled to Rs 100 crore from Rs 48 crore in the year-ago quarter.
Operationally, Manipal Health continued to benefit from higher patient footfall. Inpatient volumes increased 35% to approximately 169,000, while outpatient volumes grew 27.2% to around 1.74 million.
Occupancy improved to 70.1% from 68.5% a year ago, while average revenue per occupied bed remained at Rs 70,600 per day on a consolidated basis.
The company also commenced operations at its 300-licensed-bed hospital in Electronic City, Bengaluru, during the quarter, taking its total licensed bed capacity to 13,440 as of September 30, 2026.
Commenting on the performance, Dilip Jose, Managing Director and CEO of Manipal Hospitals, said the quarter's growth was driven by patient volumes, improved capacity utilisation and increasing contributions from high-acuity specialties.
The company said its focus remains on strengthening clinical capabilities, improving operational efficiency and building a more integrated healthcare platform.
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