Manipal Health Enterprises Ltd reported a 13.2% year-on-year drop in consolidated net profit to ₹270 crore for the second quarter of FY27, hit by exceptional items and debt servicing costs from its Sahyadri Hospitals buyout.
A year ago, bottom-line earnings stood at ₹311 crore.
Yet the top line told a very different story. Revenue from operations jumped 37.3% to ₹3,399 crore during the September quarter, up from ₹2,475 crore in the prior-year period. Trading reflected the mixed operational ledger. Shares of Manipal Health edged up ₹3.25, or 0.48%, to settle at ₹680.00 on the BSE on Friday.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) advanced 29.8% to ₹872 crore from ₹672 crore a year earlier. Operating margins narrowed slightly. The quarterly EBITDA margin contracted 100 basis points to 26% against 27% in the second quarter of FY26.
Market Context: The bottom-line drop masks strong cash generation from bed additions. Stripping out exceptional items, profit after tax stood at ₹380 crore—a 21.6% jump over the previous year. If you also exclude the ₹75 crore in post-tax interest on non-convertible debentures issued to fund the Sahyadri acquisition, net earnings stood at ₹455 crore, up 45.6%.
| Financial & Operational Metric | Q2 FY27 | Q2 FY26 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹3,399 crore | ₹2,475 crore | +37.3% |
| Operating EBITDA | ₹872 crore | ₹672 crore | +29.8% |
| EBITDA Margin | 26.0% | 27.0% | -100 bps |
| Reported Net Profit | ₹270 crore | ₹311 crore | -13.2% |
| PAT (Excluding Exceptional Items) | ₹380 crore | ₹312.5 crore | +21.6% |
| Adjusted PAT (Ex-Exceptionals & NCD Interest) | ₹455 crore | ₹312.5 crore | +45.6% |
| Consolidated ARPOB (Per Day) | ₹70,600 | — | — |
| Base ARPOB (Excluding Sahyadri) | ₹76,600 | ₹70,600 | +8.5% |
| Inpatient Footfall | 1.69 lakh | 1.25 lakh | +35.0% |
| Outpatient Footfall | 17.4 lakh | 13.68 lakh | +27.2% |
| Network Bed Occupancy | 70.1% | 68.5% | +160 bps |
Bed turnarounds quickened across the country.
Inpatient admissions leaped 35% to roughly 1.69 lakh patients during the quarter. Outpatient consultations climbed 27.2% to hit 17.4 lakh visits. Average occupancy rates ticked up 160 basis points to 70.1% across an operational base of 7,331 beds. Patients spent an average length of stay of 2.8 days.
Expansion continued in Karnataka's technology corridor. The hospital operator launched its 300-licensed-bed Electronic City facility in Bengaluru during the quarter. That launch pushed the hospital chain's total licensed footprint to 13,440 beds across India as of September 30, 2026.
Blended average revenue per occupied bed (ARPOB) came in at ₹70,600 a day. Stripping out the lower-ticket Sahyadri units, base hospital ARPOB reached ₹76,600 per day—delivering an 8.5% year-on-year climb.
Balance-sheet leverage stayed conservative. Net debt, excluding lease liabilities, closed the quarter at ₹343 crore. That pegs the company's net debt to annualised EBITDA ratio at 0.10 times, leaving ample headroom for clinical capital expenditure.
The Sahyadri buyout, sealed on October 3, 2025, added immediate operational scale. Because the prior-year comparative period excluded Sahyadri, reported consolidations reflect an expanded network perimeter.
During the quarter, the Sahyadri division delivered ₹375 crore in revenue and ₹73 crore in EBITDA. Over the entire first half of FY27, Sahyadri churned out ₹707 crore in revenue, up 17.8%, while its six-month EBITDA jumped 24.1% to ₹131 crore. Sahyadri's first-half occupancy hit 67%—a 270 basis point improvement—while its standalone ARPOB climbed 12.5% to ₹44,100 per day.
Cost synergies are taking shape on the ground. Management introduced centralised procurement schedules and added advanced clinical programmes across Western India. Digital channels now account for 11% of Sahyadri's patient intake. Meanwhile, Manipal is combining its nine-hospital Pune network into an integrated referral web with shared clinical departments and leadership.
High-acuity treatments expanded rapidly under the company's six CONGO-R Centres of Excellence—covering Cardiac Sciences, Oncology, Neurosciences, Gastroenterology, Orthopaedics, and Renal Sciences.
During the first half of FY27, oncology revenue surged 51% over the prior year. Neurosciences intake rose 47%, while orthopaedic revenues climbed 44%. Cardiac sciences gained 39%, renal sciences grew 38%, and gastroenterology billings expanded 36%.
We are pleased that our performance this quarter has been driven by volumes, with more patients accessing our care, and we believe this is the sustainable option for growth in care delivery. Improved capacity utilisation, particularly in high-acuity specialties continued to be a key driver while maintaining focus on strengthening our clinical capabilities, improving operational performance and building a more integrated healthcare platform." >
Dilip Jose, Managing Director and CEO, Manipal Hospitals
For the full first half of FY27, Manipal's consolidated revenue jumped 37.7% to ₹6,490 crore, and EBITDA climbed 28.2% to ₹1,631 crore. Excluding a ₹15 crore one-time gain booked in the first half of FY26, underlying half-year EBITDA grew 29.8%.
Attention now turns to the capital markets. Manipal Health secured ₹4,167 crore from anchor institutional investors ahead of its planned ₹9,275-crore initial public offering. On the operating front, management expects to complete the phased branding transition across all Sahyadri facilities by the fourth quarter of FY27.