Max Healthcare Shares Plummet 7% After Q4 Earnings Disappoint Investor Projections
Max Healthcare Shares Plunge Over 7% on Earnings Miss
Max Healthcare Institute's stock declined by 7.31 percent to an intraday low of Rs 1,011.30 per share on the National Stock Exchange (NSE) on Friday. The decline came after seven consecutive sessions of gains following the company's March quarter earnings announcement after market hours on Thursday.
The earnings miss was attributed to a higher tax rate by analysts at domestic brokerage Motilal Oswal Financial Services. In the fourth quarter of FY26, Max Healthcare's network revenue, including trust business, rose 10.2 percent year-on-year to Rs 2,540 crore, lower than the brokerage's estimate of Rs 2,660 crore.
| Brokerage Estimate | Actual Revenue | Difference |
|---|---|---|
| Rs 2,660 crore | Rs 2,540 crore | -4.5% |
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The company reported a bed occupancy rate of 75 percent during the quarter, while occupied bed days (OBDs) increased 8 percent year-on-year. Average revenue per occupied bed (ARPOB) for Q4 FY26 stood at Rs 77,900 compared with Rs 77,100 in the corresponding quarter of the previous fiscal.
For the financial year ended March 31, 2026, network gross revenue stood at Rs 10,538 crore. Network profit after tax, after exceptional items, rose 22 percent to Rs 1,631 crore in FY26 from Rs 1,336 crore in FY25, the company said.
Max Healthcare's Chairman and Managing Director Abhay Soi emphasized the company's strong performance, stating that the network delivered its 22nd consecutive quarter of year-on-year growth, with revenue increasing 10 percent. The company has started phased commissioning and ramp-up of brownfield expansions across Mohali, Mumbai, and Delhi, representing around 20 percent capacity addition.
Furthermore, the company plans to augment its capacity by another 10 percent with the commissioning of the greenfield Gurgaon facility by the end of the year. Additionally, Max Healthcare is set to open a new hospital in Lucknow, which will be spread across five acres and is expected to be commissioned in FY30 to cater to rising demand for quality healthcare services in Uttar Pradesh. This will be the company's second hospital in the city.
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Investor Takeaway
Investors should be cautious of Max Healthcare's stock performance after disappointing Q4 earnings.
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