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Revenue/EBITDA in line; miss on earnings

* In 1QFY26, Max Network’s revenue (including the Trust business) grew 26.9% YoY to INR24.5b (our est. INR24.4b).

* EBITDA margin contracted 90bp YoY to 24.7% (our est. 25.6%), driven by higher raw material costs (up 110bp as % of sales), which were slightly offset by lower employee and other expenses (down 67bp/40bp YoY, respectively).

* EBITDA grew 22% YoY to INR6.1b (our est. INR 6.25b).

* Adjusted PAT rose 17.1% YoY to INR3.6b (our est. INR4.3b).

* EBITDA per bed (annualized) stood at INR6.9m (-2% YoY and -7.3% QoQ).

* In 1QFY26, Max’s revenue beat Bloomberg consensus estimates by 4%, while its EBITDA/PAT missed Bloomberg estimates by 3.2%/1.9%.

Other highlights

* For the Hospitals business, ARPOB stood at INR78K in 1QFY26 (+1% YoY).

* Occupancy came in at 76% in 1QFY26, with Occupied Bed Days (OBDs) up 26% YoY.

* The payor mix changed as:

* the cash segment’s revenue share decreased 110bp YoY to 33.8%.

* the institutional revenue share increased 390bp YoY to 21.8%.

* the international revenue share increased 30bp YoY to 8.6%.

* the TPA and Corporate segment’s revenue share declined 310bp YoY to 35.8%

* Max Lab's gross revenue was INR480m for 4QFY25 (+19% YoY/6% QoQ).

* Max@Home’s gross revenue was INR600m (+22% YoY, +6% QoQ) for 1QFY26.

* Net debt stood at INR17.5b at the end of 1QFY26.

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