India's hospitals are poised for continued double-digit revenue growth, as highlighted in a Kotak Securities report. The March quarter saw an 18% year-on-year sales growth and a 16% EBITDA growth across the sector. Average Revenue Per Occupied Bed (ARPOB) growth was robust, ranging from 6-14% year-on-year, primarily due to increased inpatient volumes and a favorable specialty mix. Notably, KIMS and Medanta reported ARPOB growth driven by high-ARPOB markets like Thane and Bengaluru. However, Max Healthcare lagged with just 1% ARPOB growth, affected by the discontinuation of high-value chemotherapy drugs. The addition of new beds has pressured profitability, with most hospitals increasing their operational bed counts by 5-21% year-on-year. In the diagnostics sector, companies like Metropolis achieved a 23% year-on-year sales growth, benefiting from improved B2C traction and acquisitions. Overall, while challenges exist, the outlook for revenue growth in India's hospital sector remains strong.