Indian Hospitals Expected to Experience Strong Revenue Growth Amid Expansion
India's Hospitals to See Double-Digit Revenue Growth Amid Expansion

Image: Asianet Newsable
India's listed hospitals are projected to achieve double-digit revenue growth, driven by robust inpatient volumes and diagnostics. Despite challenges in EBITDA margins due to increased bed capacity, the sector is showing strong performance, particularly in major markets like Thane and Bengaluru.
- 01India's hospitals reported an 18% year-on-year sales growth in the March quarter.
- 02Average Revenue Per Occupied Bed (ARPOB) growth ranged from 6-14% year-on-year for most hospitals.
- 03Max Healthcare experienced only 1% YoY ARPOB growth, impacted by changes in drug availability and GST cuts.
- 04Profitability was affected by new bed additions, with operational bed counts rising by 5-21% YoY for most hospitals.
- 05The diagnostics sector saw significant growth, with companies like Metropolis reporting a 23% YoY sales increase.
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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.
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The expansion and revenue growth in hospitals may lead to improved healthcare access and services for patients across India.
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