Mumbai, Feb 6 The Indian corporate healthcare sector is likely to deliver around 15 per cent growth (year-on-year) in sales over FY25-FY26, primarily led by growth in average revenue per occupied bed (ARPOB) and new bed additions, according to a report on Thursday.
India Ratings and Research (Ind-Ra) maintained a neutral outlook for the corporate healthcare sector for FY26, supported by continued robust demand, sustained improvement in profitability, and calibrated enhancement in capacity expansions, which together would lead to a comfortable liquidity position and help sustain the improvement in the credit profile.
Ind-Ra expects its coverage companies to deliver around 15 per cent YoY growth in sales over FY25-FY26, on account of 5-6 per cent growth in ARPOB, a 100-200bp improvement in occupancy, and 6-8 per cent increase in new bed additions.
Indian hospitals have significant growth potential in the near to medium term, driven by an improvement in healthcare infrastructure to meet global standards, the report mentioned.
According to Vivek Jain, Director, Corporate Ratings at India Ratings and Research, acquisitions of small hospitals not only boost larger players’ financial position and improve economies of scale but also provide growth opportunities for larger chains.
Ind-Ra expects EBITDA margins to be at 20.9 per cent in FY26 (FY25 projection: 20.0 per cent) despite capacity expansions by companies (expect a pick-up in FY25-FY26) and related higher overhead costs from new facilities.
It has maintained a stable rating outlook for FY26. The net leverage ratio is likely to remain stable in FY26, led by strong operating profits, despite undertaking additional debt for funding expansion and significant capex spending.
Also, Ind-Ra has maintained a neutral outlook for the pharmaceuticals sector in FY26. The agency expects overall revenue to grow 9 per cent-10 per cent YoY for the sector as companies will continue to benefit from healthy growth in the domestic (chronic segment), US generic (product specific opportunities) and contract development and manufacturing organisation business.
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