As of 2:29 pm, shares of Narayana Hrudayalaya were trading 2.85% higher at ₹1,867.50 on the NSE.
Kotak Institutional Equities said the stock has been under pressure following higher losses in the company’s insurance verticals in India and Cayman during the first quarter of FY27. The Indian insurance business reported a loss of around ₹20 crore, while the Cayman insurance vertical posted a loss of approximately ₹35 crore.
However, the brokerage expects the combined ratio in the Indian insurance business to gradually improve as the retail mix increases. It is also relatively more sanguine about Narayana Hrudayalaya’s Cayman insurance foray, citing the company’s dominant healthcare presence and high renewal rates following recent repricing.
The brokerage remains positive on the company’s core India hospital business, which continues to deliver strong growth. India hospital EBITDA grew 39% year-on-year in Q1 FY27. Kotak expects EBITDA to have delivered an 18% CAGR between FY23 and FY26 and forecasts a 14% CAGR between FY26 and FY29E.
At the current market price, Kotak said Narayana Hrudayalaya’s India hospital business is trading at an attractive valuation of around 17 times FY28E pre-Ind AS 116 EV/EBITDA.
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On a consolidated basis, the company’s profit after tax rose 5.7% year-on-year but declined 9.2% quarter-on-quarter to ₹207.30 crore in Q1 FY27. Revenue from operations jumped 78% YoY and 3.5% QoQ to ₹2,683.60 crore in the quarter ended June 30, 2026. EBITDA increased 40% YoY to ₹505.20 crore.
India operating revenue grew 17% YoY and 6% QoQ to ₹1,324.70 crore, while Cayman operating revenue increased 39% YoY to ₹551.40 crore. The newly acquired UK business reported operating revenue of ₹825.70 crore in Q1 FY27, up 2.1% QoQ.