Jefferies has maintained its buy rating on Max Healthcare with a target price of ₹1,500 after the hospital operator delivered a mixed set of first-quarter results. Revenue came in ahead of estimates, adjusted EBITDA was broadly in line, while profit after tax missed expectations. Like-for-like sales grew 16% during the quarter, supported by a 10% year-on-year rise in occupancy.
The company remains on track to add 1,500 new beds during FY26, with 800 of those expected to come online from the second quarter onwards. Jefferies noted that new capacity will be operationalised in phases, limiting the negative impact on margins while supporting long-term earnings growth. The brokerage said the phased rollout of new facilities, coupled with healthy occupancy levels, underpins confidence in Max Healthcare’s ability to sustain growth momentum.
Jefferies added that while the quarterly earnings mix reflected some volatility, the overall trajectory of revenue expansion, scale benefits from new capacity, and sector demand tailwinds continue to make Max Healthcare one of the more attractive plays in the healthcare space.
Disclaimer: The views and recommendations made in this article are those of Jefferies. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
