New Delhi, February 27 Private hospital revenue is expected to grow by 14-15 per cent in the next fiscal, driven by healthy occupancy and ongoing bed additions, according to Crisil Ratings.
This will mark the fifth consecutive year of double-digit revenue growth, while revenue per occupied bed continues to improve, driven by a higher share of complex, high-value treatments, it noted.
Healthy demand and operating leverage will help maintain an operating margin of 20-21 per cent despite ongoing investments as hospital chains expand, it said.
However, strong internal accruals will finance a large part of this spending, limiting reliance on external borrowings and, thereby, ensuring healthy credit profiles, it added.
"Our analysis of 98 private hospitals, which account for nearly two-thirds of the sector's revenue, which was Rs 78,500 crore in fiscal 2025, indicates this," CRISIL Ratings stated.
With a large number of beds becoming operational, the capital expenditure run rate for organic expansion is expected to remain elevated at Rs 13,000 crore in fiscal 2027, compared with Rs 12,000 crore in the current fiscal, it added.
Sustained healthy occupancy, along with faster ramp-up of new facilities, is supporting operating margins, it stated.
Expansion has been a mix of brownfield additions, greenfield projects, and the acquisition of operating assets, enabling quicker stabilization and early cash flow generation, it said.
Alongside this shift in expansion strategy, large private hospital players have undertaken acquisitions worth Rs 11,000 crore over fiscal 2024-2026, adding 4,300 beds, it added.
