Hospital expansion construction site in India under an overcast sky.
Indian hospitals are poised for sustained double-digit revenue growth, with an 18% increase anticipated, according to a report by Kotak Securities. Despite ongoing bed expansion and a cycle of hospital growth, the brokerage firm expects Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins to remain rangebound.
The positive outlook is underpinned by strong performance in hospital volumes and diagnostic services. The recent March quarter results demonstrated robust sales and EBITDA growth, signaling a healthy trajectory for the healthcare sector.
This trend suggests that while the expansion of healthcare infrastructure continues, operational efficiencies and increasing demand are enabling hospitals to maintain profitability. The sector’s ability to balance growth with margin stability is a key takeaway from Kotak Securities’ analysis.
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