Narayana Hrudayalaya Ltd. (NH) AI Stock Analysis

• Market Cap: ₹348.13B
• Dividend Yield: 0.24%
• Average Volume (3M): 80.08K
• Price to Earnings (P/E): 75.8
• Beta (1Y): 0.74
• Revenue Growth: 14.72%
• EPS Growth: 8.37%
• Country: IN
• Employees: 11,659
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 6.30
• Shares Outstanding: 204,360,800
• 10 Day Avg. Volume: 19,057
• 30 Day Avg. Volume: 80,081
• PEG Ratio: 92.72
• Price to Book (P/B): 9.40
• Price to Sales (P/S): 6.22
• P/FCF Ratio: -354.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,130.00
• Price Target Upside: 21.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 42.82
• Revenue Forecast (FY): ₹77.94B

• Rating: 71 Outperform
• Price Target: ₹1,882.00 ▲(7.15% Upside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

Narayana Hrudayalaya Ltd. has a strong financial performance with robust revenue growth and profitability, which is the most significant factor in its overall score. The technical analysis indicates bullish momentum, although the stock appears overvalued based on its P/E ratio. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth and Scale

Sustained revenue growth over multiple years doubles scale and shows durable demand for tertiary-care services. Higher revenue base supports fixed-cost absorption, network expansion and negotiating leverage with suppliers and payers, improving long-term operating resilience.

Improving Profitability Metrics

An improving gross margin alongside stable net margins indicates better cost management and pricing power in core specialties. This boosts sustainable earnings generation and allows reinvestment into clinical capabilities without eroding bottom-line profitability over the medium term.

Strong Operating Cash Generation

Consistent positive operating cash flow and efficient conversion of income into cash demonstrate durable cash generation from operations. This underpins capacity to fund working capital and growth capex, even if FCF temporarily dipped due to deliberate investment.

Negative Factors

Rising Debt Levels

An upward trend in total debt increases leverage and interest obligations, which can strain financial flexibility if growth slows. Higher indebtedness reduces room to absorb shocks or pursue opportunistic investments and requires careful cash generation to maintain balance-sheet health.

EBITDA Margin Pressure

A falling EBITDA margin signals either rising operating costs or margin-dilutive investments. If persistent, this can erode operating profitability and limit the company’s ability to self-fund expansion or absorb higher input costs, challenging margin sustainability over the medium term.

Negative Free Cash Flow in 2025

Negative FCF driven by elevated capex implies near-term cash strain and a higher reliance on financing to fund growth. If capex does not translate into proportionate revenue or margin gains, the company may face pressure on liquidity and return on invested capital.

Narayana Hrudayalaya Ltd. Business Overview & Revenue Model

Company Description

Narayana Hrudayalaya Limited provides medical and healthcare services. The company operates and maintains hospitals, clinics, health centers, nursing homes, and other related activities. It offers services in various specialties, including cardiology, cardiac surgery, nephrology, urology, neurology, neuro-surgery, endocrinology, orthopedics, internal medicines, obstetrics, gynecology, pediatrics, neonatology, gastroenterology, and oncology. As of June 30, 2022, the company operated through a network of 19 owned/operated hospitals, 2 managed hospitals, 4 heart centers, and 18 clinics and information centers in India, as well as a hospital in the Cayman Islands. It also provides healthcare consultancy services, including licensing of ERP solutions. The company was incorporated in 2000 and is headquartered in Bengaluru, India.

How the Company Makes Money

Narayana Hrudayalaya Ltd. primarily makes money by delivering healthcare services to patients through its owned/operated hospitals and clinics. Revenue is generated mainly from (1) inpatient services: hospital admissions, bed/room charges, intensive care, nursing and other facility fees; (2) surgical and interventional procedures: specialty and complex procedures (notably in cardiac sciences and other tertiary-care specialties) that typically include surgeon/professional fees, operation theatre charges, consumables and device-related charges where applicable; (3) outpatient services: doctor consultations, follow-ups, day-care procedures and ambulatory care; and (4) diagnostics and pharmacy/other hospital ancillary services: imaging, lab tests and other in-hospital support services that are billed to patients or payers. The company is paid through a mix of cash/self-pay patients, private/employee insurance and third-party administrators (TPAs), and government-sponsored health schemes/empanelments where Narayana Health hospitals are eligible to treat covered beneficiaries at agreed package rates. Collections are therefore driven by patient volumes, case mix (complexity and specialty mix), occupancy/throughput, payer mix (cash vs insured vs government), and negotiated reimbursement/package rates. Additional earnings can come from operating leverage within its hospital network (centralized procurement, standardized clinical pathways, and higher utilization of fixed hospital infrastructure), and from international operations where present, but specific contribution levels by geography or segment are null.

Narayana Hrudayalaya Ltd. Financial Statement Overview

Summary

Narayana Hrudayalaya Ltd. demonstrates strong financial health with robust revenue growth and profitability. The balance sheet reflects prudent financial management, although increasing debt levels need monitoring. Cash flow management is generally effective, despite the recent dip in free cash flow.

Income Statement

Narayana Hrudayalaya Ltd. has shown a strong financial performance with consistent revenue growth, increasing from 25.8 billion in 2021 to 54.8 billion in 2025. The gross profit margin has improved, indicating better cost management. The net profit margin has remained stable, demonstrating profitability. However, the decline in EBITDA margin from 2024 to 2025 suggests potential cost pressures or investment in growth.

Balance Sheet

The company maintains a healthy balance sheet with a solid equity position. The debt-to-equity ratio is manageable, indicating prudent financial leverage. An increasing equity ratio suggests effective asset management. However, the rising total debt from 2022 to 2025 could pose future financial risks if not managed carefully.

Cash Flow

The cash flow position is relatively stable, with positive operating cash flow consistently over the years. Despite a dip in free cash flow in 2025 due to higher capital expenditure, the overall cash flow management remains robust. The operating cash flow to net income ratio indicates efficient conversion of income into cash, although the negative free cash flow in 2025 warrants attention.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	59.93B	54.83B	48.90B	45.30B	37.01B	25.84B
Gross Profit	25.76B	21.12B	18.41B	16.76B	12.13B	6.42B
EBITDA	13.77B	12.28B	11.02B	9.31B	6.19B	1.43B
Net Income	8.45B	7.90B	7.89B	6.06B	3.42B	-143.04M
Balance Sheet
Total Assets	77.42B	72.65B	56.25B	41.62B	31.30B	27.70B
Cash, Cash Equivalents and Short-Term Investments	18.24B	16.27B	11.04B	6.51B	3.01B	2.39B
Total Debt	23.40B	24.28B	16.27B	8.84B	7.23B	8.26B
Total Liabilities	36.80B	36.37B	27.39B	20.30B	16.40B	16.49B
Stockholders Equity	40.60B	36.26B	28.84B	21.31B	14.89B	11.20B
Cash Flow
Free Cash Flow	4.14B	-961.81M	959.93M	5.63B	2.34B	2.39B
Operating Cash Flow	6.90B	9.86B	10.67B	10.85B	4.85B	3.09B
Investing Cash Flow	-5.24B	-13.25B	-14.58B	-11.74B	-2.67B	-1.13B
Financing Cash Flow	-2.09B	5.44B	4.88B	877.41M	-1.59B	-1.98B

Narayana Hrudayalaya Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1756.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NH, the sentiment is Negative. The current price of 1756.45 is below the 20-day moving average (MA) of 1812.57, below the 50-day MA of 1823.32, and below the 200-day MA of 1845.98, indicating a bearish trend. The MACD of -19.08 indicates Positive momentum. The RSI at 39.77 is Neutral, neither overbought nor oversold. The STOCH value of 24.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NH.

Narayana Hrudayalaya Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUROPHARMA	74 Outperform	₹762.77B	18.87	―	0.33%	7.33%	-3.79%
NH	71 Outperform	₹348.13B	75.82	―	0.24%	14.72%	8.37%
HCG	67 Neutral	₹83.64B	-247.47	―	―	17.58%	-38.20%
KIMS	65 Neutral	₹265.55B	114.01	―	―	25.74%	1.41%
MEDANTA	65 Neutral	₹296.45B	83.79	―	0.04%	15.78%	15.01%
FORTIS	61 Neutral	₹649.45B	86.12	―	0.11%	15.33%	54.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Narayana Hrudayalaya Ltd. Corporate Events

Narayana Hrudayalaya Sets April 2026 Creditor and Shareholder Meetings for Restructuring Scheme

Narayana Hrudayalaya has scheduled meetings of its shareholders and secured and unsecured creditors, alongside those of NH Integrated Care Private Limited, on 2 April 2026 via video conferencing, as directed by the National Company Law Tribunal in Bengaluru. The meetings will vote on a Scheme of Arrangement under the Companies Act that will govern the proposed restructuring between the demerged NH Integrated Care and Narayana Hrudayalaya as the resulting company.

The company has set a remote e-voting window from 30 March to 1 April 2026 to enable stakeholders to cast votes on the scheme ahead of the meetings, and has circulated the notices electronically and by post where needed. The process marks a key step in formalising the corporate reorganisation, with outcomes likely to influence Narayana Hrudayalaya’s capital structure and its future integration with NH Integrated Care, with implications for both creditors and equity holders.

Narayana Hrudayalaya Sets April Meetings on NH Integrated Care Demerger Scheme

Narayana Hrudayalaya Ltd. has scheduled meetings of its shareholders and secured and unsecured creditors, along with those of NH Integrated Care Private Limited, on April 2, 2026, following directions from the National Company Law Tribunal’s Bengaluru Bench. These meetings, to be held via video conferencing or other audio-visual means, will vote on a Scheme of Arrangement under the Companies Act that contemplates NH Integrated Care as the demerged entity and Narayana Hrudayalaya as the resulting company.

The company has outlined a detailed timetable, with separate sessions for equity shareholders, secured creditors, and unsecured creditors of both Narayana Hrudayalaya and NH Integrated Care, and has enabled remote e-voting from March 30 to April 1, 2026. By moving the process forward under the oversight of the NCLT and providing multiple participation channels and advance dispatch of notices, the company is progressing toward a corporate restructuring that could realign its integrated care business within the broader Narayana Health group structure, potentially affecting capital structure and stakeholder claims once approved.

Narayana Hrudayalaya Publishes NCLT Notice on Merger of Meridian Medical Research & Hospital

Narayana Hrudayalaya Limited, a leading hospital and healthcare services provider, operates through a network of medical institutions and subsidiaries across India, offering a range of clinical and research-focused healthcare services.

The company has announced that, pursuant to an order of the National Company Law Tribunal (NCLT) Bengaluru Bench dated 30 January 2026, it has published a statutory NCLT-3A advertisement detailing a petition for the proposed amalgamation of its subsidiary Meridian Medical Research & Hospital Ltd. with Narayana Hrudayalaya Limited. The notice, carried in Business Standard (all-India, English) and Kannada Prabha (Karnataka, Kannada) on 7 February 2026, provides information on the merger petition and the scheduled NCLT hearing on 27 February 2026, marking a key procedural step in consolidating the subsidiary into the parent company and potentially streamlining the group’s hospital and research operations.

Narayana Hrudayalaya Shareholders and Creditors Clear Scheme of Arrangement with Meridian Medical Research & Hospital

Narayana Hrudayalaya Limited has reported the voting results and Scrutinizer’s Report for National Company Law Tribunal-convened meetings of its equity shareholders, secured creditors, unsecured loan creditors and unsecured trade creditors held on 19 January 2026 via video conferencing, in line with SEBI disclosure requirements. The stakeholders overwhelmingly approved a special resolution for a Scheme of Arrangement between Meridian Medical Research & Hospital Ltd as transferor company and Narayana Hrudayalaya Limited as transferee company under Sections 230–232 of the Companies Act, 2013, with near-unanimous e-voting support across promoter, institutional and non-institutional categories; the outcome, now disclosed to stock exchanges and on the company and NSDL websites, clears a key procedural hurdle for the proposed restructuring, potentially strengthening Narayana Hrudayalaya’s hospital portfolio and consolidating its presence in the healthcare services market, subject to remaining regulatory and tribunal approvals.

Narayana Hrudayalaya Forms Wholly Owned Subsidiary to Drive Northern India Expansion

Narayana Hrudayalaya Ltd. has incorporated a new wholly owned subsidiary, Narayana Healthcare North Private Limited, with an authorised capital of Rs 10 lakh and paid-up capital of Rs 5 lakh, to operate in the hospital and healthcare sector. The subsidiary has been set up to carry on healthcare services, including hospital operations and health and wellness management, and is intended to serve as a focused vehicle to deepen and optimize the company’s growing presence in northern India, potentially strengthening its regional positioning and operational focus in that market.