Healthcare stock jumps after announcing capex plan of ₹1,020 Cr to set up Super Speciality Hospital

Synopsis: Max Healthcare will acquire Yerawada Properties to develop a 450-bed super speciality hospital in Pune, with a total investment of Rs. 1,020 crore. The phased acquisition and construction over four years aim to expand capacity and meet growing healthcare demand.

The company primarily provides healthcare services through clinics, multi-speciality, and super-speciality hospitals, offering medical, clinical, radiology, pathology, and related healthcare services is now in the spotlight it expanding in Pune with Rs. 1,020 cr Investment 

With a market capitalisation of Rs. 1,01,907 cr, the shares of Max Healthcare Institute Limited are currently trading at Rs. 1,048 per share, increasing nearly 2% in today’s market session, making a high of Rs. 1,049.85, up from its previous close of Rs. 1,031.65 per share.

News

Max Healthcare Institute Limited has announced that its Board of Directors, in a meeting held on December 18, 2025, approved the acquisition of a 100% equity stake in Yerawada Properties Private Limited (YPPL), Pune, Maharashtra. 

The acquisition will be executed in a phased manner and will conclude once the Occupancy Certificate for the planned hospital building is obtained. In the first tranche, Max Healthcare will acquire 100% of Class A equity shares, representing full voting rights and approximately 50.22% of the economic interest in YPPL.

Strategic Expansion in Pune

The acquisition of YPPL will enable Max Healthcare to expand its presence in Maharashtra by developing a 450-bed super speciality hospital in Yerawada, a prime locality in central Pune. 

The hospital project is part of the company’s broader expansion strategy aimed at catering to the growing demand for quality healthcare services in Pune and surrounding regions. The existing Max Healthcare network has a total capacity of approximately 5,200 beds as of September 30, 2025, with network hospitals operating at over 76% capacity utilisation in the first half of FY26, highlighting the strong need for additional capacity.

The total investment for the acquisition of YPPL and the construction of the hospital is estimated at Rs. 1,020 crore. This includes the cost of share acquisition, construction, equipment, stamp duty, and registration charges. The project will be financed through a mix of internal accruals and term loans, reflecting a prudent financial strategy. The phased acquisition of Class B shares over the next four years is also planned, aligning with the completion timeline for the hospital project.

Yerawada Properties Private Limited (YPPL), originally incorporated as a Limited Liability Partnership on February 19, 2024, and converted into a company on November 14, 2025, is engaged in real estate development. The company owns a 1.68-acre freehold land parcel in central Pune, capable of accommodating a 450-bed hospital. The cost of acquisition of the initial tranche of shares is estimated at Rs. 200 crore.

The hospital project aims to serve Pune’s growing population, particularly the middle-class segment, by providing high-quality healthcare services. The development of the 450-bed facility will enhance Max Healthcare’s capacity, improve access to advanced medical care, and strengthen the company’s competitive position in the region. The phased execution over four years ensures careful planning, cost management, and alignment with long-term strategic objectives.

About the company

Max Healthcare Institute Ltd is one of India’s leading private healthcare providers, operating a network of multi-speciality and super-speciality hospitals across the country. Established with a focus on delivering advanced medical care, the company offers comprehensive healthcare services, including tertiary and quaternary care.

The company demonstrates a ROCE of 14.9% and a ROE of 12.7%, with a debt-to-equity ratio of 0.33. Over the past five years, it has achieved an impressive CAGR of 80.5% in profit growth, reflecting strong operational and financial performance.

As of Q2FY26, the company reported strong year-on-year growth across key financial metrics. Sales rose by 25% to Rs. 2,135 crore compared to Rs. 1,707 crore in Q2FY25. EBITDA increased by 28% to Rs. 575 crore, up from Rs. 451 crore a year earlier. Net profit surged by 74% to Rs. 491 crore, against Rs. 282 crore in the same period last year, while EPS grew 74% to Rs. 5.05 from Rs. 2.90.

Written by Manideep Appana

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