Better patient mix to offset Q2 dip for hospital chains

Indian hospital chains are expected to post steady growth in the second quarter ended September 30, a weak period compared to previous years due to lower infection rates, according to brokerages.

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Q2 FY26 was not as seasonally strong compared with previous years, owing to lower incidences of infections.

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Brokerages HDFC Securities and Kotak Institutional Equities peg overall sales growth for hospitals at 13-16% year-on-year (yo-y), as new beds, steady average revenue per occupied bed (ARPOB), and a better patient case mix could offset the marginally seasonal dip.

“It has been a bit of a weak season, especially for dengue and malaria cases—you will see some impact of that on hospitals,” said Tausif Shaikh, pharma and healthcare analyst at BNP Paribas. “Floods in Punjab could impact some of the players specifically focusing on North India.”