India’s Healthcare Sector Records Robust Growth in FY26 Amid Capacity Expansion
Advertisement
The hospital segment remained the primary growth engine during the financial year, with major hospital operators reporting over 15% year-on-year growth in both revenue and EBITDA
India’s healthcare sector recorded strong growth in the fourth quarter and full fiscal year 2026, driven by revenue expansion across hospital networks and diagnostics, sustained capacity additions, and continued investor interest.
A recent report highlights that rising patient volumes, improving hospital revenues, and growing demand for specialised care have continued to strengthen the industry's growth trajectory.
Further, the hospital segment remained the primary growth engine during the financial year, with major hospital operators reporting over 15% year-on-year growth in both revenue and EBITDA.
In addition, hospitals maintained stable operational performance with occupancy levels between 60 per cent and 75 per cent, along with gains in average revenue per occupied bed.
High-acuity specialties, particularly cardiology and oncology, grew at rates exceeding 15 per cent, capturing a larger share of total hospital revenues, the report added.
Further, the diagnostic segment also delivered strong performance during the year.
In the diagnostics sector, revenue growth across organised companies was higher than 15 per cent, with average EBITDA margins being higher than 25 per cent.
These companies expanded their operational footprint through additional laboratories, radiology centers, and patient collection points across multiple regions.
Single-speciality hospital operators similarly reported health revenue growth over 15 per cent with EBITDA margins hovering around 30 per cent.
In contrast, medical device manufacturers experienced muted performance partly due to the impact of United States tariffs.
As per the report, profitability in the segment faced pressure from higher raw material costs, global logistics bottlenecks, and expenses tied to corporate acquisitions and physical expansion.
The report also noted investment activity across healthcare remained firm, supported by private equity interest despite a sequential decline in transaction volumes during the fourth quarter. Valuations maintained an upward trend, reflecting market confidence in long-term expansion and premium pricing for high-growth platforms.
However, the report noted that, in the coming months, the sector is expected to remain on a positive growth path, anchored by increasing chronic disease prevalence, rising public health awareness, continuous network expansions, and active mergers and acquisitions.
Stay tuned for more such updates on Digital Health News
