Max Healthcare Plans INR 6,000 Cr Expansion, to Add 10,000 Beds with Zero Debt

The entire project will be funded through internal accruals, with no additional debt, Chairman and Managing Director Abhay Soi said in an interview.

Max Healthcare has announced an INR 6,000 crore expansion plan to add 10,000 beds over the next three to four years.

The entire project will be funded through internal accruals, with no additional debt, Chairman and Managing Director Abhay Soi said in an interview.

“Entirely through internal accruals. Last year, our earnings before interest, tax, depreciation, and amortization (Ebitda) were around INR 2,200 crore, 65 per cent of which translated into free cash flow after tax and maintenance capex. That’s about INR 1,500 crore last year, growing 20–25 per cent annually. So we’re looking at roughly INR 1,800–1,900 crore free cash flow per annum. Over three years, that’s about INR 6,000 crore, enough to fully fund our expansion without taking on additional debt,” said Soi.

He added that the company’s debt-to-EBITDA ratio currently stands at 0.6–0.7, providing a comfortable financial position to pursue the growth plan. “Every rupee of profit we make is reinvested back into the business to scale capacity, enhance technology, and expand our footprint across high-demand regions,” Soi said.

Addressing concerns around margin pressure during expansion, Soi said the company has been able to sustain earnings performance even with a rapid increase in capacity. “We added 30 per cent to our capacity last year without margin compression. Even our greenfield project of 300 beds broke even in six months and reached full occupancy within 14 months,” he noted.

He further pointed to strong utilization levels across existing hospitals. “At Nanavati, the old hospital is functioning at full capacity, emergency rooms are full, and patients are waiting for single rooms. So the new facility will see a quick take-up. The cost structure is efficient,” Soi said.

The expansion aligns with Max Healthcare’s ongoing efforts to strengthen its presence in high-demand regions and enhance access to tertiary and quaternary care services. The company aims to maintain operational efficiency and sustained margins as it scales capacity across its network.

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