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Narayana Health has expanded its hospital network

ICICIdirect Research 06 Oct 2026 DISCLAIMER

News: Narayana Health has expanded its hospital network through two Operation and Management (O&M) arrangements. The company has entered into a long-term agreement with Mission of Mercy Hospital and Research Centre and the Assemblies of God of North India to operate and manage the existing 100-bed hospital in Kolkata, spread across approximately 63,240.37 sq. ft.; commercial operations are subject to conditions that may take up to 12 months. Separately, Narayana Health commenced operations at the 110-bed KS-Narayana Hospital in Banashankari, Bengaluru, effective October 5, 2026, under an O&M agreement with Kammavari Sangham executed in April 2025.

View: The India business for Narayana currently accounts for ~50% of the consolidated revenues and has grown high-single digit to low double digit in the last 2 fiscals. The India business has a bed capacity of 5461 beds and is expected to add ~1500+ beds (~30% of existing capacity) in the coming 3-4 years predominantly in Bengaluru and Kolkata clusters. The newly commenced 110 bedded hospital in Bengaluru is a part of the expansion plan already disclosed by the company while the 100 bedded hospital in Kolkata and related O&M is new. We believe the Indian hospital business to perform steadily as the new capacities start to ramp-up with a modest growth (mid-single digit) in ARPOB. We will keep a tab on the bed capacity expansions.

Impact: Positive

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