Manipal Hospitals is planning to build about 80 per cent of the 2,426 beds in its identified expansion pipeline from scratch, marking a shift towards greenfield projects after several years of rapid acquisition-led growth.
According to Manipal Health Enterprises' first annual report since its public listing on August 5, the hospital chain plans to add around 1,943 beds through greenfield projects and another 483 through brownfield expansion by 2030. Greenfield projects will therefore account for about 80.1 per cent of the planned additions.
The expansion is expected to focus largely on markets where Manipal already operates, including Karnataka, Maharashtra, Goa and eastern India. The company is also evaluating acquisitions in these regions as well as Delhi-NCR, Telangana, Kerala, Andhra Pradesh and Chhattisgarh.
New hospitals could require substantial investment
The greenfield strategy comes with significant upfront costs. Dilip Jose, managing director and chief executive officer of Manipal Hospitals, had earlier told Business Standard that a hospital with around 250 beds typically requires Rs 380 crore-Rs 390 crore, excluding land and building costs.
Spending on medical equipment, technology, information technology and interiors is estimated at around Rs 1.5 crore per bed. At that benchmark, the planned 1,943 greenfield beds could require around Rs 2,915 crore, excluding land and building expenses.
The company sees further room to grow within its existing network. Occupancy stood at 64.5 per cent in FY26, compared with 67.1 per cent a year earlier, even as operational beds rose 20.2 per cent to 6,227.
Acquisitions have rapidly expanded capacity
The planned greenfield push follows a period of aggressive inorganic expansion. Between FY21 and FY26, Manipal added 5,548 beds through acquisitions including Columbia Asia, Vikram Hospitals, AMRI, Medica Synergie and Sahyadri Hospitals.
The Sahyadri acquisition, completed in stages from October 2025, brought 10 hospitals and 1,606 licensed beds in Maharashtra into the network. Manipal paid around Rs 5,255 crore during FY26 for nearly 90 per cent of the stake and committed another Rs 574 crore for a further tranche.
The acquisition helped drive consolidated revenue from operations up 25.4 per cent to Rs 10,335.75 crore in FY26 from Rs 8,242.26 crore in FY25. Ebitda increased 22.1 per cent to Rs 2,644 crore, although the margin narrowed to 25.6 per cent from 26.3 per cent.
Revenue rises as debt and costs climb
Profit after tax fell 15.3 per cent to Rs 916.59 crore, while finance costs jumped 68.9 per cent to Rs 864.29 crore, largely due to higher borrowings. Depreciation and amortisation rose 34.1 per cent to Rs 679.55 crore.
Net debt, including lease liabilities, increased to 3.7 times Ebitda from 2 times a year earlier, while return on capital employed declined to 22 per cent from 27 per cent.
Operating performance remained stronger, with average revenue per occupied bed rising 8.8 per cent to Rs 68,900 per day. Inpatient volumes increased 19.9 per cent to 527,227 and outpatient volumes rose 16.2 per cent to 5.48 million.
The company's shares listed at Rs 652 on the NSE against an issue price of Rs 590 and closed at Rs 725.20 on September 4.