Max Healthcare Plans 10,000-Bed Expansion with Zero Debt

Max Healthcare, India’s one of the most populous hospital chains by revenue, will be funded entirely through internal accruals. Free cash flow of the company will be enough to support the expansion without raising debt, as mentioned by Chairman and Managing Director, Abhay Soi.

"Our EBITDA was Rs 2,200 crore last year which is equivalent to Rs 1,500 crore in free cash flow, and this cash flow grows 20–25% every year. Thus, a good part of this cash flow will be used to support the expansion plan over a period of three years," he added.

This fast-growth will not come at the cost of margins, as Soi had said. Max Healthcare did not experience margin compression even after adding 30% capacity over the last year, with new centers reaching break-even within a few months. The group is still optimistic of achieving 20–25% return on capital employed for its latest acquisitions in Lucknow, Nagpur, and Noida.

Also Read: Akums Begins Building Its First Overseas Plant in Zambia

Besides that, the firm plans to continue penetrating deep into Tier-II and Tier-III cities in order to address the healthcare gap in India while simultaneously growing the ancillary verticals such as Max Labs and Max Home, which are both growing at a rate of 25% per annum.

Currently, Max Healthcare is equipped with 30 surgical robots, with robotic surgeries increasing by 40% year on year, marking a significant step forward in terms of technology adoption. The hospital uses AI-powered predictive analytics and is completely digitized to great efficiency and better patient experience.

Moreover, Soi said that besides governance, medical education, and international patient inflow, Max will focus on these areas only, as it is treating more than four million patients annually. Thus, the company is reaffirming its mission of providing ethical, efficient, and scalable healthcare at a national level.