Max Healthcare Institute Ltd Management Discussions

Company Overview

Max Healthcare is a leading healthcare provider in India, committed to the highest standards of clinical excellence and patient care. Our integrated healthcare ecosystem is seamlessly supported by latest technology and driven by cutting-edge research, enabling us to deliver advanced and compassionate care across diverse medical disciplines.

As of March 31, 2025, our Network comprised of 22 healthcare facilities with a total capacity of over 5,100 beds, including more than 1,100 beds added during the year, primarily across Dwarka, Noida, Bulandshahr, and Lucknow. Our Network includes hospitals and medical centres owned and operated by our Company and its subsidiaries, as well as managed healthcare facilities and partner healthcare facilities ("PHFs"). Our facilities in Saket (three hospitals), Patparganj, Vaishali, Rajendra Place, Shalimar Bagh, Dwarka and Noida in Delhi NCR, along with hospitals in Mumbai, Mohali, Bathinda, Dehradun, Lucknow and Nagpur, serve as advanced tertiary and quaternary care centres, designed to deliver high-quality care through state-of-the-art medical technology and patient-centric clinical practices.

• Commissioned our first asset-light, ‘built-to-suit greenfield hospital with 303 beds in Dwarka in July 2024

• Expanded our footprint through the acquisition of Jaypee Healthcare Limited in November 2024, adding a flagship 500-bed hospital in Noida and a 200-bed secondary care hospital in Bulandshahr

• Increased capacity at our Lucknow hospital, acquired in March 2024, strengthening our presence in the region

Our clinical offerings are defined by expertise in tertiary and quaternary care, with advanced specialities such as oncology, cardiac sciences, neurosciences, orthopaedics, renal sciences and organ transplants. Our hospitals are equipped with cutting-edge technology, including the Da Vinci and Versius surgical robots, LINAC Edge, 3.0T wide-bore MRI, digital PET CT and Tomo Therapy systems, enabling advanced treatment protocols. In addition to our hospitals, we operate complementary businesses that extend our reach beyond traditional care settings. Max Labs, our diagnostics division, provides high-quality pathology and diagnostic services to patients both within and outside our Network, ensuring accessible and reliable testing across a wide geographic footprint. Max@Home, our dedicated homecare division, provides a comprehensive range of health and wellness services directly at patients residences, ensuring seamless care in the comfort of their homes.

For more details, refer ‘Max Healthcare at a Glance section on page 12 of this report.

Indian Healthcare Industry

The global economy remained resilient in CY 24, growing by an estimated 3.3% despite geopolitical tensions, supply disruptions and trade conflicts.¹ Amid this challenging backdrop, India maintained its strong momentum, recording a growth rate of 6.5% in FY 25, as per NSOs Second Advance Estimates of GDP, and reaffirming its position as the fastest-growing major economy.² Building on this momentum of steady economic growth, the Indian healthcare sector is transitioning from unorganised, fragmented service delivery towards more structured institutional care. Within this sector, hospitals remain the largest and most critical segment. The healthcare delivery market grew from C3.9 trillion in FY 19 to C6.3 trillion in FY 24 and it is expected to grow at a CAGR of approximately 10-12% to reach C9.4-9.8 trillion in FY 28P.² The growth is being fueled by an increasing burden of non-communicable diseases (NCDs), ageing population, greater health awareness, higher per capita income and rising demand for tertiary and quaternary care services. Private hospitals will continue to witness growth, with their share of treatments (in value terms) expected to rise from 64% in FY 19 to around 69% by FY 28.²

Note: India bed density is estimated by CRISIL Intelligence for FY 22, CY2019 figure for Bangladesh, CY2020 figures for Japan, Germany, China and United States, CY2021 figures for Russian Federation, Brazil, UK and Malaysia, CY2017 for Vietnam, CY2020 bed density data for World has taken form the World Bank Databank

Hospitals in India continue to face a significant infrastructure gap. The countrys hospital bed density stands at just 15 beds per 10,000 people, well below the global average of 33 beds per 10,000 people, and also behind other developing countries such as Vietnam (26 beds), Brazil (25 beds) and Malaysia (20 beds). Based on the current bed-to-population ratio, India requires an estimated 2.4 million additional beds to bridge this gap.

Key Trends & Growth Drivers

Expansion of health insurance

The demand for affordable and quality healthcare is driving the steady expansion of health insurance coverage in India, supported by both government schemes and private sector participation. According to the Insurance Regulatory and Development Authority of India (IRDAI), nearly 573 million people were covered under health insurance in FY 24, a significant increase from 288 million in FY 15. Despite this robust growth, overall insurance penetration remains modest at approximately 40-42% as of FY24.² As insurance coverage becomes more widespread, there is a clear shift away from out-of-pocket healthcare spending, leading to more consistent revenue flows and higher capacity utilisation for organised healthcare providers.

Rise of medical value travel in India³

India has rapidly emerged as one of the leading destinations for medical tourism, driven by a combination of factors that uniquely position the country as a global healthcare hub. The nation boasts a robust and growing healthcare ecosystem, supported by advanced infrastructure, a large pool of highly skilled medical professionals, and cutting-edge technology. Cost-effective treatment options, often at a fraction of the prices charged in developed countries, attract a significant number of international patients seeking high-quality yet affordable care. The governments proactive policies, streamlined visa procedures for medical travellers, and investments in healthcare infrastructure further enhance Indias competitiveness in this space.

Note: * Includes all types of medical and medical attendant visa; #Includes medical visa and medical attendant visa

Shift towards high-acuity and specialised care

The rising prevalence of non-communicable diseases (NCDs), including cancers, cardiovascular conditions, and neurological disorders, is driving increased demand for tertiary and quaternary care services. According to projections by the World Health Organization (WHO), NCDs are expected to account for approximately 72% of all global deaths by 2030, highlighting the urgent need for advanced, specialised healthcare infrastructure and expertise.

Rise of digitally enabled and data-driven healthcare

Healthcare delivery is rapidly evolving through the integration of technology-driven solutions, including AI-powered diagnostics, robotic-assisted surgeries, and comprehensive Electronic Health Record (EHR) systems, enhancing precision, efficiency, and patient outcomes.

Growth in outpatient and home-based care models

The rising demand for convenience, chronic care management and post-discharge recovery is accelerating the adoption of day-care surgeries, home ICU set-ups, physiotherapy and on-site medical room services, enabling more patient-centric and accessible care delivery.

2 CRISIL Report – Assessment of Healthcare Delivery Sector in India (March 2025) ³Press Information Bureau- Tourism as a Key Driver for Employment and Growth

Outlook

The Indian hospital sector is poised for sustained growth, fuelled by increasing demand for specialised healthcare services, a growing emphasis on tertiary and quaternary care, and ongoing investments in infrastructure and medical talent. As organised players expand their operations and refine their service delivery models, the industry is expected to experience greater consolidation, improved operational efficiencies, and broader access to high-quality care across regions.

Opportunities and Threats

Opportunities

We are strategically positioned to capitalise on Indias evolving healthcare landscape with a robust pipeline of growth initiatives, seamless integration of acquisitions, and a relentless focus on operational excellence.

Accelerated capacity expansion

Robust demand for high-quality healthcare is fuelling the next phase of our Network expansion. Over the next 12 to 18 months, we are set to commission several brownfield additions – 268 beds at Nanavati-Max, 155 beds at Max Mohali, and 400 beds at Max Smart (PHF). We are also adding 500 greenfield beds at Max Gurgaon.

During the year, we announced three transactions focused on asset-light, built-to-suit arrangements - a 400-bed hospital facility in Mohali (Zirakpur), a 500-bed facility in Thane, and a 200-bed facility in Pitampura.

• Mohali (Zirakpur): In August 2024, we signed an Agreement-to-Lease with Silicon Construction Private Limited for a 400-bed hospital in Mohali (Zirakpur), enabling expansion of our presence in a high-demand region

• Thane: In January 2025, the Board approved an Agreement-to-Lease with VR Konkan Private Limited for a 500-bed hospital in Thane, strengthening our presence in the Mumbai metropolitan region

• Pitampura (New Delhi): In March 2025, we signed Long-term Service Agreement with Bharat Prakritik Chikitsa Mission to develop a 200-bed hospital in Pitampura, expanding our footprint into this attractive micro-market of West Delhi

All these projects are structured to maximise Return on Capital Employed (ROCE) with minimal upfront investment. Following the success of Max Dwarka, which achieved PBIDT breakeven within six months, the asset-light model is now an important pillar of our growth strategy. This model enables rapid scale-up while mitigating development risks, as the project cost and time overruns are largely borne by the developer.

Recent acquisitions in Lucknow, Nagpur and Noida have further bolstered our expansion pipeline, with identified brownfield potential across all three locations. Currently, we have projects under implementation that are expected to add approximately 3,900 beds to our Network in the next three to four years, including planned capacity enhancements at select partner healthcare facilities.

Strategic acquisitions

Inorganic growth continues to be a key component of our strategic growth initiatives. The integration and revitalisation of our recent acquisitions in Lucknow, Nagpur and Noida have significantly expanded our Network while contributing to improved revenue and profitability. These hospitals have demonstrated exemplary financial and operational performance improvement after acquisition.

Jaypee Healthcare Limited, which became our wholly-owned subsidiary in November 2024, operates a marquee 500-bed tertiary care hospital in Noida on an 18-acre campus

Our approach, focused on rapid infrastructure enhancement, introduction of advanced clinical programmes and onboarding of high-calibre medical talent, has played a vital role in improving operational metrics such as occupancy, average revenue per occupied bed (ARPOB) and PBIDT per bed. We continue to evaluate a robust pipeline of acquisition opportunities in high-potential markets and remain well-positioned to capitalise on these opportunities.

Focus on high-complexity specialties

We are steadily enhancing our clinical mix by expanding the presence of complex and high-end specialties such as oncology, transplants and robotic surgeries. Oncology, in particular, has emerged as a key revenue contributor at our flagship hospitals and we are actively extending this successful model to recently acquired facilities. The commissioning of new infrastructure, coupled with the deployment of advanced technologies, including radiation oncology units, is expected to significantly increase the adoption of oncology and other complex services. This shift is expected to further enhance key performance indicators such as average revenue per occupied bed (ARPOB). Our emphasis on protocol-based care, clinical research and medical innovation, combined with the onboarding of top-tier medical talent, is showcasing our leadership in delivering complex tertiary and quaternary procedures.

Scaling diagnostics and home healthcare

Indias home healthcare sector is entering a high-growth phase, projected to surpass $ 21.3 billion by 2027, fuelled by an ageing population, growing chronic disease burden and a shift toward more accessible, patient-centric care.⁴ Max@Home is well-positioned at the forefront of this shift. Max@Home has established itself as a frontrunner in delivering comprehensive, tech-enabled care outside the traditional hospital settings. The platform now provides a broad range of specialised services across multiple cities, including long-term care, chronic disease management, occupational health and post-acute services. A significant portion of the revenue is derived from repeat users, underscoring high patient trust and satisfaction levels. The diagnostics industry is poised to grow at a CAGR of 10-12% over FY 24 and FY 28 to H 1,275-1,375 billion led by rising literacy rates and disposable income among the population, leading to increased awareness and demand for quality healthcare services, including diagnostics. Organised diagnostic players are expected to grow at a faster rate than the overall industry between FY 24 and FY 28.⁵ Max Lab, our diagnostics platform, has extended its presence across multiple cities, supported by a strong network of collection centres and strategic partnerships. This growth has allowed us to deliver quality pathology and specialised testing services at scale. Effective utilisation of digital platforms has enabled us to capture a larger share of the organised diagnostics market, even as the sector remains highly fragmented.

Looking ahead, we remain committed to scaling these platforms and offerings through continued investments in technology, strategic partnerships and robust quality assurance initiatives.

Medical value travel and international patient services

We continue to be a preferred destination for medical tourism. Despite temporary headwinds in certain source countries, this segment has maintained strong growth momentum, reporting a 21% year-on-year revenue increase in FY 2024-25. International patients now represent a meaningful portion of our occupancy and revenue mix, with notably higher average revenue per occupied bed (ARPOB) compared to the overall Network. Our strategic presence across multiple countries, through both Company-operated and partner offices, combined with focused outreach and collaborations, is driving consistent growth in this segment.

Optimising payor mix

We are strategically optimising our payor mix to maximise occupancy and profitability as we scale up new hospital capacities. In the initial stages of operations, institutional business, including government health schemes, plays a critical role in driving high bed utilisation. As our facilities reach operational maturity, we progressively shift towards a more favourable payor mix, with a focus on self-pay, insurance-backed, and international patient segments. Our experience across our matured hospitals validates the effectiveness of this phased approach in delivering sustainable growth in both volumes and margins.

Threats

Regulatory and pricing risks

The Indian healthcare sector operates within a dynamic regulatory environment, with ongoing developments in pricing, accreditation and compliance frameworks. Potential expansion of price caps by the National Pharmaceutical Pricing Authority (NPPA) on surgical procedures, consumables and diagnostics poses a risk to revenue realisation. The implementation of new clinical protocols or mandatory accreditation requirements may lead to higher compliance-related expenditures. Unpredictable policy shifts related to government health insurance schemes, such as PMJAY, could affect reimbursement timelines and tariff viability for private hospitals.

We continue to prioritize proactive engagement with regulatory bodies by actively participating in key industry platforms such as NATHEALTH, FICCI and AHPI, ensuring effective representation of our sector in policy discussions.

Competitive intensity

The Indian healthcare sector is experiencing heightened competition in high-growth micro-markets such as Noida, Lucknow and Mumbai, where several leading hospital chains are actively expanding capacity. This intensifies competition for patients and clinicians while placing pressure on pricing, service differentiation and marketing costs. In select metropolitan micro-markets, the pace of capacity addition may temporarily outpace demand, resulting in potential under-utilisation risks. We remain committed to sustaining our leadership by investing in brand equity, talent acquisition, and the skill development of clinical and paramedical teams, while maintaining a steadfast focus on service excellence, superior clinical outcomes, and healthcare innovation.

Shortage of skilled healthcare professionals

The healthcare sector continues to grapple with a systemic shortage of skilled doctors, nurses and allied health professionals. Elevated patient-to-clinician ratios, coupled with increasing procedural complexity, make the attraction and retention of high-quality talent a critical priority. This challenge is further amplified as we expand into non-metro tier-1 cities, where the availability of trained medical professionals is relatively limited.

We have historically succeeded in attracting top-tier clinicians, especially in regions like Lucknow and Nagpur, which benefit from a well-established medical education ecosystem, but the risk of talent shortages or escalating recruitment and retention costs remains as the industry continues to scale.

To build a strong internal talent pipeline, we offer several structured medical education programmes, including DNB courses for medical graduates, which ensure a steady stream of well-trained, high-quality clinical professionals for our Network hospitals.

Integration and ramp-up risk from acquisitions

The rapid pace of our expansion, through brownfield, greenfield and asset-light projects, introduces execution and ramp-up risks inherent to new facility launches. Newly commissioned hospitals require considerable upfront spend towards clinical staffing, physician onboarding and market development initiatives before achieving optimal occupancy and revenue stabilisation. Delays in empanelment with insurance providers and third-party administrators (TPAs), or in securing clinical accreditations, can adversely impact the ramp-up and prolong the period of operating losses.

However, ramp-up risk is meaningfully mitigated in our case, as a large portion of our expansion is brownfield in nature, and several greenfield projects are in cities where we already have an established presence.

Delays in reimbursement and institutional payments

The increasing share of insurance patients and institutional payors has enhanced affordability and access for patients but also presents working capital challenges for our Company. Reimbursement delays, claim denials and procedural audits by insurers and regulatory bodies can affect cash flows and strain liquidity. The complexity of billing systems and documentation requirements increases the risk of disputes and revenue leakage.

At Max Healthcare, we have established robust revenue cycle management practices and allocated adequate resources to ensure timely collections and, more importantly, to minimise payor-related deductions

Financial Performance and Results

During the FY 2024-25, we achieved significant milestones in both financial and operational performance. We maintained our industry leadership across key performance metrics and demonstrated consistent improvement throughout the year, including strong progress at our newly acquired hospitals in Nagpur and Lucknow. Notably, Max Dwarka achieved PBIDT breakeven within a record six months of operations. Across our existing Network, we continued to deliver growth in both patient volumes and average revenue per occupied bed (ARPOB).

Audited Financial Results (Consolidated)

(Rs in Crore)

	For the Year Ended March 31, 2025	For the Year Ended March 31, 2024
Income:
Revenue from operations	7,028	5,406
Other income	156	177
Total Income	7,184	5,583
Expenses:
Consumption of drugs, consumables and implants	1,496	1,119
Increase in inventories of drugs, consumables and implants	(19)	(1)
Employee benefits expense	1,174	934
Professional and consultancy fee	1,475	1,117
Other expenses	1,054	743
Finance costs	165	60
Depreciation and amortization expense	359	245
Total Expenses	5,704	4,218
Net Profit before Tax	1,480	1,365
Exceptional Item	74
Net profit before tax but after exceptional item	1,406	1,365
Net profit after tax	1,076	1,058
Other comprehensive income	(5)	(6)
Total comprehensive income for the year	1,071	1,051
Profit before interest, depreciation tax and exceptional item*	2,004	1,670
PBIDT margin before exceptional item* (%)	27.9%	29.9%

*Before exceptional item of H 74 Crore incurred for charges paid to Yamuna Expressway Industrial Development Authority (YEIDA) to secure permission for a change in Jaypee Healthcare Limiteds shareholding prior to acquisition

FY 25 vs. FY 24 Consolidated Results

Income

Revenue from operations

Revenue from operations increased from C 5,406 Crore in FY 24 to C 7,028 Crore in FY 25, reflecting a robust growth of approximately 30.0%. Increase was due to growth in occupied beds by around 40%.

Other income

Other income declined from C 177 Crore in FY 24 to C 156 Crore in FY 25, marking a decrease of 12.0%. Decline is mainly on account of lower interest income from fixed deposits in FY 25.

Total income

Consequently, total income increased from C 5,583 Crore in FY 24 to C 7,184 Crore in FY 25, a growth of 28.7%.

Expenses

Consumption of drugs, consumables and implants including Increase in Inventories of Drugs, Consumables, and Implants

The expenditure on drugs, consumables, and implants increased from C1,119 Crore in FY 24 to C1,477 Crore in FY 25, representing a rise of 32.1%.

Employee benefit expenses

The cost associated with employee benefits rose from C934 Crore in FY 24 to C1,174 Crore in FY 25, an increase of 25.6%. The increase is on account of the addition of new subsidiaries / hospitals for the relevant period from the date of acquisition and annual increments.

Professional and consultancy fees

Expenses on professional and consultancy services increased from C1,117 Crore in FY 24 to C1,475 Crore in FY 25, marking a growth of 32.0%. The increase is partially due to addition of new subsidiaries / hospitals for the relevant period from the date of acquisition (mainly deal-related expenses).

Other expenses

Other expenses went up from C743 Crore in FY 24 to C1,054 Crore in FY 25, representing a significant rise of 41.9%. The increase is partially due to addition of new subsidiaries / hospitals for the relevant period from the date of acquisition.

Finance costs

Finance costs rose from C 60 Crore in FY 24 to C 165 Crore in FY 25, reflecting an increase by 1.76 times. This increase is primarily attributable to borrowings undertaken for the acquisition of the Lucknow and Noida hospitals in March 2024 and October 2024, respectively. Aggregate term loans of approximately H 1,600 Crore were raised to partially finance these acquisitions

Depreciation and amortisation expenses

Depreciation and amortisation expenses increased from C 245 Crore in FY 24 to C 359 Crore in FY 25, representing a 46.7% rise. This increase is largely atrributable to the newly acquired hospitals in Lucknow and Noida, as well as Max Dwarka, which together account for over 80% of the total increase.

Total expenses

Overall expenses increased from C 4,218 Crore in FY 24 to C 5,704 Crore in FY 25, an increase of 35.2%.

Profit

Net profit before tax

The net profit before exceptional items and tax increased from H1,365 Crore in FY 24 to H1,480 Crore in FY 25, reflecting a growth of about 8.4%. FY 2024-25 Net profit before tax of H1,480 Crore excludes exceptional item of H74 Crore incurred for charges paid to Yamuna Expressway Industrial Development Authority (YEIDA) to secure permission for a change in Jaypee Healthcare Limiteds shareholding prior to acquisition. After exceptional item, net profit before tax stood at H1,406 Crore in FY 25.

Total comprehensive income

Total comprehensive income for the year increased from C 1,051 Crore in FY 24 to C 1,071 Crore in FY 25, a growth of 1.9%.

Profit Before Depreciation, Interest, and Taxes (PBIDT) PBIDT

PBIDT increased from C 1,670 Crore in FY 24 to C 2,004 Crore in FY 25, reflecting a growth of about 20.0%. FY 25 PBIDT is before exceptional item of H 74 Crore incurred for charges paid to Yamuna Expressway Industrial Development Authority (YEIDA) to secure permission for a change in Jaypee Healthcare Limiteds shareholding prior to acquisition.

PBIDT margin

PBIDT margin before exceptional items declined from 29.9% in FY 24 to 27.9% in FY 25. After exceptional item, PBIDT margin stood at 26.9% in FY 25.

Key Financial Ratios (Consolidated)

Ratio	Numerator	Denominator	March 31, 2025	March 31, 2024	% Variance	Reason for variance
1 Current Ratio (in times)	Current Assets	Current Liabilities	0.88	1.37	-35.74%	Decrease in bank FD due to acquisitions (Business combinations) during the year
2 Debt-equity Ratio (in times)	Total Debt (including lease liability)	Shareholders Equity	0.32	0.15	107.72%	Increased due to additional borrowings taken during the year for funding the acquisition deal and new projects
3 Debt Service Coverage Ratio (in times)	Earnings Available for Debt Service	Total Debt Service	3.78	8.16	-53.7%	Decreased due to additional borrowings taken during the year for funding the acquisition deal and new projects
4 Return on Equity (%)	Net Profit / (Loss) after Tax	Average Shareholders Equity	12.10%	13.37%	127bps	Due to funds deployed under capital work-in-progress for capacity expansion

 

	March 31, 2025	March 31, 2024
Gross Debt	2,489	1,150
Put Option Liability	95	87
Gross Debt, including Put Option Liability	2,584	1,237
Cash and Bank Balance	685	1,106
Net debt/ (Net Cash) [excluding Lease Liability]	1,899	131
Amount invested in Capex and Growth Initiatives	1,590	1,340

The gross debt stands at C 2,489 Crore as of March 31, 2025, a significant increase from C 1,150 Crore as of March 31, 2024. Net debt increased primarily because of increase in debt and reduction in cash for deployment of funds for acquisition and expansion projects. Net debt, which excludes lease liabilities, is calculated by subtracting cash and bank balances from the gross debt. As of March 31, 2025, the net debt is C 1,899 Crore, compared to C 131 Crore on March 31, 2024.

Company Outlook

We are well positioned for future growth, supported by a resilient management team, robust financial performance, strategic expansions, and successful M&A execution. With a clear focus on leveraging digital technologies and driving innovation, our unwavering commitment continues to underpin our leadership to excellence in the dynamic healthcare sector.

Risk and Concerns

We have established a comprehensive and proactive risk management framework designed to identify, assess and mitigate risks that may impact our strategic objectives and operational performance. This framework, overseen by the Board of Directors, enables structured evaluation and continuous monitoring of risks across multiple domains, including operational, regulatory, medical, strategic, financial, and human resources. Our Risk Management Committee (RMC) is central to this framework, responsible for defining the organizations risk appetite, developing risk management policies, and ensuring implementation across the enterprise. Risks are regularly reviewed through risk registers, heat maps and mitigation plans, with accountability assigned to senior leadership. While no single risk currently poses an existential threat, we recognize that incidents such as high-risk litigations, fire events or significant regulatory changes could materially impact our operations and reputation if not managed effectively.

We are also exposed to risks related to the integration and operational ramp-up of newly acquired hospitals. As we expand digitally, cyber risks and data privacy have also become key focus areas and highlighting the need for strong IT governance and regulatory compliance.

Internal Financial Control Systems and Their Adequacy

Our Company has implemented a robust, well-integrated internal control framework supported by advanced IT systems and workflow-enabled processes. The controls are continuously reviewed and enhanced through periodic risk control assessments and testing. A comprehensive suite of policies, standard operating procedures (SOPs), and guidelines govern all business functions. These are regularly updated and are accessible to relevant employees via a centralized digital platform, ensuring transparency and consistency across the organization. The framework is designed to ensure accuracy in financial reporting, safeguard assets and support effective decision-making. Our Internal Audit Plan remains dynamic and aligned with strategic risks, and audit findings are closely monitored by the Audit Committee.

During the reporting period, the internal controls were assessed and no material weaknesses in design or execution were identified. The statutory auditors did not report any material weaknesses or mis-statements arising from control deficiencies in the course of their audit.

Material Developments in Human Resources

In FY 2024-25, we continued to strengthen our human capital by nurturing a culture rooted in care, capability and continuous learning. Our efforts were focused on empowering employees to thrive in their roles while delivering exceptional patient outcomes making Max Healthcare a workplace where people feel valued, supported and inspired.

Ranked among the Top 15 Best Workplaces in Pharmaceuticals, Healthcare and Biotech by the Great Place to Work? Institute for the second consecutive year.

Learning & Development

At Max Healthcare, our learning and capability development initiatives reflect our commitment to continuous growth and a future-ready workforce. We offer customized programmes for all employee levels—from induction and functional training to service excellence, management, and leadership development.

Our flagship Max Leadership Development Programme supported 116 high-potential employees through personalized learning journeys, featuring sessions by IIM faculty and internal experts. Our Managerial and Supervisory Capability Development Programme further strengthens frontline leadership in a dynamic healthcare environment.

Over the past year, we delivered more than 5.8 Lakh training hours across our hospitals, empowering teams to enhance skills and meet evolving industry demands.

Employee Experience and Well-being

In response to employee feedback, we launched a holistic Wellbeing Framework and introduced MAX CARES, our 24x7 emotional assistance programme. We organised well-being sessions throughout the year, self-defence workshops for over 2,500 women employees and introduced a Critical Illness Cover for added financial security.

Recognition and Engagement

Our digital R&R platform, Umang 2.0 enabled us to celebrate achievements across the organisation, with over 17,850 award nominations and 51,000+ peer recognitions shared. We distributed C 22 Lakh in reward points to acknowledge outstanding contributions. Engagement campaigns like Employee Appreciation Week, Gratitude Week and the WECan awards helped us strengthen team bonds and spotlight innovation across teams.

Digital HR Transformation

We enhanced our HR ecosystem through mobile-enabled workflows for recruitment, onboarding, exits and performance management. Features like the Jinie chatbot, Mood Meter and QR-code-based candidate creation helped us build a stronger employer brand and talent pipeline while ensuring smooth, employee-centric experiences.

We also engaged closely with our nursing staff to identify pain points and introduced tech-based solutions such as the Nursing Mobile App and Digital Handover Process. These tools are improving bedside efficiency, data accuracy and reducing manual effort which is allowing our nurses to focus more on patient care. For more details, refer ‘Human Capital section on page 72 of this report.

Other Details

Clinical Research

Max Healthcare remains committed to excellence in patient care and medical research with a strong focus on building research and academic capabilities. Over the past 20 years, we have established a robust research ecosystem, including a clinical trials unit, regulatory office, biostatistics centre, grants office and scientific advisory board, supported by dedicated clinician scientists and young researchers. Our core activities span public health studies, drug and device trials, data research and accelerator projects, all enabled by advanced digital health solutions and a state-of-the-art genomics lab. This year we conducted over 100 clinical trials, implementing 23 ongoing grant-funded public health projects across our Network facilities and secured C 4.5 Crore in grants from leading national and international agencies. Our clinicians and academicians produced over 400 publications in high-indexed, peer-reviewed journals. We also published four editions of our in-house journal, the Max Medical Journal, featuring original articles, review articles, clinical studies, and commentary.

For more details, refer ‘Intellectual Capital section on page 84 of this report.

Academics

Max Institute of Medical Education (MIME), the educational arm of our Company, is dedicated to training medical and non-medical professionals, allied healthcare staff, corporates, embassies, multinational companies, and other medical institutions across India. During the year, we registered over 13,000 students across various academic programmes. We launched several new and advanced training initiatives, including the RCOG MHC Obstetrics and Gynaecology programme in Delhi, the Internal Medicine Training programme in Mumbai. The Emergency Medicine Programme (MEM – GWU) was expanded to our new facilities in Nagpur, Lucknow and Dwarka. Additionally, we introduced the Advanced Trauma Life Support course in partnership with the American College of Surgeons (US), and the Advanced Stroke Life Support in collaboration with the American Heart Association and Gordon Centre (US) across multiple locations. We have added several new DNB programmes at our facilities in Lucknow, Saket, Patparganj and Noida, training over 600 DNB students this year. We also enrolled over 400 fellows and observers while delivering bespoke training to more than 1,300 students and doctors. Our successful continuing medical education (CME) programmes prioritize the needs of our healthcare professionals. We identify skill gaps through needs assessments and then develop engaging and evidence-based content that addresses those gaps – offering a variety of learning formats, from traditional in-person lectures to online modules and interactive workshops.

For more details, refer ‘Intellectual Capital section on page 84 of this report.

Nursing Initiatives

During the year, we made significant progress in advancing nursing excellence across our Network. We achieved a 97% nursing satisfaction score guided by five focus areas – Leadership Development, Recruitment & Retention, Patient Satisfaction, Continuing Education and Innovation & Technology. We strengthened quality and safety through targeted initiatives, including pressure ulcer prevention, reduction in sample rejections, improved billing compliance and mandatory emergency life-saving skills training. Our Nursing Mobile App and wearable monitoring devices enhanced bedside care and early detection of clinical deterioration. Programmes like the Infection Control Link Nurse and Medication Nurse roles further reinforced our safety standards.

We continued to invest in education through competency assessments, structured induction modules and specialized certifications. Our engagement efforts, national conferences and partnerships with academic institutions enriched professional development and knowledge sharing. At the same time, we strengthened our recruitment and retention strategies and introduced clinical instructors to guide and mentor nursing staff on the ground.

For more details, refer ‘Social and Relationship Capital section on page 102 of this report.

Digital Transformation

Digital initiatives at Max Healthcare continued to enhance patient care and operational efficiency across the Network. In FY 2024-25, 25% of our total Network revenues were generated through web-based marketing and online appointments, reflecting a strong 40% year-on-year growth.

Over 9.5 Lakh registrations and 1.15 Lakh monthly active users on Max MyHealth, our omnichannel digital platform

Key Digital Initiatives

To enhance patient access, engagement and overall experience, our Company has rolled out a suite of integrated digital solutions across its network. The Max MyHealth App serves as a comprehensive digital interface, enabling patients to book in-hospital and video consultations, access pathology and Max@Home services, and retrieve a wide range of personal health records, including bio-marker trends, radiology images, e-prescriptions and discharge summaries dating back to 2020. To streamline the operation theatre (OT) scheduling process, we integrated OT booking functionality into the central scheduling system, improving efficiency and visibility for surgical teams. Additionally, this system now provides real-time digital notifications to both doctors and patients regarding scheduled surgeries and any subsequent updates. We have also established real-time OPD and IPD Command Centres to effectively monitor patient flow across our Network. These systems provide visibility into key operational metrics, such as wait times, bed availability, admissions and discharge timelines. For post-treatment monitoring, the Patient Reported Outcome Measurement (PROM) platform has been deployed across all units for knee replacement procedures, allowing for the early identification of complications through structured, patient-reported feedback. For more details, refer ‘Intellectual Capital section on page 84 of this report.

Key Technology Initiatives

To strengthen clinical excellence and operational efficiency, our Company has adopted a range of technology-led solutions across the Network. The Nursing Mobile App allows bed-side monitoring of vitals, nursing risk assessments and IV infusion tracking, helping to reduce manual errors and improve productivity. This is further supported by IV Drip Monitoring, which enables real-time remote oversight of key parameters like flow rate and volume infused with instant alerts to ensure patient safety.

In critical care areas, Sound Monitoring Devices use IoT sensors to manage noise levels and trigger alerts in case of aggression or emergencies to create a safer and more healing environment. Self-Service Kiosks have been introduced for faster patient registration, doctor discovery and digital payments to streamline OPD operations and reducing wait times.

To elevate inpatient experience, the In-Room Patient Experience TV App serves as a one-stop platform for accessing hospital services, discharge status, entertainment and feedback options. On the quality front, a comprehensive digital suite has been deployed to support Medical Quality Transformation covering audits, infection control, JCI/NABH compliance, medication safety and incident reporting.

For more details, refer ‘Intellectual Capital section on page 84 of this report.

Environment, Energy and Fire Safety Matters

At Max Healthcare, we continue to lead by example, blending cutting-edge technology with sustainable practices to enhance patient care while minimising our environmental footprint. Our commitment to energy efficiency, climate action and fire safety remains central to our operational ethos.

In FY 2024-25, we advanced our environmental goals through a series of impactful sustainability, safety, and efficiency initiatives across our facilities.

Focus Area	Key Initiatives	Outcome
	Solar carport project excuted at Max Bhatinda utilising parking spaces for clean energy generation without rooftop use	23,677 units produced in 4 months, with savings of H 2.0 Lakh and reduction in CO_ emissions by 17,217 kgs; Estimated annual generation of 2.1 Lakh units, coupled with savings of H 17–18 Lakh and reduction in CO_ emissions by 152,670 kgs
Energy Efficiency	Heat recovery pumps installed at Max Vaishali and Max Dwarka; EC fans at BLK-Max, Max Mohali, and Max Dehradun; Wi-Fi-based temperature control implemented at BLK-Max	17% reduction in energy intensity per bed compared to last year
	Conducted energy audits across newly acquired and existing facilities
	Group captive solar power systems implemented at Max Vaishali and Max Nagpur, onsite solar capacity doubled versus last year, with additional installations at Max Shalimar Bagh, Max Dwarka and Max Bathinda	56,234 gigajoules (GJ) of renewable energy utilized in FY 25
	Waste-to-energy power availed for our Delhi-based facilities
Green Infrastructure	Miyawaki plantation drive in Mohali planting 10,000 native trees in high-pollution areas	Expected to absorb 220 metric tons of CO_ annually, enhance biodiversity and significantly improve air quality in the region
Water Conservation	Rainwater harvesting systems, reuse of STP-treated water for flushing and cooling; new hospital projects equipped with integrated systems for groundwater recharge and water reuse	4.91 lakh kilolitres (kL) of water recycled in FY 25
Waste Management	Robust waste management framework aligned with environmental regulation	Over 60% waste diversion achieved through recycling and circular practices across day- to-day operations in FY 25
Fire Safety	Regular audits, staff training, and infrastructure upgrades	Ensured full fire safety compliance and emergency preparedness

Note: The parameters reported above do not reflect the initiatives implemented at our partner healthcare facilities or their resulting impact.

For more details, refer ‘Natural Capital section on page 122 of this report.

Accreditations, Certifications, Awards & Accolades

This year, we were proud to be recognised as a "Next Leader" by Institutional Investor Advisory Services India Limited (IiAS) , a prestigious proxy advisory firm. This honour places us among the top 20 companies in the S&P BSE 100 Index for corporate governance, highlighting the strength of our governance practices and our unwavering commitment to ethical conduct. Equally heartening is our continued recognition as a Great Place to Work? for the third consecutive year, a testament to our people-first culture, and our focus on nurturing talent and building an inclusive workplace.

Additionally, our facilities have earned numerous accreditations and awards, reflecting our steadfast dedication to delivering the highest standards of quality care and upholding excellence across all aspects of our operations.

For more details on the respective accreditations and awards, refer ‘Recognised for Excellence and ‘Awards and Recognitions sections on pages 20-23 of this report.

Disclaimer

The Management Discussion and Analysis may contain some statements describing the Companys objectives, plans, projections, estimates and expectations which may be ‘forward-looking statements within the meaning of applicable securities laws and regulations and are based on informed judgments and estimates. Actual results may differ materially from those expressed or implied due to external and internal factors beyond our control. Our Company does not undertake any obligation to publicly amend, modify or revise these forward-looking statements based on subsequent developments, information or events.