Max Healthcare Approves ₹1,020 Crore Investment for 450-Bed Hospital in Pune

18 Dec 2025 , 01:34 PM

Max Healthcare Institute Ltd announced that its board has approved the acquisition of Yerawada Properties Private Limited (YPPL) for around ₹200 crore. The company also plans to invest up to ₹1,020 crore to develop a 450-bed super speciality hospital in Pune, marking a significant expansion in Maharashtra.

The acquisition of YPPL will be completed via a phased transaction. In the first tranche, Max Healthcare will acquire all Class A equity shares, giving it 100% voting rights and about 50.22% economic interest in the company. The remaining economic interest through 100% Class B equity shares will be acquired over the next four years, subject to milestones such as obtaining the occupancy certificate for the hospital building.

YPPL owns a 1.68-acre freehold land parcel in Yerawada, a central and prime location in Pune, suitable for developing a large hospital facility. The total investment of ₹1,020 crore includes land acquisition, construction costs, medical equipment, stamp duty, and other associated expenses. The proposed hospital is expected to be developed over the next four years, financed through a mix of internal accruals and term loans. Max Healthcare confirmed that no regulatory approvals are required for the share acquisition.

The move aligns with the company’s current high capacity utilisation, as its network hospitals operated at over 76% occupancy in the first half of FY26. As of September 30, 2025, Max Healthcare had an operational capacity of approximately 5,200 beds. The acquisition is not a related-party transaction, and neither the promoter nor the promoter group has any interest in YPPL. Pune was highlighted as a strategic location for expansion due to its growing population, rising income levels, and increasing demand for quality healthcare services.

On the financial front, Max Healthcare reported a net profit of ₹491 crore for the September quarter, up 74.3% from ₹282 crore in the same period last year. Revenue rose 25% year-on-year to ₹2,135 crore from ₹1,707 crore in Q2 FY25. EBITDA for the quarter increased 17.5% to ₹575 crore compared with ₹451 crore a year earlier, with EBITDA margin improving slightly to 26.9% from 26.4%. International patient revenue stood at ₹231 crore, up 25% year-on-year and 11% quarter-on-quarter, representing roughly 9% of total hospital revenue.

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