Narayana Health closed the financial year on a strong note, reporting its highest-ever revenue in the fourth quarter as the company continued to strengthen its hospital operations in India while integrating its recently acquired UK business.

During a recent interaction with CNBC-TV18, the company’s management shared insights into the performance drivers across its India, Cayman, UK, and insurance businesses, while also outlining areas of future growth.

One of the biggest positives for the quarter came from the India hospital business, where Narayana Health continued to benefit from operational improvements and higher patient preference for premium bed configurations. The company said its long-term focus on improving bed mix, enhancing operational efficiency, and leveraging technology-driven throughput initiatives has started showing visible results.

Management noted that India hospitals witnessed healthy margin expansion during the year. However, on a consolidated basis, margins remained slightly under pressure due to continued investments in clinics and insurance businesses, along with the integration of the lower-margin UK operations.

The UK business, which now forms an important part of Narayana Health’s international strategy, currently operates at EBITDA margins of around 10-10.5%. While lower than the company’s India operations, the management emphasized that the business offers stable cash flows and predictable revenues because a large share of its income comes through the UK’s National Health Service (NHS).

At present, nearly 93% of the UK revenue comes from NHS contracts. Going forward, Narayana Health plans to gradually increase the share of private-pay patients, which management believes can significantly improve profitability over time.

The company also pointed out that many established healthcare operators in the UK market currently operate at high-teen margins, highlighting the long-term opportunity available in the business.

Beyond hospitals, Narayana Health’s insurance business also witnessed strong momentum during the year. The company reported Gross Written Premium (GWP) of around ₹44 crore, a sharp jump from an almost negligible base in the previous year.

So far, Narayana Health has invested approximately ₹117 crore into its insurance business and expects future capital requirements to remain manageable as the business scales.

The company currently offers multiple insurance products catering to different customer segments, including plans limited to the Narayana Health ecosystem as well as broader network offerings. Management also confirmed that new affordable products aimed at addressing the needs of India’s “missing middle” population are currently under development.

Speaking about the India business outlook, management indicated that growth is expected to remain largely organic in the near term. While there are no major immediate capacity additions planned, one new hospital is expected to go live next month.

The Cayman business, which saw strong growth last year due to expansion and insurance momentum, is expected to witness more balanced growth in the coming year.

Narayana Health also reiterated that it continues to evaluate future expansion opportunities and additional capex projects, which will be announced as they progress.

Following the earnings commentary, the company’s stock reacted positively in the market, emerging among the better-performing hospital stocks during the trading session.

With continued focus on operational efficiency, integrated care, international expansion, and affordable healthcare solutions, Narayana Health appears to be positioning itself for the next phase of long-term growth.

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Narayana Health Sees Strong Revenue Growth in Q4, Expands Focus on UK and Insurance Businesses