Nephrocare Health Services Q2 FY27 results: net profit ₹33.53 crore

How did Nephrocare Health Services perform in Q2 FY27?

Nephrocare Health Services reported consolidated revenue of ₹303.40 crore for Q2 FY27, up 7.7% from ₹281.75 crore in Q1 FY27. Total income rose 7.7% to ₹311.39 crore from ₹289.21 crore. Standalone revenue was ₹176.58 crore, and standalone profit after tax was ₹14.31 crore.

Reported EBITDA was ₹67.12 crore, up 5.1% from ₹63.88 crore, while the margin declined 0.6 percentage points to 22.1% from 22.7%. Profit before tax was ₹44.33 crore, down 0.6% from ₹44.60 crore, and net profit rose 4.9% to ₹33.53 crore from ₹31.97 crore.

Basic EPS increased 4.7% to ₹3.34 from ₹3.19 in Q1 FY27. Total expenses rose 9.2% to ₹267.07 crore, including employee cost of ₹52.87 crore and other expenses of ₹117.16 crore. There was no exceptional item.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹1,633.35 crore, compared with ₹1,470.87 crore at 31 March 2026. Total equity rose to ₹1,188.97 crore from ₹1,116.49 crore, while borrowings were ₹79.53 crore against ₹79.71 crore. Cash increased to ₹213.17 crore from ₹123.89 crore.

Inventories were ₹47.38 crore at 30 September 2026, compared with ₹33.04 crore at 31 March 2026. Trade receivables rose to ₹327.54 crore from ₹316.89 crore, and trade payables increased to ₹159.65 crore from ₹143.01 crore. For H1 FY27, operating cash flow was ₹89.44 crore, investing cash flow was a negative ₹24.66 crore and financing cash flow was ₹22.44 crore. Capital expenditure was ₹37.15 crore. No year-earlier H1 cash-flow comparison was provided.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 on 3 November 2026. The company also filed a Q2 and H1 FY27 investor presentation on 3 November 2026. The same-day board filings did not announce a dividend, fund raise or appointment.

A separate filing dated 2 November 2026 said the Tashkent Inter-District Administrative Court had invalidated an aggregate tax demand of approximately ₹14.79 crore against Nephrocare Health Services Central Asia LLC. It included approximately ₹11.50 crore of additional tax and approximately ₹3.29 crore of penalty, excluding late-payment interest. The court directed the Tax Department to reconsider the audit materials, and the demand is no longer operative.

What did Nephrocare Health Services' management say?

Management reiterated medium-term revenue growth guidance of 15-20% over three to four years from FY27, with no annual guidance provided. It maintained India clinic additions of 40-50 per year and Philippines additions of 10-15 per year, with both described as on track for FY27. Management also said FY27 capital deployment should exceed FY26's ₹165 crore, following ₹102 crore deployed in H1 FY27.

Management said Kazakhstan was entered this quarter and reiterated a new-country launch cadence of every 12-18 months. The company is one of 12 qualified bidders for four Saudi Ministry of Health clusters, but management described the outcome as binary, with bids due in 2027. Management identified a shortage of trained renal nurses, currency translation and pharmacy price capping as risks, and said no formal margin target was provided.

Management expected margins to fluctuate around the current ~23% as new-geography, technology and listed-company costs were absorbed. Group CFO Prashant Goenka said, “The margin moderation is investment in future growth and not weaker unit economics.” Chairman and Managing Director Vikram Bupala said, “Very, very particular that we'll grow, but in a healthy margin, healthy returns threshold range. There's no point in growing at any cost, according to me.” Group CEO Rohit Singh said, “There are four clusters, twelve qualified bidders with a binary outcome, not fifty-fifty.”

How did Nephrocare Health Services shares react?

After the filing, the stock fell 3.1% within 5 minutes, 4.4% within 15 minutes and 5.9% within 30 minutes. On the reaction day, it closed unchanged from the previous close. The Healthcare Service Provider industry posted a median gain of 2.0%, leaving Nephrocare Health Services 2.0 percentage points behind the sector on the reaction day. No next-day or five-day movement was provided.

Earlier reaction-day moves were 0.1% on 16 July 2026, a fall of 5.7% on 19 May 2026 and a gain of 7.8% on 10 February 2026. The company’s reaction-day move was unchanged in Q2 FY27.

How did other Healthcare Service Provider companies do?

Five other Healthcare Service Provider companies filed for the quarter. Their median revenue growth was 25.1%, compared with Nephrocare Health Services’ revenue growth of 23.5% in Q2 FY27. Of the peers, one grew revenue slower than the company and four grew faster than the company.

Three of the five peers reported higher profit. The peer comparison was as of 5 November 2026, and all five peers were included in the profit comparison.