| Established track record along with experienced promoters in healthcare industry
NHPL was incorporated in 2006 in Bengaluru, which operates in the healthcare service sector. Originally established as a hospital in Padmanabhanagar in 1999, it transitioned into a private limited company in 2006. The company operates specialty hospitals across Bengaluru, Shivamogga and Ambur, along with an international presence in Maldives.Since inception, the company has performed nearly 700 plus kidney transplants, conducted over 7.5 lakh dialysis procedures, and completed more than 55,000 surgeries, establishing a strong niche position in renal sciences and transplant care. The company is promoted by Dr. Venkatesh Krishnamoorthy, Dr. Prasanna Venkatesh and other promoter-doctors, who possess extensive experience in specialty healthcare and continue to be actively involved in the company's clinical and operational management. Acuite believes that NHPL's long operating track record, experienced management team, established brand in kidney care and strong clinical expertise will continue to support its business profile and growth prospects over the medium term.
Modest scale of operations with steady growth in revenue and profitability
NHPL's operating performance remained stable during FY24-FY26 (Prov.), with operating income improving to Rs.167.45 crore in FY26 (Prov.) from Rs.149.30 crore in FY25, supported by higher patient volumes, improved occupancy and healthy contribution from its core nephrology and urology segments. Profitability improved considerably, with EBITDA margin increasing to 26.78% in FY26 (Prov.) from 22.61% in FY25, driven by company's specialty-focused business model, higher realization from transplant and robotic procedures, and efficient cost management. Consequently, PAT margin improved to 17.06% in FY26 (Prov.) from 13.80% in FY25. The company reported revenue of Rs.44.98 crore in Q1FY27. Acuite believes NHPL's established niche positioning in renal sciences, healthy profitability and planned capacity expansion will support its operating performance over the medium term.
Healthy financial risk profile
The financial risk profile of NHPL is healthy, supported by a strengthened net worth, low leverage and robust debt protection metrics. The company's net worth increased to Rs.264.86 crore in FY26 (Prov.) from Rs.116.27 crore in FY25 and Rs.95.62 crore in FY24, primarily supported by the equity infusion and healthy profit retention. Further, the additional Rs.60 crore equity infusion in FY27 is expected to further strengthen the company's capital structure and financial flexibility. Total debt declined to Rs.19.55 crore in FY26 (Prov.), comprising long-term borrowings of Rs.18.71 crore and current maturities of long-term debt of Rs.0.84 crore, as compared to Rs.29.99 crore in FY25 and Rs.30.00 crore in FY24. Consequently, the capital structure remained comfortable, reflected in gearing of 0.07x and TOL/TNW of 0.23x in FY26 (Prov.). The reported debt includes an Incremental Lease Rental / Lease Equalisation Liability of Rs.16.75 crore (FY25: Rs.16.06 crore; FY24: Rs.15.38 crore), which is a non-cash accounting adjustment arising from straight-line lease accounting and does not represent funded debt. After excluding this liability and adjusting for investments and advances to group companies, the company's adjusted gearing and adjusted TOL/TNW stood comfortable at 0.01x and 0.17x, respectively. Debt protection metrics remained strong, with interest coverage ratio (ICR) of 20.70x, debt service coverage ratio (DSCR) of 11.15x and Debt/EBITDA of 0.43x in FY26 (Prov.), compared to 25.56x, 4.76x and 0.86x, respectively, in FY25. Acuite believes NHPL's financial risk profile will continue to remain healthy, supported by healthy accruals, strong institutional investor backing and the company's stated strategy to fund its expansion primarily through equity capital and internal accruals.
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| Moderately intensive working capital operations
The working capital operations of NHPL is moderately intensive, reflected by gross current asset (GCA) of 300 days in FY26 (Prov.) compared to 272 days in FY25 and 216 days in FY24. The higher working capital requirement is primarily driven by elevated receivables arising from - government and international healthcare programs. Trade receivables increased to Rs.103.58 crore as on March 31, 2026 (Prov.) from Rs.83.21 crore in FY25 and Rs.63.89 crore in FY24, resulting in debtor days increasing to 229 days from 207 days and 150 days, respectively. Inventory requirements remained low, with inventory days at 26 days in FY26 (Prov.) , compared to 23 days in FY25 and 20 days in FY24. Creditor support moderated during FY26(Prov.) , with creditor days declining to 147 days from 192 days in FY25. Despite the elongated receivable cycle, recoverability risk is partly mitigated by the government-backed nature of the receivables and the company's demonstrated collection track record. Further, average fund-based bank limit utilisation remained low at 8.95% during the six months ended June 2026. Acuite believes working capital operations are likely to remain moderately intensive due to the nature of government-linked overseas receivables; however, the impact is mitigated by strong liquidity, institutional investor support and established collection experience.
Retention of doctors to remain a key challenge
The company competes with various super-speciality and multi-speciality hospitals. Retention of doctors remains a key challenge due to intense competition. However, the risk is mitigated by the presence of promoter-doctors who are actively involved in clinical operations, resulting in strong continuity of medical expertise and alignment of interests. However, the niche position of the company’s hospitals in nephrology and urology helps it stand out among the competition. Moreover, the company’s hospitals abide by the regulations of various Government agencies.
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