The industry is projected to maintain strong occupancy levels of 62-64 per cent, record a 6-8 per cent growth in average revenue per occupied bed, and sustain healthy operating profit margins of 22 to 24 per cent, it said.
According to a PTI news report, this performance is further supported by structural factors such as increasing market share for organised players, greater insurance penetration, and a rising burden of non-communicable disease, it added.
"Given the strong operating metrics and demand outlook, the industry players have announced sizeable capital expenditure (capex) plans for the medium term. Eleven listed hospital players and two large, unlisted players are cumulatively expected to add around 14,500 beds over FY2026 and FY2027 at a total capex of around Rs 30,000-32,000 crore," ICRA said. This translates to around 26 per cent of their existing bed capacity at the end of FY2025, it added.
These bed additions are expected to be across metros, tier-II and tier-III cities, with significant additions in tier-II cities like Nagpur, Lucknow, and Coimbatore to cater to the unmet demand in these regions, ICRA said. ICRA is an Indian independent and professional investment information and credit rating agency.
Medical Dialogues had earlier reported that private hospital chains were expected to add over 30,000 beds at an investment of Rs 32,500 crore in the country over the next four to five years, rating agency ICRA said. It expects the aggregate occupancy for its sample set companies to remain healthy at 64-65 per cent in FY24, backed by sustained healthy demand for healthcare services, continued market share gains for organised players, and revival in medical tourism after the pandemic.
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