Narayana Hrudayalaya Limited (NH) announced that ICRA Limited has revised and reaffirmed the company's credit ratings for its bank facilities. The long-term rating for fund-based cash credit has been revised to [ICRA]AA (Stable)/[ICRA]A1+ from [ICRA]AA (Stable), while the short-term non-fund-based rating has been revised to [ICRA]AA (Stable) from [ICRA]A1+. The unallocated long-term/short-term facilities were revised to [ICRA]A1+ from [ICRA]AA (Stable)/[ICRA]A1+.

The rating reaffirmation considers NH's established position in the healthcare sector, strong brand equity, and geographically diversified presence. ICRA also noted NH's strong financial profile, characterized by healthy revenue growth (12.1% in FY2025 and 15.0% in H1 FY2026) and robust margins (OPM at 23.4% in FY2025 and 23.5% in H1 FY2026).

The company plans significant capital expenditure, with ₹700-800 crore expected in FY2026 and ₹1,400-1,450 crore in FY2027, to fund greenfield projects and the acquisition of UK-based Practice Plus Group Hospitals Limited (PPGHL) for approximately ₹2,200 crore. Despite these investments, NH's debt metrics are expected to remain healthy due to strong earnings capability.

ICRA highlighted NH's strong market position, diversified operations, and favorable demand outlook for healthcare services. However, challenges include dependence on top three hospitals and the Cayman Islands facility, significant debt-funded capex plans, and exposure to regulatory risks.