Manipal Health Q2 FY27: PAT falls 10% YoY on IPO charge; adjusted up ~22%

Manipal Health Enterprises posted consolidated revenue of ₹3,399.35 Cr for Q2 FY27, up 37.3% YoY (₹2,475.42 Cr) and 10.0% QoQ (₹3,090.63 Cr). Consolidated net profit for the period came in at ₹284.98 Cr, down 10.3% YoY from ₹317.78 Cr — a reported decline despite the strong topline because the quarter absorbed a ₹95.18 Cr exceptional charge (a ₹79.70 Cr one-time break fee on redeeming subsidiary MHPL's ₹5,874.45 Cr of non-convertible debentures, plus a ₹15.48 Cr employee-incentive clawback provision), against a ₹5.12 Cr exceptional gain in the year-ago quarter. Stripping out these one-offs on both sides, profit before exceptional items and tax grew 13.1% YoY (₹466.74 Cr vs ₹412.67 Cr) and adjusted PAT rose roughly 21.6% YoY to ~₹380 Cr from ~₹313 Cr (reported PAT adjusted for the exceptional swing, ignoring any tax shield) — the underlying growth story is materially better than the headline -10.3% suggests. Margins still compressed YoY even after adjusting for the one-off: OPM (EBITDA on revenue from operations, consistent with the company's own calculation) was ~25.6% versus ~27.1% a year ago, a ~150bps drag, and adjusted PBT margin fell to 13.3% of total income from 16.4%. Sequentially OPM expanded from ~23.3% in Q1 FY27, and reported PAT rose 17.1% QoQ on 10.0% revenue growth despite carrying a larger exceptional charge than Q1 (₹95.18 Cr vs ₹15.47 Cr) — PBT before exceptional items was up 41.2% QoQ, the more useful sequential read. The YoY compression is consistent with the capacity-expansion phase management has flagged, where new beds and greenfield units typically dilute margins before maturing, though this filing carries no segment-level (Sahyadri or otherwise) breakout to confirm that pace directly. Reported NPM was 8.15% versus 12.59% YoY; basic EPS was ₹2.14 versus ₹2.69 YoY and ₹1.96 in Q1 FY27. Management has issued no formal FY27 guidance (unchanged from the prior concall), so there is no numbered target to grade against; the closest verifiable proxy is the ₹2,000 Cr FY27 capex plan, against which H1 FY27 consolidated capex of ₹1,295.08 Cr already tracks ~65% of the full year — broadly on pace. No numeric street consensus for this quarter turned up in search; the only pre-result material found was a Cofacto Research preview (via compoundingai.in) that gave no PAT/revenue estimate, only watch items — an expected finance-cost decline from the NCD redemption, and margin normalisation from one-off greenfield/scheme-collection drags. Neither resolved cleanly: consolidated finance cost actually rose slightly to ₹300.11 Cr from ₹293.27 Cr in Q1, since the NCD redemption closed only in the last two weeks of the quarter (September 17-18) with the break fee landing in exceptional items rather than reducing finance costs — fuller relief should show in Q3 FY27. On corporate activity: the ₹8,000 Cr IPO fresh-issue proceeds (listed August 5, 2026) were used to redeem MHPL's NCDs, cutting consolidated non-current borrowings to ₹5,381.75 Cr from ₹9,948.80 Cr at FY26-end; subsidiary MHPL also signed a Business Transfer Agreement for Kinder Women's Hospital, Bengaluru (₹130 Cr, ₹120 Cr paid); and just after quarter-end the company signed a near-30-year Gurugram land lease for a new greenfield hospital, continuing the guided multi-year, 3,000-bed build-out. Separately, a subsidiary received GST demand orders totalling ₹80 Cr on October 30, 2026 (post quarter-end, no quantified impact in this filing). Standalone (parent-only) results were smaller in scale as expected — revenue ₹1,151.13 Cr, PAT ₹164.51 Cr, EPS ₹1.31 — with consolidated remaining the primary basis since subsidiaries carry the bulk of hospital operations; the two tell the same directional story without material divergence. Going into Q3 FY27, the quarter sets up three things to verify: whether finance costs step down now a full quarter is clear of the NCD, whether OPM continues its QoQ recovery (~23.3% to ~25.6%) toward management's stated ~25% portfolio margin level, and how quickly the Kinder Women's Hospital and Gurugram additions progress toward the FY27 bed-expansion plan.