Narayana Health is planning to strengthen its presence in the Delhi market by adding around 500 hospital beds by FY29, as part of its broader expansion programme. The proposed capacity addition is expected to be completed over the next two to three years, according to Delhi NCR Cluster Director Ajay Kohli.
“We want to add around 500 beds more here,” Kohli said, referring to the planned expansion in Delhi.
The new capacity will form part of the company’s capital expenditure programme through 2029. Narayana Health has outlined about ₹30 billion in project capex, with projects scheduled for commissioning during FY28 and FY29. The company has indicated an estimated ₹10 billion of capital spending in FY28 and another ₹10 billion in FY29. However, the FY29 allocation is for the company as a whole and is not specifically assigned to the proposed Delhi expansion.
Delhi NCR Continues to See Demand
Kohli said Delhi still faces a gap in hospital-bed capacity despite the rapid growth of healthcare infrastructure in nearby Gurugram and Noida. While these cities have helped accommodate some of the demand, he noted that healthcare services there can be “very pricey”.
“Delhi is lacking still” in terms of hospital beds compared with other metros, he said.
The demand is particularly strong for specialised healthcare services, including cancer treatment. According to Kohli, patients from North India and the Northeast continue to travel for advanced care, while a significant share of specialised treatment capacity remains concentrated in western and southern parts of the country.
“Delhi is the epicentre of all of it,” Kohli said, highlighting the capital’s role in serving patients from Jammu, Himachal Pradesh and other northern regions.
More Expansion Planned in North India
Narayana Health is also considering two additional facilities in North India. Locations have not yet been finalised, and the projects will depend on the company’s financial considerations.
The group currently operates facilities in Jaipur, Gurugram, Delhi and Jammu in the northern region. Its North India cluster had 882 beds as of June 30, according to the company’s June-quarter investor presentation.
The company is also reassessing the size of its new hospitals. Rather than focusing primarily on very large standalone facilities, Narayana Health now sees 250–300 beds as a practical starting size, with the possibility of expansion later.
“If you see our reports, hospitals have an occupancy of 60-65%,” Kohli said. He added that very large hospitals would need capacities of around 1,500–2,000 beds to operate efficiently, while smaller 300-bed facilities can reach occupancy levels more easily.
Strong Quarterly Performance
Narayana Health reported a consolidated net profit of ₹2.07 billion for the June quarter, representing a 5% year-on-year increase. Revenue from operations rose 78% year-on-year to ₹26.84 billion. Its shares closed at ₹1,868.60 on the National Stock Exchange on Thursday, up 0.9% from the previous session.
The planned Delhi expansion reflects Narayana Health’s focus on increasing healthcare capacity in regions with strong demand for specialised treatment. The proposed 500 additional beds, along with potential new facilities elsewhere in North India, could further expand the group’s presence across the region by FY29.
(Photo courtesy: narayanahealth.org)