Narayana Hrudayalaya Ltd.

NH

Structural risk assessment following Q4-FY26 | 31 Mar 26 earnings.

⚠️
Current Risk ClassWatch
⚠️
Risk Score Change(Higher = More Risk)
Quarterly AssessmentRisk Deteriorated

Q3-FY26 | 31 Dec 25

12

Risk Score

+23 pts

Q4-FY26 | 31 Mar 26

35

Risk Score

🔴Risk increased by +23 points

Flagium detected:

  • Margin Compression
  • Industrial Margin Stress
  • Operating Leverage Stress

ℹ️ Executive Summary

Narayana Hrudayalaya Ltd. posted steady top-line growth and bottom-line stability, demonstrating resilient execution in its core markets. While the underlying business remains fundamentally sound, the presence of 3 active risk warnings highlights minor operational or working capital inefficiencies to keep on the watch list.

🛡️ Sentinel Insight

"Narayana Hrudayalaya Ltd. currently sits within Flagium's Watch category. However, recent periods have introduced early signs of competitive and operating pressure, leverage and funding pressure. Despite positive top and bottom-line growth, triggers like 'Margin Compression', 'Industrial Margin Stress' indicate underlying structural risk. While not currently existential, persistent friction suggests that structural risk is rising."

The Quarter at a Glance

MetricQ4-FY26 | 31 Mar 26Q4-FY25 | 31 Mar 25Change
Revenue₹2,623.0 Cr₹1,502.3 Cr+74.6%
EBIT Margin11.21%17.40%-618 bps
Net Profit (PAT)₹224.0 Cr₹197.3 Cr+13.5%
Interest Expense₹91.3 Cr₹40.7 Cr+124.4%

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What Changed Beneath the Headlines?

Revenue Growth

Quarterly revenue changed by +74.6% YoY, reflecting demand and volume updates.

Net Profit Expansion

Profit after tax changed by +13.5% YoY, settling at ₹224.0 Cr.

Operating Margins

Operating margin declined by 618 bps YoY to 11.21%.

Flagium Risk Signals

CategoryTrend Deterioration
SignalMargin Compression
SeverityCritical

Operating margin declined by 6.2 bps YoY for two consecutive quarters.

CategoryOperational Efficiency
SignalIndustrial Margin Stress
SeverityModerate

NH: EBITDA margin compressed by 5.8 bps YoY.

CategoryTrend Deterioration
SignalOperating Leverage Stress
SeverityCritical

Expenses are consistently growing faster than revenues, creating operational pressure.

What the financials are implicitly signaling

Flagium's structural analysis indicates:

  • Margin defense remains a priority as raw material costs or operating expense pressures rise.
  • Deleveraging or structural balance sheet adjustment is required to defend interest coverage ratios.
  • Capacity utilization calibration is being monitored to align with slow volume intake.

Signals to Monitor Next Quarter

Watch 01

Resolution of 'Margin Compression' warning: Operating margin declined by 6.2 bps YoY for two consecutive quarters.

Watch 02

Resolution of 'Operating Leverage Stress' warning: Expenses are consistently growing faster than revenues, creating operational pressure.

Watch 03

Raw material price movement and its impact on operating margins.

Watch 04

Working capital efficiency and cash flow conversions.

Historical Quality Trend

Last 6 Quarters
QuarterRisk ScoreTrendCurrent Risk Class
Q4 FY2635🟠 Watch
Q3 FY2612🟢 Stable
Q2 FY265🟢 Stable
Q1 FY2610🟢 Stable
Q4 FY255🟢 Stable
Q3 FY250🟢 Stable

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What to do next

Disclaimer

Flagium AI is an automated financial data analytics platform. Analysis reports are compiled programmatically from public regulatory XBRL submissions (NSE/BSE). This evaluation does not constitute investment advice, financial planning, or recommendations to buy, sell, or hold any security. Please consult a SEBI-registered investment advisor before acting on any data presented.