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Press release
08 Sept 2026
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Mumbai, India
India's healthcare providers sustain double-digit growth in Q1FY27 amid affordability push: EY Report
Mumbai, India, 08 September 2026: Leading Indian hospital operators continued to report double-digit revenue growth, supported by higher occupancy, an improving specialty mix and increased contribution from advanced procedures, as per the latest EY healthcare sector update. At the same time, the sector is preparing for a potentially evolving regulatory landscape following the release of the Parliamentary Standing Committee's report on affordability and accessibility of healthcare.
The quarter saw a y-o-y revenue growth upwards of 15% across several large hospital networks, supported by patient volume growth, improved pricing and greater adoption of advanced clinical services. Operating performance remained resilient, although margins in some cases moderated due to the ramp-up of newly commissioned assets, acquisitions and investments in future capacity.
A key theme emerging across the sector is the unprecedented scale of capacity creation. Multiple healthcare providers announced ambitious expansion plans, with several large hospital platforms targeting thousands of additional beds over the next few years.
The diagnostics sector similarly delivered a strong quarter, aided by healthy growth in patient and test volumes, preventive healthcare adoption and continued network expansion. Revenue growth across major diagnostics providers remained upwards of 10% year-on-year.
Specialty healthcare segments also maintained momentum. Oncology, paediatric and ophthalmology-focused providers reported strong growth in volumes and revenues, supported by network expansion and increasing patient demand. Medical device manufacturers recorded healthy revenue growth, particularly in export markets, although some companies highlighted pressure from geopolitical disruptions, elevated input costs and pricing competition in select regions.
Commenting on the analysis, Kaivaan Movdawalla, National Healthcare Leader, EY Parthenon India said, "The strong start to FY27 underscores the resilience of India’s healthcare sector. Robust patient volumes, rising demand for high-acuity treatments and aggressive capacity creation across hospitals and diagnostics continue to support growth. At the same time, the Parliamentary Committee’s recommendations highlight the increasing policy focus on affordability, transparency and access.”
Adding to it, Amit Gupta, Partner – Healthcare and Life Sciences Investment Banking, EY India said, “As organizations invest across the care continuum, investor attention is likely to remain focused on occupancy ramp-up, margin realization and the pace at which newly commissioned assets contribute to earnings. The sector's ability to maintain growth while absorbing significant expansion costs will be a key differentiator going forward."
The publication of the Department-related Parliamentary Standing Committee on Health and Family Welfare's report proposes a wide-ranging set of recommendations aimed at reducing out-of-pocket expenditure, improving financial protection and strengthening healthcare accessibility. Key proposals include greater standardization of healthcare pricing, expanded insurance coverage for outpatient treatments and diagnostics, increased transparency in billing practices, regulation of treatment and diagnostic pricing, and enhanced quality assurance requirements across healthcare institutions.
As the sector enters the remainder of FY27, growth is increasingly being shaped by scale, clinical complexity, technology adoption and network expansion. While healthcare organizations continue investing in new capacity and advanced care delivery, the evolving policy dialogue around affordability and accessibility is set to remain a key area of focus for industry stakeholders.
About the report
The findings are based on EY's Q1FY27 Healthcare Sector Update, which analyzes the quarterly performance of listed healthcare providers, diagnostics chains, specialty hospitals and medical device companies, alongside key policy developments affecting the sector.
About EY
EY is building a better working world by creating new value for clients, people, society, and the planet, while building trust in capital markets. Enabled by data, AI and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow.
EY teams work across a full spectrum of services in assurance, consulting, tax, strategy, and transactions. Fueled by sector insights, a globally connected, multi-disciplinary network and diverse ecosystem partners, EY teams can provide services in more than 150 countries and territories.
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