Delhi-NCR alone is expected to add 5,200 beds in the next five years, followed by Bengaluru at 3,500 beds, Haryana at 2,700, Mumbai at 2,300, Chennai at 2,000, Kerala at 5,00 and the rest at 13,750 beds.
Icra said metros are expected to remain focal points of additions. Several players are also expanding or setting up presence in tier-2 and -3 cities.
India’s current overall bed capacity under the private sector, which is at 11-11.5 lakh now will be 11.3-11.8 lakh by 2028, increasing 2.7% annually.
Icra’s sample set of companies is expected to add over 1,500 beds and 3,400 beds in FY24 and FY25, respectively. This cumulatively translates to 15% of the existing capacity. Around 55%-60% of the new beds are being set up in greenfield facilities while the balance capacity addition is expected to happen through brownfield investments and asset acquisition route. Icra said it maintains its stable outlook on the Indian hospital industry, supported by expectations of strong operating metrics translating to healthy revenue growth and robust margins for its sample set of firms that include all major hospital chains.
The rating agency expects the aggregate occupancy for its sample set companies to remain healthy at 64-65% in FY24, compared 65.1% in FY23.
