Primaya Hospital Group (PRAY) delivered a solid start to 2026, with strong revenue growth supported by inpatient volume expansion and contributions from new hospitals and business units. While margins moderated sequentially following a high base in 4Q25, overall performance remains in line with internal expectations, and management remains confident in achieving its full-year targets.
Revenue performance remained strong in 1Q26, with revenue growing by +27.1% YoY, although declining slightly by -2.9% QoQ due to seasonal factors following a particularly strong 4Q25. Growth was primarily driven by the inpatient segment, where IP revenue increased by +34% YoY, significantly outpacing outpatient growth of +8% YoY. The inpatient performance was largely volume-driven, supported by a +23% YoY increase in inpatient days and a higher number of procedures conducted across the network.
Outpatient visits also continued to show healthy momentum, growing by +22% YoY, reflecting sustained patient demand across both segments. Overall, 1Q26 performance indicates continued normalization and strengthening of patient activity following prior periods of patient mix volatility.
EBITDA grew by +22.0% YoY, broadly in line with revenue growth, though declining by -15.3% QoQ following an elevated base in the previous quarter. EBITDA margin stood at 21.9%, compared to 22.8% in 1Q25 and 25.1% in 4Q25.
The sequential margin normalization reflects several factors, including the exceptionally strong margin achieved in 4Q25, ramp-up effects from newly consolidated hospitals and business units, as well as evolving patient and payor mix during the quarter. In addition, the company recorded adjustments to salary expenses following increases in the national minimum wage (UMR) and recalculation of employee benefit expenses. Despite these factors, margins remain within a healthy range and continue to reflect PRAY’s ongoing growth and expansion phase.
Operational indicators also remained encouraging during the quarter. Inpatient days increased by +23% YoY, outpatient visits grew by +22% YoY, and Bed Occupancy Rate (BOR) improved from 43% last year to 45% in 1Q26. Total bed capacity also expanded from 2,472 beds last year to approximately 3,000 beds currently, reflecting the company’s continued expansion initiatives and gradual utilization ramp-up across the network.
Performance in 1Q26 was further supported by stronger contributions from non-BPJS segments, including out-of-pocket, corporate, and private insurance patients, contributing positively to both revenue growth and patient mix quality. In addition, recently added hospitals and business units — including Primaya Hospital Kelapa Gading, Ukrida Hospital, FMC Hospital, and Lynas Medikal — have started contributing positively to overall group performance.
From a balance sheet perspective, PRAY continues to maintain a healthy financial position. Debt Service Coverage Ratio (DSCR) improved to 2.68x from 2.41x in 4Q25, while overall liquidity and cash position remain stable. This reflects continued financial discipline and healthy operating cash flow generation to support the company’s ongoing expansion strategy.
Looking ahead, management remains confident in achieving FY26 targets, including revenue growth of 15–20% and EBITDA growth of 20–25%. While remaining cautiously optimistic amid current macroeconomic conditions, PRAY expects continued support from growing patient demand, improving non-BPJS contribution, and the ramp-up of newly expanded facilities and business units.
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