Narayana Health opens 110-bed Bengaluru hospital and signs Kolkata deal

Narayana Hrudayalaya Ltd, which trades as Narayana Health, said in stock exchange filings on 5 October 2026 that it had started commercial operations at a 110-bed hospital in Bengaluru and had signed an agreement to run a 100-bed hospital in Kolkata. In both cases Narayana runs a hospital it does not own, under an operation and management agreement with the owner.

The Bengaluru facility, KS-Narayana Hospital on 100 Feet Road in Banashankari 3rd Stage, began commercial operations with effect from 5 October, according to the company’s filing to the National Stock Exchange. Narayana operates and manages the hospital under an operation and management agreement signed on 5 April 2025 with Kammavari Sangham, a society registered under the Karnataka Societies Registration Act, 1960, which covered a hospital to be built by the society. The company said the start of operations was in line with the 2026-27 financial year timeline given in its earlier disclosure.

A management contract on Park Street

Narayana also disclosed on 5 October that it had entered into an operation and management agreement with Mission of Mercy Hospital and Research Centre and The Assemblies of God of North India to run the Mission of Mercy Hospital and Research Centre on Park Street, Kolkata, according to Digital Health News, which cited the company’s regulatory filings. The existing hospital has 100 beds in about 63,240.37 sq ft across a basement, a ground floor and six upper floors.

Narayana is appointed on an exclusive basis to run, manage, operate, direct and control the hospital over the long term. The agreement does not transfer ownership, lease rights or any interest in the land to the company, the report said.

Commercial operations in Kolkata depend on conditions precedent that may take up to 12 months from the date the agreement was executed. Neither the conditions nor the date of execution has been disclosed.

What was not disclosed

No financial terms were disclosed for either hospital. The Kolkata agreement is described only as carrying customary payment terms, representations, warranties and obligations, without saying whether Narayana will earn a fixed fee or a share of revenue or profit, or who bears operating losses. The length of the term, any capital Narayana will commit to either hospital, staffing plans and the position of existing Mission of Mercy employees were not disclosed. The Bengaluru filing does not list the specialties the new hospital will offer or the investment made by the society.

According to Digital Health News, Mission of Mercy was founded in 1977 and provides emergency and trauma care, diagnostics, a pathology laboratory, a 24-hour pharmacy, intensive care units, critical-care ambulance services and a Level-II neonatal care unit. The same report said Narayana operates 55 facilities in India, plus facilities in the Cayman Islands and the UK, with more than 5,900 operational beds and capacity for more than 6,200, and noted the group’s recent announcement that it plans to add around 500 beds in Delhi-NCR by FY29.

Our reading

Analysis by The Healthcare Daily.

• Both hospitals follow the same asset-light route: another party owns the building and Narayana supplies management and operations. Once Kolkata starts, that adds 210 beds to the group’s operated network without land purchase on its own balance sheet, but the returns depend on fee terms the company has not published.
• Kolkata is a change of operator at a running hospital with an existing workforce, not a new build. How quickly the parties clear the conditions precedent within the 12-month window will decide when the beds contribute.
• Suppliers and payers dealing with Mission of Mercy may see its procurement and contracting move to Narayana once operations transfer, though no timetable has been given.