New Delhi, Aug. 19 -- India's health care services sector is expected to maintain its strong growth momentum in the coming quarters, with rising occupancy at newly commissioned hospitals likely to support profitability and margin expansion, according to Kotak Institutional Equities. The brokerage expects hospital profitability to inch up as new units ramp up, while diagnostics companies are likely to benefit from sustained volume-led B2C demand and improving realisations.

The outlook follows a strong first quarter for the sector, with Indian hospitals under Kotak's coverage reporting a 21 per cent year-on-year increase in revenue and a 22 per cent rise in EBITDA in 1QFY27. Average revenue per occupied bed (ARPOB) growth remained healthy ...