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Yatharth Hospital & Trauma Care Services Limited — Q1 FY26 earnings call

Call held 6 Aug 2025

Management summary

Yatharth Hospitals reported a stellar Q1 FY26, achieving its highest-ever revenue and profitability with strong year-on-year growth across key financial metrics. The Greater Faridabad facility turned profitable within its first year, demonstrating effective asset optimization. The company is poised for further growth with new hospital inaugurations and continued focus on super speciality services and medical value travel, while maintaining a healthy balance sheet.

Highlights

Revenue grew 22% year-on-year to Rs. 2,578 million, and 11% quarter-on-quarter.
Net profit surged 38% year-on-year to Rs. 420 million, and 9% quarter-on-quarter.
EBITDA rose 20% year-on-year to Rs. 645 million, and 13% quarter-on-quarter.
EBITDA margin improved by 41 bps sequentially, reaching 25%.
Greater Faridabad facility turned net profit positive in Q1, contributing Rs. 234 million (9% of total revenue).
Average Revenue Per Occupied Bed (ARPOB) increased 6% year-on-year to Rs. 32,395.
Oncology now contributes 10% of the group's revenue, a 49% year-on-year increase.
New Delhi and Faridabad hospitals (combined ~700 beds) are expected to accelerate growth from Q2 FY26.

Key financials

01 Revenue 2,578 Mn +22%YoY
02 EBITDA 645 Mn +20%YoY
03 EBITDA Margin 25% +0.41%QoQ
04 Net Profit 420 Mn +38%YoY
05 ARPOB ₹32,395 +6%YoY

What they filed

Q1 FY27: revenue up 35.4%, net profit up 3.7% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	113	110	112	130	137 +21%	158 +44%	164 +46%	176 +35%
Expenses	82	79	80	95	110	122	125	136
EBITDA	31	32	32	35	27 −13%	37 +16%	39 +22%	40 +14%
Margin	27%	29%	28%	27%	20%	23%	24%	23%
Other income	2	3	4	7	6	5	7	13
Interest	0	0	0	0	0	1	4	5
Depreciation	5	5	5	5	6	9	10	10
Profit before tax	27	30	31	37	27 +0%	32 +7%	31 +0%	38 +3%
Tax rate	26%	25%	29%	28%	22%	26%	23%	26%
Net profit	20	22	22	27	21 +5%	24 +9%	24 +9%	28 +4%
EPS	2.38	2.31	2.27	2.81	2.14	2.48	2.47	2.92

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Greater Faridabad Facility
9% Revenue Contribution234 Mn Revenue1.7% EBITDA Contribution3.4% PAT as % of Revenue
Jhansi-Orchha Hospital
63% Revenue Growth7% Revenue Contribution₹13,500 ARPOB
Noida Extension
₹39,830 ARPOB70% Super Speciality Contribution17% Oncology Contribution61% Occupancy
Greater Noida Facility
₹38,377 ARPOB9% ARPOB Growth67% Occupancy

Guidance & targets

Revenue

Revenue Growth Revenue · whole year · High confidence around 30%

Our guidance remains the same, as we have always maintained that last few years the company has grown close to around 30%. I think in the upcoming years also, including this year, we remain on track for that.

— Yatharth Tyagi

Profitability

EBITDA Margin Profitability · overall group (with new hospitals) · Medium confidence 1% up and down from Q4 FY25

But quarter four of FY '25 would be the right analysis to compare the margins, and probably 1% up and down from Q4 would be a right estimation for these two hospitals now starting for the overall group.

— Yatharth Tyagi
New Hospitals Breakeven Profitability · per hospital · High confidence around 15 months

So, we do expect probably these two hospitals to follow a trend somewhere around 15 months would be a right estimation for these two hospitals also.

— Yatharth Tyagi

ARPOB

ARPOB Growth ARPOB · FY26 as well as FY27 on a blended basis · High confidence 8% to 10%

Yes. So, see, as we have said, anything between 8% to 10% that is the ARPOB growth which we are looking at. So, we have all the drivers. So, I mean we believe that I think this will be easily achievable.

— Amit Kumar Singh
ARPOB for New Delhi & Faridabad Hospitals ARPOB · Q3 onwards · High confidence around Rs. 38,000

It would be a bit more for the two new hospitals. It would be somewhere around Rs. 38,000 for those two new hospitals, that New Delhi as well as the Faridabad Hospital, the bigger Faridabad.

— Yatharth Tyagi

Payer Mix

Government Business Contribution Payer Mix · future · High confidence around 25%

Previously around 40% → around 25%

And over the course of next few years, when the government business comes down, in the tune of 25%, that is where you could expect the days and absolute number of the receivables to also come down.

— Yatharth Tyagi
International Patient Mix Payer Mix · in a couple of years · High confidence close to double-digit numbers

Previously single-digit number → close to double-digit numbers

we feel international payer mix can even touch close to double-digit numbers in a couple of years for the whole group.

— Yatharth Tyagi

Speciality Mix

Oncology Contribution Speciality Mix · in next couple of years · High confidence around 15%

Previously 10% → around 15%

the 10% radiation oncology that is for the complete oncology that is today for the whole group can even grow around 15% in next couple of years as far as the total payer mix is concerned.

— Amit Kumar Singh

Capex

Cumulative CAPEX (Brownfield & Greenfield) Capex · next three years · High confidence Rs. 1,400 crores to Rs. 1,500 crores

Yes. So, cumulative CAPEX would be, for the next three years, would be in the tune of, if you include both Brownfield as well as Greenfield, it would be in the tune of around Rs. 1,400 crores to Rs. 1,500 crores over the next three years.

— Yatharth Tyagi
Maintenance CAPEX Capex · whole year · High confidence around Rs. 20 crores to Rs. 25 crores

Maintenance for the whole year should be around Rs. 20 crores to Rs. 25 crores for us.

— Yatharth Tyagi
Greenfield Acquisition CAPEX (300-350 beds) Capex · this year · High confidence around Rs. 300 crores

we will be spending around Rs. 300 crores, including land for that hospital.

— Yatharth Tyagi

Capacity

Additional Beds Capacity · next three years · High confidence around 1,200 beds

In next three years, we are looking to add around 1,200 beds more.

— Yatharth Tyagi
Bed Capacity Target Capacity · by FY28 (likely sooner) · High confidence 3,000 beds

So, 3,000 target, yes, definitely looks like it might be met before the FY '28 target.

— Yatharth Tyagi

Occupancy

New Hospitals Occupancy Occupancy · after first year of operations · High confidence 30% to 35%

We do expect both these two hospitals to have an occupancy somewhere around close to 30% to 35%.

— Yatharth Tyagi
Noida Extension, Greater Noida Peak Occupancy Occupancy · future · High confidence 75% or 80%

So, if anything, 75 to 80, it will be a very, very ideal and very optimal utilization. I think beyond that, it is difficult. So, I think that is we are inching towards it. So, anything 75 to 80 can be a guidance.

— Amit Kumar Singh
Existing Hospitals Group Average Occupancy Occupancy · in couple of years · High confidence close to 75%

So, I think in couple of years, our existing hospitals should be at a group level occupancy of close to 75%.

— Yatharth Tyagi

Tax

Effective Tax Rate Tax · full year basis · High confidence 26%

It is coming down 26% on a full year basis.

— Sonu Goyal

Working Capital

Debtor Days Working Capital · H1 FY26 · High confidence around 117 days to 118 days

Previously around 123 days → around 117 days to 118 days

I think for the latest quarter also, I think we are looking to reduce that. Somewhere I think we feel by H1 we should be reaching a number of around 118 days to 117 days

— Yatharth Tyagi

Operating Cost

Employee Cost as % of Sales Operating Cost · when hospitals mature · High confidence 15% to 17%-18%

Previously around 19% → 15% to 17%-18%

But yes, when they are mature hospitals, I think it should be anything between 15% to 17%, 18%. It is an ideal percentage. I think we should get settled in it.

— Amit Kumar Singh

Expansion

Brownfield Expansion (Greater Noida) Expansion · from today · High confidence before two years

The greater Noida hospital should be before two years

— Yatharth Tyagi
Brownfield Expansion (Noida Extension) Expansion · from today · High confidence around two years

and Noida Extension should be around two years from today.

— Yatharth Tyagi

Risks & concerns

EBITDA Margin Drag from New Hospitals
medium

New hospitals (Delhi and Faridabad) are expected to cause a 'certain drag' on EBITDA margin compared to FY25, but management expects it to be within 1% up/down from Q4 FY25 levels.

Management acknowledged
Income Tax Investigation
low

For a large subsidiary (AKS), the income tax audit is largely complete with a 'miniscule demand' expected to be settled. For the remaining company, completion is expected by calendar year-end, with a 'very small amount' anticipated.

Management downplayed

Q&A highlights

3 direct

ARPOB and Breakeven timeline for new hospitals Direct

if we talk about, if you look at Greater Faridabad Hospital that got operationalized 12 months ago, that hospital has in the latest quarter now become profit positive... So, we do expect probably these two hospitals to follow a trend somewhere around 15 months would be a right estimation for these two hospitals also.

Provides specific timelines for new hospital profitability and clarifies ARPOB expectations for existing and new facilities.

Asked by Saumil

EBITDA margin impact from new hospitals and neutralization timeline Direct

As far as the margins are concerned with the operation of these two hospitals, yes, we do expect, these two hospitals, there would be certain drag on the EBITDA margin compared to the whole of FY '25... probably 1% up and down from Q4 would be a right estimation for these two hospitals now starting for the overall group.

Addresses potential short-term margin dilution from new hospital ramp-up and provides a clear range for future group EBITDA margins.

Asked by Harsh Shah

Cumulative CAPEX for next three years and funding strategy Direct

cumulative CAPEX would be, for the next three years, would be in the tune of, if you include both Brownfield as well as Greenfield, it would be in the tune of around Rs. 1,400 crores to Rs. 1,500 crores over the next three years... I think the company is quite capable of funding it through the internal accruals, the debt, as well as the cash position that we currently sit on.

Outlines significant future investment plans and reassures investors about the company's robust funding strategy, including internal accruals and zero debt position.

Asked by Aman

2 min read 6 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

Yatharth Hospitals reported a robust Q1 FY26, achieving its highest-ever revenue and profitability. Revenue grew 22% year-on-year and 11% quarter-on-quarter to Rs. 2,578 million. Net profit surged 38% year-on-year and 9% quarter-on-quarter to Rs. 420 million. EBITDA increased 20% year-on-year and 13% quarter-on-quarter to Rs. 645 million, with the EBITDA margin improving by 41 bps sequentially to 25%.

Strategic Expansion and New Hospital Ramp-up

The Greater Faridabad facility, operational for 12 months, turned net profit positive in Q1, contributing Rs. 234 million (9% of total revenue). Two new hospitals in New Delhi and Faridabad (combined ~700 beds) are set to accelerate growth from Q2 FY26, with the Delhi facility inaugurated in mid-July and Faridabad in late August 2025. Management expects these new hospitals to reach breakeven within approximately 15 months and achieve 30-35% occupancy after their first year of operations.

Focus on Super Speciality Services and Payer Mix Optimization

The company's strategic focus on high-value super speciality services led to a 6% year-on-year increase in ARPOB, reaching Rs. 32,395. Noida Extension achieved an ARPOB of Rs. 39,830, with ~70% contribution from super speciality services. Oncology now contributes 10% of the group's revenue, up 49% year-on-year, and is targeted to grow to ~15% in the next couple of years. The company is actively reducing its government business dependency, aiming for it to be around 25% from the current 35%.

Medical Value Travel Initiatives

Significant progress has been made in medical value travel, including collaborations with Children's Heart Fund and Black Lion Hospital in Ethiopia, and plans to open an information center in Baghdad. A representative office is being established in Tashkent to serve as a hub for Central Asian countries. These initiatives are expected to drive international patient flow, with the international payer mix targeted to reach double-digit numbers in a couple of years.

Capital Expenditure and Funding Outlook

Yatharth Hospitals plans a cumulative CAPEX of Rs. 1,400-1,500 crores over the next three years for both Brownfield and Greenfield expansions, aiming to add around 1,200 beds. This includes approximately Rs. 300 crores for a 300-350 bed Greenfield acquisition this year. The company maintains a strong net cash position of over Rs. 300 crores and zero debt, indicating capability to fund expansion through internal accruals and potential future debt.

Corporate Governance and Operational Efficiency

The company is transitioning its statutory auditors to MSKA & Associates (a BDO International member) and has appointed Deloitte as an internal auditor, reflecting a commitment to strong governance. The resolution of the Jhansi land issue provides legal clarity and ensures operational continuity. Management expects existing hospitals to achieve an average occupancy of close to 75% in a couple of years, barring new additions.

This is an AI-generated summary of a publicly available earnings call transcript.

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