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    Yatharth Hospital & Trauma Care Services Limited

    YATHARTHGood
    Healthcare·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

    8

    • 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.

    What Changed2

    vs Q2 FY26

    Guidance items30 → 21 (-9)Risks discussed3 → 2 (-1)

    Key financials

    Single quarter

    05 metrics
    1. 01Revenue2,578 Mn+22%YoY
    2. 02EBITDA645 Mn+20%YoY
    3. 03EBITDA Margin25%+0.4%QoQ
    4. 04Net Profit420 Mn+38%YoY
    5. 05ARPOB₹32,395+6%YoY

    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 Contribution13,500 Rs ARPOB
    Noida Extension
    39,830 Rs ARPOB70% Super Speciality Contribution17% Oncology Contribution61% Occupancy
    Greater Noida Facility
    38,377 Rs ARPOB9% ARPOB Growth67% Occupancy
    List

    Guidance & targets

    21
    CategoryTargetPriority
    Revenue
    Revenue Growth
    around 30%
    		High
    Profitability
    EBITDA Margin
    1% up and down from Q4 FY25
    		Medium
    Profitability
    New Hospitals Breakeven
    around 15 months
    		High
    ARPOB
    ARPOB Growth
    8% to 10%
    		High
    ARPOB
    ARPOB for New Delhi & Faridabad Hospitals
    around Rs. 38,000
    		High
    Payer Mix
    Government Business Contribution
    around 25%
    		High
    Payer Mix
    International Patient Mix
    close to double-digit numbers
    		High
    Speciality Mix
    Oncology Contribution
    around 15%
    		High
    Capex
    Cumulative CAPEX (Brownfield & Greenfield)
    Rs. 1,400 crores to Rs. 1,500 crores
    		High
    Capex
    Maintenance CAPEX
    around Rs. 20 crores to Rs. 25 crores
    		High
    Capex
    Greenfield Acquisition CAPEX (300-350 beds)
    around Rs. 300 crores
    		High
    Capacity
    Additional Beds
    around 1,200 beds
    		High
    Capacity
    Bed Capacity Target
    3,000 beds
    		High
    Occupancy
    New Hospitals Occupancy
    30% to 35%
    		High
    Occupancy
    Noida Extension, Greater Noida Peak Occupancy
    75% or 80%
    		High
    Occupancy
    Existing Hospitals Group Average Occupancy
    close to 75%
    		High
    Tax
    Effective Tax Rate
    26%
    		High
    Working Capital
    Debtor Days
    around 117 days to 118 days
    		High
    Operating Cost
    Employee Cost as % of Sales
    15% to 17%-18%
    		High
    Expansion
    Brownfield Expansion (Greater Noida)
    before two years
    		High
    Expansion
    Brownfield Expansion (Noida Extension)
    around two years
    		High

    Risks & concerns

    2
    RiskSeverity

    EBITDA Margin Drag from New Hospitals

    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

    medium

    Income Tax Investigation

    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

    low

    Q&A highlights

    3

    “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

    2 min read6 chapters

    Detailed Narrative

    01

    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%.

    02

    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.

    03

    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%.

    04

    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.

    05

    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.

    06

    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. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.