Yatharth Hospital & Trauma Care Services Limited

Yatharth Hospitals reported a strong Q2 FY26, achieving record revenue of INR2,794 million, a 28% YoY and 8% QoQ increase. Adjusted EBITDA grew 35% YoY to INR737 million, with an adjusted margin of 26.7%. The company operationalized 700 new beds across its Model Town (New Delhi) and Faridabad Sector 20 hospitals, maintaining a healthy 66% occupancy rate. A key positive was the unfreezing of provisional attached properties by income tax authorities, restoring financial flexibility.

Continuing its expansion strategy, Yatharth acquired Shantived Hospital in Agra, adding 250 beds, expected to contribute to revenue and profitability from Q4 FY26. The company's total bed capacity is currently around 1,750, and with the Agra addition, it will reach approximately 2,550 beds. Management aims to double its capacity in the next 3-4 years, including brownfield expansions and new acquisitions, revising its target to cross 3,000 beds much earlier than FY28.

Consolidated ARPOB stood at INR32,015. Noida Extension achieved its highest-ever ARPOB of INR40,800, up 7% YoY, driven by 70% super specialty services. The overall ARPOB growth was muted QoQ due to a significant increase in occupancy at Jhansi-Orchha Hospital (71%), which has an ARPOB almost half of the group average. However, new facilities like Model Town (initial ARPOB INR33,600) are expected to drive higher ARPOB, with Delhi hospital projected to cross INR40,000 within 12 months.

The company maintains a robust net cash position of INR3,692 million and is currently debt-free. The capex plan of INR1,500 crores, initially for 3 years, has been revised to be spent over the next 4.5 years. Greenfield bed setup in NCR costs around INR1 crore per bed, while brownfield costs INR75 lakhs per bed. Breakeven for new greenfield projects is expected in 15-18 months, and for brownfield in around 15 months.

Yatharth demonstrated its commitment to clinical excellence by adopting advanced technologies. This quarter saw Delhi's first-ever Robotic Intelli Hip Revision surgery at Model Town hospital and the adoption of Rapid AI for stroke detection at the Greater Noida facility. These advancements contribute to reducing Average Length of Stay (ALOS) and enhancing diagnostic and treatment timelines, positioning the company among leading super specialty providers in North India.

Significant strides were made in medical value travel, with representative offices established in Baghdad and Tashkent, and expansion into Cameroon. The company is also set to be the exclusive healthcare partner for the upcoming Jewar Airport. Additionally, the long-awaited CGHS rate revision, effective October 13, 2025, is expected to provide an incremental revenue upside of 1.5% in FY26 and 2.5% in FY27, with EBITDA benefits of 1% and 1.75% respectively.

Upholding high governance standards, Yatharth appointed Mr. Ramesh Krishnan as an Independent Director and MSKA & Associates as Statutory Auditor. CRISIL upgraded the company's credit rating to CRISIL A/Stable, reflecting strong business prospects and reinforcing investor confidence. The management emphasized its focus on robust governance practices and transparency for all stakeholders.