Yatharth Hospital & Trauma Care Services Limited — Q3 FY26 earnings call

Call held 6 Feb 2026

Management summary

Yatharth Hospitals delivered a strong Q3 FY26, achieving record revenue and profitability driven by robust growth in existing hospitals and the successful scale-up of new facilities in New Delhi and Faridabad. The company's strategic focus on super-specialties and a favorable payer mix contributed to healthy ARPOB and margins. Management is confident in continued growth, further margin expansion, and significant bed capacity additions over the next few years, with Q4 expected to surpass Q3's performance.

Highlights

  • Revenue grew robustly by 46% YoY and 15% QoQ to INR3,205 million, marking a highest-ever quarterly revenue.

  • EBITDA increased by 35% YoY to INR742 million, with an adjusted EBITDA margin of 29.2% despite new hospital ramp-up losses.

  • Net profit after tax (PAT) grew 41% YoY to INR431 million, and adjusted PAT was up 80% YoY.

  • Newly operational New Delhi and Faridabad Sector-20 hospitals generated INR279 million in revenue, contributing 9% to group revenues, with 100% cash and TPA payer mix.

  • Average Revenue Per Occupied Bed (ARPOB) increased 10% YoY to INR33,744, with Noida Extension achieving INR44,000 ARPOB, up 16% YoY.

Concerns

  • Initial ramp-up losses at the newly operational New Delhi and Faridabad Sector-20 hospitals impacted consolidated EBITDA margins.

  • Government receivable days are higher (around 200 days) compared to some listed peers (130-140 days), attributed partly to ESI channels.

  • An IT issue, though largely addressed, is still in the 'formality' stage and expected to be fully resolved in the coming quarters.

Key financials

  1. Revenue 3,205 Mn +46%YoY
  2. EBITDA 742 Mn +35%YoY
  3. Adjusted EBITDA Margin 29.2%
  4. PAT 431 Mn +41%YoY
  5. ARPOB ₹33,744 +10%YoY
  6. Occupancy Rate 67%
  7. Oncology Revenue ₹85 Cr +34.9%YoY

What they filed

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

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue113 110 112 130 137 +21%158 +44%164 +46%176 +35%
EBITDA31 32 32 35 27 −13%37 +16%39 +22%40 +14%
Net profit20 22 22 27 21 +5%24 +9%24 +9%28 +4%
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

Share of ARPOB
Noida Extension Hospital ₹44,000 18.3%
Model Town (New Delhi) Hospital ₹40,000 16.7%
Greater Noida Hospital ₹39,000 16.3%
Faridabad Sector-20 (New) Hospital ₹36,000 15.0%
Greater Faridabad Hospital ₹35,000 14.6%
Noida Hospital ₹32,000 13.3%
Jhansi-Orchha Hospital ₹14,000 5.8%

Capital allocation

high confidence
  • Capex ₹1,500 Cr Through a good, strong cash position, potential debt, and strong internal accruals, sufficient to fund capex for the next good 3 years.
    • Total bed capacity expansion to 5,000-6,000 beds
    • Capex per bed for older hospitals ₹60 lakh
    • Capex per bed for newer hospitals (Delhi, Faridabad) ₹80 lakh
    • Capex per bed for overall new 3,000 beds (mix of greenfield/asset-light) ₹60 lakh
    So I do have a good, strong cash position as well as we can always take certain debt. However, our internal accrual is also quite strong. So I think using all these 3 mixes, we are well in position to fund our capex for the next good 3 years.
  • M&A Agra Hospital Acquisition · Integrated

    Fully integrated into the Yatharth network, expected to contribute meaningfully to revenue and EBITDA from Q4 FY26. It is a full NABH hospital with existing revenue of INR45-50 crores and already EBITDA/P&L positive.

    Expected to contribute meaningfully to revenue and EBITDA from Q4 FY26 without incurring more losses to make it profitable.

    Moving to our recent expansion, the Agra hospital has now been fully integrated into the Yatharth network effective February 1, 2026. The hospital is already a fully operational facility with strong visibility in its micro-market, and we are confident that it will contribute meaningfully to revenue and EBITDA from this quarter.
  • Liquidity Cash ₹200 Cr Current cash and bank position as of December 31, 2025, at a consolidated level.
    So current cash and bank position as on 31st December at a consol level is coming close to INR200 crores.

Guidance & targets

Payer Mix

  • Government mix reduction Payer Mix · in 2 to 2.5 years · High confidence 25% to 28%

    From 35% today

    in 2, 2.5 years' time, our government mix should be reduced somewhere close to 25% to 28%.

    — Yatharth Tyagi

  • Government business share Payer Mix · Two years down the line · High confidence lesser than 30%

    From 35% today

    Two years down the line, government business should be lesser than 30%.

    — Yatharth Tyagi

  • Government mix in newer hospitals Payer Mix · going forward · High confidence 15% to 20%

    From 0% today

    don't see in the newer hospitals government mix being more than somewhere 15% to 18% or maybe max for 20%.

    — Yatharth Tyagi

Capacity

  • Total cumulative beds Capacity · next 3 years · High confidence 5,000 beds

    From 2,550 beds today

    So we are talking of the addition of almost 3,000 beds to take the total cumulative beds to 5,000 in the next 3 years

    — Ashutosh Kumar Jha

  • Operationalization of new hospitals Capacity · over a period of time · Medium confidence 4 to 5 years
    the operationalization of the hospitals will be in 4 to 5 years over a period of time.

    — Ashutosh Kumar Jha

  • Brownfield beds commissioning (Greater Noida/Noida Extension) Capacity · 1.5 years from now · High confidence commissioning

    From under construction today

    1.5 years from now, I think we should be close to commissioning them.

    — Yatharth Tyagi

Capex

  • Capex per bed (older hospitals) Capex · current · High confidence INR60 lakhs
    So as of today, capex per bed should be around INR60 lakhs per bed

    — Yatharth Tyagi

  • Capex per bed (newer hospitals) Capex · current · High confidence INR80 to INR90 lakhs
    the capex per bed would be in the tune of upwards of INR80 to INR90 lakhs per bed.

    — Yatharth Tyagi

  • Overall capex plan Capex · next 5 years · High confidence INR1,500 crores
    So we have discussed our overall capex plan for next 5 years. For it, deals will be announced within, let's say, in next 3, 3.5 years, but the fund deployment of the capex will take 5 years' time, and that is around INR1,500 crores for getting us a bed capacity of close to 5,000 beds.

    — Yatharth Tyagi

Occupancy

  • Faridabad Sector-20 occupancy Occupancy · coming quarters · High confidence more than 50%

    From 43% today

    expect more than 50% occupancy in the coming quarters.

    — Amit Kumar Singh

  • Breakeven occupancy for new hospitals Occupancy · current · High confidence 30% to 35%
    between 30%, 35% of the full operational bed, I think we'll be at breakeven.

    — Amit Kumar Singh

ARPOB

  • Agra ARPOB ARPOB · by next quarter · High confidence INR30,000 to INR32,000

    From INR26,000 today

    by next quarter, I think anything between INR30,000, INR32,000 kind of ARPOB.

    — Yatharth Tyagi

  • ARPOB growth ARPOB · every year · High confidence around 10%
    growing more than 10% of our ARPOB. So I think that's -- you can easily guess over there. And even the current numbers, which you see the kind of Noida Extension, Greater Noida hospital has grown. So 10% ARPOB year-on-year, I think that's quite easily achievable for us. That's what our guidance.

    — Amit Kumar Singh

Specialty Mix

  • Oncology contribution to specialty pie Specialty Mix · in less than 2 years / 1.5 years · High confidence 15%

    From 10% today

    expect oncology to touch around 15% in less than 2 years' time. Maybe in 1.5 years' time, we should be there.

    — Yatharth Tyagi

Profitability

  • Blended EBITDA margin (consolidated) Profitability · going forward · High confidence 24% to 25%
    guidance for the blended EBITDA margin is in the range of 24% to 25% on a consolidated level.

    — Ashutosh Kumar Jha

  • EBITDA margins Profitability · coming quarters · High confidence better
    the EBITDA margins should be better from here on in the coming quarters for sure.

    — Yatharth Tyagi

  • Faridabad new hospital breakeven Profitability · from launch · High confidence within 12 months
    Faridabad probably we will do a breakeven probably much earlier. In fact, probably well within the 12 months

    — Amit Kumar Singh

  • Model Town hospital breakeven Profitability · from launch · High confidence within 15 months
    Model Town, which we see, I think within the 15 months, which we should have operational breakeven.

    — Amit Kumar Singh

Receivables

  • Receivable days Receivables · by March 2027 · High confidence less than 110 days

    From 116 days (Sep 2025) today

    we are very much hopeful to close March 2027 with receivable days less than 110.

    — Sonu Goyal

  • Receivable days Receivables · After 2 years down the line · High confidence 80 or 82 days

    From 115 days today

    After 2 years down the line, as we already mentioned, we will reduce our government mix, we will increase our cash and TPA business... we will very much close to 80 or 82 days.

    — Sonu Goyal

  • Deduction overall at group level Receivables · going forward · High confidence decrease

    From reducing from last 2 years today

    Our deduction overall at a group level is reducing from last 2 years. You can see from our reported results also. And the same trend we will follow, but it is not 1% or 2%. Yes, it will decrease.

    — Sonu Goyal

Cost Efficiency

  • MVT business cost benefit Cost Efficiency · going forward · Medium confidence 5% to 6% increase in cost benefit
    So we would see around 5% to 6% increase in the cost that we would be benefiting from that. That's our estimation on that specific business.

    — Yatharth Tyagi

What to watch in Q4 FY26

Q4 FY26 Overall Performance

next quarter (Q4 FY26)
Current Q3 FY26 was exceptional
Target Even better than Q3 FY26

Why it matters

Management explicitly guided for Q4 to be better than Q3 due to new hospital integrations and CGHS price revisions, indicating continued strong momentum.

Quarter 3 has been an exceptional performance by the company, and we further expect due to the integration of the new hospitals in our network that quarter 4 would even be better than the quarter 3 numbers.

Risks & concerns

  • Higher Government Receivable Days

    medium

    Government receivable days are around 200, higher than peers (130-140), partly due to ESI channels (30-35% of outstanding government receivables) which have slower payment cycles. Management is implementing measures like outsourced recovery teams to reduce this.

    Analyst acknowledged

  • Lingering IT Issue

    low

    An IT issue, though largely resolved with attachments and asset freezing removed, is still in the 'formality' stage and expected to be fully resolved in the 'coming quarters'.

    Analyst downplayed

  • Doctor Poaching by New Entrants

    low

    The entry of new chain hospitals in Noida could lead to doctor poaching, which management views as 'part and parcel' of the industry and states they are 'prepared for this'.

    Analyst acknowledged

Q&A highlights

4 direct
Government Receivable Days vs. Peers Partial
So I mean, there are certain payers within, let's say, TPAs also, which does drag because majority of the TPA business is received -- the payment is received within time, but then there are certain exceptions and with the certain things. So that also contributes a bit. But yes, I would still say what you've mentioned, it would be close to that, but not exactly to that amount. So it varies day by day even government also... 30% to 35% of our outstanding with the government is specifically from ESI channels. So that has also led to an increase, which is not standard across other hospitals chains.

Analyst challenged management on higher government receivable days compared to peers, prompting management to explain the specific impact of ESI channels and ongoing efforts to reduce them, indicating a cash flow management focus.

Asked by Akshat Mehta

IT Issue Resolution Timeline Partial
Yes. So all the attachments and the freezing of any asset or everything has been removed. And we are in the final stages. We are expecting very soon that matter to be resolved. So yes, it's going as per plan... See, I mean, these are industry standard. I think sometime in the coming quarters, definitely, it will, even though the matter which was on the emphasis has already been resolved in the last quarter. So for us, it's more of a formality now which is remaining.

Analyst sought clarity on the full resolution of an IT issue, which management indicated was largely resolved but still had 'formalities' pending, with full resolution expected in 'coming quarters', suggesting a lingering administrative task.

Asked by Anand B.

EBITDA Margin Trajectory and Future Targets Direct
at a consolidated level, we feel somewhere around 24%, 25% EBITDA margin would be a right estimation. Yes, if you remove all the new hospitals that we'll be starting, the EBITDA margins would be somewhere around 3%, 3.5% more than the consolidated average.

Analyst probed for specific EBITDA margin targets given new hospital additions, leading management to provide a clear consolidated guidance of 24-25% while also explaining the dilutive effect of new facilities on overall margins.

Asked by Shreya Chatterjee

Impact of New Labour Codes on Employee Expenses Direct
See, based on the recent changes, which is done by the Labour Code, we don't have any significant impact on us. We are mostly aligned to our current stature as per the proposed codes. However, minor impact may come as a change of the basic pay, which has been factored to the gratuity. To elaborate, we don't have any major impact on the other fronts like bonus or the leave encashment. We perceive that we have a complete assessment in place, by March-end, in which we don't expect any major impact in this financial year due to this New Labour Codes.

Analyst inquired about potential cost increases from new Labour Codes, and management provided reassurance that the impact would be minimal and largely absorbed, indicating good cost management.

Asked by Nirali Shah

Payer Mix Strategy for New Hospitals Direct
See, this is very much strategically planned and expected. We, as a group, have always talked about in the past to reduce government mix, and that is what we are doing. I wouldn't say that it will remain 0 after 1 year. Definitely, it will increase, but I don't see in the newer hospitals government mix being more than somewhere 15% to 18% or maybe max for 20%.

Analyst questioned the cash/TPA-heavy payer mix in new hospitals, confirming management's strategic intent to reduce government dependence and improve debtor days, which is a key operational efficiency driver.

Asked by Ishika

Risk of Doctor Poaching by New Entrants Direct
Yes, it's a part and parcel. Believe you me, any hospitals entering into any territory, they try to look at it which one is doing good, who are the good doctors. We also do it, right. When we enter in Delhi, we did the same thing, entered in Faridabad, we did the same thing. So it's a part and parcel. And we as a hospital, we are prepared for this, right. So one go, other can come. So this is how it is.

Analyst raised a common industry concern about doctor poaching, to which management responded by acknowledging it as a normal competitive dynamic and stating their preparedness, indicating confidence in their talent retention strategies.

Asked by Shubham Harne

2 min read 6 chapters

Detailed narrative

Exceptional Q3 FY26 Financial Performance

Yatharth Hospitals reported its highest-ever quarterly revenue and profitability in Q3 FY26, with revenue growing 46% year-over-year and 15% quarter-over-quarter to INR3,205 million. EBITDA increased by 35% YoY to INR742 million, and adjusted EBITDA margin stood strong at 29.2%. Net profit after tax (PAT) saw a 41% YoY increase to INR431 million, with adjusted PAT growing 80% YoY, demonstrating robust financial health.

Successful Scale-Up of New Facilities and Strategic Payer Mix

The newly operational New Delhi and Faridabad Sector-20 hospitals significantly contributed to the quarter's performance, generating INR279 million in revenue and accounting for 9% of the group's total. These facilities achieved strong initial ARPOB of INR40,000 and INR36,000 respectively, with 100% of their revenues derived from cash and TPA. This aligns with the company's strategic goal to reduce government payer mix in newer hospitals to a maximum of 15-20% within 1-2 years, thereby improving operational efficiencies and debtor days.

Aggressive Capacity Expansion and M&A Integration

Yatharth Hospitals is pursuing an ambitious expansion plan to increase its total bed capacity from 2,550 to 5,000-6,000 beds over the next 3-4 years, involving a combined capex of INR1,500 crores over five years. The recently acquired Agra hospital was fully integrated into the network on February 1, 2026, and is expected to contribute meaningfully to revenue and EBITDA from Q4 FY26, having already been EBITDA and P&L positive with INR45-50 crores in revenue in the last 12 months.

Focus on Super-Specialties and Oncology Growth

The company is strategically enhancing its super-specialty services, with oncology currently contributing 10% to the overall specialty pie. Oncology revenue grew significantly from INR63 crores to INR85 crores year-over-year. Management expects oncology's contribution to reach 15% within 1.5 to 2 years, driven by the introduction of full-scale oncology services in the new Faridabad and New Delhi hospitals, underscoring a shift towards higher-value clinical offerings.

Receivables Management and Liquidity Position

As of December 31, 2025, the company maintained a healthy cash and bank position of INR200 crores. While the blended receivable days stood at around 115, management is actively working to reduce this to less than 110 days by March 2027 and further to 80-82 days within two years. This reduction is being achieved through rigorous collection protocols, outsourcing recovery teams, and a strategic shift away from slower-paying government channels like ESI.

Positive Outlook and Margin Trajectory

Management expressed confidence in continued growth and margin expansion, expecting Q4 FY26 to be even better than Q3 due to new hospital integrations and recent CGHS price revisions. They project a blended EBITDA margin of 24-25% at a consolidated level, acknowledging that continuous new hospital additions will impact the blended margin but emphasizing that margins from mature hospitals would be 3-3.5% higher. The company also anticipates ARPOB to grow by approximately 10% year-over-year.

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