Yatharth Hospital & Trauma Care Services Limited — Q4 FY25 earnings call

Call held 27 May 2025

Management summary

Yatharth Hospitals delivered robust financial performance in Q4 and FY25, marked by significant revenue and EBITDA growth. The company is aggressively expanding its bed capacity with two new hospitals in New Delhi and Faridabad expected to be operational by June 2025. Strategic focus remains on enhancing ARPOB through a higher super-specialty mix and lower government business in newer facilities, alongside strong cash flow generation and a clear capex roadmap for future growth.

Highlights

  • FY25 Revenue of INR 8,805 million, up 31% YoY

  • FY25 EBITDA of INR 2,202 million, up 22% YoY, with a 25% margin

  • FY25 Net Profit of INR 1,306 million, up 14% YoY

  • Q4 Revenue of INR 2,318 million, up 30% YoY, with EBITDA of INR 570 million (24.6% margin)

  • FY25 Group Occupancy increased to 61% from 54% last year

  • Q4 Group ARPOB rose 7% to INR 31,441

  • Operating Cash Flow for FY25 was INR 1,496 million, with a cash conversion ratio of ~70%

  • Greater Faridabad facility contributed INR 436 million (9% of Q4 revenue) within 10 months of operation

Key financials

2 periods

Headline

  • Revenue
    2,318 Mn
    YoY +30%
  • EBITDA
    570 Mn
    YoY +23%
  • EBITDA Margin
    24.6%
  • Net Profit
    387 Mn
    YoY +1%
  • Group ARPOB
    ₹31,441
    YoY +7%

FY25

  • Revenue
    8,805 Mn
    YoY +31%
  • EBITDA
    2,202 Mn
    YoY +22%
  • EBITDA Margin
    25%
  • Net Profit
    1,306 Mn
    YoY +14%
  • Group Occupancy
    61%

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

  • Noida Extension (Q4 FY25)
    36% Revenue Contribution34% Revenue Growth₹38,806 ARPOB11% ARPOB Increase18% Oncology Contribution
  • Jhansi-Orchha (Q4 FY25)
    53% Revenue Growth
  • Greater Faridabad (Q4 FY25)
    436 Mn Revenue9% Revenue Contribution₹30,384 ARPOB20% Government Business Mix
  • Noida Extension (FY25)
    60% Occupancy
  • Jhansi-Orchha (FY25)
    50% Occupancy

Guidance & targets

Capacity

  • New Hospitals Operationalization Capacity · Before end of June 2025 · High confidence 2 hospitals (Faridabad 400 beds, New Delhi 300 beds)
    So, both the second hospital in Faridabad region and the New Delhi hospitals, we are planning to launch these hospitals before the end of next month. So, their full operations should be coming up fully from the first day of quarter 2.

    — Yatharth Tyagi

  • Brownfield Expansion Operationalization (Greater Noida, Noida Extension) Capacity · Within 1.5 years from today · High confidence Full capacity
    So, we are quite confident that within a timeline of 1.5 years from today, we should be having these capacity to use. Greater Noida will be much faster because it is a step further ahead.

    — Yatharth Tyagi

Profitability

  • EBITDA Breakeven for New Hospitals Profitability · After operationalization · Medium confidence 12-15 months
    As far as your second question on the impact on the EBITDA, we do expect EBITDA losses in both of these hospitals for at least 12 to 15 months of getting operationalized.

    — Yatharth Tyagi

  • Overall EBITDA Margins Profitability · FY26 and FY27 · Medium confidence Around Q4 FY25 level (24.6%), +/- 0.5%
    So, I think overall margins, we feel of what we have reported in quarter 4, the overall margins should be somewhere around that for the whole financial year '26 and '27 individually, maybe 0.5 percentage up or down. But I think the Q4 margins would be a right estimate to take for the financial years going forward.

    — Yatharth Tyagi

Working Capital

  • Receivable Days Reduction (Overall Group) Working Capital · In 2-3 years' time · Medium confidence 20-25 days reduction
    So somewhere when those 2 hospitals start contributing. So, I think we do feel that in 2 to 3 years' time, these days should be reducing somewhere around 20, 25 days and that's the plan forward.

    — Yatharth Tyagi

  • Receivable Days (Newer Facilities) Working Capital · Initial (in a year's time) · Medium confidence 60-80 days
    Yes. So, I think we would expect the 3 newer facilities probably in a year's time would be having receivable days of close to around 60 to 80 to begin off with.

    — Yatharth Tyagi

Capex

  • Capex for Existing Hospitals + New Delhi/Faridabad Capex · FY26 and FY27 · High confidence INR 300-310 crores
    So, I think last year, we have done a capex of close to INR300 crores, INR310 crores. Similarly, is the road map ahead for this year and the next year. And any other inorganic acquisitions would be separate. So INR300 crores would be done on the existing 7 hospitals, which includes the New Delhi and the Faridabad for this year.

    — Yatharth Tyagi

  • Capex per bed for Inorganic Acquisition (ex-land) Capex · Ongoing · Medium confidence INR 80 lakhs to INR 1 crore
    Yes, acquisitions would be somewhere around INR80 lakhs to INR1 crores ex of land for the inorganic acquisition, you are correct.

    — Yatharth Tyagi

ARPOB

  • Group ARPOB Growth ARPOB · Year-on-year · Medium confidence >10%
    I mean, more than 10% ARPOB year-on-year, we are growing. So, you can even draw the inferences accordingly.

    — Amit Kumar Singh

  • ARPOB for New Hospitals (initial ramp-up) ARPOB · Initial ramp-up phase · Medium confidence Closer to INR 35,000
    Yes, I think that yes, that start with -- in fact, to be very honest, it would be closer to what probably today we have Noida Extension and Greater Noida. So closer to INR35,000 kind of line start with.

    — Amit Kumar Singh

Occupancy

  • Operational Breakeven Occupancy for New Hospitals Occupancy · Initial phase · Medium confidence 30-35%
    It will be closer to -- anything closer to 35% -- 30% kind of occupancy, which we may consider will be, but depends on size as Faridabad hospital is a much bigger hospital, right?

    — Amit Kumar Singh

Acquisitions

  • New Facility Addition Acquisitions · This financial year (FY26) · Medium confidence At least 1 facility
    We would be looking to add at least 1 facility for this financial year. I think in the coming quarters, hopefully, we should be able to give more clarity on that.

    — Yatharth Tyagi

Tax Rate

  • Effective Tax Rate Tax Rate · Near future · High confidence 24%
    So, if you see, last year, we reported around 27% as effective tax rate. And this year, we are at around 24%. I'm talking for the year-on-year basis. And this is the same trend we will continue for the near future. 24%.

    — Sonu Goyal

Revenue Growth

  • Top Line Growth Revenue Growth · Coming few financial years · Medium confidence ~30%
    I think we will continue to do well. That's all we can say. I mean, the company has shown growth of 30% yearly Y-o-Y for last few years now, in fact, so not just FY '25, but even before that, we have continued this growth momentum. And we are quite confident in the future also; we would like to continue this momentum going forward.

    — Yatharth Tyagi

Revenue Contribution

  • Faridabad Region Revenue Contribution Revenue Contribution · FY26 · High confidence Double
    So the Faridabad contribution of what it was for this financial year of FY '25 will, in fact, actually double, if I talk about in the financial year '26 because 2 hospitals starting there and also the Greater Faridabad ramping up the numbers after the full financial year of working.

    — Yatharth Tyagi

  • Delhi Region Revenue Contribution (initial) Revenue Contribution · First financial year of operation · Medium confidence Similar to Greater Faridabad's first year (INR 436 million)
    So probably what the numbers that we have seen in Greater Faridabad for the first financial year could be the number that we can see coming up from the Delhi region.

    — Yatharth Tyagi

Risks & concerns

  • Operational losses at new facilities impacting group EBITDA margin

    medium

    The reduction in Q4 EBITDA margin was due to operational losses at Greater Faridabad unit, but management expects this to be a temporary blip.

    Management acknowledged

  • High receivable days impacting cash flow

    medium

    Receivable days are higher due to a larger government business mix, but the company has generated high cash flow and expects reduction with new hospitals having lower government business.

    Analyst acknowledged

  • Slower Net Profit growth due to increased depreciation

    low

    Q4 Net Profit growth was 1% YoY, primarily due to increased depreciation expense from ongoing expansion and investment in advanced medical equipment.

    Management acknowledged

  • Talent availability (doctors/nurses) for industry expansion

    low

    Management states that attracting doctors and nurses is not a challenge in Tier 1 cities and the NCR region due to brand presence and DNB programs.

    Analyst downplayed

Q&A highlights

3 direct
Working Capital Cycle and High Receivables Direct
Yes. So, our receivable days are higher on the higher side because our government business is also on the higher side compared to some of the listed peers. Also, if you look at it, however, this year, even with the similar days that we have last year, the company has been able to generate high cash. In fact, our OCF to EBITDA conversion this year is around 68%, almost 70%.

Addresses a key concern for investors regarding cash flow and efficiency, explaining the reason for high receivables and the strategy to reduce them with new hospitals having lower government business.

Asked by Akshat Mehta

Pledge on Promoter Holding Direct
Yes. So that pledge was nothing to do with the company Yatharth. That pledge was done for the certain personal investments that the promoters made, and it is only in the tune of 8% share of the overall company work pledge... And the promoters are quite confident that within a year or so, once the other properties get sold, they would be also unpledging this amount.

Clarifies a potential red flag for investors regarding promoter share pledging, attributing it to personal investments and a family settlement, and providing a timeline for resolution.

Asked by Akshat Mehta

Impact of New Hospitals on ARPOB and Margins Direct
So, if you see, we -- last year, the ARPOB growth, be it in Noida Extension Hospital or even in a Greater Noida Hospital, that's more than 10%, right? So, I mean, this would be in an expected line. So, as far as new hospital is concerned, as Yatharth already mentioned, that's where the very first day, we're going to start with a very tertiary and quaternary nature of the business. And also, the institutional business would be significantly low. So there, you will see a very good guidance for ARPOB concern.

Provides insight into how new capacity additions will impact key profitability metrics like ARPOB and overall margins, emphasizing a focus on high-end tertiary/quaternary care and lower institutional business mix.

Asked by Umakant Sharma

3 min read 7 chapters

Detailed narrative

Robust Q4 & FY25 Financial Performance

Yatharth Hospitals reported a strong Q4 FY25 with revenue growing 30% YoY to INR 2,318 million and EBITDA increasing 23% YoY to INR 570 million, achieving a 24.6% EBITDA margin. For the full FY25, revenue surged 31% YoY to INR 8,805 million, and EBITDA grew 22% YoY to INR 2,202 million, with a 25% EBITDA margin. Net profit for FY25 stood at INR 1,306 million, up 14% YoY, while Q4 net profit was INR 387 million, up 1% YoY, primarily due to increased depreciation from ongoing expansion.

Strategic Expansion and Capacity Additions

The company made significant strides in expansion, with the Greater Faridabad facility (200 beds) contributing INR 436 million in revenue (9% of Q4 total) within 10 months of operation. Two new hospitals, one 400-bed facility in Faridabad and a 300-bed facility in New Delhi, are expected to be fully operational by the start of Q2 FY26. These new facilities are projected to reach EBITDA breakeven within 12-15 months of operationalization, starting with an ARPOB closer to INR 35,000 and an occupancy of 30-35%.

Improving ARPOB and Payer Mix

Group ARPOB increased by 7% YoY to INR 31,441 in Q4 FY25. Noida Extension reported the highest ARPOB at INR 38,806, an 11% YoY increase, driven by 70% contribution from super-specialty services. Management aims to improve the revenue mix by focusing on high-end tertiary and quaternary care in new hospitals, which are expected to have a significantly lower government business mix (around 20% compared to the group average of 37%), thereby enhancing overall ARPOB.

Working Capital and Receivables Management

Despite higher receivable days due to a larger government business mix compared to peers, the company generated a strong operating cash flow of INR 1,496 million in FY25, with a cash conversion ratio of approximately 70%. Management expects receivable days for the overall group to reduce by 20-25 days over the next 2-3 years, with newer facilities initially targeting 60-80 receivable days, as their government business mix will be lower.

Future Capex and Growth Outlook

Yatharth plans a capex of INR 300-310 crores for FY26 and FY27, allocated across its existing 7 hospitals and the new Delhi and Faridabad facilities, primarily for medical equipment and construction. The company also intends to add at least one new facility through inorganic acquisition this financial year, with an estimated capex of INR 80 lakhs to INR 1 crore per bed (excluding land). Management is confident in sustaining a 30% yearly top-line growth momentum for the coming financial years.

Income Tax Matter and Corporate Governance

A significant positive development was reported regarding the income tax matter, with AKS Medical (Noida Extension Hospital, contributing 40% of group revenue) depositing INR 12.38 million as additional tax. Management is confident that the remaining assessment for the parent entity will be resolved soon without material financial impact. BDO India has been proposed as the new statutory auditor from FY26, pending board and AGM approvals, reinforcing commitment to corporate governance.

Focus on North India and Super-Specialty Services

The company's strategy is to solidify its presence in North India, including Delhi NCR, UP, Haryana, Punjab, Rajasthan, and Bihar, rather than expanding into distant geographies. This regional focus leverages existing brand visibility and ease of doctor attraction. New hospitals will emphasize high-end super-specialty services, with oncology, neurosurgery, and cardiac surgery departments growing faster, aiming for 60-70% super-specialty contribution in each hospital.

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