Yatharth Hospit.

Yatharth Hospital & Trauma Care Services Limited reported a robust FY26 with consolidated revenue of INR 12,072 million (₹1207.2 crores), marking a 36% YoY growth, and EBITDA of INR 2,921 million (₹292.1 crores), up 30% YoY, achieving a 24.2% margin. For Q4 FY26, revenue increased by 47% YoY to INR 3,416 million (₹341.6 crores), with EBITDA growing 37% YoY to INR 799 million (₹79.9 crores), resulting in a 23.4% margin. The company also achieved a PAT of INR 1,703 million (₹170.3 crores) for FY26, a 30% YoY increase, and INR 447 million (₹44.7 crores) for Q4 FY26, a 15% YoY increase.

The company expanded its bed capacity to over 3,200 beds, with a target of 5,000 beds within the next three years, primarily through acquisitions (70%) and brownfield expansions (30%). A key acquisition was an under-construction super-speciality hospital in Gurugram for an upfront consideration of approximately INR 100 crores, with an additional proposed investment of nearly INR 100 crores, expected to be operational by April 2027 with an ARPOB exceeding INR 50,000. Newly operational facilities in New Delhi and Faridabad Sector 20 contributed approximately 11% to Q4 FY26 revenue, demonstrating strong ramp-up and healthy operating metrics.

The network-wide occupancy rate stood at 71% in Q4 FY26 and 68% for FY26. Average Revenue Per Occupied Bed (ARPOB) for the network was INR 33,282 in Q4 FY26, up 5% YoY, and INR 33,124 for FY26, up 7% YoY. Notably, Noida Extension Hospital achieved its highest ever ARPOB of INR 47.8k, a 23% YoY increase, while Greater Noida reached INR 40.3k, up 15% YoY. New hospitals in New Delhi and Faridabad Sector 20 are expected to achieve EBITDA breakeven in 14-15 months and 10-11 months respectively, with a combined breakeven targeted for H2 FY27.

The company reported a healthy net cash position of INR 1,160 million (₹116 crores) and a total cash position of INR 3,931 million (₹393.1 crores), with pre-tax operating cash flows of INR 2,866 million (₹286.6 crores) for FY26. Gross debt is inferred to be INR 277.1 crores, with management indicating sufficient internal accruals and financial flexibility to fund future growth without needing to raise additional funds. Debtor days improved from 124 in FY25 to 112 in FY26, with a target to further reduce them to 90-95 days in FY27 through process efficiencies.

Yatharth Hospital strengthened its corporate governance by appointing BDO International as statutory auditor, Deloitte as internal auditor, and Mr. Ramesh Krishan as an Independent Director. The company also highlighted clinical milestones, including complex neurosurgical procedures and advanced GI interventions, and received several awards for clinical leadership. The oncology share in Noida Extension increased to 30% from 19-20%, driven by surgical oncology, bone marrow transplants, and a new oncology team.

Management expects to surpass the FY26 revenue growth of 36% and achieve better EBITDA margins in FY27, maintaining the 24-25% guidance. Key growth drivers include the ramp-up of new facilities, increasing contribution from international patients (especially with the Noida International Airport), and a strategic focus on high-margin specialities. The company aims to reduce its government payer mix from ~35% to ~25% in the next two financial years, leveraging its doctor-friendly approach and boutique hospital environment to attract private and international patients. The full 5% benefit from CGHS rate revisions is expected to contribute to overall revenue in FY27.