Yatharth Hospital & Trauma Care Services Limited is a prominent and rapidly expanding super-specialty hospital group concentrated in North India. Since its incorporation in 2008 and the establishment of its first hospital in Greater Noida in 2010, the company has executed a disciplined growth strategy, scaling its operations through both greenfield developments and strategic acquisitions. Today, Yatharth operates a network of eight hospitals, primarily located in the Delhi National Capital Region (NCR) and its surrounding areas, including Noida, Greater Noida, Noida Extension, Faridabad, and Delhi, with additional facilities in Jhansi-Orchha and Agra. This strategic positioning allows the company to serve a large and dense population base.

The group's total bed capacity exceeds 2,550, with a significant majority (81%) situated in metropolitan areas, catering to a diverse patient mix. Yatharth is recognized for its clinical excellence across 12 key specialties, including cardiology, oncology, neurosciences, and organ transplants. It has invested heavily in cutting-edge medical technology, such as DaVinci robotic surgery systems and advanced LINAC machines for radiotherapy, positioning itself as a one-stop destination for comprehensive quaternary healthcare. The company's commitment to quality is validated by accreditations from the National Accreditation Board for Hospitals & Healthcare Providers (NABH) for all its facilities and a prestigious Joint Commission International (JCI) accreditation for its Noida Extension hospital. Backed by a strong promoter group and marquee institutional investors, Yatharth is focused on expanding its footprint, enhancing clinical capabilities, and delivering shareholder value.

Official Website: https://www.yatharthhospitals.com/investors

• Q3 FY26 Performance: The company delivered its strongest-ever quarterly performance.

• Revenue from Operations grew by 46% year-over-year (YoY) to Rs. 3,205 million. On a sequential basis, revenue increased by 15% quarter-over-quarter (QoQ).

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 35% YoY to Rs. 742 million.

• Profit After Tax (PAT) saw a substantial rise of 41% YoY to Rs. 431 million.

• Nine-Month (9M) FY26 Performance: The growth momentum was sustained over the first nine months of the fiscal year.

• Revenue for 9M FY26 stood at Rs. 8,577 million, a 32% increase from Rs. 6,487 million in 9M FY25.

• EBITDA grew by 25% YoY to Rs. 2,033 million.

• PAT increased by 38% YoY to Rs. 1,264 million.

• Expense Analysis (Q3 FY26 vs Q3 FY25):

• Medical Consumables & Pharmacy costs rose 48% to Rs. 625 million.

• Employee Expenses increased by 49% to Rs. 635 million, reflecting the operationalization of new hospitals and talent acquisition.

• Other Expenses grew by 51% to Rs. 1,202 million, in line with the significant expansion in operations.

• Long-Term Growth Trajectory (FY21-FY25 CAGR): The company has a proven track record of consistent growth.

• Revenue CAGR: 40%

• EBITDA CAGR: 35%

• PAT CAGR: 61%

The company demonstrated robust top-line and bottom-line growth, driven by both new and existing facilities, though profitability margins were temporarily impacted by expansion-related costs.

• Advanced Clinical Infrastructure: Yatharth differentiates itself by investing in state-of-the-art medical technology to support high-value, complex procedures.

• Robotic Surgery: Utilizes DaVinci Robotic Systems for minimally invasive surgeries in oncology, urology, and other specialties, with over 230 procedures performed.

• Oncology Treatment: Employs LINAC machines for precise radiotherapy and PET CT machines for advanced diagnostics.

• Orthopedics: Uses Joint Replacement Robots for high-precision knee and hip replacements.

• Diverse and High-Value Specialty Mix: The company has successfully diversified its revenue streams away from dependence on any single specialty.

• In 9M FY26, the top specialties were Internal Medicine (19%), Neurosciences (11%), and Nephrology & Urology (11%), indicating a balanced portfolio.

• There is a clear focus on expanding high-margin specialties like Oncology, Cardiology, and Orthopaedics.

• Accreditation and Quality Assurance: All hospitals are NABH accredited, a key benchmark for quality in India. The flagship Noida Extension facility is JCI accredited, an international standard of excellence that is crucial for attracting medical tourism.

Yatharth's strategic investment in advanced medical technology and a diversified mix of high-value specialties, underpinned by rigorous quality accreditations, creates a strong competitive moat.

• Rapid Ramp-Up of New Facilities: The primary growth driver in the recent quarter has been the successful operationalization of new hospitals.

• The New Delhi (300 beds) and Faridabad Sec-20 (400 beds) hospitals, which commenced operations in mid-2025, have ramped up quickly.

• Within their first full quarter, these two hospitals generated Rs. 279 million in revenue, contributing 9% to the group's total revenue.

• These new facilities are focused on a high-value payer mix, with 100% of revenue coming from cash-paying patients and those with private insurance (TPA), leading to high ARPOB (Rs. 40k in Delhi, Rs. 36k in Faridabad).

• Inorganic Growth through Acquisitions: The company is actively pursuing an inorganic growth strategy to expand its footprint.

• It successfully acquired a 250-bed multi-specialty hospital in Agra for Rs. 260 crore, which was integrated effective February 1, 2026. This acquisition is expected to be immediately accretive to both revenue and EBITDA.

• The Agra hospital is strategically located on NH-19 and is expected to serve as a feeder for high-end oncology and organ transplant cases to the group's larger NCR hospitals.

• Sustained Performance of Mature Hospitals: Growth is not solely dependent on new assets. The company's existing portfolio of mature hospitals (Noida, Greater Noida, Noida Extension) delivered a robust 33% YoY revenue growth.

• Medical Value Travel (MVT): Yatharth is strategically positioned to capture the growing medical tourism market, aided by the proximity of its hospitals to the upcoming Jewar International Airport.

• The company has established representative offices in Tashkent (Uzbekistan) and Baghdad (Iraq) and is actively engaging with partners across Africa, CIS countries, and the Middle East.

The company's multi-pronged growth strategy, combining the rapid scaling of new hospitals, strategic acquisitions in new geographies, and a focus on international patients, is driving significant top-line expansion.

• Geographic Expansion and Market Penetration: The acquisition in Agra signals a strategy to expand into Tier-II cities with underpenetrated healthcare infrastructure. These markets offer significant growth potential and an opportunity to establish a dominant presence.

• High-End Specialty Services: The rising Average Revenue Per Occupied Bed (ARPOB) across both new and mature hospitals indicates a successful shift towards more complex and higher-value medical procedures. The new Agra hospital will serve as a feeder for super-specialty cases like oncology and organ transplants to the main NCR hubs, creating network synergies.

• Medical Tourism Hub: With the development of Jewar Airport, Yatharth's NCR facilities are well-positioned to become a hub for international patients. The company's focus on building an MVT ecosystem through international offices and partnerships presents a substantial long-term revenue opportunity.

Yatharth is well-positioned to capitalize on opportunities in new geographic markets, the growing demand for high-end specialty care, and the expanding medical tourism sector.

• Bed Capacity Expansion: The company has aggressively expanded its operational bed capacity.

• Total bed capacity increased from 1,605 in Q3 FY25 to 2,305 in Q3 FY26 (pre-Agra acquisition).

• Post the integration of the Agra hospital (250 beds), the total capacity stands at over 2,550 beds.

• Improving Occupancy Rates: Alongside capacity addition, the company has improved utilization.

• Group occupancy stood at 67% in Q3 FY26, a significant improvement from 60% in Q3 FY25 and 66% in Q2 FY26.

• For the nine-month period, occupancy was 66%, up from 61% in the prior year.

• Strong Operational Metrics: Key performance indicators reflect efficient asset utilization.

• Average Revenue Per Occupied Bed (ARPOB) for Q3 FY26 was Rs. 33,744, a 10% YoY increase, driven by a better case mix and price revisions.

• Average Length of Stay (ALOS) remained stable and efficient at 4.32 days.

• In-Patient (IPD) and Out-Patient (OPD) Volumes have shown consistent growth, with total IPD/OPD volumes for 9M FY26 reaching 378,000, up from 327,000 in 9M FY25.

The company is effectively managing its expansion by increasing both bed capacity and occupancy rates, while simultaneously improving revenue per bed through a focus on higher-value services.

• Integration of New Assets: The immediate focus is on the successful integration of the newly acquired 250-bed Agra hospital to ensure it contributes meaningfully to revenue and profitability from day one.

• Optimizing Existing Infrastructure: A core strategy is to continue enhancing occupancy rates across all hospitals, particularly the newly commissioned facilities in Delhi and Faridabad, to drive operating leverage.

• Strengthening Clinical Capabilities: The company plans to continue investing in advanced medical technologies and clinical talent to further build out its high-end specialty services, particularly in oncology, neurosciences, and transplant medicine.

• Expanding Global Reach: Yatharth plans to deepen its presence in the medical value travel market by launching new Information Centres in key international markets, including Tajikistan, Mauritius, Tanzania, and Kenya.

The company's future plans are centered on integrating new acquisitions, maximizing the efficiency of its existing assets, and expanding its clinical and international footprint.

• Reported Margins: For Q3 FY26, the reported EBITDA margin was 23.2% and the PAT margin was 13.4%. These figures represent a slight compression compared to Q3 FY25 (25.1% EBITDA margin) due to costs associated with new hospitals.

• Adjusted Margin Profile: The underlying profitability of the mature business remains very strong.

• The Adjusted EBITDA Margin for the group, excluding the initial ramp-up losses from the new New Delhi and Faridabad Sec-20 hospitals, stood at a robust 29.2%.

• Factors Influencing Margins:

• Positive Drivers: Operating leverage in mature hospitals, an improved case and payer mix, and favorable price revisions in government business are supporting margins.

• Negative Drivers: The primary drag on consolidated margins is the initial operating losses from newly commissioned hospitals, which is a temporary and expected part of the hospital life cycle.

While headline margins show a temporary impact from significant expansion, the core profitability of the mature hospital network is robust, and margins are expected to improve as new facilities scale up.

• Execution and Integration Risk: The company's strategy involves the rapid commissioning of new hospitals and the integration of acquired assets. Any delays or challenges in ramping up occupancy and achieving projected financial performance at these new facilities could impact overall profitability.

• Margin Dilution from New Hospitals: As acknowledged, new hospitals incur initial losses during the ramp-up phase. This will continue to exert downward pressure on consolidated margins in the short term until these facilities achieve operational maturity and profitability.

The key near-term risks are centered on the execution of its aggressive expansion strategy and the associated temporary dilution of profitability margins.

• Strengthening Corporate Governance: The company has made significant strides in institutionalizing its governance framework to build stakeholder trust.

• Auditors: Appointed Deloitte as its Internal Auditor and MSKA & Associates (a member firm of BDO International) as its new Statutory Auditors.

• Board Enhancement: Appointed Mr. Ramesh Krishnan, a healthcare industry veteran with over 30 years of experience, as an Independent Director.

• Bolstering Management Team: The company has strengthened its leadership by adding key professionals to its management band, including a Group COO & President - Finance, a Group Chief of Strategy, M&A and IR, and a Group Finance Controller.

• Shareholder Value and Recognition:

• The company has delivered a 127% return to shareholders since its listing.

• It has been included in the MSCI India Small Cap Index, which enhances its visibility among global institutional investors.

• Marquee Investor Base: The company is backed by a strong set of domestic and foreign institutional investors, including Kotak Mahindra Mutual Fund, Motilal Oswal Mutual Fund, Blackrock, and Abu Dhabi Investment Authority, reflecting high investor confidence.

The company is actively enhancing its corporate governance and management depth to support its next phase of growth, which has been well-received by the market and institutional investors.