Yatharth Hospitals: Scaling New Heights with Record Q2 FY26 Performance and Strategic Expansion

Yatharth Hospital and Trauma Care Services Limited, a prominent healthcare provider in North India, has once again demonstrated robust growth, reporting record revenues and EBITDA for the second quarter of Fiscal Year 2026. The company's strategic initiatives, including significant capacity expansion and a strengthened governance framework, have positioned it for sustained growth in the competitive healthcare sector. This quarter's results underscore the effectiveness of its expansion strategy and commitment to clinical excellence.

For Q2 FY26, Yatharth Hospitals reported a consolidated revenue of INR 279.4 crore, marking an impressive 28% year-over-year (YoY) increase. This growth was significantly propelled by its newer hospitals, which collectively saw a 110% YoY revenue surge. Even the mature hospitals within the network sustained their upward trajectory, contributing a solid 19% YoY growth. Consolidated EBITDA reached INR 64.5 crore, up 18% YoY, reflecting strong operational performance despite the initial ramp-up costs associated with new facilities. Profit After Tax (PAT) also saw a healthy 33% increase, reaching INR 41.3 crore. The company's strategic focus on high-value super speciality care and continuous investment in cutting-edge medical infrastructure has been instrumental in driving these positive outcomes.

Strategic Expansion and Operational Excellence

The quarter was marked by significant capacity additions and strategic acquisitions. The company operationalized its Model Town Hospital in New Delhi in mid-July 2025, adding 300 beds, and commenced operations at its Faridabad Sector 20 Hospital by September 2025-end, adding 400 beds. These new facilities are expected to contribute meaningfully to the group's revenue from Q3 FY26 onwards. Furthermore, Yatharth Hospitals strategically acquired Shantived Hospital in Agra, adding approximately 250 beds, with its integration slated for Q4 FY26. This acquisition is anticipated to be EBITDA positive from day one, reflecting the company's ability to integrate new assets efficiently. These expansions are part of a broader vision to significantly increase bed capacity beyond 3,000 beds in the next three years, including further greenfield and brownfield projects.

Despite the substantial bed additions, the overall occupancy remained healthy at 66% for the quarter. Notably, the Greater Faridabad facility, in its first full year of operations, now contributes 10% to the group's overall revenue. The Noida Extension Hospital achieved its highest-ever Average Revenue Per Occupied Bed (ARPOB) of INR 40,800, driven by a 70% contribution from super speciality services. The company's strategic focus on enhancing super specialities is clearly yielding results, with Oncology contributing 10% to the group's revenues and 18% to Noida Extension's revenue. The management expects ARPOB growth of 8-10% for the next three years, fueled by these high-value services and an increasing international patient share.

Governance, Investor Trust, and Future Outlook

Yatharth Hospitals has also reinforced its commitment to strong governance and investor trust. The company announced the appointment of Mr. Ramesh Krishnan, a healthcare veteran with three decades of experience, as an Independent Director. Additionally, MSKA & Associates, a member firm of BDO International, was appointed as the statutory auditor. These appointments are set to further strengthen the company's governance framework. A significant positive development was the favorable order received on a pending Income Tax matter, which led to the unfreezing of all provisionally attached properties and fixed deposits, restoring full financial flexibility.

Further boosting investor confidence, CRISIL upgraded Yatharth Hospitals' credit rating to A/Stable, reflecting an improved business risk profile and prospects. The company's inclusion in the MSCI India Small Cap Index, effective August 26, 2025, is expected to enhance its visibility among global institutional investors. The company maintains a robust net cash position of INR 369.2 crore as of September 2025, and remains debt-free, providing ample financial headroom for future growth opportunities. The long-awaited central government health scheme (CGHS) rate revision, effective October 13, 2025, is also expected to significantly enhance revenue realization and profitability across all hospitals, with a projected 1.5% upside in CGHS revenue for FY26.

Looking ahead, Yatharth Hospitals remains optimistic about sustaining its growth trajectory. The company's strategic priorities include expanding its footprint across North India, optimizing existing clinical infrastructure, enhancing clinical excellence to drive higher ARPOB, and capitalizing on emerging opportunities in the sector, including medical value travel with the upcoming Jewar Airport. The management's disciplined capital allocation, robust governance practices, and strong leadership team are poised to deliver sustained value to all stakeholders.