Yatharth Hospitals Q2 revenue rose 52%, net profit gained 17%

Yatharth Hospital & Trauma Care Services Limited reported consolidated revenue from operations of Rs 431.42 crore for the quarter ended September 30, 2026, up 52% from a year earlier, while net profit rose 17% to Rs 48.459 crore. Total expenses increased 58% to Rs 370.83 crore, outpacing revenue growth during the quarter.

How did Yatharth Hospitals perform in Q2?

Yatharth Hospitals increased consolidated revenue from operations by Rs 148.406 crore year on year to Rs 431.42 crore in the quarter ended September 30, 2026. Total income, including Rs 5.023 crore of other income, reached Rs 436.443 crore, compared with Rs 288.91 crore in the September 2025 quarter.

Yatharth Hospitals' profit before tax rose 20% to Rs 65.613 crore from Rs 54.823 crore, while total tax expense increased to Rs 17.154 crore from Rs 13.57 crore. Basic and diluted earnings per share, which the filing says are not annualised for quarterly periods, were Rs 5.25 each, compared with Rs 4.28 each a year earlier.

Yatharth Hospitals also improved sequentially from the quarter ended June 30, 2026, when revenue from operations was Rs 392.654 crore and net profit was Rs 45.423 crore. Other income rose from Rs 4.53 crore in the June quarter to Rs 5.023 crore in the September quarter, while total income increased by Rs 39.436 crore.

Why did Yatharth Hospitals' profit rise slower than revenue?

Yatharth Hospitals' net profit rose more slowly than revenue because expenses grew 58% year on year, compared with a 52% increase in revenue from operations. Employee benefits expense rose to Rs 84.341 crore from Rs 53.786 crore, and other expenses increased to Rs 167.555 crore from Rs 106.682 crore.

Depreciation and amortisation increased to Rs 33.14 crore from Rs 18.931 crore, while finance costs increased to Rs 8.285 crore from Rs 0.257 crore. Purchases of drugs, consumables and implants also rose to Rs 78.172 crore from Rs 60.589 crore, contributing to total expenses of Rs 370.83 crore.

For the half year ended September 30, 2026, revenue from operations rose 52% to Rs 824.074 crore from Rs 542.261 crore, while net profit increased 13% to Rs 93.882 crore from Rs 83.293 crore. Half-year employee benefits expense was Rs 162.25 crore against Rs 101.963 crore a year earlier, and depreciation and amortisation was Rs 61.378 crore against Rs 33.85 crore.

Yatharth Hospitals reports medical and healthcare services as its sole operating segment and operates entirely in India, so the filing does not provide hospital-level, geographical or business-line revenue splits. The chief executive officer, acting as chief operating decision maker, reviews performance and allocates resources primarily based on revenue from operations.

What changed in Yatharth Hospitals' balance sheet?

Yatharth Hospitals' total assets increased to Rs 2,590.811 crore at September 30, 2026 from Rs 2,281.531 crore at March 31, 2026, while total borrowings rose to Rs 450.691 crore from Rs 253.331 crore. Capital work-in-progress increased to Rs 242.075 crore from Rs 102.115 crore over the six-month period.

Yatharth Hospitals' non-current borrowings rose to Rs 348.993 crore from Rs 226.869 crore, while current borrowings increased to Rs 101.698 crore from Rs 26.462 crore. Right-of-use assets increased to Rs 65.729 crore from Rs 41.201 crore, and total lease liabilities across current and non-current categories rose to Rs 17.385 crore from Rs 9.061 crore.

Trade receivables increased by Rs 89.236 crore to Rs 464.032 crore at September 30, 2026. The half-year cash-flow statement recorded Rs 103.861 crore of cash use from movements in trade receivables, compared with Rs 47.769 crore in the prior-year half year, alongside an expected-credit-loss provision of Rs 14.625 crore versus Rs 10.334 crore.

How did Yatharth Hospitals' cash flow and investment change?

Yatharth Hospitals generated net operating cash inflow of Rs 73.144 crore in the half year ended September 30, 2026, compared with Rs 48.514 crore in the corresponding period a year earlier. Cash generated from operations was Rs 111.263 crore, from which the group paid net taxes of Rs 38.119 crore.

Yatharth Hospitals spent Rs 237.024 crore on property, plant and equipment, including capital work-in-progress, compared with Rs 197.18 crore in the prior-year half year. Net cash used in investing activities was Rs 176.515 crore, lower than Rs 251.436 crore a year earlier because the group recorded Rs 53.491 crore of net proceeds from fixed deposits, against net investment of Rs 120.977 crore previously.

Financing activities produced cash inflow of Rs 157.792 crore, compared with Rs 14.257 crore in the corresponding 2025 period. The group reported net borrowing proceeds of Rs 197.36 crore, paid Rs 14.216 crore of interest on borrowings, repaid Rs 19.925 crore of lease principal and paid dividends of Rs 4.818 crore.

Yatharth Hospitals ended the half year with cash and cash equivalents of Rs 275.521 crore, including restricted cash and bank balances of Rs 0.86 crore. The comparable September 30, 2025 balance was Rs 172.983 crore, including Rs 1.427 crore of restricted cash and bank balances.

What disclosures could affect Yatharth Hospitals next?

Yatharth Hospitals disclosed income-tax assessment demands totalling Rs 51.862 crore, plus interest of Rs 16.173 crore, involving the holding company and two subsidiaries for assessment years spanning 2014-15 to 2024-25. The group and relevant subsidiaries have appealed to the Commissioner of Income Tax (Appeals), and management said its internal assessment indicates substantial relief is expected, so no provision has been made.

Yatharth Hospitals has a definitive agreement with Rasmalai Limited, an affiliate of Advent International, under which Advent International would hold a 24.9% equity stake on a fully diluted basis. Shareholders approved the proposed transaction at an extraordinary general meeting on October 15, 2026, but the filing says applicable regulatory approvals and customary conditions precedent remain outstanding.

Yatharth Hospitals granted 227,693 employee stock options on August 10, 2026 under its 2024 employee stock option scheme, at an exercise price of Rs 10 per option. The grant included 148,870 options for subsidiary employees and carries a vesting period of up to four years, subject to specified service conditions.

Conclusion

Yatharth Hospitals' September-quarter figures show revenue expanding faster than net profit, with Rs 431.42 crore of revenue from operations and Rs 48.459 crore of net profit. Higher employee costs, other expenses, depreciation and finance costs accompanied revenue growth, while capital work-in-progress, receivables and borrowings all increased from March 31, 2026.

The next disclosed matters to watch are regulatory approvals and customary conditions for the proposed 24.9% Advent International stake, progress in the income-tax appeals and the development of Rs 242.075 crore of capital work-in-progress. The 227,693 stock options granted in August 2026 may vest over up to four years, subject to service conditions.