Yatharth Hospitals Q4 FY26: Growth accelerates as new hospitals scale up

Yatharth Hospital and Trauma Care Services Limited ended FY26 with a sharp step-up in scale, supported by acquisitions, new hospital launches, and improving operating metrics. Consolidated revenue for FY26 was INR 12,072 million, up 36% year-on-year. EBITDA grew 30% to INR 2,921 million, while PAT rose 30% to INR 1,703 million.

The March quarter was even stronger on the top line. Q4 FY26 revenue came in at INR 3,416 million, up 47% year-on-year, with EBITDA of INR 799 million, up 37%. PAT for Q4 FY26 stood at INR 447 million, up 15%.

The quarter also highlighted the company’s current trade-off. While scale is growing quickly, reported margins remain affected by ramp-up losses from new facilities. Management stated that excluding the initial ramp-up losses of New Delhi, Faridabad Sector 20 and Agra, adjusted EBITDA margin was 30.4% in Q4 and 28.5% for FY26.

A network expanding across NCR and beyond

Yatharth described itself as a leading group of super speciality hospitals in North India, with nine hospitals and more than 2,800 beds. The portfolio is concentrated in Delhi NCR, where about 80% of beds are in metro markets. The company’s growth approach is cluster-based, building density within a geography to improve brand recall and create a platform for clinician onboarding.

During FY26 and early FY27, the company added new hospitals and integrated acquisitions that expanded its footprint across NCR and the NCR-Agra corridor.

Faridabad Sector 20 (commenced September 2025) has a 400-bed capacity. Management highlighted that the facility has a business mix of 100% cash and TPA, with nil government share. Model Town, New Delhi (commenced July 2026) has 300 beds and is also positioned as 100% cash and TPA, with nil government share. Together, Faridabad Sector 20 and New Delhi contributed about INR 380 million in Q4 revenue, around 11% of the group’s Q4 revenues.

Agra was integrated effective February 1, 2026 after a 100% acquisition at INR 260 crore for a 250-bed facility. Management described the Agra hospital as a feeder hub for the NCR ecosystem, supported by connectivity through the Yamuna Expressway. The facility was reported to have a monthly revenue run-rate of about INR 7 crore and Q4 EBITDA above 15%. On the call, management also stated that Agra is already profitable with EBITDA margin around 18% and ARPOB of about INR 26,000 to 27,000.

Financial and operating metrics: occupancy and ARPOB move up

The operating base expanded materially. Bed capacity (excluding the under-construction Gurugram hospital) rose to about 2,555 beds in Q4 FY26 from 1,605 beds in Q4 FY25. Occupancy improved to 71% in Q4 FY26 from 61% in Q4 FY25, while FY26 occupancy stood at 68%.

ARPOB in Q4 FY26 was INR 33,283, up 5% year-on-year, while FY26 ARPOB was INR 33,124, up 7%. Management emphasized that certain mature hospitals delivered record ARPOB. Noida Extension recorded its highest-ever ARPOB of INR 47.8k, up 23% year-on-year, while Greater Noida recorded INR 40.3k, up 15%.

IPD remained the primary revenue driver. In Q4 FY26, IPD revenue was INR 3,081 million versus OPD revenue of INR 390 million. For FY26, IPD revenue was INR 10,751 million and OPD revenue was INR 1,321 million.

Financial summary (all values in INR crore)

Note: The company disclosed operating cash flows as pre-tax operating cash flows.

What changed in margins: ramp-up losses and higher depreciation

Reported profitability expanded in absolute terms but margins were lower year-on-year. Q4 FY26 EBITDA margin was 23.4% compared to 25.0% in Q4 FY25. FY26 EBITDA margin was 24.2% versus 25.4% in FY25.

The deck and call attribute the margin drag largely to new hospital ramp-up losses. On the call, management quantified EBITDA losses of about INR 21 crore for Model Town, New Delhi and about INR 9 crore for Faridabad Sector 20.

Another visible driver was depreciation. Depreciation and amortisation increased to INR 300 million in Q4 FY26 from INR 129 million in Q4 FY25. For FY26, depreciation and amortisation rose to INR 878 million from INR 572 million, reflecting a higher asset base.

Finance costs also increased in Q4, with financial cost of INR 51 million compared to INR 10 million last year. Management stated this increase was primarily linked to borrowing taken to fund the Agra acquisition.

Cash flows and working capital: a sharp improvement

A key positive in FY26 was cash conversion. The company reported pre-tax operating cash flows of INR 2,866 million in FY26, up 82% year-on-year, with a cash conversion ratio of 98% compared to 70% in FY25.

Working capital metrics improved as well. Debtor days reduced to 112 in FY26 from 125 in FY25. On the call, management guided for debtor days to trend toward 90 to 95 by the end of FY27, citing process improvements such as reducing time to dispatch and upload bills and outsourcing parts of the workflow.

The company ended FY26 with net cash of INR 1,160 million. Cash and bank balances were INR 2,634 million as of March 2026, compared with INR 4,406 million in March 2025. Management explained that some surplus funds were parked in fixed deposits presented under other financial assets.

Strategic priorities: cluster build-out, payer mix shift, and premium realizations

The strategy messaging across the deck and transcript focused on three themes.

First is cluster density. The company is building multiple hospitals in micro-markets within the same city to create local market leadership. This has already been executed in Noida with three hospitals, and the company is following the same approach in Faridabad and now in Delhi and Gurugram.

Second is improving payer mix. Management stated that government business is around 35% and efforts are underway to reduce it to about 25% over the next two financial years. New hospitals such as Faridabad Sector 20 and Model Town New Delhi currently have nil government share, and management stated that even in two years, government business in these hospitals is not expected to exceed 10% to 12%.

Third is driving ARPOB through higher value specialities. Management highlighted that oncology share at Noida Extension is now around 30%, helped by surgical oncology and bone marrow transplants. The company also positioned Gurugram as a premium asset with expected ARPOB above INR 50,000, driven by an optimized case mix, international patients, and higher pricing in the Gurugram region.

Capacity roadmap: path to about 5,000 beds

Yatharth outlined an expansion roadmap that targets about 5,000 beds over the next three years. The company reported more than 2,800 beds currently, including recently added hospitals, and referenced an announced expansion plan of about 3,250 beds.

Gurugram adds 250 beds and is expected to be operational by April 2027. Management also discussed brownfield additions at Greater Noida and Noida Extension, with basic construction work starting at Greater Noida. The capex per bed for these brownfield expansions was stated at about INR 75 lakh per bed, excluding land, with management indicating no expected cost escalation.

On the call, management also shared a directional mix for future expansion, stating that around 70% of bed additions could come via acquisitions and about 30% through greenfield additions.

Outlook: management expects FY27 to be stronger

Management’s stated guidance suggests confidence on both growth and profitability. They reiterated consolidated EBITDA margin guidance of around 24% to 25% and stated that FY27 margins should be better than FY26 as newer hospitals ramp up. Management also said the company expects to surpass FY26’s 36% revenue growth in FY27.

The key monitorables for FY27 are the ramp-up trajectory of the New Delhi and Faridabad Sector 20 hospitals, and how quickly their initial operating losses reduce. Management stated Faridabad Sector 20 may break even in 10 to 11 months, while Delhi may take 14 to 15 months, with combined EBITDA break-even expected in FY27 H2.

Yatharth’s FY26 story was driven by rapid scale-up across NCR, with improving cash conversion and clear execution milestones for new facilities. FY27 will test whether the group can convert that larger footprint into higher reported margins as the newer hospitals move from ramp-up to steady-state utilization.