Summary
Yatharth Hospitals & Trauma Care Services Limited - Q3 FY 2026 Earnings Call Summary Friday, February 06, 2026 14:00
Event Participants
Executives 6 Amit Kumar Singh (Group CEO), Ashutosh Kumar Jha (Group Chief - Strategy, M&A and IR), Nitin Gupta (President Finance & Group COO), Pankaj Prabhakar (Group CFO), Sonu Goyal (Group CFC), Yatharth Tyagi (Whole-Time Director)
Analysts 11 Abhijeet (PI Asset), Akhilesh Rawat (Redhanta Vision), Akshat Mehta (Seven Rivers Holding), Anand B (Ksema Wealth), Ishika (Perpetuity Ventures), Nirali Shah (Ashika Stock Services), Priyanshu Jain (Infinity), Shreya Chatterjee (Ageless Capital), Shubham Harne (Purnartha Investment), Subhanu Bangal (3 Head Capital), Surya Narayan Nayak (Sunidhi Securities)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹320.5 crores | +46% YoY and +15% QoQ; driven by 33% growth in existing hospitals and ₹27.9 crores contribution from new units. |
| EBITDA | ₹74.2 crores | +35% YoY; highest-ever quarterly EBITDA despite initial ramp-up losses in New Delhi and Faridabad. |
| EBITDA Margin | 23.2% | Reported margin impacted by new hospital drag; Adjusted EBITDA margin (excl. new units) stood at 29.2%. |
| Net Profit (PAT) | ₹43.1 crores | +41% YoY; Adjusted PAT grew 80% YoY when normalizing for new asset impact. |
| ARPOB (Group) | ₹33,744 | +10% YoY; driven by high-value super specialties and higher initial ARPOB at new facilities. |
| Occupancy | 67% | Robust performance in Noida (91%) and Greater Noida (74%); new units at 38-43%. |
| Net Cash | ~₹200 crores | Strong liquidity position as of Dec 31, 2025, to fund future inorganic and organic growth. |
| Receivable Days | 115 days | Stable QoQ; management targets reduction to 105-110 days by March 2027 through better payer mix. |
Geographic & Segment Commentary
- New Delhi & Faridabad Sector-20: These newly operational hospitals contributed 9% of group revenue (₹27.9 crores) in their first full quarter. Both units achieved higher-than-average ARPOBs (₹40,000 and ₹36,000 respectively) with 100% of revenue coming from cash and TPA.
- Noida Cluster: Remains the core profitability driver with Noida Extension reaching a record ARPOB of ₹44,000 (+16% YoY). Super-specialty services now contribute 70% to this unit’s revenue, with oncology accounting for 18%.
- Agra: Fully integrated effective Feb 1, 2026; the 250-bed facility is already EBITDA positive. Management has deployed robotic surgery (Da Vinci) here to elevate it to a quaternary care center.
Company-Specific & Strategic Commentary
- Payer Mix Optimization: Management is aggressively reducing government scheme (CGHS/ESI) exposure, targeting a drop from 35% to under 30% in two years to improve realization and cash flows.
- Oncology Expansion: Revenue from oncology increased from ₹63 crores to ₹85 crores YoY; the company aims to increase oncology’s contribution from 10% to 15% of the specialty pie within 1.5-2 years.
- Medical Value Travel (MVT): Expanded international outreach with OPDs in Mauritius, Nigeria, and Turkmenistan. Management expects the upcoming Jewar Airport to be a significant catalyst for international patient volumes.
- Capacity Growth: Planning to add 3,000 beds over the next 3-5 years to reach a 5,000-bed capacity, utilizing a mix of brownfield, greenfield, and asset-light models.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Capacity | 5,000 beds by FY29-30 | Targeted addition of 3,000 beds via ₹1,500 crore capex over 5 years. |
| EBITDA Margin | 24% - 25% | Blended guidance for consolidated levels, accounting for constant addition/ramp-up of new hospitals. |
| ARPOB Growth | ~10% YoY | Sustained growth expected through case-mix improvement and price revisions in government business. |
| Payer Mix | <30% Government | Strategy to focus on Cash/TPA in all new units to reduce receivable cycle. |
Risks & Constraints
| Risk | Context |
|---|---|
| Payer Concentration | Approximately 35% of revenue still comes from government schemes, with ESI payments causing historically high receivable days (reaching ~200 days for that segment). |
| Competition | Entry of new large hospital chains in the Noida/NCR region poses a risk of clinician poaching and pricing pressure, though management views this as market-expanding. |
| Capital Expenditure | The ₹1,500 crore expansion plan may lead to temporary EBITDA dilution as new beds are commissioned and ramped up over the next 5 years. |
Q&A Highlights
Receivables and Collections
- Question: Why are government receivable days so high compared to peers? (Akshat Mehta)
- Answer: ESI accounts for ~35% of government outstandings and has a slow cycle. We are outsourcing recovery to specialized teams and expect days to drop to 105-110 by March 2027 (Sonu Goyal/Yatharth Tyagi).
Agra Acquisition Value
- Question: Was the Agra acquisition cost high relative to its current ARPOB? (Surya Narayan Nayak)
- Answer: The hospital is already EBITDA positive and has best-in-class infrastructure. We are upgrading it with star clinicians and robotics, targeting an ARPOB increase to ₹32,000 quickly (Yatharth Tyagi/Amit Kumar Singh).
New Hospital Breakeven
- Question: When will the New Delhi and Faridabad Sector-20 units break even? (Umakant Sharma)
- Answer: Faridabad is expected to reach operational breakeven within 12 months due to strong initial traction; New Delhi is expected within 15 months (Amit Kumar Singh).
Expansion Model
- Question: How will you achieve the ₹60 lakh per bed capex for the 3,000-bed expansion? (Umakant Sharma)
- Answer: The average cost is lower because we are utilizing asset-light models where we don’t spend on land/building, only equipment (Ashutosh Kumar Jha).
Key Takeaway
Yatharth Hospital delivered a record performance in Q3 FY26, with revenue growing 46% YoY to ₹320.5 crores and EBITDA increasing 35% to ₹74.2 crores. The quarter was highlighted by the successful integration of new New Delhi and Faridabad units, which achieved 100% private payer mixes and higher-than-average ARPOBs from inception. Strategically, the company is shifting away from low-margin government business (aiming for <30% share) while doubling down on high-end super specialties like oncology and robotic surgery. With a ₹1,500 crore capex plan to reach 5,000 beds and the integration of the Agra hospital, management maintains a confident outlook for FY27. Investors should monitor the progress of receivable day reduction and the margin impact of the aggressive 3,000-bed expansion roadmap.
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