Yatharth Hospital & Trauma Care Services Limited

[ranvir]

Yatharth Hospitals -

Q1 FY 26 results and concall highlights -

Revenues - 257 vs 211 cr, up 22 pc
EBITDA - 64 vs 54 cr, up 18 pc ( margins @ 25 vs 25.3 pc )
PAT - 42 vs 31 cr, up 35 pc ( due sharp reduction in interest costs and higher other income - both due to QIP )

Corporate level operational metrics -

Occupancies - 65 vs 61 pc
ARPOB - 32.4 k vs 30.5 k
IPD volumes - 19 k vs 15 k
OPD volumes - 1.05 lakh vs 0.87 lakh
IPD revenues - 228 vs 188 cr
OPD revenues - 29 vs 23 cr

Q1 FY 26 vs Q1 FY 25 revenue split ( hospital wise ) -

Noida Extension ( 450 beds ) - 34 vs 38 pc
Greater Noida ( 400 beds ) - 30 vs 33 pc
Noida ( 250 beds ) - 20 vs 23 pc
Jhansi ( 300 beds ) - 7 vs 5 pc
Greater Faridabad ( 200 beds ) - 9 vs 1 pc

Total bed capacity @ 1600

New Delhi hospital inaugurated in Jul 25 and Faridabad facility is set to open in Aug 25 - combined shall add 700 beds to the group’s capacity

Greater Faridabad hospital turned net profit positive within 1 yr of its opening ( its ARPOB was Rs 31 k )

Jhansi hospital’s occupancy improved sharply to 59 from 45 pc LY. Similarly, Greater Faridabad Hospital’s occupancy saw a sharp surge from 10 pc LY to 55 pc

Company aims to add another 750 beds - through a mix of inorganic acquisitions + brownfield expansions over next 2 yrs - taking the bed count to > 3000 ( including the New Delhi, Faridabad facilities going live in Q2 FY 26 )

New Delhi’s ARPOB should be in line with their Noida hospital. Their Faribabad facility’s ARPOB should be in line with their Noida extension facility

Company estimates that both Delhi and Faribadab hospitals ( 2 new openings in Q2 ) should turn PAT positive in 15 months time

Oncology now contributes to > 10 pc of company’s revenues. Should trend higher going forward

Payor mix - Govt business mix is down from 40 to 35 pc over last 15 months ( this is a key monitorable - should come down going forward otherwise the working capital cycle and ARPOBs suffer ) . Rest 65 pc is almost equally split between insurance and cash business

Cash on books @ aprox 300 cr ( very comfortable position for the company to be able to even go for an inorganic acquisition )

Greater Faridabad hospital’s Govt Payor mix is much lower @ around 20 pc . Company expects similar trends for their new Delhi and Faridabad hospitals going live in Q2

Looking @ 8-10 pc ARPOB growth at corporate level for this year and next FY

Greater Noida + Noida extension - brownfield expansion should now begin ( post opening of 2 new hospitals in Delhi ). Aim to add aprox 250 beds here ( combined ) by FY 28

Cumulative capex for next 3 yrs projected to be around 1400 - 1500 cr - this should take the total beds beyond 3000 beds which they aim to hit by FY 28 ( including acquisitions + brownfield expansions ).

Guiding for an approximate topline growth of 30 pc for FY 26

Noida extension, Greater Noida - peak occupancies should be around 75-80 pc. Company is inching towards it. In coming 1-2 yrs, should be able to reach there

Company is targeting - their new hospitals at Delhi + Faridabad should get empaneled with Govt and 90 pc of Insurance companies within their first year of operations

EBITDA margins should be around 24 pc for Q2 and Q3 ( vs 25 pc for Q1 ) due to the expenses that are going to be incurred as the two new hospitals go live - not a meaningful contraction ( imho )

Greater Noida + Noida extension brownfield should cost them aprox 175 cr. Have earmarked 300-350 cr for inorganic acquisition inside next 1 yr. Rest of the money ( out of budgeted capex of 1400 cr, shall be spent on Greenfield expansion or another acquisition )

Debtor days for FY 25 was around 125 days. By end of H1, this should reduce to aprox 117-118 days

The brownfield expansion @ Greater Noida and Noida extension should go live within 24 months from now

As the govt business comes down below 25 over next 2-3 yrs, receivables should show a further decline

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted for informational purposes

[yash_bhalani]

Anyone Know What Is The Acquisition Cost Of The Ramraja Multispeciality Hospital & Trauma Centre Private Limited 2022, I couldn’t find a acquisition Cost.

[Gaurav6]

India’s oncology market is compounding at 12–14% CAGR through 2030, driven by rising incidence (1 in 9 Indians projected to be affected), late-stage detection which creates demand for comprehensive cancer centers, and rapid adoption of robotics, genomics, and advanced radiation. Non-metros are seeing faster growth than metros, and specialized cancer hospitals are proving more effective than general multispecialty setups.

Within this backdrop, Yatharth’s oncology vertical has emerged as a key growth driver. In Q1 FY26, oncology contributed 10% of consolidated revenue, growing 50% year on year.

Noida Extension leads with 17% of revenue from oncology, supported by high ARPOB (₹39,800), reflecting a more complex case mix and recent commissioning of radiation services. Greater Noida (₹38,400 ARPOB) and Noida (₹31,200 ARPOB) have smaller oncology shares, while Jhansi remains volume-led with limited oncology focus. New hospitals at Delhi (operational July 2025) and Faridabad (FY26) are being equipped with full-suite oncology including radiation and robotic surgery, which should materially lift oncology contribution. Oncology is also one of the main beneficiaries of Yatharth’s medical tourism inflows (Africa, CIS, Middle East).

Management on Oncology

Management expects oncology’s share of group revenue to rise from 10% today to 15% in the next couple of years. With oncology-heavy hospitals already commanding higher ARPOB than the group average (₹32,400), and with strong industry tailwinds, Yatharth’s oncology business is positioned to scale into a mid-teens revenue mix and a structural growth engine for the company.

Open for other’s opinions

NO BUY/SELL RECOMMONDATION

[PEexpansion]

9aee3efc-f949-40bf-8fee-385c03fead7b.pdf

Subject: Acquisition of 100% interest in Shantived Institute of Medical Sciences (Target Hospital).
We wish to inform that the board of directors (“Board”) of the Company, at their meeting held
today i.e. September 13, 2025, have approved to enter into a binding and irrevocable term sheet
(Transaction Term Sheet) to acquire 100% interest in M/s. Shantived Institute of Medical
Sciences” (“Target Hospital”) at an enterprise value of Rs. 260 Crores.
The Target Company owns 150 beds hospital (expandable upto 250 beds) at Agra, Uttar Pradesh,

Hospital has 499 google reviews with rating of 4.5 which is good.

However, i was under impression that company’s focus will be on Tier 1 cities with brown/greenfield expansion.

[randomquarks]

Agra is good. It itself has a large and underserved catchment area for super-speciality hospitals. Sees a lot of foreign tourists. Along with Mathura, which is always crowded with tourists, I will say this is as good as any Tier 1 city. The hospital is on NH, near Akbar’s Tomb. The land itself must be worth 50-70 crores.

Back of the envelope calculation :

ARPOB of around 30k with 65% occupancy would give it revenue of approx 105 crore per year. This is a realistic estimate imho. So they have bought at 2.5x revenue.

If they expand to 250 beds, this revenue easily goes to 160-170 crore.

I suspect a larger number of patients there can be foreigners, even into foreseeable future. Yatharth got a good deal here.

[chikspat]

I ask grok to give data, to get sense that, is deal at good valuation. Yatharth in previous earning clearly talk about 0.5 to 0.6 cr/bed (approx.) is they are looking for. However, this is coming at 1.73cr/bed, which is way higher then their previous acquisitions. Let us also not judge based on plain numbers, there may be many moving parts. However, it will be adding to revenue and profit from day 1 is good indicator.

Acquirer	Hospital Name	Year	Existing Bed Capacity	ARPOB (₹) when Acquired	Total Cost Paid (₹ Crore)	Cost Per Bed (₹ Crore)
Yatharth Hospital	Ramraja Multispeciality Hospital & Trauma Centre (Jhansi-Orchha)	2022	305	17,692	80	0.26
Yatharth Hospital	Asian Fidelis Multi Speciality Hospital (Faridabad)	2024	175	29,000	116	0.66
Yatharth Hospital	Super Speciality Hospital (Model Town, Delhi)	2024	300	N/A	160	0.53
Yatharth Hospital	Shantived Institute of Medical Sciences (Agra)	2025	160	N/A	N/A	N/A
MGM Healthcare	SevenHills Hospital (Visakhapatnam)	2024	300	N/A	171	0.57
Manipal Hospitals	Khubchandani Hospital (Mumbai)	2024	500	N/A	415	0.83
Max Healthcare	Starlit Medical Centre (Lucknow)	2024	550	N/A	940	1.71
CARE Hospitals	KIMSHEALTH (Kerala)	2023	1,378	N/A	3,320	2.41
Manipal Hospitals	Sahyadri Hospitals (Pune)	2025	1,400	N/A	6,190	4.42
Rainbow Children’s Medicare	Pratiksha Hospital (Guwahati)	2025	150	40,000	171	1.14
Rainbow Children’s Medicare	Prashanthi Hospital (Warangal)	2024	100	N/A	32.6	0.33

Disclosure: Invested

[luckbychance]

Sounds like an insane deal to me - around Rs 1.7 Cr / bed and Rs 1 cr on full capacity basis (but then there be additional capex for expansion.. so I’ll discount that). The ARPOBs better be high otherwise this acquisition will make them bleed money.

To put it otherwise, to achieve ROCE of 30% here, EBITDA would have to do 80 Cr, which in turn means around 240-260 Cr of Revenues or 1x the price or nearly 7x jump from current levels.

INSANE.

[randomquarks]

On a group level, ROCE is 13.8%. So why would you expect 30% there? Please explain, I am genuinely curious.

[luckbychance]

I honestly expect people to come here after doing some basic research :)

[randomquarks]

Thanks for this. I took screener data at face value. Still, current ROCE is 19% at group level with established hospitals included. Do we expect a new hospital to contribute 30% from first day?

As such the hospital was established in 2021, currently has 50 crore FY25 revenue with 35% occupancy. That means an ARPOB of about 26k. Pretty sure, over next 2-3 years it can be brought to 65-70% occupancy and revenue of 100 crores+. That is not “INSANE”.

Edit1 : I actually tried to calculate ROCE myself. It is indeed close to 14% and not 19% as they reported. A question perhaps to ask in next concall.

Edit2 : Seems they have not used part of IPO funds(unutilised?) in the denominator. Makes operational sense.

[luckbychance]

@randomquarks

That means an ARPOB of about 26k. Pretty sure, over next 2-3 years it can be brought to 65-70% occupancy and revenue of 100 crores+.

At 100 Crores revenue or 30 Cr EBITDA (30% margin), the ROCE still comes out to be 10% (cost of acquisition is 260 Cr)

[randomquarks]

As far as I understand, this is decent for an early stage hospital. This is around cost of capital and start paying for itself from the very next year (3-4 years). This calculation took beds at 150. With a relatively smaller capex, they can increase to 250 if there is demand. That increases all the numbers dramatically.

Even at 150 beds, the ROCE will progressively improve. Thanks for the insights.

[Maheshcm]

What does it mean by “relatively smaller capex”? have they provided details what infrastructure is available to expand it to 250Beds, or is it just bare additional land? This acquisition has surprised me the most since some of their previous ones were very accretive to value (though their expansion rate with borrowed money is very unwise IMHO).
May be a call that explains the strategy they thought fit for this acquisition would be helpful…

[randomquarks]

Even if it is land, the biggest price is land. Anyways, which “borrowed money” are we talking about? They have practically zero debt on books currently and they likely going to pay for it from the cash that they have.

[Maheshcm]

They have raised around Rs 1300 cr from IPO/QIP in last 2-3 years, all this, I think is already spent on acquisitions and existing debt repayment, I think they are left with very little liquidity after this acquisition in Agra. It might help better if you read through the entire thread to understand the journey of the company after its become listed. I have heard form the last concall , brownfield expansion at Noida and Noida extension hospitals is underway and Faridabad and Model town hospitals are being brought to operating condition with equipment and other medical infra. I wouldn’t be surprised if they announce another round of capital raise through borrowing or dilution. While it might look like capacity expansion, to generate 15% ROI from this hospital needs long long time. Unless the management had any other good strategy

[randomquarks]

In the last concall management also said that all acquisitions would be from internal accruals and IPO funds. This I feel is the last acquisition for some time now. They had 400 odd crores left in cash last time I checked. So, Agra purchase and the expansion could be funded from that. I would be surprised if they do a fund raise now as this will go against their strategy.

As for 15% ROI, agreed that it will take some time from here. Let us see what management says in next concall. They already will have a capacity of 2550 after this while target of FY28 was 3000. Maybe 2 hospitals or one bigger hospital is all they need to acquire in next 2.5 years. So, more focus on efficiency than expansion can be expected.