Yatharth Hospital & Trauma Care Services Limited has announced a strategic partnership with Advent International, receiving a primary capital investment of ₹3,150 crore through a preferential issue of equity shares and warrants. This capital infusion is earmarked for accelerating growth, acquiring new assets, and expanding the company’s bed capacity. The company reported its strongest quarter to date, with Q2 FY27 revenue growth of 52% year-on-year.
Strategic Partnership and Capital Infusion
Yatharth Hospital & Trauma Care Services Limited has entered into a significant strategic partnership with Advent International, securing a primary capital investment of INR3,150 crores. This investment, made through a preferential issue of equity shares and warrants, is pending regulatory approvals and aims to accelerate the company’s growth trajectory.
Strong Financial Performance in Q2 FY27
The company announced its second quarter of FY27 results, marking it as its strongest quarter to date. Revenue saw a substantial year-on-year growth of 52%, reaching INR4,314 million. EBITDA also grew by 50%, with the EBITDA margin improving to 23.6%. This performance was driven by both existing and newly acquired hospitals, which are now contributing 28% of the group’s revenue.
Expansion Plans and Bed Capacity Growth
With the capital from Advent International, Yatharth Hospital plans to significantly expand its network. The company aims to build a larger franchise of 7,000 to 8,000 beds over the next three to five years. This includes acquiring running, EBITDA-positive assets and potentially adding 2,000 to 3,000 beds through acquisitions, in addition to its organic plan to reach 5,000 beds.
Operational Highlights
The existing hospitals at Noida, Greater Noida, Noida Extension, and Jhansi-Orchha showed a 24% year-on-year revenue growth, with occupancy improving to 78%. Newer hospitals are scaling effectively, with revenue contribution increasing significantly. The Average Revenue Per Occupied Bed (ARPOB) saw an 11% year-on-year increase to approximately INR36,000.
Future Outlook and Strategy
The partnership with Advent International is viewed as a combination of long-term capital and institutional experience, strengthening the company’s ability to pursue growth opportunities with greater scale and discipline. Yatharth Hospital remains focused on clinical excellence and operational efficiency, aiming to build a high-quality, scaled healthcare network and create lasting value for shareholders.
Guidance and Regulatory Matters
The company reiterated its EBITDA margin guidance of 24%. While there are ongoing discussions regarding potential drug price capping, the company has assessed a marginal impact of approximately 0.3% on EBITDA due to cancer drug pricing and is implementing strategies to compensate for it, ensuring overall group EBITDA guidance remains unchanged.
Source: BSE
