Yatharth Hospitals reported a stellar Q3 FY26, achieving 46% YoY revenue growth to reach INR3,205 million. Profitability remained strong with an EBITDA of INR742 million (35% YoY increase). Key growth drivers included sustained performance from existing hospitals and the successful ramp-up of new facilities in Delhi and Faridabad Sector-20, which contributed 9% of total revenue in their first full quarter.
Q3 FY26 Performance: Record Revenue and Profitability
Yatharth Hospitals & Trauma Care Services Limited announced a stellar performance for the quarter ended December 31, 2025 (Q3 FY26). Total revenue stood at INR3,205 million, reflecting a robust 46% year-over-year (YoY) growth and 15% quarter-over-quarter (QoQ) growth. This marks the highest-ever quarterly revenue and profitability for the company.
Profitability also saw significant improvement, with the highest-ever EBITDA recorded at INR742 million, marking a 35% YoY increase. Adjusted EBITDA margin stood strong at 29.2%, benefiting from operating leverage and favorable mix improvement.
Operational Metrics and New Hospital Contribution
The overall occupancy rate across the network was healthy at 67% in Q3. The newly operational hospitals, New Delhi and Faridabad Sector-20, generated INR279 million in revenue, accounting for 9% of group revenue in their first full quarter. These new facilities demonstrated strong payer mix, deriving 100% of revenue from cash and TPA.
- New Delhi ARPOB: Approx. INR40,000
- Faridabad Sector-20 ARPOB: Approx. INR36,000
The Greater Faridabad facility, which achieved breakeven in Q1 FY26, continues to contribute positively to profitability, with its EBITDA margin approaching the group average. Furthermore, the Agra hospital has been fully integrated into the network effective February 1, 2026, and is expected to contribute meaningfully starting this quarter.
Payer Mix and Government Business Outlook
The current revenue mix sees government schemes contributing close to 35%, with the remainder split between cash and private insurance. Management expressed confidence in shifting this mix, aiming to reduce the government contribution to approximately 25% to 28% within 2 to 2.5 years.
Receivable days at the consolidated level were around 116 days in September 2025 and remain close to this figure in December. The company is working towards reducing this to less than 110 days by March 2027, aided by increased cash collections from improved processes and a planned reduction in government business.
Specialty Focus and Future Expansion
Clinical excellence remains a core focus, highlighted by advanced interventions such as the pan-brachial plexus injury management and the completion of 13 POEM procedures.
Oncology currently contributes close to 10% of the specialty pie, a significant rise from less than 4% three years ago. The management expects this to touch around 15% within 1.5 to 2 years as the full oncology service offering rolls out at the new Delhi and Faridabad hospitals.
Looking ahead, the company plans for aggressive expansion. The five-year Capex plan targets an overall deployment of around INR1,500 crores to add approximately 5,000 beds through a mix of greenfield, brownfield, and asset-light expansions. The average Capex per bed is estimated at INR60 lakhs.
EBITDA Guidance and Operational Efficiency
While the new hospitals initially act as an EBITDA drag, margins are expected to recover as they ramp up. Management anticipates that the consolidated EBITDA margin will increase from the current levels, though they project the long-term consolidated margin to stabilize around 24% to 25%, factoring in continuous addition of new capacity.
Concerning the newest facilities, management expects Faridabad to reach breakeven within 12 months, and Model Town within 15 months. A healthy occupancy level of 30%-35% of the full operational capacity is targeted for breakeven in these two hospitals.
Source: BSE
