Yatharth Hospital Q3-26 Result: PAT up 41%, On-track FY26 Guidance
Guides for 30%+ revenue CAGR till FY27 with stable margins. Outlook of doubling capacity in 3 years. Yatharth available at reasonable forward valuations
1. Super specialty hospital chain
yatharthhospitals.com | NSE: YATHARTH
2. FY21–25: PAT CAGR 61% & Revenue CAGR 40%
3. FY25: PAT up 14% & Revenue up 31% YoY
Growth led by higher occupancy (61%) and ARPOB gains (+8%).
Oncology and robotics drove case mix upgradation.
Margins diluted by losses at new units and depreciation spike.
4. Q3-26: PAT up 41% & Revenue up 46% YoY
PAT up 4% & Revenue up 15% QoQ
Highest-ever quarterly revenue and profitability, driven by
Rapid ramp-up of new facilities in New Delhi and Faridabad,
Strong operational metrics in mature hospitals.
Faster-than-expected stabilization of New Delhi and Faridabad Sector 20 hospitals — contributed 9% to group revenue in their first full quarter.
100% revenue from Cash and Private Insurance (TPA) — avoiding low-paying government schemes in their launch phase.
ARPOB (Average Revenue Per Occupied Bed): Increased by 10% YoY
Noida Extension (Flagship) — highest-ever ARPOB of ~₹44,000
Consolidated occupancy stood at 67%.
Noida: Operating at peak capacity — 91%.
Greater Noida: 74%.
New Units: Faridabad Sector 20 is at 43% and New Delhi at 38%, which management considers healthy for new launches.
Oncology grew from ₹63 crores to ₹85 crores YoY — contributes ~18% of the Noida Extension revenue.
Acquired Agra hospital was fully integrated effective February 1, 2026.
Profitable from Day 1 — expected to contribute to EBITDA from Q4
5. 9M-26: PAT up 38% & Revenue up 32% YoY
5. Business Metrics: Weakening Ratios — Impacted by Acquisitions
FY25 return ratios dipped due to front-loaded capex, equity dilution, and margin compression from new hospital ramp-ups.
Management expects normalization as new units breakeven and ARPOB/margins improve.
7. Outlook: 30% Revenue CAGR FY25-27; 24 % EBITDA margin
7.1 Outlook for FY26 — Yatharth Hospital
FY26
Revenue: I think we are being actually a bit conservative when we’re seeing 30% revenue growth. We feel that this number should be easily overachieved
For next 3 years, we do expect 8% to 10% ARPOB growth clearly.
FY27:
Our guidance remains the same, as we have always maintained that last few years the company has grown close to around 30%. I think in the upcoming years also, including this year, we remain on track for that.
Q4 FY26 is expected to be better than Q3 due to
addition of the profitable Agra unit
continued ramp-up of Delhi/Faridabad.
impact of recent CGHS price revisions.
Consolidated EBITDA margin in the range of 24–25% for FY27 and the near future.
New Hospitals Break-even:
Faridabad Sector 20: Operational break-even within 12 months.
New Delhi (Model Town): Expected to break even within 15 months.
Double its capacity to approximately 5,000 beds within 3 years, with full operationalization taking 4–5 years.
Current capacity stands at ~2,550 beds.
Planned capex is ~₹1,500 Cr over the next 5 years.
Focus on the NCR region (Priority 1), major cities in North India (Priority 2).
The share of government business is currently ~35%. Management aims to reduce this to 25–28% over the next 2 years to improve working capital cycles.
Receivables (Working Capital): Receivable days remain high at 116 days. Management expects this to drop to <110 days by March 2027 as the mix shifts toward private payors.
Contribution of oncology to specialty revenue is expected to grow from the current ~10% to 15% within 1.5 to 2 years.
7.2 9M FY26 Performance vs FY26 Guidance
Overall Positive: Revenue, margins In-line, capacity expansion on schedule
Revenue Growth: 30% guidance vs 32% achievement in (M-26
On track — Q4 to be stronger than Q3
EBITDA Margin: lagging the 24-25% guidance
8. Valuation Analysis
8.1 Valuation Snapshot — Yatharth Hospital
Current Market Price= ₹694.2; Market Cap = ₹6,688.9 Cr
Fully-priced from an FY26 perspective.
Attractively priced from an FY27 perspective as full year impact of profitable Agra hospital is felt. – possibility of re-rating of multiples
Opportunity emerges beyond FY28 as addition of beds is completed and operations start stabilizing with integration of New Delhi (Model Town)/ Fairdabad hospital.
7.2 Opportunity at Current Valuation
Valuations: At FY26 P/E of ~36×, EV/EBIDTA of ~23× the valuations seem to be discounting FY26 performance and FY26 guidance
Potential for re-rating of multiples based on FY27 execution as break-even of Delhi and Faridabad hospitals is not yet discounted
Significant opportunity emerges in FY28 as acquisitions start delivering
Doubling of capacity to approximately 5,000 beds within 3 years is not yet discounted
Impact of improving operational metrics not yet discounted
Headroom of increased occupancy in the new hospitals
Impact of 8% to 10% ARPOB is an opportunity
Improving payor mix with reduction of government schemes.
7.3 Risk at Current Valuation
While valuations offer an opportunity but margin of safety in the valuations is limited for FY26 and FY27. Any slip-up in execution would impact multiples
Doubling of bed capacity to 5,000 beds is a key variable in the overall story of YATHARTH — any delays or slip ups will have a negative impact given the limited margin of safety
Delhi Model Town and Faridabad-20 are critical to FY27–28 earnings. Slower-than-expected occupancy ramp up and delays in break-even would impact both the top-line and profitability of overall operations
Government/CGHS is an important component of payer mix. Delays in claim settlement or any future rollback of rates would impact the profitability of the business
Previous coverage of YATHARTH
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