Yatharth Hospital Q2 FY27 Earnings Call: Advent Infuses Rs. 3,150 Cr, Revenue Jumps 52% YoY

Yatharth Hospital & Trauma Care Services Ltd held its Q2 FY27 earnings call on November 03, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarter: Revenue +52% YoY, Margins Holding Near Guidance

• Record revenue of Rs.4,314 million — Q2 FY 2026-2027 grew 52% YoY and 10% QoQ; H1 FY 2026-2027 revenue of Rs.8,241 million, up 52% YoY.
• EBITDA of Rs.1,020 million — up 50% YoY and 11% QoQ; margin at 23.6%, with adjusted EBITDA margin of 28% excluding ramp-up losses at New Delhi and Faridabad Sector 20.
• PAT of Rs.485 million — up 17% YoY; H1 FY 2026-2027 PAT of Rs.939 million; cash profit up 36% YoY in Q2 FY 2026-2027.
• ARPOB at all-time high of ~Rs.36,000 — up 11% YoY; blended occupancy improved to 72% from 68% in Q1 FY 2026-2027.
• Balance sheet — as of September 30, 2026, cash and bank balances of Rs.4,289 million and net debt of Rs.392 million; H1 FY 2026-2027 operating cash flow of Rs.1,113 million, up 49% YoY.
• Established hospitals (Noida, Greater Noida Extension, Jhansi Orchha) — Rs.3,109 million revenue, up 24% YoY, with EBITDA margins upwards of 28%; inpatient volumes up 28% and occupancy at 78% vs 71% in Q2 FY 2025-2026.
• Newer hospitals contributed 28% of group revenue — vs 11% in Q2 FY 2025-2026, and swung from an EBITDA loss in H1 FY 2025-2026 to positive EBITDA in H1 FY 2026-2027.

Rs.3,150 Cr Advent Infusion Anchors a 7,000-8,000 Bed Ambition

• Rs.3,150 crore primary capital from Advent International — via preferential issue of equity shares and warrants; transaction awaiting necessary regulatory approvals, with CCI approval at final stages and expected within November 2026 (Q3 FY 2026-2027).
• Two-tranche structure — first tranche of Rs.1,750 crore after CCI approval (expected November 2026); second tranche after 15-18 months, subject to certain conditions (≈ FY 2027-2028 to FY 2028-2029).
• 7,000-8,000 bed franchise target — with Advent as partner, management aims to build this over the next 3 to 5 years, versus the earlier target of doubling capacity in the coming few years (period unspecified).
• Organic plan unchanged — 5,000 beds in close to 3-4 years (≈ FY 2029-2030 to FY 2030-2031), funded through internal resources/accruals; management expects ~2,000-3,000 additional beds from the Advent deal in close to 4 years (≈ FY 2030-2031).
• Acquisition criteria — no greenfield assets with Advent money; targeting running, EBITDA-positive assets with significant upside potential; management said it is "very difficult to put a number" on deal multiples, with premiums considered if a target's ARPOB or cash/private-insurance payer mix exceeds Yatharth's platform average.
• Deployment pace — around 40%-50% of acquired beds could come live from FY 2027-2028 (management-hedged), with the ~2,000 beds contributing combined revenue within the next 3-4 years (≈ FY 2029-2030 to FY 2030-2031).
• Scale framing — Group CEO Amit Kumar Singh said the existing 30% revenue growth plan over the next 3.5 years (≈ FY 2030-2031) implies ~2.5x growth, and layering in the Rs.3,150 crore deployment the company should "easily" cross 3x from current numbers within the next 3.5-4 years (≈ FY 2030-2031).

New Assets Ramping; Model Town Break-Even Targeted in Q3 FY27

• ARPOB ladder — Noida Extension highest at ~Rs.51,000, Delhi ~Rs.47,000-Rs.50,000, Greater Noida Rs.43,000, Noida and new Faridabad Rs.37,000-Rs.40,000, Greater Faridabad Rs.35,000, Agra Rs.33,000; Jhansi lowest at ~Rs.14,000.
• Faridabad Sector 20 turned EBITDA positive — Q2 FY 2026-2027 revenue of ~Rs.40 crore, ARPOB of ~Rs.40,000, with more than 80% of business from cash and private insurance patients.
• Model Town (New Delhi) — Q2 FY 2026-2027 revenue of ~Rs.26 crore with ARPOB of ~Rs.50,000; losses narrowed from Rs.55 million in Q1 FY 2026-2027 to Rs.38 million in Q2, with break-even expected in Q3 FY 2026-2027 (December 2026 cited as the break-even month).
• Agra remained EBITDA positive — on revenue of ~Rs.20 crore; management said the Q2 occupancy dip reflects no big case-mix change, with payer-mix optimization underway and certain floors already under renovation.
• Occupancy ramp — Model Town at 41%, new Faridabad at 59%, Agra at 58% in Q2 FY 2026-2027; 350-400 beds across Faridabad, Model Town and Agra yet to be operationalized, with all remaining beds to open within the next 2-3 quarters (by ~Q4 FY 2026-2027 to Q1 FY 2027-2028).
• Moradabad — management acknowledged a couple of competing hospitals but emphasized a densely populated catchment; the facility is expected to turn EBITDA positive probably by end of Q3 FY 2026-2027.
• Existing hospitals (Noida, Greater Faridabad, Jhansi) — no specific brownfield expansion plans given limited scope; focus on marginally improving ARPOB and payer mix.

Oncology Rollout Advances Across Faridabad, Delhi and Greater Noida

• Faridabad Sector 20 oncology launch — medical & surgical oncology already operational; pending ARB formalities expected to take ~40-45 days from the Q2 FY 2026-2027 call, with radiation and nuclear oncology to start within ~2 months (≈ Q4 FY 2026-2027).
• Model Town radiation oncology — still in drawing/planning phase as new radiation bunkers must be built; construction start delayed ~2-3 months due to a construction hold in Delhi, with go-live guided at ~8-9 months from the call (≈ Q2 FY 2027-2028); medical & surgical oncology already live with newly hired oncologists.
• Greater Noida oncology — the company's two Greater Noida-area facilities handle the highest number of oncology patients of any hospital in Greater Noida; management sees no impact on oncology footfall from a recently launched comprehensive cancer care hospital near Greater Noida, and plans to add nuclear and radiation oncology at the Greater Noida facility "very soon" (period unspecified).
• Agra specialty additions — CTVA surgery and cardiac surgery added in FY 2026-2027; pediatric cardiac planned (timing unspecified); the hospital offers everything except radiation oncology and transplant programs.
• Gurugram Sector 40 (250-bed) — revamping of the existing building has started and expansion plans submitted; expected to operationalize in FY 2027-2028 as a premium facility with anticipated ARPOB above Rs.50,000.
• Talent — management is confident on doctor availability, citing a sufficient pool across its eight hospitals; clinical talent scarcity is not a concern in that market.

24%+ EBITDA Guidance Reaffirmed Despite Drug-Price and IT Overhangs

• 24%+ EBITDA margin guidance for FY 2026-2027 reaffirmed — Whole-time Director Yatharth Tyagi said the company needs to cover oncology pricing differences but remains confident the guidance will hold; guidance of ~24% for coming quarters (Q3 FY 2026-2027 onwards) and years ahead (FY 2027-2028 onwards) unchanged.
• Cancer drug price cap impact — management estimated an overall EBITDA impact of ~0.3% reduction (period unspecified) from the 30% margin cap on listed cancer drugs; oncology capping had only a "marginal and a small impact," absorbed through operational efficiencies.
• Supreme Court overhang — Group CEO Amit Kumar Singh said the matter of extending price capping beyond oncology drugs is sub judice with no outcome yet; the hospital industry has made its representations and discussions are ongoing between the industry and the government; management will plan once the outcome is known.
• Government payer mix at ~34% — down from 37% in Q1 FY 2026-2027; management reaffirmed guidance to reduce government business mix from 35% to 20% (period unspecified); the two newest hospitals (Model Town, Sector 20 Faridabad) already stand at no more than 15-20% as of Q2 FY 2026-2027.
• IT demand matter resolved at demand stage — final demand received, company assets and FDs released; based on legal opinions, the company has been advised to file a normal-course appeal; the demand has been capped and management expects it to reduce significantly from H2 FY 2026-2027 onward.
• Debt peak — ~Rs.100 crore spent on Gurugram and ~Rs.100 crore drawn for medical equipment at Model Town and Sector 20 Faridabad; management guided that the current level is peak debt at least for the next few quarters (Q3 FY 2026-2027 onward).
• Cash conversion — softer H1 FY 2026-2027 EBITDA-to-OCF conversion attributed to seasonally lower H1 collections; management expects conversion of upwards of 70% for full FY 2026-2027.

30% Organic Growth Visible; International and Gurugram as Incremental Levers

• 30% YoY revenue growth "easily visible" — for the next 3-4 years (≈ through FY 2030-2031) on the existing plan, with the Rs.3,150 crore acquisition deployment incremental to this.
• Existing-asset margins — management forecast existing-asset EBITDA margins to remain on a rising trend, upwards of 24%, for the upcoming years (period unspecified); no blended margin plan has been made post-FY27, as it depends on the type of assets and deals closed.
• Gurugram break-even — management is targeting break-even in ~15 months of opening (characterized as conservative), positioning it as a high-premium ARPOB facility with a high payer mix of cash and private insurance plus international patients.
• International business grew over 45% — in H1 FY 2026-2027 vs H2 FY 2025-2026, but remains a single-digit share of revenue; CIS and African markets are key contributors, with CIS inflows affected in the last couple of months by the war/Gulf situation.
• International scale-up — management expects the segment to scale significantly over the next 3-4 years (through ~FY 2030-2031); Noida Airport has not yet opened for international operations, which management is hopeful will be a significant addition.
• Expansion mix — next leg will be primarily 100% equity-owned assets, with any O&M hospitals mostly standalone facilities forming part of the initial 5,000 bed capacity expansion (period unspecified); management is evaluating a few mostly asset-owned hospital chains in the north market, and will actively evaluate clusters outside North India following the Advent deal, though North remains the priority.