Yatharth Hospital & Trauma Care Services Ltd (YATHARTH) Q2FY27 Concall Transcript - Sep-2026 Qtr
Rutuja: Ladies and gentlemen, good day and welcome to the Yatharth Hospital and Trauma Care Services Limited Q2 FY27 earnings conference call, hosted by Elara Securities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. I now hand the conference over to Mr. Kshitij Thakur from Elara Securities. Thank you and over to you, sir.
Kshitij Thakur (Elara Securities): Thank you so much, Rutuja. Good morning, everyone. On behalf of Elara Securities, we welcome you all to Q2 FY27 earnings conference call of Yatharth Hospital and Trauma Care Services Limited. We have with us senior management of the company represented by Mr. Yatharth Tyagi, Whole-Time Director; Mr. Amit Kumar Singh, Group Chief Executive Officer; Mr. Nitin Gupta, President Finance and Group Chief Operating Officer; Mr. Pankaj Prabhakar, Group Chief Financial Officer; Mr. Ashutosh Kumar Jha, Group Chief Strategy, Merger and Acquisition, Investor Relations; and Mr. Sonu Goyal, Group Chief Financial Controller. I now hand over the call to Yatharth management for the opening remarks. Over to you, Yatharth sir.
Yatharth Tyagi (Yatharth Hospital & Trauma Care Services Ltd): Thank you. Good morning everyone. This is Yatharth Tyagi, Whole-time Director. Welcome to Yatharth Hospital & Trauma Care Services Limited's earnings conference call for the quarter and half year ended September 30, 2026. Our earnings presentation has been uploaded to the stock exchanges and our website. I hope you have had an opportunity to review it. Well, this is an important moment in Yatharth Hospital's journey. Quarter 2 FY27 was our strongest quarter to date with revenue growth of 52% year-on-year and EBITDA growth of 50%. Our existing hospitals at Noida, Greater Noida, Noida Extension, and Jhansi-Orchha continue to deliver sustained performance with 24% year-on-year revenue growth. These have been true contributors to our profitability with an EBITDA margin upwards of 28% for these specific hospitals. At the same time, our newer hospitals continue to ramp up, now contributing 28% of group revenue.
Yatharth Tyagi (Yatharth Hospital & Trauma Care Services Ltd): compared to 11% in the corresponding period last year. Collectively, these hospitals have moved from an EBITDA loss a year ago to positive EBITDA during H1. Notably, since our listing in August 2023, Yatharth Hospitals has not only more than doubled its capacity from 1,405 beds to about 2,800 beds, but also tripled its revenues and profits. In our earlier communications, we had shared our target to further doubling this capacity in the coming few years. However, the opportunity in healthcare sector is much, much bigger. Hence, to accelerate our journey, grow further, we have entered into a strategic partnership with Advent International for a primary capital investment of 3,150 crore through a preferential issue of equity shares and warrants. The transaction is awaiting necessary regulatory approvals. We view this partnership as much as more than just a capital infusion. Advent brings over 35 years of healthcare investment experience and a significant expertise in building and scaling healthcare platforms. We believe this combination of long-term capital and institutional experience will strengthen our ability to pursue growth opportunities with greater scale and discipline. With Advent as our partner, we now aim to build a larger franchise of 7,000 to 8,000 beds over the next 3 to 5 years. We can now move faster and act on larger opportunities while ensuring the same discipline in execution. This partnership is also a vote of confidence in what our team has built: a growing network, a proven ability to turn around the hospitals we acquire, and a steady focus on clinical quality. I would like to acknowledge the people behind this progress: our doctors, nurses, management, and all our employees for their commitment, our patients and their families for the trust they place in us, and our shareholders for their continued support as we have expanded the network. Against the strategic backdrop, our teams continue to remain focused on clinical excellence. At our cluster in Noida and Faridabad, we are now among the most reputed hospitals of the region. At Greater Noida, our teams managed a rare liver condition and reconstructed two nerves in a single sitting for a brachial plexus injury, a procedure very few centers in the region offer. At Faridabad Sector 20, we launched the region's first Memory Clinic. In recognition our clinical excellence, we have received the Hospital Excellence and Innovation Award at the Health and Wellness Excellence Awards 2026 by the ASSOCHAM organization. Our Noida and Greater Noida hospitals ranked among the top in the Noida-Ghaziabad region in Times of India ranking. We were recognized across multiple specialties in the Outlook Best Hospital Rankings 2026. Now shifting to the operating highlights for the quarter, our ARPOB rose 11% year-on-year to approx. 36,000 rupees. Our occupancy stood healthy at 72% on the currently operationalized beds. As we ramp up, about 350 to 400 beds are yet to be operationalized across Faridabad, Model Town and Agra, presenting a meaningful headroom for growth. While existing hospitals continue to compound, our newer hospitals are scaling well and contributing more to the network every quarter. Faridabad Sector 20 shows what our acquisition and turnaround playbook can deliver. The hospital has turned EBITDA positive in a record period and generated revenue of approximately 40 crores in the last quarter. More than 80% of its business comes from cash and private insurance patients with an ARPOB of approx. Rs. 40,000. Our new Delhi hospital at Model Town is following the same path. In quarter 2, it reported revenue of approximately 26 crore and ARPOB of around 50,000 rupees, which places it among the premium hospitals in NCR, alongside Noida Extension where ARPOB has also crossed 50,000 rupees. We expect it to breakeven the Model Town hospital, Delhi, in the second half of this financial year. Agra, which is our first corporate hospital in that region, has improved steadily since we took it over.
Yatharth Tyagi (Yatharth Hospital & Trauma Care Services Ltd): upcoming 250-bedded hospital in Sector 40, which is progressing well and is expected to operationalize in the next financial year. The hospital is expected to serve the premium Gurugram market giving its location in a highly potential catchment and its proximity to the Delhi airport with an anticipated ARPOB of above ₹50,000. We will continue to evaluate further expansion opportunities with a careful view on strategic fit, quality, and returns. We have a model that has been tested, a network that is delivering growth and profitability, and the resources to scale it further. Our aim is to build a high-quality, scaled healthcare network and to create lasting value for all our stakeholders. We begin this next phase from a position of strength and with confidence in what lies ahead. Thank you once again for your continued trust and support. I will now hand over to our Group CFO, Mr. Pankaj Prabhakar, who will take you through the financial performance in a greater detail.
Pankaj Prabhakar (Yatharth Hospital & Trauma Care Services Ltd): Thank you, Yatharth. And good morning, everyone. I will take you through the group's financial and operating performance for quarter two and H1 FY '27. The group delivered its highest ever quarterly revenue of 4,314 million in quarter two FY '27, representing growth of 52% year-on-year and 10% sequentially. Revenue for H1 FY '27 stood at 8,241 million, up 52% year-on-year. This performance reflects the contribution of our established hospitals as well as the increasing scale of our newer facilities. Our existing hospitals at Noida, Greater Noida, Noida Extension, and Jhansi-Orchha contributed 3,109 million in quarter two, registering year-on-year growth of 24%. Inpatient volumes across these hospitals increased 28%, while occupancy improved to 78% from 71% a year ago. Noida and Jhansi-Orchha operated at occupancy level above 90%, while Greater Noida reported 78% and Noida Extension 61%. Our newer hospitals at Greater Faridabad, New Delhi, Faridabad Sector 20, and Agra contributed 1,205 million, representing 28% of group revenue. Greater Faridabad achieved healthy occupancy of 77%. Faridabad Sector 20, Agra, and New Delhi continue to ramp up their operational census bed. Group ARPOB reached an all-time high of 36,000, up 11% year-on-year. Noida Extension and New Delhi reported an ARPOB of approx 60,000, Greater Noida approximately 43,000, Faridabad at 40,000, Noida 37,000, Greater Faridabad 35,000, and Agra at 33,000. As some of our newer and premium hospitals are scaling up, and the specialty mix continues to improve, we expect our group ARPOB to improve meaningfully in the coming years. Talking about margins and profitability, quarter two EBITDA was a record 1,020 million, increasing 50% year-on-year and 11% quarter-on-quarter. EBITDA margin improved to 23.6% as all the newer hospitals are turning profitable. Excluding the ramp-up losses at New Delhi and Faridabad Sector 20, our adjusted EBITDA margin were healthy at 28%. Profit after tax stood at 485 million for quarter two, up 17% year-on-year, and 939 million for H1. However, cash profit, which adds back the impact
Pankaj Prabhakar (Yatharth Hospital & Trauma Care Services Ltd): depreciation to the PAT actually increased 36% year on year. Our operating cash flow during H1 1,113 million an increase of 49% year on year. As of September 30th, 2026, the cash and bank balance stood at 4,289 million and net debt stood 392 million. This provides us with a comfortable balance sheet position as we continue to invest in the network and pro- prepare for the next stage of expansion. To summarize, quarter two and H1 FY '27 have been marked by a strong revenue growth and improving contributions from our newer hospitals. We have also maintained healthy cash generation and the comfortable leverage position. With the proposed admitting partnership, we believe we are well positioned to pursue the next phase of our growth while remaining focused on execution, returns and quality of care. Thank you for your time. I will now hand over the call back to the moderator for question and answer session. Thank you.
Rutuja: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets and also to restrict their questions to two per participant. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Aryan Jain from Groww Mutual Fund. Please go ahead.
Aryan Jain (Groww Mutual Fund): Yeah. Hi. Thank you for the opportunity. And congratulations on a great set of numbers. So, my first question was what would be our payer mix for this quarter?
Yatharth Tyagi (Yatharth Hospital & Trauma Care Services Ltd): So payer mix for this quarter is close to 34% which is down you know, few percent from the last quarter.
Aryan Jain (Groww Mutual Fund): That's a government institutional business.
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