Buy Yatharth Hospital & Trauma Care Services Ltd for the Target Rs. 1,050 by Choice Institutional Equities
Key Conference Call Highlights
Operational Updates
* Secured an exclusive hospital partnership with the newlyoperational Noida International Airport, which is expected to enhance international patient access and support its medical value travel strategy.
* New hospitals in New Delhi and Faridabad are ramping up ahead of internal expectations; expected to reach EBITDA-breakeven in H2FY27.
* The Agra hospital acquisition has shown encouraging traction since integration in February 2026, achieving monthly revenue runrate of around INR 70 Mn along with double-digit EBITDA margin.
* ARPOB improved 5% YoY to INR 33,283 in Q4FY26, supported by a richer specialty mix, increasing contribution from oncology, international patients and premium case mix across newer hospitals.
Expansion Pipeline
* Targeting to reach 5,000 beds in the next three years; potentially earlier; with 70% of these additions projected through acquisitions and 30% through greenfield projects.
* Acquired an under-construction super-speciality hospital in Gurugram for INR 1000 Mn upfront plus INR 1000 Mn additional investment, towards medical infrastructure and fit-outs.
* The upcoming Gurugram hospital is expected to commence operations by April, 2027, and the management expects ARPOB of over INR 50,000 due to premium positioning, international patients and higher private insurance mix.
* The management guided for brownfield expansion capex of nearly INR 75 lakh per bed for Greater Noida and Noida Extension projects.
Outlook
* The management guided for FY27 revenue growth to surpass the 36% growth achieved in FY26, with EBITDA margin anticipated to be at 24–25%.
* ARPOB has been guided to grow at 10%, driven by specialty mix, a growing share of private insurance and international patients, and premium positioning of newer facilities.
* The management aims to reduce government revenue mix to 25% in the next two years.
* The full-year benefit of revised CGHS rates (5% revenue uplift, 3% EBITDA flow-through) will be realised in FY27E, having only partially reflected in Q4FY26.
* The company expects further improvement in working capital efficiency and is targeting reduction in debtor days to nearly 90-95 in FY27E.
* International business remains a key growth lever, with the company actively expanding outreach programs across the Middle East, CIS countries and Africa markets.
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