Shares of Yatharth Hospital and Trauma Care Services rose 6.5% after the company reported a 24.4% year-on-year (YoY) increase in consolidated net profit to ₹51 crore for the second quarter of FY27, compared with ₹41 crore in the corresponding quarter last year.
Revenue from operations rose 52.4% YoY to ₹431.4 crore from ₹283 crore in the year-ago period.
EBITDA increased 50% YoY to ₹102 crore, compared with ₹68 crore in the corresponding quarter last year. EBITDA margin, however, contracted to 23.5% from 24% a year ago. On a sequential basis, EBITDA grew 11%, while margins improved by 30 basis points (bps), supported by newer hospitals turning profitable.
The company said its adjusted EBITDA margin, excluding the impact of the ramp-up of newer hospitals, stood at 28%.
Acquired hospitals turn EBITDA-positive
Yatharth Hospital said its acquisition strategy was delivering early results, with its Faridabad Sector-20 and Agra hospitals turning EBITDA-positive in the first half of FY27. The New Delhi hospital is expected to achieve breakeven in the second half of the financial year.
The acquired hospitals currently contribute 28% of the Group’s revenue, according to the company.
Advent International investment and expansion plans
Earlier in September, Yatharth Hospital entered into a definitive agreement with global private equity investor Advent International for a primary capital investment of ₹3,150 crore through the issuance of equity shares and warrants.
The company has outlined plans to expand its hospital capacity, with approximately 3,255 beds announced. It aims to accelerate its earlier target of 5,000 beds to 7,000–8,000 beds over the next three to five years, supported by the Advent partnership, as per the filing.
Commenting on the performance, Yatharth Tyagi, Whole Time Director of Yatharth Hospitals, said the second quarter of FY27 marked a significant milestone in the company’s growth journey.
He said quarterly revenue and profits had nearly tripled since the company’s listing in 2023, reflecting consistent growth. He also highlighted the progress made by the hospitals acquired since listing, which now contribute 28% of Group revenue and have achieved EBITDA breakeven within a short period.
Tyagi said the strategic partnership with Advent International was an endorsement of the company’s platform and execution capabilities, while providing growth capital and global healthcare expertise to accelerate its expansion plans.
The company remains focused on building a larger, integrated healthcare network, improving clinical outcomes and enhancing patient experience, he added.
Shares of Yatharth Hospital and Trauma Care Services were trading 4.4% higher at ₹980.05 apiece at 3:12 pm on Tuesday. The stock has declined 4% over the past month but is up 46.8% so far this year.