📌 At a Glance
Yatharth Hospitals (CMP ₹525.90) just posted FY25 revenues of ₹880.5 Cr, up 31% YoY, and a PAT of ₹130.6 Cr — only 14% growth. While EBITDA crossed ₹220 Cr and occupancy rose to 61%, PAT margins fell 224 bps YoY thanks to expansion costs and depreciation spikes. Yet, the stock is up ~80% from its 52W low of ₹290. So the question is: Is Yatharth a multibagger in surgical gloves? Or is it wheezing under capex overload?
🏨 About the Company
| Detail | Info |
|---|---|
| Name | Yatharth Hospital & Trauma Care Services Ltd |
| Listed On | NSE: YATHARTH, BSE: 543950 |
| CMP (May 26, 2025) | ₹525.90 |
| 52W Low | ₹290 |
| % Up from Lows | ⬆️ ~81% |
| Hospitals | 5 existing + 2 new (Delhi, Faridabad) |
| Beds (FY25) | 1,600+ |
| Projected (FY26) | 2,300+ beds |
Yatharth runs multi-specialty hospitals across Noida, Greater Noida, Faridabad, and Jhansi-Orchha, with a focus on high-end care — and now aims to conquer Delhi NCR’s private healthcare turf.
🧑⚕️ Key People
- Yatharth Tyagi – Whole Time Director
- Ritesh Mishra – Company Secretary
- 🏥 Promoter Group owns ~65%
📊 Financials – FY25
| Metric | FY25 | FY24 | YoY Growth |
|---|---|---|---|
| Revenue | ₹880.5 Cr | ₹670.5 Cr | 🔼 31% |
| EBITDA | ₹220.2 Cr | ₹179.9 Cr | 🔼 22% |
| EBITDA Margin | 25.0% | 26.8% | 🔻 -182 bps |
| PAT | ₹130.6 Cr | ₹114.5 Cr | 🔼 14% |
| PAT Margin | 14.8% | 17.1% | 🔻 -224 bps |
| PBT | ₹171.7 Cr | ₹156.8 Cr | 🔼 10% |
| Depreciation | ₹57.2 Cr | ₹41 Cr est. | 🔺 Expansion hit |
So revenue surged, but profitability narrowed. Why? Because Yatharth just went on a CAPEX rampage — 700 new beds incoming. It’s like buying a second ambulance before selling the first.
📅 Q4 FY25 Snapshot
| Metric | Q4 FY25 | Q4 FY24 | YoY Growth |
|---|---|---|---|
| Revenue | ₹231.8 Cr | ₹177.8 Cr | 🔼 30% |
| EBITDA | ₹57 Cr | ₹46.5 Cr | 🔼 23% |
| EBITDA Margin | 24.6% | 26.2% | 🔻 -157 bps |
| PAT | ₹38.7 Cr | ₹38.3 Cr | 🔼 1% |
| PAT Margin | 16.7% | 21.6% | 🔻 -487 bps |
Even in Q4, revenue was strong, margins were not. Welcome to the healthcare sector — where building ICUs burns capital faster than startup salaries.
🛏️ Operating Metrics Breakdown
| Metric | FY25 | FY24 | Growth |
|---|---|---|---|
| Occupancy Rate | 61% | 54% | 📈 +7% |
| ARPOB (Avg. Revenue Per Occupied Bed) | ₹30,829 | ₹28,500 est. | 🔼 8% |
| Noida Extension ARPOB | ₹38,000 | ₹34,000 | 🔼 12% |
| Greater Noida ARPOB | ₹34,600 | ₹28,800 | 🔼 20% |
| Faridabad ARPOB | ₹31,000 | — | ➕ New addition |
ARPOB rising + occupancy up = operational efficiency win. So why is PAT not keeping up? Blame depreciation, capex, and lower EBITDA margins on new hospitals still ramping up.
🧮 Forward-Looking Fair Value Estimate
Let’s assume FY26 PAT grows to ₹170 Cr (30% jump from FY25 due to higher occupancy + new beds maturing)
- Shares: ~6.5 Cr
- EPS = ₹26
- Fair P/E = 25 (considering hospital comps like Narayana, Apollo trade at 30–35x)
👉 Fair Value = ₹26 × 25 = ₹650
📍 CMP = ₹525.90
➡️ Still room to grow 20–25%, assuming execution stays strong and margins stabilize.
🧠 EduInvesting Take
“Yatharth’s OPD is growing, but PAT is on a stretcher.”
This is the classic infra-scale healthcare story.
Strong growth ✅
Margin compression ✅
Long-term potential ✅
Short-term nervousness ✅
Let’s be honest — 14% PAT growth on 31% revenue bump isn’t great, but the context matters:
- New facilities take time to hit breakeven
- Depreciation spikes in early years
- High ARPOB shows pricing power
- Net cash of ₹503 Cr = cushion for any surprises
If FY26 sees a 70%–75% occupancy rate, this becomes a ₹200 Cr PAT business in 2 years.
⚠️ Risks & Red Flags
- 🏗️ High Capex = delayed profitability
- 💉 Ramp-up risk in Delhi & Faridabad units
- 💰 EBITDA margins dropped 180+ bps
- 🧪 ARPOB depends on complex care mix — vulnerable to case mix shifts
- 🔧 Any delay in new hospitals will flatten earnings
✅ Positives
- 🛏️ Bed capacity expanding from 1,600 → 2,300+
- 📈 ARPOB across hospitals growing 8–20%
- 🧾 Net cash of ₹503 Cr = zero liquidity stress
- 🧑⚕️ Well-run, controlled execution
- 🏥 Institutional investor interest post-IPO still strong
🔭 FY26 Outlook
- New Delhi and Faridabad hospitals operational in Q1 FY26
- Targeting full-year occupancy > 65%
- ARPOB likely to hit ₹33K+
- PAT can rise if ramp-up is smooth
- Watch margin recovery: Can it climb back to 27%+?
🧾 Final Verdict
Yatharth Hospital is not yet a multibagger, but it’s got the bones of one. The PAT growth looks weak now, but the expansion is real, the cash is strong, and the business is clean.
CMP ₹525 is fair — not cheap, not overpriced.
So the question is:
Will Yatharth be the Apollo for the next gen… or will new hospitals drag margins into the ICU?
For now, the vitals are stable.
🗓️ Published: May 26, 2025
✍️ By: Prashant Marathe
Tags: Yatharth Hospital FY25, Q4 results, healthcare stocks India, ARPOB growth, hospital capex, net cash stocks, NSE YATHARTH, EduInvesting
