Yatharth's Q1 operating margin beats healthcare peer median
The 23.35% margin was 0.40 percentage points above 57 reporting peers; management also outlined a 5,000-bed expansion target.
Filed 10 Aug 2026, 20:50 IST · after market close · Yatharth Hospital & Trauma Care Services Ltd (YATHARTH)
Key takeaways
- Yatharth reported consolidated Q1FY27 operating profit of Rs 91.68 cr on revenue of Rs 392.65 cr, putting operating margin 0.40 percentage points above the healthcare peer median.
- Other income of Rs 4.35 cr was not the main contributor to profit before tax of Rs 61.2 cr, while the reported tax rate was 25.79%.
- Management said it is targeting approximately 5,000 beds over the next three years, including an announced expansion plan of approximately 3,250 beds.
Price around the results
Q1 operating profit cleared the healthcare peer median
Yatharth reported consolidated Q1FY27 revenue of Rs 392.65 cr and operating profit of Rs 91.68 cr, translating into a 23.35% operating margin. After interest of Rs 6.59 cr and depreciation of Rs 28.24 cr, profit before tax was Rs 61.2 cr and net profit was Rs 45.42 cr. The company's margin was 0.40 percentage points above the 22.95% median for 57 healthcare peers that had reported the quarter.
Operating earnings, rather than other income, drove profit
Other income was Rs 4.35 cr against profit before tax of Rs 61.2 cr, so it was not the main contributor to reported earnings. The tax charge was Rs 15.78 cr at a reported tax rate of 25.79%, while basic EPS was Rs 4.88. With no comparative driver block, the quarter does not establish whether costs, interest or tax were the main source of change from earlier periods.
Faridabad reached breakeven as new services began
Management said Faridabad Sector-20 achieved EBITDA breakeven in nine months. It also said the hospital started its transplant programme and Da Vinci X surgical robot programme in Q1FY27. The presentation flags that adjusted EBITDA margin excludes ramp-up losses from the newer Model Town and Faridabad Sector-20 hospitals.
Expansion is centred on NCR capacity
Management said the company plans to add 200 beds at Greater Noida and 250 beds at Noida Extension as part of its cluster-based expansion strategy. It also said a 250-bedded hospital under construction in Sector 40, Gurugram, carries a proposed outlay of Rs 200 cr and is expected to operationalise in Q1FY28. The company said New Delhi is expected to reach EBITDA breakeven in H2 and that radiation oncology at Faridabad Sector-20 is expected to commence in H2 FY27.
Results were filed after market close
The consolidated results were filed at 20:50 IST on 10 August 2026, after market close. The immediate stock response is therefore not part of this readout, and there is no post-result reaction to compare with the stock's prior results history.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹393 cr |
| Other income | ₹4 cr |
| Expenses | ₹301 cr |
| Operating profit | ₹92 cr |
| Operating margin (%) | 23.35% |
| Interest | ₹7 cr |
| Depreciation | ₹28 cr |
| Profit before tax | ₹61 cr |
| Tax | ₹16 cr |
| Net profit | ₹45 cr |
| EPS (₹) | ₹4.88 |
Operating margin of 23.35% compares with a Healthcare sector median of 22.95% across 57 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Faridabad Sector-20 achieved EBITDA breakeven in nine months.
- Faridabad Sector-20's transplant programme started in Q1 FY27.
Guidance & outlook
- The company targets approximately 5,000 beds over the next three years.
- The Gurugram hospital is expected to operationalise in Q1 FY28.
- New Delhi is expected to achieve EBITDA breakeven in H2.
- Radiation Oncology at Faridabad Sector-20 is expected to commence from H2 FY27.
Expansion
- The company plans an under-construction 250-bedded hospital in Sector 40, Gurugram.
- The Gurugram hospital requires Rs 200 crore of proposed outlay, including acquisition and medical equipment.
- The announced expansion plan includes approximately 3,250 beds.
- The company plans to add 200 beds at Greater Noida and 250 beds at Noida Extension.
New initiatives
- Faridabad Sector-20 started a Da Vinci X surgical robot programme in Q1 FY27.
- Faridabad Sector-20 started its transplant programme in Q1 FY27.
- The company is pursuing a cluster-based growth strategy to build density across clusters.
Competition
- The company states that it is the largest player in Noida.
Problems & risks
- Adjusted EBITDA margin excludes ramp-up losses from newer hospitals in Model Town and Faridabad Sector-20.
What to watch
- Whether consolidated operating margin holds above 23.35% in the next reported quarter.
- Progress toward management's approximately 5,000-bed target over the next three years.
- Whether the 250-bedded Gurugram hospital remains on the company's stated Q1 FY28 operationalisation timeline and Rs 200 cr proposed outlay.