Yatharth’s Q2 profit rose 6.69% as operating margin edged higher
Revenue growth slightly outpaced expenses, but higher interest and depreciation limited the conversion of operating gains into net profit.
Filed 03 Nov 2026, 17:14 IST · after market close · Yatharth Hospital & Trauma Care Services Ltd (YATHARTH)
Key takeaways
- Consolidated net profit rose 6.69% QoQ to Rs 48.46 cr, slower than the 11.28% increase in operating profit.
- Revenue grew 9.87% QoQ against 9.45% expense growth, lifting operating margin by 0.30 percentage points to 23.65%.
- Yatharth’s operating margin was 2.01 percentage points above the 21.64% median for 47 healthcare peers that had reported.
Price around the results
Q2 growth accelerated sequentially
Yatharth reported consolidated revenue of Rs 431.42 cr in Q2FY27, up 9.87% QoQ, while operating profit increased 11.28% to Rs 102.02 cr. Net profit rose 6.69% to Rs 48.46 cr, as interest costs grew 25.8% and depreciation increased 17.35%. The results were filed after market close.
Margin improved, but below-operating costs rose faster
Expenses grew 9.45% QoQ, slightly slower than revenue, which expanded operating margin by 0.30 percentage points to 23.65%. Interest and depreciation increases then reduced the pace of profit growth below the operating line. The tax rate also increased by 0.35 percentage points to 26.14%, while other income contributed 7.65% of pre-tax profit.
Margin remains above the healthcare peer median
Yatharth’s 23.65% operating margin was 2.01 percentage points above the 21.64% median among 47 healthcare companies that had reported the quarter. The available trend shows a sequential margin increase from 23.35% in Q1FY27, rather than a decline. No year-on-year comparison is provided.
Expansion plans remain central to management’s commentary
Management said the company has announced approximately 3,255 beds, including 450 brownfield beds proposed at Noida Extension and Greater Noida. The company told analysts that Gurugram is expected to become operational by H1 FY28 and that Radiation Oncology at Faridabad is expected from H2 FY27. Management also said its 5,000-bed target could accelerate to 7,000–8,000 beds with Advent over three to five years, while the transplant programme approval for Model Town remained underway.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹431 cr | ₹393 cr | +9.87% |
| Other income | ₹5 cr | ₹4 cr | +15.40% |
| Expenses | ₹329 cr | ₹301 cr | +9.45% |
| Operating profit | ₹102 cr | ₹92 cr | +11.28% |
| Operating margin (%) | 23.65% | 23.35% | — |
| Interest | ₹8 cr | ₹7 cr | +25.80% |
| Depreciation | ₹33 cr | ₹28 cr | +17.35% |
| Profit before tax | ₹66 cr | ₹61 cr | +7.21% |
| Tax | ₹17 cr | ₹16 cr | +8.68% |
| Net profit | ₹48 cr | ₹45 cr | +6.69% |
| EPS (₹) | ₹5.25 | ₹4.88 | +7.58% |
Operating margin of 23.65% compares with a Healthcare sector median of 21.64% across 47 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company says its 5,000-bed target will accelerate to 7,000–8,000 beds with Advent in three to five years.
- Gurugram is expected to be operational by H1 FY28.
- Radiation Oncology at Faridabad is expected from H2 FY27.
Expansion
- Yatharth has announced approximately 3,255 beds, including 450 brownfield beds proposed at Noida Extension and Greater Noida.
- The company plans to add 450 brownfield beds at Noida Extension and Greater Noida.
Competition
- Yatharth describes itself as the largest player in Noida, with strong brand recall.
- Yatharth describes itself as one of the largest players in Faridabad.
Problems & risks
- The transplant programme approval for Model Town was still underway.
What to watch
- Whether operating margin holds above 23.65%.
- Progress on the 450 brownfield beds planned at Noida Extension and Greater Noida.
- Whether Gurugram becomes operational by H1 FY28 and Radiation Oncology starts at Faridabad from H2 FY27.