Yatharth Hospitals: A Shareholder's Growth Opportunity

$YATHARTH Yatharth Hospital & Trauma Care Services Ltd emerges as an under-the-radar hospital stock Positioned for the next re-rating cycle in India's healthcare sector. The company operates three super specialty hospitals across Delhi NCR at Greater Noida, offering tertiary care to a wide patient base. Financial performance demonstrates impressive momentum. Q3 FY26 revenue surged 46% year-on-year to ₹320.5 crore, marking the highest-ever quarterly revenue. EBITDA climbed 35% to ₹74.2 crore with adjusted margins at 29.2%. Profit After Tax grew 41% to ₹43.1 crore. For the nine-month period, revenue increased 32% YoY to ₹857.7 crore while PAT rose 38% to ₹126.4 crore. Operational metrics strengthen the growth story. Bed capacity now exceeds 2,550 beds with 67% occupancy rates. Average Revenue Per Occupied Bed increased 10% year-on-year to ₹33,744, demonstrating pricing power and service quality. Existing hospitals delivered 33% YoY revenue growth, proving established facilities' vitality. New expansions add significant value. The New Delhi Model Town hospital and Faridabad Sector-20 unit contributed ₹27.9 crore in revenue during Q3, representing 9% of group revenue in their first full quarter. Greater Faridabad turned net profit positive within one year of operation, showcasing operational excellence. The company acquired Shantived Hospital in Agra with 250 beds for ₹260 crore, effective February 1, 2026, adding revenue from day one. Management guides for 30%+ revenue CAGR through FY27 with stable 24% EBITDA margins, targeting 2,800-3,000 beds by FY28. For shareholders, this represents compelling value. The stock gained 55.67% over one year, trading at ₹830.05 with a market cap of ₹7,997 crore. At 47.46x P/E, valuations appear reasonable compared to sector peers trading 40-80x. The MSCI India Small Cap Index inclusion enhances global investor visibility. Promoter holding stands at 55.8% with recent buying observed.