Yatharth Hospitals, a prominent healthcare provider in India, announced its financial results for the fourth quarter (Q4) of FY25, reporting steady growth in key metrics that underline the company’s strong operational and financial health. Despite challenging market conditions, the hospital chain demonstrated resilience with a 1% year-on-year (YoY) increase in net profit to ₹39 crore, compared to ₹38.3 crore in the same quarter last year.

Revenue and Profit Growth

The company’s revenue from operations surged 30.6% YoY to ₹232 crore, significantly higher than ₹177.7 crore in Q4 FY24. This strong top-line growth was primarily driven by higher Average Revenue Per Occupied Bed (ARPOB) and improved bed occupancy rates. ARPOB rose 7% YoY in Q4 to ₹31,441, with notable contributions from strategic locations like Noida Extension and Greater Noida, where ARPOB increased by 12% and 20%, respectively. The company’s focus on super-specialty services in these regions helped drive these gains.

EBITDA and Margins

Yatharth Hospitals also reported a robust 22.7% increase in EBITDA, which rose to ₹57.2 crore from ₹46.6 crore a year earlier. However, EBITDA margin experienced a slight decline to 24.66% from 26.22% in the previous year’s quarter, reflecting ongoing investments in expanding services and capacity. Despite this margin contraction, the company’s EBITDA growth highlights effective cost management and operational leverage.

Operational Efficiency and Cash Flow

A critical highlight for Yatharth is its strong cash position and cash flow generation. The company ended FY25 with a net cash balance of ₹5,032 crore and operating cash flows of ₹1,496 crore for the year, achieving an impressive 68% cash conversion ratio. This cash strength not only supports ongoing operations but also enables the company to pursue expansion and innovation without heavy reliance on external financing.

Capacity Expansion and Future Growth

Yatharth Hospitals has been aggressively expanding its infrastructure to meet rising healthcare demand. Recently, the company took possession of two new hospital facilities – a 300+ bed hospital in Delhi and a 400-bed hospital in Faridabad. Both are expected to commence operations in Q1 FY26, significantly increasing the company’s bed capacity and strengthening its presence in key urban areas.

Strategic Location and Accreditation

Established in 2008, Yatharth Hospitals operates multiple multi-specialty hospitals across Delhi NCR and Madhya Pradesh, with a combined capacity exceeding 2,300 beds. The Greater Noida West facility stands out as the first and only Joint Commission International (JCI) accredited hospital in Uttar Pradesh, underscoring the company’s commitment to high-quality healthcare standards.

Stock Performance and Market Position

Yatharth Hospitals went public with an IPO in August 2023, raising ₹686.55 crore with overwhelming demand (36 times subscription). Its shares are actively traded on the National Stock Exchange (NSE), recently valued at ₹520.05, with a 52-week trading range from ₹345.60 to ₹693.00. The current market capitalization is approximately ₹5,231.71 crore, reflecting investor confidence in the company’s growth potential.

Outlook

With the addition of new hospitals and continued focus on high-margin specialty services, Yatharth Hospitals is well-positioned for sustained growth in FY26 and beyond. The company’s strategy to enhance ARPOB, improve bed occupancy, and maintain strong cash flows will likely drive profitability while supporting expansion into new markets.

Summary

Yatharth Hospitals’ Q4 FY25 financials indicate solid growth driven by higher revenues, operational efficiency, and strategic capacity expansion. The company’s strong cash position and new hospital facilities position it well to capitalize on growing healthcare demand in India, making it a key player to watch in the healthcare sector.

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