Ladies and gentlemen, good day and welcome to Yatharth Hospital's Q3 FY26 earnings conference call hosted by Nuvama Wealth Management Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, you can signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Shrikant Akolkar from Nuvama Wealth Management Limited. Thank you, and over to you, sir.
Hi, good day everyone, and thank you, Bhumi. On behalf of Nuvama Wealth Management, we welcome you all to the Q3 and nine month FY26 earnings conference call of Yatharth Hospital & Trauma Care Services Limited. From the management side, we have with us today Mr. Yatharth Tyagi, Full-time Director, Mr. Amit Kumar Singh, Group Chief Executive Officer, Mr. Nitin Gupta, President, Finance, and Group Chief Operating Officer, Mr. Pankaj Prabhakar, Group Chief Financial Officer, Mr. Ashutosh Kumar Jha, Group Chief Strategy, M&A, and Investor Relations, and Mr. Sonu Goyal, Group Financial Controller. I now hand over the conference call to Mr. Yatharth Tyagi for his opening remarks. Thank you, and over to Yatharth.
Good afternoon, and welcome to Yatharth Hospital & Trauma Care Services Limited's earnings conference call for the quarter ended December 31, 2025. Our earnings presentation is available on the stock exchange and on our website. We hope you have had the opportunity to review it. Quarter 3 FY26 marked yet another quarter of industry-leading performance for Yatharth Hospitals, with a robust 46% YOY revenue growth trajectory, delivering our highest-ever quarterly revenue and profitability. A standout highlight this quarter has been the rapid scale-up of our newly operational New Delhi and Faridabad Sector 20 hospitals. In their first full quarter of operations, these hospitals generated INR 279 million in revenue, contributing 9% to group's revenues. Faridabad Sector 20 has already reached a monthly revenue run rate of INR 7-8 crores within just three months of launch, while New Delhi is delivering close to INR 5 crores of monthly revenue run rate.
Both these hospitals derived 100% of their revenues from cash and PPA (Private Insurances), reflecting our focus toward payer mix from day one of operations. On the operating metrics, they demonstrated strong initial ARPOB performance also, with New Delhi at approx. INR 40,000 and Faridabad Sector 20 at INR 36,000. These levers are higher than group average, underscoring the quality of case mix and the clinical offerings from day 1 on our new hospitals. With the addition of Faridabad Sector 20 alongside our earlier-started Greater Faridabad Hospital that commenced operations last fiscal, Yatharth has now emerged as the most preferred healthcare chain in the Faridabad region. This has been achieved through strategic investments in star clinicians, high-end and complex super specialties, and state-of-the-art technology including robotics-enabled care from the inception.
Our Greater Faridabad facility, which achieved break-even in Quarter 1 FY26, continues to contribute meaningfully not only to revenue but also to profitability, with its EBITDA margin now approaching the group average. These outcomes reinforce the strong target identification, integration, and scale-up of capabilities, as well as our focus on achieving profitability in new facilities within short time frames. Moving to a recent expansion, the Agra Hospital has now been fully integrated into the Yatharth network, effective February 1, 2026. The hospital is already a fully operational facility with strong visibility in its micro-market, and we are confident that it will contribute meaningfully to revenue and EBITDA from this quarter. Moving on, clinical excellence remains at the core of our value proposition.
During the quarter, our teams delivered several advanced and complex interventions, including successful management of pan-plexus injury using high-precision intercostal to musculocutaneous nerve transfer to restore key motor functions. In another treatment of a rare congenital urological condition, left uretera l with duplex collection system complicated by ureteric stones and severe hydronephrosis through advanced minimally invasive endourological surgery was performed. We also completed a 13-peroral endoscopic myotomy (POEM) procedure in two months, demonstrating our leadership in scar-free endoscopic therapies across the region. These outcomes highlight the depth of clinical expertise across our network and strengthen our positioning as a leading quaternary care provider. Some of our key clinicians were also recognized with NARCHI National Awards this quarter, further strengthening our clinical reputation. With the Jewar Airport expected to begin operations soon, we have accelerated our medical value travel initiatives and continue to gain traction.
During the quarter, we expanded international outreach through OPD operations in Mauritius, Nigeria, and Turkmenistan. We also hosted delegation visits and hospital tours from Afghanistan, Uzbekistan, Tajikistan, and strengthening our diplomatic and healthcare partnerships through this. We further conducted partner engagement events with stakeholders across Africa and Iraq. Looking ahead, our focus will remain on accelerating the ramp-up of new facilities like New Delhi, Faridabad Sector 20, and Agra Hospitals, while continuing to drive operational efficiencies across the network. We are already seeing encouraging signs from the recent CGHS price revision benefiting both our top line and bottom line, and we further remain confident and committed to clinical excellence, disciplined execution, and strong governance, and are confident in our ability to deliver sustained value to all our stakeholders.
Quarter 3 has been an exceptional performance by the company, and we further expect, due to the integration of the new hospitals in our network, that Quarter 4 would even be better than the Quarter 3 numbers. With that, I would now like to hand over the call to Mr. Pankaj Prabhakar for a detailed financial update.
Good afternoon, everyone. I am pleased to say that Yatharth Hospital has delivered a stellar performance this quarter. During Quarter 3 FY26, we achieved a revenue of INR 3,205 million, reflecting a strong growth of 46% year-over-year and 15% growth quarter-over-quarter. This strong growth was driven by our existing hospitals, which sustained a robust growth trajectory of 33% year-over-year, as well as our newly operational hospital, which contributed to INR 279 million in revenue, 9% to group's revenue, in their first full quarter of operations. Occupancy across our hospital network stood healthy at 67% during Quarter 3, with our key hospitals, Noida, operating at 91%, Greater Noida at 74%, Noida Extension at 61%, and Jhansi Orchha at 72% during the quarter.
Our newer facilities saw promising adoption with healthy volume at our Greater Faridabad, New Delhi, and Faridabad Sector 20 hospitals, demonstrating Yatharth's position as a preferred healthcare provider in the region. Our ARPOB was up by 10% year-over-year to INR 33,744 in Quarter 3, driving by our continued emphasis on improving our mix of high-value super specialties and investment in the state-of-the-art medical infrastructure. Our Noida Extension Hospital achieved its highest-ever ARPOB of approx. INR 44,000, up 16% year-over-year, supported by approx. 70% contribution from super specialty services, of which 18% came from oncology treatment. Even in initial days of their operation, our New Delhi hospital achieved an ARPOB of approx. INR 40,000, while Faridabad Sector 20 achieved an ARPOB of INR 36,000, which are higher than the group average. Our other hospitals in Greater Noida and Jhansi Orchha registered an ARPOB of approx.
INR 39,000, plus 14% year-over-year: INR 31,000, that is 8% year-over-year, and INR 14,000, respectively. On the profitability front, we have achieved our highest-ever EBITDA at INR 742 million, up by 35% year-over-year. Adjusting for the initial ramp-up losses at our newly operationalized New Delhi and Faridabad Sector 20 hospitals, our adjusted EBITDA margin stood strong at 29.2%, led by operating leverage, mixed improvement, and positive impact of price revision in government business. Net profit after tax stood at INR 431 million, up by 41% year-over-year, while adjusted tax up by 80% year-over-year. With a strong execution engine in place, we remain confident of sustaining the accelerated growth momentum while enhancing operational efficiencies and exploring new avenues for growth. Our robust balance sheet position, with a strong net cash position, provides us ample financial headroom to capitalize on sustained growth opportunities as it comes.
Thank you for your attention. I would now like to hand over the call to the moderator for question and answer session. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Our first question comes from the line of Priyanshu Jain from Infinity. Please go ahead.
Hello. Am I audible?
Yes. Yes. Please go ahead.
Thanks for the opportunity. Sir, my first question is on the revenue mix side. So, as of today, by the end of Q3, what is the revenue mix from the cash and PPA and from government side?
The current revenue mix from the government side is close to 35%, and the remaining is equally divided with cash and private insurances. The recent quarter, with the promises the new hospitals have shown on the cash and private insurances segment side, we believe quite confident remain that in the coming quarters, we should be inching towards reduction in our government mix like our initial target. I feel in two and a half years' time, our government mix should be reduced somewhere close to 25%-28%. Two years down the line, we are aiming for 25%-30%, like approx. Two years down the line, government business should be lesser than 30%.
Okay. So, my second question is on the brownfield expansion as we are going for 3,000 beds going forward. So, till what time do you think that this might be operational?
Yes. So, we are talking of the addition of almost 3,000 beds to take the total cumulative beds to 5,000 in the next three years, where we have mentioned that the deals will be announced in the next three years, and the operationalization of the hospitals will be in 4-5 years over a period of time.
Okay. And, sir, are we as of today, what's the net cash on the balance sheet if we are aiming for any acquisition going forward? And are we?
So, current cash and bank position as of 31st December at a consolidated level is coming close to INR 200 crore.
Okay. We are aiming for any acquisition as of today because we have acquired many hospitals in the last few years. Are we still looking for it?
See, acquisitions will definitely happen over the course of coming years. So, we do have a good strong cash position, as well as we can always take certain debt. However, internal accruals is also quite strong. So, I think using all these three mixes, we are well positioned to fund our CapEx for the next good three years.
Okay. Sir, just last two questions. What is the right now CapEx per bed as of today if we go for it?
As of today, CapEx per bed should be around INR 60 lakhs per bed because there were a lot of hospitals that we started 10 years ago where the construction, as well as the land prices, were quite cheap that time. Slowly, we had upgraded to medical equipment. If you look at our newer hospitals, that is New Delhi, both the Faridabad hospitals, there the CapEx per bed is much higher. I think there the CapEx per bed would be to the tune of upwards of INR 80-90 lakhs CapEx per bed. That's the current CapEx per bed plan.
Okay. Sir, last question is on this. Sir, I just wanted to know that there is a recent incident where one of the relatives goes for a knee replacement surgery. And suppose it's taken an example, it's around INR 2 lakh in cash. Is it possible that an insurance, while hospitals do practice these kinds of activities where in cash segment, if they go for INR 2 lakh, but if the patient is having an insurance policy, they make it up to INR 2.5 lakhs or INR 3 lakhs?
No, it's absolutely not. I mean, that's pricing already fixed. So, if the cash is, let's say, INR 2 lakh in fact, for the insurance, it will be lesser, effectively to us. I mean, what is the landing price to us? Because that agreement is signed, rates are already frozen. So, you can't make a change. And this is not a manner that if I wish, I can change it. So, that's not the practice. Always, the cash will be the higher this thing, then there will be some insurance, and then the government business. This is the practice.
Okay. Thank you, sir. That's all from my side. All the best.
Thank you. Our next question comes from the line of Surya Narayan Nayak from Sunidhi Securities. Please go ahead.
Hello. Good afternoon, sir. I hope I am audible. So, a couple of questions. One is that if you can throw some light on or give the numbers regarding the newer hospitals, I think census beds and the ramp-up strategy going forward for FY27. And regarding the Agra unit, also same, if you can give the ARPOB currently we are enjoying and what is the status of census beds there and what is the plan in FY27.
Basically, as of now, we have a capacity of around 2,550 beds, including the Agra of 250 beds. In totality, we have a plan to go around 5,000-6,000 beds, as we just told in the earlier question as well. So, in the ramp-up stage, we will come to around an additional 3,000 beds in the coming three to four years down the line. On the occupancy front, we are at 67% on the blended numbers. And the ARPOB is 33%.
No, sir. My limited question was related to the newer hospitals, newer facilities. Newer facilities in the NCR region and Agra. Yes.
For the Model Town, which is in New Delhi, we have a kind of occupancy of 38% on the 100 beds census beds. We have a capacity of around 300 beds there in New Delhi, which will be taking up as the demands come in the coming quarters. We have another new hospital in Sector 20, Faridabad, in which we have an occupancy of 43% in this quarter with, again, 125 beds on the operation levels, which has a capacity of around 400 beds. Agra, we have just started in the month of February. Just we have started it out, having current operational beds of around 150, which we will be going to expand to around 250 beds in the coming quarters.
For the newer hospitals, can we expect 50% occupancy next year?
Yeah, definitely. See, Faridabad, if you see, just started three months back and two and a half, three months back, presently with the 125 beds as operational, 43% occupancy. And without having any panel, in fact, not full-fledged even insurance and PPA, right? So, definitely, that is very promising, these numbers as of now. Even the same goes for Delhi as well. Still, 100% insurances are yet to come. I mean, with all government channels or even corporate and PSUs, which are dependent on the various states, still negotiation going on. So, I think by the end of quarter four or probably the beginning of quarter four, sorry, the next two months, I think we should be full-fledged with all empowerments. Then we expect that's more than 50% occupancy in the coming quarters.
Coming to the Agra, which we started just 1st of February, current ARPOB, because that's running hospital, it's presently, I think, around INR 26,000 kind of ARPOB. By having us over there with the starting with the super specialties and others, we believe that we can easily take it up by the next quarter, I think, anything between INR 30,000-INR 32,000 kind of RPOF.
Okay. And regarding the Agra unit compared to the other facilities, our understanding is that the acquisition cost is a little bit higher side. So, how do you plan to make it at par with the other MCR region facilities? What is the case mix and all?
Yeah. So, see, Agra Hospital, it is one of the, and I would say, the best infrastructure hospital within not just Agra, but even up till a radius of 100 kilometers in that whole region. So, it's a fully super specialty hospital. It has all the machines, including MRI, Cath Lab. And there's also space available for further expansion. It's a full NABH hospital. So, there were multiple ways why we felt the value is right. It is already a running hospital. And the hospital, in last, if I talk about 12 months, has had a revenue of close to INR 45 crore-INR 50 crore and is almost now EBITDA positive and P&L positive also. So, from February, when it is on our books, we do not need to incur any more losses to make it profitable.
So, we also add that sort of to justify that value because otherwise, when we start a new hospital, it takes 15 months and more cash losses to get that into profitability. But it is already from February when it is on our books. Not just it is contributing meaningfully to the revenue, but also contributing to EBITDA as well as profitability. So, we are quite confident. We have huge plans for Agra. We already are in the process of appointing leading star doctors. In fact, just this week itself, Agra Hospital has been placed with da Vinci Surgical System, which is not just Agra's, but in that region's one of the first robotic surgeries going to happen. So, we feel Agra will contribute meaningfully to our coming quarters.
In terms of payer mix, just want to understand, even in case of PPA, how much is it possible to give a breakup of group policy versus retail policy? Because retail policy happens to be a little profitable than the group policy. So, is it possible to give the bifurcation of that?
I think largely, yes, it's a group. It's mainly about the corporate insurances and all you're talking about, I believe. For the retail business, yes, it's always higher in terms of the number. But I think it's probably going with the 60%-40% kind of because that also depends on which area you are operating. Let's say if you are operating in Delhi NCRs, where there are more corporates are there, right? So, that percentage will be different. If you are operating with Agra or probably the Meerut or some other region where the corporate spaces are not that much, that number will be lesser. So, that won't be any standard answer for it. That depends on unit to unit and the area where you are operating.
No, because structurally, due to these GST benefits, the retail policy should rise. I mean, the quantum should rise. That is my understanding. And structurally, it is positive. And thirdly, oncologists, I saw that our quantum of percentage is remaining same. So, is there any facility constraint in our offerings or is there any scope of increase going ahead?
So, first of all, it is not same. Our pie has increased, right? Percentage might look similar, but there is an absolute increase in the volume and the revenue coming from oncology this quarter and year-on-year. In fact, it's a significant increase. Also, it has to be noted that in the upcoming Faridabad and New Delhi hospitals, we will also be offering full-scale oncology service, which still have not started in this quarter. So, going forward, in these two hospitals, our new hospital, because oncology takes five, six months to start, set in machines, and complete bone marrow transplants and other high-end cancer surgeries. So, in the coming quarters in our new hospitals, oncology will also begin. And that's where you'll also see an increase in the percentage, but also in an absolute number. Oncology, if I talk about, has significantly increased.
In fact, if we compare year-over-year, oncology has increased from INR 63 crores to almost INR 85 crores, which is a significant jump.
So, any guidance going ahead for oncology alone? I mean, for a couple of years.
Oncology today is contributing close to 10% of our overall specialty pie, which is, if you compare two to three years ago, it was less than 4%. So, we are quite confident that going forward, with the two new hospitals now being fully fledged oncology services providers, we expect oncology to touch around 15% in less than two years' time. Maybe in 1.5 years' time, we should be there.
Any influx in the medical tourism this quarter?
Yeah, absolutely. Because the numbers have definitely increased. Percentage-wise, it still is in a single digit, I would say. But it's quite encouraging, the kind of initiatives which the international team has taken, various OPD centers and the channel partners we started. So, we believe that's, in fact, Jewar Airport going to start probably within two months or something. That's a new deadline that has come up. So, we are quite confident on these numbers. Absolute number definitely increased. And rather just only the numbers, you see that the geography, which we touched upon in last, I mean, whatever eight, nine months, 10 months, which we have worked on international. So, we have touched various geography. And it's quite encouraging that patient has come from all those geographies. So, at least a very good base has been created. Now, we just have to capitalize it.
Case mix, apart from oncology, more or less the case mix will be remaining same? Or will there be any change in neuroscience or something?
So, as a totality, we are focusing on increase in our super specialty services versus specialties. So, in the case mix also, you will see all the super specialties. So, cardiology, neurosurgery, gastroenterology, and a couple of others combined together would be higher than, let's say, specialties like gynecology, internal medicine, basic orthopedic works. So, that's where the shift you will see in the coming years, which we are already reflecting quarter-on-quarter.
Any guidance on the ALOS going forward?
I think ALOS should be as per industry standard.
So, it should be at three going forward?
It should be around because there's a couple of new hospitals coming up. There are certain business calling me to take. So, I think it will be anything around close to 4-4.3. That's quite acceptable. Within 4-4.5, I think that's an acceptable number, which we see that's as you grow, probably the two years down the line, if you say, definitely there's going to be a lesser.
Okay. Thank you, sir. Thanks.
Thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants, please limit your questions to two per participant. Our next question is from the line of Ishika from Perpetuity Ventures. Please go ahead.
Yeah. Hi. I hope I'm audible. On the payer mix, your new hospitals seem to be driven largely by cash and PPA insurance with minimal government scheme contribution. Is this mix structural and expected to continue, or do you anticipate a meaningful shift towards government payers over the next 12-24 months?
See, this is very much strategically planned and expected. We, as a group, have always talked about in the past to reduce government mix, and that is what we are doing. I wouldn't say that it will remain zero after a year. Definitely, it will increase. But I don't see in the new hospitals government mix being more than somewhere 15%-18% or maybe max for 20%. So, ultimately, this is going forward, what you will see. Ultimately, this is what will drive our debtor days and receivables to come down. So, that is a strategic call that we have done, and we are able to showcase it with a strong attraction of cash and private insurance patients.
Okay. Understood. That was helpful. And could you just please repeat your hospital-wise occupancy and RPOF for Q3, FY26 for all your operating units?
Yeah. So, the total occupancy is 67% on the blended basis. The Greater Noida Hospital, we have an occupancy of 74%. Noida, we have 91%. Noida Extension, we have 61%. Jhansi Orchha, we have 72%. Greater Faridabad, we have 60%. Model Town, we have 38%. And new hospital, Faridabad, we have 43%. And in totality, we have ARPOB of INR 33,744, out of which we have nearly around INR 39,000 of Greater Noida. INR 32,000 nearly, we have Noida. Noida Extension, we have INR 44,000 nearly. Jhansi Orchha, we have nearly around INR 14,000. Greater Faridabad, we have nearly around INR 35,000. Model Town, we have nearly around INR 40,000. And Faridabad new one, we have INR 36,000 nearly.
Okay. Thank you. That was very helpful. Can I just squeeze in one last question? You had brownfield beds coming in for Greater Noida and Noida Extension. What is the current status?
1.5 years from now, I think we should be close to commissioning them.
Okay. Thank you. Thank you so much.
Thank you. Our next question is from the line of Shreya Chatterjee from Ageless Capital. Please go ahead.
Hello, sir. Thank you for taking my question. My question was more about if you could give an EBITDA level breakdown for all the hospitals, and where do you see your EBITDA ramp-up in the next two to three years? Would it be around 29, 30%, or would it continue in the range of 24%-25%?
See, I think unit-wise, EBITDA is something right now; it would not be a right estimate because a lot of new hospitals and old hospitals are starting. So, we are always calculating as a consolidated level. And also, we have certain subsidiaries, and certain hospitals are within the parent company. So, in totality, two to three hospitals are within the Yatharth Holding Company, and then there are two to three subsidiaries comprising them. So, I can talk about the group-level EBITDA. So, even if you look at it with the two new hospitals starting, even then, we are almost a bit, in fact, higher than the last quarter to EBITDA margins. And without these two new hospitals, we would have been somewhere close to 28%-29% EBITDA. So, I think the company is very well on track for our targeted EBITDA.
We feel in the coming quarters, EBITDA margins at consolidated level will definitely increase because the major reason is that in the first two quarters when a hospital starts, like New Delhi Hospital and Faridabad 20, it is expected to be EBITDA drag. But by the third or the fourth quarter of their operations, that is reduced. Also, very positive is the Agra Hospital that we have started is not an EBITDA drag at all. So, that is also another reason whatever contribution it will have will add to the EBITDA. So, we are quite confident in the coming quarters, EBITDA margins will increase. And no, we are not targeting 28%-29% EBITDAs even in, let's say, two to three years because there will constantly be new additions, new hospitals.
As we earlier mentioned, we want to be somewhere around 5,000-bed capacity within the next 3, 3.5 years. So, that will mean a lot of EBITDA drags from the upcoming hospitals. But at a consolidated level, we feel somewhere around 24%-25% EBITDA margin would be a right estimation. Yes, if you remove all the new hospitals that we'll be starting, the EBITDA margins would be somewhere around 3%-3.5% more than the consolidated average.
Got it, sir. Also, with your current payer mix, what is the receivable days as of Q326? And where do you posit it to go maybe in FY27 to 28? Also, on ARPOB, right now, you have really ramped up well. But maybe in two years' time at the console level, where do you see your ARPOB going up with the oncology picking up and everything else?
In September 2025, we have reported around 116 receivable days. In December also, we are very, very much close to the same receivable days. We are very much hopeful to close March 2027 with receivable days less than 110.
What about going forward, like in the next two years when your government portion will, like CGHS's portion will fall down to around 25%-28%? What receivable days can we expect to observe in that time?
After two years down the line, as we already mentioned, we will reduce our government mix. We will increase our cash and PPA business. As we already mentioned, both the hospitals we have started with the cash and PPA business only. After two years or three years down the line, we will be very much close to 80 or 82 days.
Got it, sir. What about the ARPOB guidance? It was just an extension. It was just an extension of the question. What about the ARPOB guidance in maybe FY 2027 to 2028?
See, if you look at even the last numbers, which you see that year-on-year, we are growing more than 10% of our ARPOB. So, I think that you can easily guess over there. And even the current numbers, which you see, the kind of Noida Extension, Greater Noida, other hospitals have grown. So, 10% ARPOB year-on-year, I think that's quite easily achievable for us. That's what our guidance is.
Okay, sir. Thank you. Thank you for answering all my questions.
Thank you. Our next question is from the line of Nirali Shah from Ashika Stock Broking. Please go ahead.
Hi. Congratulations on the great set of numbers. I had a couple of questions. We had expected some margin pressure given the contribution from newly opened hospitals. But like you said, EBITDA margins have broadly remained stable QOQ also. So, the question is that what helped offset this drag in this particular quarter? Were there any specific factors that we should not be assuming that will repeat in Q4?
So, I also basically, sorry, there's a lot of background noise to your line. So, there was a lot of good EBITDA traction we gained from our existing hospitals. So, other than the new hospitals, our existing hospitals are ramping up good oncology business. They're ramping up good even ARPOB, right? So, ARPOB of, if you see, Noida Extension has increased upwards of 15% year-on-year. Similarly, Greater Noida. So, even our existing hospitals, older hospitals, are growing at a good rate. So, that has led to this margin being sustainable. And further, if you see our Model Town Hospital also, we started in Q2, and the losses have been reduced from Q2 to Q3. So, in Q3, there is a 50% reduction in losses in Model Town Hospital itself. Yes.
Also, going forward with the new CGHS rate revision, which we saw in December, and now we will be seeing from 1st January in the whole quarter four, that will also help going forward to contribute to our EBITDA margins significantly.
Is it fair to assume that the older hospitals, the margins from older hospitals were much higher than the drag that could have come from the newly opened hospitals?
Yes, that's true. That's true. And also, as we mentioned, that quarter two, quarter three, the new hospitals' drag was also less because of the increase in the business.
But then do we expect that in Q4 or Q1 maybe?
Yes, definitely, definitely. As I mentioned, the EBITDA margins should be better from here on in the coming quarters, for sure.
Understood. Could you also help us understand how much of the increase in employee expenses is attributable to the labor code change versus the normal hiring and the ramp-up at the newer hospitals?
See, based on the recent changes which have been drawn by the labor code, we don't have any significant impact on us. We are mostly aligned to our current stature as per the proposed codes. However, minor impact may come as a change of the basic pay, which has been packaged to the gratuity. We don't have any major impact on the other fronts like bonus act or the leave encashment. In totality, we perceive that we have a complete assessment in place, and we don't have any major impact in this financial year due to this new labor code.
Okay. And so, if it is not coming in this financial year, it won't be coming in the next financial year too?
No, no. We are already aligned to the kind of proposed stature. Our stature is already in line. So, there are no gaps to have any financial impact major in this financial year. Obviously, in the next financial year, it will be aligned already. So, there is no financial impact which will be coming into place in the financials.
Fantastic, fantastic. And just a last one, wanted to know on the MVT business because there was a mention about the benefits, and the Union Budget did mention about promoting medical tourism. So, do you think any incremental benefit would be coming to us?
Yeah. We would see around 5%-6% increase in the cost that we would be benefiting from that. That's our estimation on that specific business.
Got it. Thanks. I have more questions. I'll join back with you.
Thank you. Our next question is from the line of Abhijit from PI Asset. Please go ahead.
Thanks for the opportunity. Hope I'm audible. Sir, we can notice a sharp increase in the other expense. Was it because of one-time marketing or empowerment of star doctors? Are the costs expected to taper down in FY27, or should we assume the same run rate?
If you see, there is a quarter-on-quarter increase at a consolidated level, majorly because of the new hospital additions. In both the new hospitals, we have added the complete doctor cost. That's the only reason. Major change because of the doctor cost only. If you see in our existing hospitals, there is no major change. Yeah.
So, we should increase as the year-new normal rate?
Yeah, this is now normal, and there will not be any major increase now.
Understood. And sir, what is the CapEx for FY27? I missed that for you.
Please pardon?
What is the Capex for FY27?
We have given an overall Capex for next five years. Deals will be announced within, let's say, 3, 3.5 years. But the total deployment of the Capex will take five years' time, and that is around INR 1,500 crore for getting us a bed capacity of close to 5,000 beds.
Understood. Okay. Thank you.
Thank you. Our next question comes from the line of Akshat Mehta from Seven Rivers Holdings. Please go ahead.
Hello. Am I audible, sir?
Yes, yes, yes, yes, yes.
Yeah. So, the first question that I have maybe for Yatharth himself is that if you assume that the overall trade receivable days in the business is 110, then that would and assuming that 35% of the businesses is from your government and 65% is split evenly between cash and PPA, that would imply that your government business receivable days are north of 245, 250 days. Is that the right way to look at it?
So, I mean, there are certain payers within, let's say, TPS also, which does drag because the majority of the PPA business is received, the payment is received within time. But then there are certain exceptions with certain things. So, that also contributes a bit. But yes, I would still say what you've mentioned; it would be close to that, but not exactly to that amount.
It varies here and there. Even government also.
But there are other listed payers who have indicated that their receivable days on the government business is sub 150, 140 days. So, why is it that we are closer to 250, and what are we doing to bring that down specifically?
Yeah. So, I don't think it's closer to 250. I think it's closer to 200 first. And second is, as we've also stated in the past, there was a certain reason that this led to especially if you look at a year ago, when we got increased with the infrastructure, there were a lot of government business that we onboarded, right? So, our systems and processes took time to upgrade ourselves, right? It's not that it's all 100% on the government, only the receivables. There are certain frameworks and systems within the hospital which allow faster recovery. So, we were not having it initially.
If I talk about in the last one year, the reason why we have generated close to 60%-70% OCF to EBITDA is a way where we've optimized the process. In fact, recently, there have been certain teams that have been outsourced for recovery to get faster recovery, which are already working for certain other hospitals that you have mentioned. So, we have learned from their example and deployed the same network of facilities within our hospital. So, that also has led to this reduction. Other than just the pure decrease in the government share, which will ultimately bring this down, a better recovery and better follow-ups from ours is also helping us to achieve this.
Got it. My second question is around the trade receivables.
And also, sorry, just one last thing I would also ask you. When you mentioned other hospital chains, some of them also don't do the exact same payer/government mix that we do, right? There's a government payer called ESI that many other hospital chains, they don't do. ESI has been shown typically in the past to have a slow payment cycle. And I would say around 30%-35% of our outstanding with the government is specifically from ESI channels. So, that has also led to an increase, which is not standard across other hospital chains.
Okay. That clarifies it. Thank you. My second question is around your trade receivables again. In your annual report, there was a reduction in overall trade receivables to the tune of INR 20 crore. In FY 2024, the number was around INR 35 crore. Implying almost a 6% and an 11% reduction, respectively. What was the reason for that reduction, and how should we look at it moving forward?
This is on the basis of the collections, as we already mentioned, no? So, from last one or more than one year, we are working on the rigorous collections. We have implemented all the protocols to have better billing processes, better dispatch processes, and all the recovery processes.
No, I'm talking about a write-off in trade receivables.
Write-off? So, see, as a prudence policy, we generally have a provision for the doubtful debts. But certainly, very minuscule of the bad debts generally comes from we don't have any bad debts as of now. We generally make a provision as a prudence based on the kind of principle of the accounting. But based on the trends, we see that our deductions are coming down. And generally, our provision is being reversing over the period. So. Yeah. So, basically, what you're mentioning too, deduction is basically not a write-off of any debt, but basically, it is certain bills which are contested by the payer mix, and then that's what the deduction comes to. Just like, let's say, any private insurance company, there are certain deductions happening on a bill basis. So, that was that case.
How should we look at it moving forward? Should we assume a similar percentage in the coming years, quarters as well?
Our deduction overall at the group level is reducing from last two years. You can see from our reported results also. The same trend we will follow, but it is not 1% or 2%. Yes, it will decrease. Parallel, we are taking a provision for the non-collected amount also.
Got it. Great. That clarifies it. Thank you. And congratulations on a good set of numbers. Thank you.
Thank you. Our next question is from the line of Shubham Harne from Purnartha Investment Advisors. Please go ahead.
Thanks for the opportunity, sir. What risks do you foresee due to the entry of new chain hospitals in the Noida region?
So, see, I think instead rather than risk, we feel that it's good for our business because when any territory when more and more hospitals come, that territory gets developed. So, your catchment rates increase. People come. So, I think everyone will have a—I'll give you an example. I mean, in our territory, two, three new hospitals have come with new brands and new entry. But still, I think we have grown more than 30%. And with an existing hospital, I see that growth was more than 25%. So, I mean, it's all how you look at it, right? We personally believe that yes, you need to be aware with your competitor what they do. But if you are working with your core strength and more and more players coming in, I mean, be focused. I mean, be in the limelight. People will always come to you.
That's fine. We don't see, I mean, deduction in a pie, to be very honest.
Do you foresee any pushing of doctors from your institute to other institute?
Yeah, it's a part and parcel. Believe you me, any hospitals entering into any territory, they try to look at which one is doing good, who are the good doctors. We also do it, right? When we enter in Delhi, we did the same thing. We enter in Faridabad, we did the same thing. So, it's a part and parcel. And we, as a hospital, we are prepared for this, right? So, it's one go, other can come. So, this is how it is.
Got it. Thank you, sir.
Thank you. Our next question is from the line of Akhilesh Rawat from Ridhanta Vision Private Limited. Please go ahead. Mr. Ravit, your line has been unmuted. Yeah, please go ahead.
Hi. Hi. So, first of all, I would like to congratulate management on good sets of numbers. So, I have just one quick question, and all my questions are answered. So, I just want to understand what are our current receivable days as of now. Group, all group hospitals.
Current receivable days as a group, as a consolidated level, is coming around 115 days. As I already mentioned in the earlier question, this will be reduced and come down between 105-110 by March 2027.
Yeah. Thank you. That's it from my side. Thank you.
Thank you. Our next question is from the line of Anand B from KSEMA Wealth Management. Please go ahead.
Hey, congratulations on good set of numbers. I just have two questions. One, is the IT issue completely resolved right now?
Yeah. So, all the attachments and the freezing of any asset or everything has been removed. And we are in the final stages. We are expecting very soon that matter to be resolved. So, yes, it's going as per plan.
When do you think the matter will be completely resolved? You gave us a timeline or so, quarterly or something.
See, I mean, these are industry standard. I think sometime in the coming quarters, definitely, it will. Even though the matter which was under the emphasis has already been resolved in the last quarter. So, for us, it's more of a formality now which is remaining.
Okay. Okay. My final question is, can you just repeat the ARPOB numbers for each of the hospitals again? What are your expectations of the ARPOB, let's say, in FY27 and FY28 for each of the hospitals?
So, yes. On a blended basis, our RPOB is INR 33,744, out of which we can say the Greater Noida having an RPOB of nearly around INR 39,000. Noida Hospital, we have an RPOB of nearly INR 32,000. Noida Extension, we have an RPOB of nearly around INR 44,000. Jhansi Orchha, we have an RPOB of INR 14,000. Greater Faridabad, we have a hospital have an RPOB of nearly INR 34,000. Model Town, we have an RPOB of INR 40,000. And the Faridabad new one, we have an RPOB of INR 36,000.
Okay. Where do you see the RPOB actually?
You can see that the trend we are following up having a kind of a rise or growth of 10% every year on a year basis. The same way, we can expect that we have a growth of around another 10% in the coming period.
Got it. But you mentioned for Agra, the RPOB expectation is around INR 30,000-32,000. But for the newer hospitals like Delhi and Faridabad, do you have similar expectations also for FY 2027, FY 2028?
Yes, yes. The territory we are following in Delhi and the Faridabad is different from the Agra. The Agra, we are believing that it will be ARPOB having a touch around 30,000 the same way. And it's a good ARPOB in terms of the territory of the Tier 2 city.
Okay. ARPOB of Tier 2 city. Okay. Thank you.
Thank you. Our next question is from the line of Umakant from Viansh Ventures Private Limited. Please go ahead.
Yeah. Hi, Chief. Congratulations on a good set of numbers. Most of my questions have been answered. I've just got just one quick question. Could you just touch down a little bit about the margin profile at where do we stand currently on your Greater Faridabad Hospital as well as the Model Town? The reason I ask this question is because I just want to get clarity in terms of how much use do we further have to scale up the mature hospital margin profile from 29%? Can it go to, let's say, a further X percentage? So, if you could just throw just some color around that. And even on the Jhansi, what is the margin profile currently?
So, I think as we mentioned, that if we remove the newer hospitals of Model Town, it's Sector 20, right? Sector 20 and Greater Faridabad, two different hospitals. So, Sector 20 and Model Town hospitals, removing them, the group margins come to 29%. But in this, the major contributor are from the Greater Noida, the Sector 100 and Noida, and Noida Extension hospitals because these are earlier started hospitals. If I talk about some hospitals like Jhansi or even the Greater Faridabad because they were started almost 2 years and 1.5 years back time, there, the margin would be still reaching close to 20% upwards. But it is basically the 29% margin figure that you're getting at a consolidated level without the new hospital is primarily because of the Noida hospitals.
However, going forward, we feel even without the newer hospitals, the margins, we do not expect them to rapidly rise above these levels because there are certain even though occupancy ramp-up will happen, but there is high-quality growth that is happening, right? We're also growing ARPOB-wise. We're also changing our payer mix. We are reducing government pay, not just in the new hospitals, but even our earlier hospitals. So, for that, there are certain cost expenditures that we have to do. So, the margins for other new hospitals would roughly remain in the same line and will not increase significantly.
Okay. Got it. Just to follow up on this one, on the first question, when we say that I think we have incurred a loss of about INR 10 crore in our newer hospital, that is Sector 20 and Model Town, about we've run losses of about INR 20 crore at our operational level. Now that we'll be at this at one point, we'll be ramping it up. So, do we expect these losses to widen before we start seeing the margins expand this thing, turning positive? And secondly, what is the occupancy that we, let's say, see when do we see a healthy level of occupancy in these two hospitals?
No, sir, the largest, as we mentioned earlier, so all the cost centers which you see, so all the expenditures have been done, mainly for newer hospitals, the doctor cost and the employee cost, already placed. Now, the cost related to your business. So, coming quarters, these losses should come. And what I can tell you, I think that's Faridabad, probably we will do a break-even probably much earlier. In fact, probably well within the 12 months, which will be a really very good sets of, I mean, that's what expectation is coming and the kind of business trend coming in the last three months. Similarly, Model Town, which we see, I think within the 15 months, which we should have an operational break-even. So, we don't see any losses coming up. Whatever losses would be, that's related to the directly proportional to whatever business we acquire.
What was the second question of yours? I missed that.
Regarding the occupancy in these two, when do we see a healthy level of occupancy?
So, when we do a full-fledged as of now, I think Faridabad is operating with around 125 operational beds and Model Town is around 120 beds. But when we have a full-fledged as a Model Town 300-bed and Faridabad is a 400-bed, I think anything between 30%-35% of the full operational bed, I think will be a break-even. And next, probably, as I said it, within the 12 months or 15 months, I think we would very much achieve those targets.
Got it. Perfect. My second question was, if you could just provide some any further updates on your future expansion plans, would it be led by any greenfield expansion or brownfield? And if it's a brownfield, if it's a brownfield, what kind of a size are we looking at? And what will be the, let's say, what Capex this thing per bed we are comfortable with? And also just some color on the geography.
As we have mentioned, we are targeting to reach close to 5,000 beds in the next three years in terms of announced deals. Of course, the deployment can be over the next four to five years because there will be a mix of greenfield, brownfield, and asset-light expansion. The combined Capex that we are planning for this is around INR 1,500 crore. This would be coming to around INR 60 lakh per bed because there is a mix of greenfield and asset-light. This will be in the geography of first priority as NCR and the second priority, too, as major cities in North India.
So, just one clarification. When you say we are targeting an INR 1,500 crore Capex, I'm assuming we are talking only about the INR 2,000 of the incremental because we've already planned for INR 6,500 brownfield, right? In the Noida and Noida Extension, we've already planned it. So, INR 2,000 for INR 1,500. So, we are saying that.
Yeah.
Yeah, yeah. Exactly. Ajay. And so we are saying that we're going to be just at INR 60 lakhs. That's quite a less number, right? I mean, if we get it, that's great.
Yeah. And there are asset-light models also. So, there are asset-light models where we are not spending on land and building. We will be only bringing in the equipment. That type of models also, we are exploring.
Oh, wow. Okay. Great, great. Sure. That's it from my side. Thank you so much.
Thank you. Our next question is from the line of Shubhanu Bangal from 3 Head Capital. Please go ahead.
Yeah. Hope I am audible. Good afternoon. Sir, as you mentioned, Q4 will be better than Q3, and EBITDA margin will be going forward will be improved. What kind of EBITDA margin we are targeting in FY27? This is my first question.
As we have indicated, we are in a growth phase. We will keep on adding more hospitals, and we will ramp up the latest additions of hospitals. Our guidance for the blended EBITDA margin is the range of 24%-25% on a consolidated level. Is that clear to you?
Just a second, sir. I think the line got disconnected. As there are no further questions, I would now like to hand the conference over to management for closing comments.
Thank you, everyone. Thank you for tuning to Yatharth Hospital & Trauma Care Services Limited's earnings conference call for the quarter ended December 31, 2025. We hope we were able to answer all your queries. And thank you for your questions.
Thank you. On behalf of Nuvama Wealth Management Limited, that concludes this conference. Thank you for joining us, and you may now discuss. Thank you.