Hi, good day, everyone, and thank you, Bhoomi. On behalf of Nuvama Wealth Management, we welcome you all to the Q3 and 9M FY26 earnings conference call of Yatharth Hospital and Trauma Care Services Limited.

From the management side, we have with us today Mr. Yatharth Tyagi, Whole-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 you, Yatharth.

Good afternoon, and welcome to Yatharth Hospital and 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've had the opportunity to review it. Quarter 3 FY26 marked yet another quarter of industry-leading performance for Yatharth Hospital 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 ₹279 million in revenue, contributing 9% to group's revenues.

Faridabad Sector 20 has already reached a monthly revenue run rate of ₹7 to 8 crores within just 3 months of launch, while New Delhi is delivering close to ₹5 crores of monthly revenue run rate. Both these hospitals derive 100% of their revenues from cash and TPA, that is private insurances, reflecting our focus towards payer mix from day one of operations.

On the operating metrics, they demonstrated strong initial ARPOB performance also, with New Delhi at approx ₹40,000 and Faridabad Sector 20 at ₹36,000. These levels are higher than group average, underscoring the quality of case mix and the clinical offerings from day one 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 breakeven 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 our 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-brachial 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 ureterocele with duplex collection system complicated by ureteric stones and severe hydronephrosis through advanced minimal invasive endourological surgery was performed. We also completed a 13-peroral endoscopic myotomy, POEM, procedure in 2 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 marquee 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.

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 share that Yatharth Hospital has delivered a stellar performance this quarter.

During quarter 3 FY26, we achieved a revenue of ₹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 ₹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 hospital Noida operating at 91%, Greater Noida at 74%, Noida Extension at 61%, and Jhansi-Orchha at 72% during the quarter. Our newer facilities showed promising adoption, with healthy volume at our Greater Faridabad, New Delhi, and Faridabad Sector 20 hospital, demonstrating Yatharth position as a preferred healthcare provider in the region.

Our ARPOB was up by 10% year-over-year to ₹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 ₹44,000, up 16% year-over-year, supported by approximately 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 ₹40,000, while Faridabad Sector 20 achieved an ARPOB of ₹36,000, which are higher than the group average. Our other hospitals in Greater Noida, Noida, and Jhansi-Orchha registered an ARPOB of approx ₹39,000, plus 14% year-over-year; ₹31,000, that is 8% year-over-year; and ₹14,000, respectively.

On the profitability front, we have achieved our highest-ever EBITDA at ₹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%, lead by operating leverage, mix improvement, and positive impact of price revision in government business.

Net profit after tax stood at ₹431 million, up by 41% year-over-year, while adjusted PAT 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 provide 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.

Hello, am I audible?

Thanks for the opportunity. Sir, my first question is on the revenue mix side.

As of today, by the end of Q3, what is the revenue mix from the cash and TPA 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, and I feel in 2, 2.5 years' time, our government mix should be reduced somewhere close to 25% to 28%.

So 2 years down the line, we are aiming for 25% to 30% approx? 2 years down the line, government business should be lesser than 30%.

Okay. Sir, my second question is on the brownfield expansion as we are going for 3,000 beds going forward.

Till what time we can think that this might be operational?

We are talking of the addition of almost 3,000 beds to take the total cumulative beds to 5,000 in the next 3 years, where we have mentioned that the deals will be announced within the next 3 years, and the operationalization of the hospitals will be in 4 to 5 years over a period of time.

Okay. Sir, as of today, what's the net cash on the balance sheet, if we are aiming for any acquisition going forward?

Are we

Current cash and bank position as on 31st December at a consol level is coming close to 200 cr.

Okay. We are aiming for any acquisition as of today, because we have acquired many hospitals in last few years, are we still looking for it?

See, acquisitions will definitely happen over the course of coming years. We do have a good, strong cash position as well as we can always take certain debt.

However, internal accruals also quite strong. I think using all these three mixes, we are well in position to fund our capex for next good 3 years.

Okay. Sir, just last two questions.

What is the right now capex per bed as of today if we go for?

As of today, capex per bed should be around ₹60 lakhs per bed, because there were a lot of other hospitals that we started 10 years ago, where the construction as well as the land prices were quite cheap that time, and slowly we had upgraded to medical equipments. If you look at our newer hospitals, that is the Delhi, the Faridabad, the both the Faridabad hospitals, there the capex per bed is much higher.

I think there the capex per bed would be in the tune of upwards of ₹80 to 90,000 capex per bed, ₹80 lakhs per bed. That's the current capex per bed plan.

Okay. Sir, I just wanted to know that there is a recent incident where one of the relatives have go for a knee replacement surgery and suppose it's taken an example, it's around ₹2 lakh in cash.

Is it possible that hospitals do practice these kind of activities where if in cash segment if they deal they go for ₹2 lakh, but if the patient is having an insurance policy, they make it to up to ₹2.5 lakhs or ₹3 lakhs?

No, it's absolutely not. This pricing is already fixed.

If the cash is let's say ₹2 lakh, in fact, for the insurance, it will be a lesser effectively to us. What is the landing price to us, because that agreement is signed, rates are already freezed.

You can't make a change. This is not a manual that's if I wish, I can change it.

That's not the practice. Always the cash will be the higher this thing, then will be a some insurance, and then the government business.

This is the practice.

Okay. Thank you, sir.

That's all from my side. All the best.

Hello. Good afternoon, sir.

Hope I'm audible. Couple of questions.

One is that now if you can throw some light on or give the numbers regarding the newer hospitals, census beds and the ramp-up strategy going forward for FY27. 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 to 6,000 beds, as we just told in the earlier question as well.

In the ramp-up stage, we may come to around an additional 3,000 beds in the coming 3 to 4 years down the line. On the occupancy front, we are at 67% on a blended numbers.

The ARPOB is around 33

No, sir, my limited question was related to the newer hospitals, newer facilities. Newer facilities like NCR region and Agra, yes.

The Model Town, which is in Delhi, we have a kind of a occupancy of 38% on the 100 beds, census beds. We have a capacity of around 300 beds there in 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 a occupancy of 43% in this quarter with the again 125 beds on the operational 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 are going to expand to around 250 beds in the coming quarters.

Newer hospitals, can we expect 50% occupancy next year?

Definitely. See, Faridabad, if you see, just started 3 months back, 2.5, 3 months back, which is presently with the 125 beds as operational, 43% occupancy.

Without having any panel, in fact, not full-fledged even insurance and TPAs, right? Definitely that that is very promising these numbers as of now.

Even a same goes for Delhi as well. Still, 100% insurances are yet to come.

The with all government channels or even corporate and PSUs, which are dependent on the various states, is still negotiation going on. I think by by end of quarter 4 or probably the beginning of quarter 4, sorry, the next 2 months, I think we should be full-fledged with all, empanelments.

Then we expect that's more than 50% occupancy in a 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 ₹26,000 kind of ARPOB.

By having us over there with the, having starting with the super specialties and others, we believe that we can easily take it up by by next quarter I think anything between ₹30, ₹32,000 kind of ARPOB.

Okay. Regarding the Agra unit, compared to the other facilities, with our understanding is that now the acquisition cost is a little bit higher side.

How do you plan to make it a par with the other NCR region facilities? What is the case mix and all?

Yeah. See, Agra hospital, it is the one of the and I would say the best infrastructure hospital within not just Agra, but even up till a radius of 100 km in that whole region.

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. There were multiple ways why we felt that 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 ₹45 to 50 crores, and is almost now EBITDA-positive and PBT-positive also. From February, when it is on our books, we do not need to incur any more losses to make it profitable.

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. 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.

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 robot, which is not just Agra's, but in that region's one of the first robotic surgery is going to happen.

We feel Agra will contribute meaningfully to our coming quarters.

In terms of payer mix, just to want to understand, even in case of TPA, 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.

Is it possible to give the bifurcation of that?

I think, sir, largely it's group means mainly about the corporate insurances and all we're talking about, I believe. Retail business, yes, it's always higher in terms of the number.

I think it probably going to be the 60-40% kind of, because that's also depends on which area you are operating. Let's say if you are operating in Delhi NCR, where there are more corporates are there, right, so that percentage will be a different.

If you are operating with the Agra or probably the Meerut or some other region where the corporates PSUs are not that much, that numbers will be a lesser. That won't be any standard answer for it.

That depends on unit to unit and the area where you are operating.

Because this structurally due to this GST benefits, the retail policy should rise. The quantum should rise.

That is my understanding, and structurally it is positive. Thirdly, oncology, sir, I saw that now our quantum of percentage is remaining same.

Is there any facility constraint in our offerings or is there any scope of increase going ahead?

It is not same. Our pie has increased, right?

A 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 is to be noted that in the upcoming Faridabad and New Delhi hospitals, we will also be offering full scale of oncology service, which still have not started in this quarter. Going forward in these two hospitals, our new hospital, because oncology takes 5, 6 months to start, setting machines and a complete bone marrow transplants and other high-end cancer services.

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-on-year, oncology has increased from ₹63 crores to almost ₹85 crores, which is a significant jump.

Any guidance going ahead for oncology alone? For a couple of years?

See,

oncology today is contributing close to 10% of our overall specialty pie, which is, if you compare 2, 3 years ago, it was less than 4%. 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 2 years' time.

Maybe in a 1.5 years' time, we should be there.

Any influx in the medical tourism this quarter?

Absolutely. Because the numbers has definitely increased.

Percentage-wise, still it's in a single digit, I would say, but it's quite encouraging. The kind of the initiatives which our international team has taken, various OPD centers and the channel partners which we started.

We believe that's in fact, Jewar Airport gonna start probably by within a 2 months or something, that's a new deadline has come up. We're quite confident on these numbers.

Absolute number definitely increased, and rather just only the numbers, you see that's the geography which we touched upon in last whatever 8, 9 months, 10 months which we worked on international. We have touched various geography, and it's quite encouraging that patients has come from the all those geography.

At least a very good base has been created. Now we just have to capitalize it.

Apart from oncology, more or less the case mix will be remaining same, or will there be any change, and neuroscience or something?

As a totality, we are focusing on increase in our super specialty services versus specialties. In the case mix also, you will see all the super specialties.

Cardiology, neurosurgery, gastroenterology, and couple of others combined together would be higher than, let's say, specialties like gynecology, internal medicine, basic orthopedic works. 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.

Should be at 3 going forward?

ALOS, because there's a couple of new hospitals coming up, there are certain business call we need to take. I think it should be anything around close to 4, 4.3, it's quite acceptable, within 4, 4.5, I think that's acceptable number, which we see that's as you grow, probably the 2 years down the line if you say, definitely there's going to be a lesser.

Okay. Thank you, sir.

Thanks.

Hi. Hope I'm audible.

On the payer mix, your new hospital seem to be driven largely by cash and TPA insurance with minimal government scheme contribution. Is this mix structural and expected to continue, or do you anticipate a meaningful shift towards government empanelment over the next 12 to 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're doing.

I wouldn't say that it will remain zero after a year. Definitely, it will increase, but I don't see in the newer hospitals government mix being more than somewhere 15% to 18% or maybe max for 20%.

Ultimately, this is going forward what you will see, and ultimately this is what will drive our debtor days and receivables to come down. That is a strategic call that we have done, and we're able to showcase it with a strong attraction of cash and private insurances patients.

Understood. That was helpful.

Could you just please repeat your hospital-wise occupancy and ARPOB for Q3 FY26 for all your operating units?

Yeah. 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%.

New hospital Faridabad, we have 43%. In totality, we have ARPOB of ₹33,744, out of which we have nearly around ₹39,000 of Greater Noida, ₹32,000 nearly we have Noida, Noida Extension we have ₹44,000 nearly, Jhansi-Orchha we have nearly around ₹14,000, Greater Faridabad we have nearly around ₹35,000, Model Town we have nearly around ₹40,000, and Faridabad new one we have ₹36,000 nearly.

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.

Thank you. Thank you so much.

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 2 to 3 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 would not be a right estimate, because a lot of new hospitals and old hospitals are starting, we are always calculating as a consolidated level, and also, we have certain subsidiaries and certain hospitals are within the parent company. In totality, two, three hospitals are within the Yatharth holding company, and then they are two, three subsidiaries comprising them.

I can talk about the group-level EBITDA. 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 2 EBITDA margins.

Without these two new hospitals, we would have been somewhere close to 28%, 29% of EBITDA. 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 fourth quarter of their operations, that is reduced. Also, very positive is the Agra hospital that we've started is not a EBITDA drag at all.

That is also another reason whatever contribution it will have will add to the EBITDA. We are quite confident in the coming quarters EBITDA margins will increase.

No, we are not targeting 28%, 29% EBITDAs even let's say in 2, 3 years, because there will constantly be new additions, new hospitals, as you know we earlier mentioned we want to be somewhere around 5,000 bed capacity within next 3, 3.5 years. That will mean a lot of EBITDA drag from the upcoming hospitals.

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 Q3 '26?

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 2 years' time at a consol level, where do you see your ARPOB going 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, and we are very much hopeful to close March 2027 with receivable days less than 110.

What about going forward, in the next 2 years when your CGHS portion will fall down to around 25%, 28%? What receivable days can we expect to observe in that time?

After 2 years down the line, as we already mentioned, we will reduce our government mix, we will increase our cash and TPA business. As we already mentioned that our both the hospital we have started with the cash and TPA business only.

After 2 years or 3 3 years down the line, we will very much close to 80 or 82 days.

Got it, sir. What about the ARPOB guidance?

It was just an extension to the question. What about the ARPOB guidance in maybe FY27 to '28?

See, if you look at it, that's even a last numbers which you see that year-on-year we are growing more than 10% of our ARPOB. I think that's you can easily guess over there, and even a current numbers which you see the kind of Noida Extension and Greater Noida and other hospital has grown.

So 10% ARPOB year-on-year, I think that's quite easily achievable for us. That's what our guidance.

Sir. Thank you.

Thank you for answering all my questions.

Hi. Congratulations on the great set of numbers here.

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 largely remained stable QoQ also.

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?

There is a lot of background noise to your line. There were a lot of good EBITDA traction we gained from our existing hospitals.

Other than the new hospitals, our existing hospitals are ramping up good oncology business, they're ramping up good even ARPOB, right? ARPOB if you see Noida Extension has increased upwards of 15% year-on-year.

Similarly, Greater Noida. Even our existing hospitals, older hospitals are growing at a good rate.

That has led to this margin being sustainable. Further, if you see our Model Town hospital also, we have started in Q2, and the losses has been reduced from Q2 to Q3.

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 full December and now we will be seeing from 1st January the whole quarter 4, that will also help going forward to contribute to our EBITDA margins significantly.

Is it fair to assume that 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 2, quarter 3, the new hospitals drag was also less because of the increase in the business.

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 has brought by the labor code, we don't have any significant impact on us. We are mostly aligned to our current structure as per the proposed codes.

However, minor impact may come as a change of the basic pay, which has been impacted to the gratuity, and 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 codes.

Okay. 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 a proposed structure.

Our structure is already aligned. There is no gaps to have any financial impact major in this financial year.

Obviously, in the next financial year, it will be aligned already, there is no financial impact which will be coming in the place in the financials.

Fantastic. Fantastic.

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. Do you think any incremental benefit would be coming to us?

Yeah. We would see around 5% to 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 the queue.

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 empanelment of star doctors?

Are these 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 consol 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 is because of the doctor cost only.

If you see in our existing hospital, there is no major change. Yeah.

We should assume this as a new normal, right?

This is now normal, and there will not be any major increase now.

Understood. Sir, what is the capex for FY27?

I missed that figure.

Please pardon?

What is the capex for FY27?

We have given overall capex for next 5 years. Deals will be announced within let's say 3, 3.5 years, but the total deployment of the capex will take 5 years' time, and that is around ₹1,500 crores for getting us a bed capacity of close to 5,000 beds.

Understood. Okay.

Thank you, sir.

Hello. Am I audible, sir?

Yes.

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, and assuming that 35% of the businesses is from your government, and 65% is split evenly between cash and TPA, that would imply that your government business receivable days are north of 245, 250 days. Is that the right way to look at it?

There are certain payers within let's say TPAs also, which does drag, because majority of the TPA business the payment is received within time, but then there are certain exceptions. With the certain things, so that also contributes a bit.

Yes, I would still say what you've mentioned, it would be close to that, but not exactly to that amount.

It varies payer to payer, even in government also. There are other listed peers who have indicated that their receivable days on the government business is sub 150, 140 days.

Why is it that we are at closer to 250, and what are we doing to bring that down specifically?

I don't think it's closer to 250. I think it's closer to 200 first.

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? 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 allows faster recovery.

We were not having it initially. If I talk about in last 1 year, the reason why we have generated close to 60% to 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 recoveries, which are already working for certain other hospitals that you have mentioned. We have learned from their example and deployed the same network of facilities within our hospital.

That's also has led to this reduction. Other than just the pure decrease in the government's share, which will ultimately bring this down, a better recovery and better follow-ups from our is also helping us to achieve this.

Got it. My second question is around the trade receivables

Also, just one last thing I would also add to you. A lot of when you mention other hospital chains, some of them also don't do the exact same payer of 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.

I would say around 30% to 40 35% of our outstanding with the government is specifically from ESI channels. 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 ₹20 crores, and in FY24, the number was around ₹35 crores. Implying almost a 6% and a 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, na? From last one or more than 1 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, no, I'm talking about a write-off in trade receivables.

Write-off? See, as a prudence policy, we generally have the provision for the doubtful debts, but certainly very minuscule of the bad debts generally comes.

We don't have any bad debts as of now. We generally makes the provision as a prudence based on the kind of a principle of the accounting.

Based on the trends, we see that our deductions is coming down, and generally our provision is being reversing over the period. Basically what you're mentioning to 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 billed on bill basis. 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 as a group level is reducing from last 2 years. You can see from our reported results also.

The same trend we will follow. It is not a 1% or 2%.

Yes, it will decrease. Parallelly, we are taking a provision for the non-collected amount also.

Got it. Great, that clarifies it.

Thank you. Congratulations on a good set of numbers.

Thank you.

Thanks for the opportunity, sir. What risk do you foresee due to entry of new chain hospitals in Noida region?

See, I think rather than risk, we feel it's a good for our business, because whenever in any territory when more and more hospital comes, that territory gets developed. It attracts your catchment get increased, people come.

I think everyone will have a pie. I'll give you example.

In our territory, two, three new hospital has come with a new brands and a new entry. Still I think we have grown more than 30%, and with the even existing hospital, I see that the growth was more than 25%.

It's all how you look at it, right? We personally believe that's if yes, you need to be aware with your competitor what they do it, but if you are working with your core strength and more and more player coming at, we focus on the limelight, people will always will come to you and that's fine.

We don't see reduction in a pie, to be very honest.

Do you foresee any poaching of doctors from your institute to other institute?

It's a part and parcel. Believe you me, any hospitals entering into any territory, they try to look at it which one is doing good, who are the good doctors.

We also do it, right? When we enter in a Delhi, we did the same thing.

We enter in Faridabad, we did the same thing. It's a part and parcel, and we as an hospital, we are prepared for this, right?

One go, other can come. This is how it is.

Got it. Thank you, sir.

Hi. I would like to congratulate management on good sets of numbers.

I have just one quick question, and all my questions are answered. I just want to understand what is our current receivable days as of now, all group hospitals?

Current receivable days as a group, as a consol level, is coming around 115 days. As I already mentioned in the earlier question, this will be reduced and come down between 105 to 110.

By March 2027.

Yeah. Thank you.

That's it from my side. Thank you.

Hey, congrats on the set of numbers. I just have two questions.

One, is the IT issue, has it been completely resolved right now?

Yeah. 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. Yes, it's going as per plan.

When do you think the matter will be completely resolved, give us a timeline or so? Quarterly or something?

See, these are industry standard. I think sometime in the coming quarters definitely it will, even though the matter which was on the emphasis has already been resolved in the last quarter, for us it's more of a formality now which is remaining.

Okay. My final question is can you just repeat the ARPOB numbers for each of the hospitals again, and what are your expectations of the ARPOB, let's say in FY27, FY28 for each of the hospitals?

Yes, on the blended basis, our ARPOB is ₹33,744, out of which we can say the Greater Noida having an ARPOB of nearly around ₹39,000, Noida hospital we have an ARPOB of nearly ₹32,000, Noida Extension we have a ARPOB of nearly around ₹44,000, Jhansi-Orchha we have ARPOB of 14,000 ₹14,000, Greater Faridabad we have a hospital ARPOB of nearly ₹34,000, Model Town we have a ARPOB of ₹40,000, and the Faridabad new one we have a ARPOB of ₹36,000.

Okay. Where do you see the ARPOB

You can see that the trend we are falling up having a kind of a rise or growth of 10% every year on a year basis, and the same we can expect that we have a growth of around another 10% in the coming period.

Got it. You mentioned for Agra the ARPOB expectations around ₹30,000 to ₹32,000, but for the newer hospitals like Delhi and Faridabad, do you have similar expectations also for FY27, FY28?

Yes. That territory we are falling 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.

Tier 2 city. Okay.

Thank you.

Hi team. 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 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 a clarity in terms of how much juice 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?

If you could just throw just some color around that, and even on the Jhansi, what is the margin profile currently?

I think, as we mentioned that if we remove the newer hospitals of Model Town and Sector 20, right, Sector 20 and Greater Faridabad are two different hospitals. The Sector 20 and Model Town hospitals, removing them, the group margins comes to 29%, but in this the major contributor are from our the Greater Noida, the Sector 110 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. 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 payers not just in the new hospitals, with even our earlier hospitals.

For that, there are certain cost expenditure that we have to do. The margins for other than new hospitals would roughly remain in the same line and will not increase significantly.

Got it. Just a follow-up on this one on the first question.

When we say that I think we have incurred a loss of about 10 cr in our newer hospital, that is Sector 20 and Model Town, about we've run losses of about 20 at operational level. Do we now that we'll be at us at is at 1.2, we'll be ramping it up, do we expect this losses to widen before we start seeing the margins expansion the thing turning positive?

Secondly, what is the occupancy that we'd let's say see, when do we see a healthy level of occupancy in these two hospitals?

No, sir, the losses, as we mentioned earlier, all the cost centers which you see, all the expenditure has been done, mainly for newer hospitals, the doctor cost and the employee cost already placed. Now the cost related to your business.

Coming quarters, these losses should come, and what I can tell you Faridabad, probably we will do a breakeven probably much earlier, in fact probably well within the 12 months, which will be a really a very good sets of I think that's what expectations coming and the kind of business trend coming in last 3 months. Similarly, Model Town, which we see, I think within the 15 months which we should have operational breakeven.

We don't see any losses coming up. It's whatever losses would be, that's related directly proportional to the 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?

When we do full-fledged, as of now, I think Faridabad is operating with around 125 operational bed, and Model Town is around 120 beds. 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 we will be a breakeven.

Next probably, as I said it, within the 12 months or 15 months, I think we would be very much achieve those targets.

Got it, perfect. Then my second question was if you could just provide any further updates on your future expansion plans, would it be led by any greenfield expansion or brownfield, and if it's a brownfield, what kind of a size are we looking at, and what capex this thing per bed we are comfortable with?

Also just some color on the geography.

As we have mentioned that we are targeting to reach to close to 5,000 beds in the next 3 years in terms of announced deals, and of course the deployment can be over the next 4 to 5 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 ₹1,500 crores.

This would be coming to around ₹60 lakhs per bed because there is a mix of greenfield and asset-light. This will be in the geography of first priority as NCR and second priority to as major cities in North India.

Just one clarification. When you say we're targeting a ₹1,500 crore capex, I'm assuming you're talking only about the 2,000 of the incremental, because we've already planned for 6 500 beds brownfield, right?

In the Noida and Noida Extension, we've already planned that. So 2,000 for 1,500, we are saying that

Yeah,

exactly. Achha.

We're saying that we're going to be just at ₹60 lakh. That's quite a less number, right?

If we get it, that's great,

fantastic. There will be asset-light models also.

When asset-light models where we are not spending on land and building, we will be only bringing in the equipment. That kind of models also we are exploring.

Oh, wow. Great.

Sure, that's it from my side. Thank you so much.

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 that since 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 in the range of 24% to 25% on a consolidated level.

Is that clear to you?

Thank you, everyone. Thank you for tuning to Yatharth Hospital and 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.