Thank you, Atharva. Good morning, everyone.

On behalf of Systematix Institutional Equities, we welcome you all to the Q1 FY27 earnings call of Yatharth Hospital & Trauma Care Services Limited. We have with us the senior management of the company, represented by 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; Mr. Sonu Goyal, Group Chief Financial Controller.

I now hand over the call to the Yatharth management for opening remarks. Over to you, sir.

Hi, Yatharth Tyagi this side. Good morning, and welcome to Yatharth Hospital & Trauma Care Services Limited's earnings conference call for the quarter ended June 30, 2026.

Joining me today are Mr. Amit Singh, our Group CEO; Mr.

Pankaj, Group CFO; Mr. Nitin, Group COO and President - Finance; and Mr.

Ashutosh, Group Chief Strategy, M&A and IR; as well as Mr. Sonu Goyal, Group Financial Controller.

Our earnings presentation has been uploaded on the stock exchanges and on our website, and we hope you have had the opportunity to review it. I am pleased to report a strong start of FY27.

We delivered our highest-ever quarterly revenue and profits this quarter. More encouragingly, we achieved a record revenue growth of 51% year-on-year and an EBITDA growth of 39% year-on-year.

This performance is a testament to the growth strategy we have been pursuing over the past several quarters. Our newer hospitals at Greater Faridabad, New Delhi, Faridabad Sector 20, and Agra collectively contributed 27% to the mix this quarter.

Especially our acquisition playbook has delivered signs of early success. A key highlight was our Faridabad Sector 20 hospital turning EBITDA break-even within a record period of 9 months.

The hospital is now contributing to a monthly revenue rate of ₹12 to ₹13 crores, with an ARPOB closer to ₹40,000, and the potential to reach ₹45,000 to ₹50,000 as we move ahead. Our New Delhi hospital has already approached the ₹50,000 ARPOB mark, positioning us among the premium hospitals in NCR.

The hospital is currently operating at a monthly revenue run rate of ₹8 crores. Importantly, the revenue mix at both these hospitals is 90% plus cash and private insurance patients.

Our Agra hospital, which was integrated last quarter, achieved a revenue run rate of ₹9 to ₹10 crores and delivered a strong 20% plus EBITDA within its first full quarter of integration. The Gurugram construction is progressing as per expectations, and we expect the hospital to go live by Quarter 1 of the next fiscal, with the potential to achieve an ARPOB of ₹50,000 plus.

Our performance across these hospitals demonstrates the group's ability not only to identify and acquire good assets, but also to integrate and turn around their operations within a very short span of time. Over past couple of quarters, our profitability has also improved meaningfully, with operating leverage kicking in, as reflected in our adjusted EBITDA margin, excluding the impact of New Delhi and Faridabad Sector 20, stood at 28.1% this quarter.

In recognition to the above performance, the board today approved a maiden interim dividend of 5% of face value for all our shareholders, ensuring that shareholders benefit from the growth and investments being done by the group. Behind this execution is a significant effort by the entire organization.

In reward to this effort by our people, we have also approved our first ESOP grant and launched a new ESOP Scheme 2026 to attract, retain, and align quality talent. These are meaningful steps for us, reflecting our confidence in the business that we are building, and a commitment to sharing the value created with both our shareholders and our people.

We are also in the process of identifying ESG priorities across our network of hospitals, with the objective of building a more sustainable and future-ready organization. Our focus on strengthening our international collaborations continued this quarter.

Expanding our global outreach, we opened the Yatharth Information Center in Uzbekistan, and have also leveraged our partnerships with healthcare institutions, as well as undertook many OPD initiatives across key markets across Asia, Africa, and Middle East. With the infrastructure built over the last 12 months, we have expanded our network to 2,555 beds, setting the foundation for record growth this year.

Looking ahead, we remain committed to a roadmap of doubling our bed capacity to 5,000 beds target over the next few years. The upcoming 250-bedded Gurugram facility, expected to commercialize operations by Q1 of next fiscal, will further strengthen our positioning in the premium NCR market, and add another high-potential platform to the network.

The opportunity now is to fill these beds, improve utilization, and allow earnings to catch up with the capacity we have created. Overall, we believe Yatharth is entering an exciting phase.

We are continuously expanding capacity. Our specialty and payor mix is continuously improving.

We have substantial installed capacity to utilize, drive a stronger cash generation in the years ahead. With that, I shall hand over the call to our CFO, Pankaj, for further updates.

Good morning, everyone. I will take you through the financial performance for Quarter 1 FY27 and the key drivers behind the quarter.

The group reported its highest-ever quarterly revenue of ₹3,207 million, up 51% year-over-year and 15% quarter-over-quarter. Our existing three hospital in Noida and Jhansi-Orchha collectively contributed ₹2,862 million, growing 22% year-over-year.

Our existing hospital occupancy reached approximately 75%, as inpatient volume improved 15% year-over-year. As far as hospital-wise occupancy is concerned, Noida and Jhansi-Orchha hospital achieved 90% plus occupancy.

Greater Noida hospital is currently operating at 74%, while Noida Extension stood at 56%. We expect occupancy level at Greater Noida and Noida Extension to improve further in coming quarter.

The newer hospital at Greater Faridabad, New Delhi, Faridabad Sector 20, and Agra collectively contributed ₹1,067 million in revenue, accounting for 27% to the group's revenue. This shift in revenue mix reflects the rapid scaling of our newer capacity, alongside continued growth for our established base.

The group's ARPOB reached an all-time high of ₹34,758 in Quarter 1, up 7% year-on-year. Importantly, our premium NCR hospitals at Noida Extension and New Delhi crossed ₹50,000 ARPOB mark for the first time in Quarter 1, which is a strong indication of the improving case mix.

This was followed by Greater Noida, which achieved an ARPOB of ₹43,000; Faridabad Sector 20 approaching ₹40,000; Greater Faridabad and Noida at ₹35,000; and Agra closer to ₹30,000. This performance is largely driven by the benefits of a stronger specialty mix across our network.

We are continuing to invest in advanced clinical capabilities and infrastructure, as we believe deeper specialty capabilities are essential to building a differentiated hospital network and improving the quality of our revenue over time. Oncology has already started contributing close to 10% to the group's revenue, with only one LINAC machine currently at Noida Extension hospital.

We are in the process of adding another LINAC at our Faridabad Sector 20 hospital soon, followed by the New Delhi facility, which will meaningfully strengthen the oncology share at the group level in the coming years. With newer hospitals demonstrating higher ARPOB level, we expect a meaningful uplift in overall group's realization as these facilities continue to scale up.

EBITDA for the quarter was highest-ever at ₹917 million, with PAT stood at ₹454 million. While the consolidated EBITDA stood at 23.3%, the adjusted EBITDA margin, excluding the impact of New Delhi and Faridabad Sector 20, stood at 28.1%.

With newer hospital progressively moving up the profitability curve, as Agra delivers a 20% plus EBITDA margin while Faridabad Sector 20 achieves EBITDA break-even in Q1, we expect our blended EBITDA margin to improve from the current level. The increase in depreciation and finance costs have been following the significant capacity addition made over the past 12 months, despite which our cash profit, which is PAT plus depreciation, increased significantly by 32% year-on-year, largely reflecting a non-cash impact on the PAT growth.

With the upcoming Gurugram facility and brownfield expansion planned at Noida Extension and Greater Noida, our total bed capacity will reach over 3,200 beds. We remain confident of achieving our target of 5,000 beds over the next 5 years.

FY27 has started a strong note, and the early success of our newer facilities gives us a confidence in sustaining this momentum. Thank you for your attention.

I would now like to hand over the call to the moderator for question-and-answer session. Thank you.

Good morning, sir. My first question is that in the PPT it's mentioned 5,000 beds target by 3 years, and you just mentioned 5 years.

Is it 3 or 5? Also, just second part of that question, we have one big cluster, which is Haryana and Delhi, and second would be UP and MP.

Are we targeting any more cluster, another cluster to add, or are we going to add beds in this cluster only?

I think, yes, definitely, the roadmap ahead is to double our bed capacity. In fact, our announced capacity, which includes the Gurugram and the brownfield expansions at Greater Noida and Noida Extension, is already upwards of 3,200 beds.

From there, if you look at the 5,000-bed capacity, we feel that we would be even reaching it much earlier than the 3 years announced target. This would be primarily within the North, the clusters that you mentioned.

Yes, but we are also evaluating different clusters. One thing that we have done in the past, we've usually formed a cluster, it's not a standalone independent assets we have gone.

We've also leveraged the benefits by adding assets within that surrounding, similar to what we have done here. I think even we feel Gurugram is still a huge cluster for us to further explore.

New cluster, obviously, within the North, we identify. I think UP has certain cities where good cluster can be formed.

I think we would still stick to the areas we very well understand, which is the North, the Delhi NCR and the metro cities in the states that we operate in.

These will all be higher average bed pay, right?

ARPOB would be much higher than the group average. In fact, the newest hospitals which we're doing is already clocking close to ₹50,000 ARPOB.

That's clearly the strategy even going forward. Oh

no, will it be more than 50k or mostly 50k?

Around ₹50,000.

Just my second question quickly. Sir, we are focusing on improving payor mix, I think you're focusing on international mix as well.

If you could just talk about a bit on that, and what kind of benefit are we expecting to get from that? If you could just quantify on this.

Yes, definitely, we are working on how to improve the payor mix, and that's the reason if you see, in fact, there's a dip of a few percentage in Noida Extension occupancy. This is totally as per expectation because we wanted to restrict the government business, and that's our thought process.

Yes, international is concerned, as per the various activities we are planning. In fact, this quarter, I think five information centers, we are planning in the various countries like CIS or African countries.

We have posted our very senior marketing person also in African region. I think that's the start showing the trends, and we believe that I think this will help in a better payor mix, as well as the ARPOB as well.

Even the new hospitals, both the New Delhi, Model Town and Sector Faridabad 20, already are displaying this playbook. These hospitals are close to 90% cash and private insurance business.

We are able to demonstrate it. Faridabad, we are glad that it has break-even much before our target, but the way it has break-even is also with less than 10% government business.

I think that the playbook is clearly evident and it's being reflected in all the new hospitals. As the volumes of these two hospitals continue to grow, significant changes will also be visible at the group level payor mix.

Sir. Thank you so much.

Hello, sir. Am I audible?

my first question was on the newer hospitals, Delhi and Faridabad, sir. What we've been seeing is the last 2, 3 quarters, the occupancy has kind of stagnated around similar area.

When can we kind of see that occupancy go up in these hospitals? What is the status of government and insurance empanelments for this hospital?

I think occupancy is not stagnant, that's significantly increased. The reason why you see the numbers is because the occupancy is counted on different bed capacity.

Earlier, not all the beds were operational. Now, quarter-on-quarter, we are increasing the capacity, and that's where the occupancy is being counted upon.

The IPD volumes, occupancy is definitely increasing. That's the reason why the revenue is quarter-on-quarter increasing there.

As far as the empanelments are concerned, I think a lot of empanelments are already completed in these two hospitals. It's not that we're waiting for government empanelments, and only that's why the government business is low.

Even though we have majority of the government empanelments already, we are sticking to our playbook of not increasing the government payor in these hospitals. If you can tell them about the occupancy and the beds counted in Faridabad, different to what we were counting last quarter.

If you see about it, in the Delhi, the censused bed is 150 on which the occupancy has been counted in this quarter, as compared to the 100 beds in the last quarter. That's the thing the overall percentage is impacting in that manner.

However, the censused bed at the new Faridabad hospital has been increased from 100 bed to 200 censused bed. That's overall thing that we have added 160 bed new censused bed in this occupancy counting in this quarter.

Okay. Then my second question was on the New Delhi hospital, overall, sir.

We started this hospital around 3, 4 months before we did the Faridabad hospital. If you see after almost a year, sir, that hospital in terms of scale up, in terms of occupancy has been kind of slower than the Faridabad hospital.

What is the strategy there to kind of achieve break-even and then kind of grow from there?

I think Delhi hospital, Model Town, is as per our guidance. We're quite happy with the way it is progressing.

In fact, it's not that the numbers are slow there. It's just that Faridabad 20 has overperformed than our expectations.

We were thinking of Faridabad Sector 20 to be break-even around 12 to 14 months, but it has broken even earlier than we expected, around 9 months, right? As far as Delhi is concerned, we are sticking to our guidance.

We expected that hospital to break even around 15 to 17 months, and it will 100%, it's on track for that is concerned. We're quite happy with the way Delhi is progressing.

I think we're quite happy with the ARPOB and the monthly revenue run rate that it has reached. The same strategies, similar to what we're following in the Faridabad, we're following in New Delhi, which is having one of the most reputed doctors in that area, having star doctors, having a strong brand recall and community connect in those areas with strong visibility within the communities.

I think both hospitals are progressing on the right track.

Okay. Sir, if I can ask one more question, sir, on the Agra hospital now.

Since you've reached 90% occupancy, are we planning to operationalize the other censused beds as well out of the 260 beds?

As of now, on 250-bed capacity, we are running on the censused of 110 beds. We are planning to the stage of increasing the censused bed capacity to take the full leverage of the occupancy in the coming quarters.

I think the censused beds in Agra will definitely increase. I think there is definitely much headway for Agra hospital to grow in terms of the numbers are concerned.

Okay. Thank you, sir.

Yes. Hello.

I just wanted to understand this 3,200 beds that we are targeting, by when is this going to be operational?

3,200 beds is our announced capacity. What we mean by that is it's already under our possession, only a bit of construction is left.

It includes the 250 beds in Gurugram, which will be live in the Quarter 1 of the new financial year. It includes around 450 beds of brownfield addition in the two Noida cluster hospitals, which will be live in somewhere around next 15 months.

The Noida cluster will be operational in next 15 months.

Yes, it'll start getting operational. Maybe out of 450, 200 beds would be earlier and 250 beds will be probably in 18 to 19 months.

Okay. Understood.

What is our current capacity? It's, I think, 2,800, right?

So, 2,800 capacity includes the new acquisition of the Gurugram, as I said that has to be happened in Quarter 1 of the next financial year.

Okay. Understood.

Yeah. We've had quite a good revenue growth in Q1 FY27 of 51%.

Do we expect this growth to continue? What sort of growth can we see for the full year FY27?

I think for the full year FY27, we are on track for the guidance that we've already done. As far as not just revenue, I feel even the revenue, EBITDA, and the PAT numbers, what we're guiding for '27, we will be on track for that.

If things continue on the ramp up is expected, I think we should be surpassing certain of our guided targets. I think the company is on track to meet our guidance.

Right. Can you reiterate the guidance?

I'm actually attending the call for the first time.

I think we have said that last year we grew about 37% YoY. As you can clearly see, this year we will easily surpass that growth.

Even the EBITDA is concerned, I think company is on track close to upwards of 24% yearly EBITDA margin for the full FY27 is concerned. I think similar is the ARPOB growth and the PAT parameters.

Right. ARPOB growth we can expect around 10%, 15%?

I think 9% to 10% is a right estimation to be taken.

Understood. Yeah.

Thank you so much.

Hi. Am I audible?

Yeah. Could you please walk me through how the quarterly revenue is arrived from the ARPOB, occupancy, and bed count?

When I back-calculate using these three metrics for the last few quarters, I'm getting a number higher than the reported revenue. I just wanted to understand if there's a component that I'm missing in this calculation.

If you see about this quarter, with the ARPOB of nearly 35,000 on the censused bed of 1,820, with the occupancy of 68%, you will be able to arrive to these numbers. When we calculate the ARPOB, it includes the total revenue, IPD as well as the OPD revenues.

Would you not recommend doing it for every single hospital separately or just one for the complete chain of hospitals?

I can give you the occupancy percentage of each of the hospitals. If you see about it out, the Noida Greater Noida hospital having an occupancy of 74%, Noida 110 Sector have an occupancy of 91%, Noida Extension having an occupancy of 56%, Faridabad Sector 88, that is the Greater Faridabad, having an occupancy of 63%, Faridabad new hospital having an occupancy of 49%, Model Town Delhi having an occupancy of 29%, Agra having an occupancy of 89%, and Jhansi have an occupancy of 91%.

To emphasize here, the censused bed capacity has been 1,820, which in the previous quarter was 1,655. It has increased by 175 beds.

However, as we said that there is a enough headroom to increase the censused bed capacity to build up the case to 2,555 on the existing hospitals.

Could you also highlight the ARPOB of each of these hospitals, please?

Surely. Greater Noida hospital having an ARPOB of nearly 43,000, Noida Extension hospital have an ARPOB of more than 50,000, Noida hospital having an ARPOB of 35,000, Greater Faridabad hospital having an ARPOB of 35,000, new Faridabad hospital having the ARPOB of nearly 40,000, Model Town having an ARPOB of nearly around 50,000, Agra having the ARPOB of 27,000, and Jhansi hospital having an ARPOB of 13,000 nearly.

Okay. All right.

Just to clarify, it would be better to look at all the hospitals together when we are calculating the ARPOB, occupancy, and bed count when we are calculating the revenue, instead of each one of these hospitals. Is that correct?

Yeah. When we calculate the hospital occupancy as well as the percentage, overall the drivers comes to the overall occupancy percentage.

With the blended ARPOB, we calculate the performance at the blended level.

All right. Done.

Thank you.

Thank you so much.

Thanks for the opportunity. Sir, excluding this Model Town and Faridabad, our EBITDA margins are pretty high at 28%.

Obviously, including the losses, they are lower. When do you expect the new assets to fall in line and possibly when shall we start clocking 26%, 27% EBITDA margin again?

I think if we talk about these two specific hospitals, as we said, Faridabad Sector 20 has already broken even. EBITDA drag is there, right, because I think the EBITDA margins there would be around 4% to 5%.

It will take some time to catch up to the, let's say, 20% EBITDA margin. Model Town, we are expecting it to break even somewhere around between of Q3, Q4 this year, so that will also reduce the drag on the EBITDA.

Both these two hospitals, from here, we are targeting, let's say, in around 15 months. Once they get break-even is, the EBITDA there could be somewhere around 15% to 20%.

However, at the group level, even though that would significantly reduce the drag, we might have new hospitals continuing to start. In 15 months, Gurgaon will also be live.

I think the EBITDA drag from these two hospitals will shift to Gurgaon, as well as certain other acquisitions that we do going on. However, as we said, these two specific hospitals will be in line within 15 to 18 months after the break-even.

At a group level, even with the new additions of the continuing EBITDA drag of all the upcoming new hospitals, we would still be closer to 24% of the EBITDA margins.

Yeah.

If you see the kind of a performance we have delivered and demonstrated at Agra, when we bought and started the operation at Agra, it having an EBITDA percentage of 11% nearly. Now we are already reaching much near to around 24%, 25%.

That demonstrate the kind of a performance and the turnover of the kind of a performance of our group. Sir, and

obviously, we are adding new assets, we are planning to double the bed counts to 5,000. In the overall scheme of things, as we go ahead over the next 3 to 5 years, I specifically had a question on this panel recommending limiting the hospital room charges to three-star hotel.

Would you be worried about such recommendations? If not, what's your view on this?

Some color would be very helpful.

Yes, it's recently got this news. I think there is some recommendation about the ceiling of the room rent.

As of now, there is no comment, but see, price increase, there are various reasons and various factors on which this price increase there. How this entire ecosystem gets managed, that's very, very important.

As of now, we don't want to comment on it. As industry moves on, when we receive the some frameworks, then probably it will be appropriate for us to comment and see that.

Also, see, it's something not for the first time a certain recommendation has been discussed. There have been multiple incidents in the past where center or certain petitions have said to look at the room rents and the rates for the private hospitals.

Far, we have always seen that government, in fact, has always supported the growth of private hospitals. In fact, for the first time after a lot of years, CGHS rates were also revised.

We feel, in the past, government has always backed the private sector as well. I remember times when even the stent rates were capped for certain cardiac procedures, certain implants were capped for certain orthopedic procedures and as well as certain medicines.

This has not, and also possibly in the future wouldn't cause a significant impact or something to worry about. In fact, if certain optimization of the cost can be done, I think hospitals will do it.

They have continued to do it, and always done it in the past. Yes, going forward, we will get more clarity on this.

Again, it's just a proposal, and I think long way than even close to a certain part of it being implemented as of yet.

Perfect. This is very helpful.

Thank you so much.

Hi. Thanks for the opportunity.

I have couple of questions. First, sir, can you help me to understand, as I see, average length of stay of patient has been fallen below 4 days.

I think this has been the first time when it's below 4 days. Can you help me to understand whether this is going to be new consistent below 4 days or how we should look at it?

Is it one-off? If you can help to understand on this part.

I think it is reflecting in the overall strategy of us when the new hospitals are ramping up. The ALOS in those new hospitals is lower than the group ALOS we used to have earlier, for the pure fact that there is very less percentage of government patients in these new hospitals.

Government patients typically traditionally tend to have had higher ALOS, because they come for critical care, they come for a lot of medical management procedures. I think as the new hospitals are ramping up, and also being reflected in the higher ARPOB growth in the new hospitals.

I think it's the reflection of that. I think, going forward also, as I think it should be closer to the numbers of the ALOS that we've had this quarter.

To add on, the way we are moving towards the surgical mix in the new hospitals is actually demonstrated on lowering of the ALOS overall, from lesser than 4 days.

Understood. Sir, apart from this, how do you see competitive intensity with regards to your Delhi Model Town hospital?

As I understand, 100 I think 50 new censused beds have been added in Model Town hospital. Overall, how do you see this competitive intensity?

How you are seeing that you can increase your rates for procedures or any new procedures you are adding to that hospital, since it is in

stage? Delhi, the area where we operate, there are two, three big players that they are within range of 10 kilometers.

I'll tell you the Delhi population moves within 2, 3 kilometers of range. The area where we are, it's very densely populated and very affluent class are there.

It's a huge opportunity for us to have a complete tertiary, quaternary care facility. In fact, very soon, we're going to have entire spectrum of oncology treatment, also other transplant program.

Of course, our team is working on still onboarding the few eminent doctors on the various specialties. I believe we are very confident the way Delhi is coming up.

As he has said it, within 15 to 16 months, Delhi will be in operational break-even. Then our thought process in Delhi is that's to take it up absolutely different level as setting up a complete quaternary care center in that region.

Sir, just couple of bookkeeping questions. Can you share payor mix for this quarter?

The payor mix is government payor mix is close to 40% for the overall company for this quarter. Obviously, it's, as I said, in newer hospitals, it is close to not more than 10% of the government business there.

Sir, has government mix increased? Because last quarter, what I remember, the insurance and cash were 32, 32, and that means government was 36, and now you said 40.

Has government mix increased?

The volume has not increased. I think that the impact is 1% to 2% of the price revision of the CGHS rates that the government did recently.

Because of that, I think there would be an increase of around 2% odd in terms of the overall revenue of the government business. The volumes are constantly decreasing quarter-on-quarter for us.

That's why ALOS has decreased. Understood.

Okay. Sir, one last question if I can squeeze in, this is the last one.

Just I wanted to understand, PAT margins have impacted severely. Any one-off or anything you'd like to highlight the way we should look at PAT margins going forward, because it has been severe dip.

I understand we are in a ramp-up phase, but no new hospital has been operationalized in this quarter. Yes, censused beds have been added.

How one should look at the PAT margin going forward? Thanks.

If you see now, we are adding hospitals, okay. This year, we have a plan to add a Gurgaon hospital, okay.

There is a pressure of interest cost. This only will add up to the PAT margin, that's it.

There is no other impact. If you see what the guidance we are giving for the EBITDA, we are touching approx 24% to 25% EBITDA margin as per the guidance.

I think it's because we have done certain high capex over last few months as far as the acquisition of Gurgaon and the construction is going on. Also, we have recently ordered for oncology machines for both Faridabad and Model Town.

A lot of capex has been done in this quarter, and a bit of bank debt increasing since FY26. That is why the interest cost is higher for that.

Going forward, obviously, this will stabilize, including the depreciation, which was quite high for Quarter 1.

Further more pressure on the margins or this is the range we should expect going forward for near term at least?

I think the pressure should decrease from here going forward, because not this much high capex is not being planned anytime for any of the coming quarters soon.

Got it, sir. Got it.

Very clear. Understood.

Thank you.

Hello. Am I audible?

Hello?

I had two questions. Could you help us understand by when the recently acquired units are expected to turn margin accretive and start contributing positively to overall profitability?

I think we've already mentioned that as far as operational break-even is concerned, Faridabad Sector 20 has achieved it in this quarter, and Model Town hospital is on track to achieve it, somewhere between S3 Q3 and Q4 of H2. We have also just said that, in 15 to 18 months, we do expect, after break-even, the hospitals to reach around, 15% to 20% of EBITDA margins.

I think the EBITDA drag of these hospitals will only reduce from here on, and, the margins should expand further, because even technically Gurgaon hospital will still not be live for the remaining of this financial year. That's why we feel the the pressure on the margins would reduce from here on.

My second question was separately, we've noticed the occupancy rate at the New Delhi unit remained on the lower side. Could you share the underlying reason for this, was it driven by specific demand generation challenge or any other operational factors at play?

I think it's a repeat of the earlier question. As we mentioned that the occupancy counted on Model Town of the number of beds, those censused beds have increased in this quarter.

Technically, occupancy is also increased, it's not decreased. That's one thing.

Second thing is, it is pretty much on a line as far as guidance is concerned. We're so happy with the progress.

We're quite happy with the payor mix and the higher ARPOB. Of course, Sector Faridabad 20 has outperformed, and overpassed our expectations, but Model Town also will be in line in the coming quarter as far as break-even is concerned.

Okay. Thank you so much.

That will be it.

Sir, congratulations on a wonderful set of numbers. I just had one question on the margin front.

You've given break-even per hospital, but I wanted to understand the group-level picture. Now, given that Model Town is guided to break even in H2, and the other new hospitals are still ramping, at what point do you expect consolidated EBITDA margins to converge back to the 28% mark?

Is that an FY28 exit story?

I think there's never been a guidance for us at a consolidated level the EBITDA margins to be 28%, because, as we earlier mentioned, that we'll continue to add new hospitals. Once new Delhi and Faridabad 20 are contributing significantly to the EBITDA margins, there would still be Gurugram, which is going live.

Then there's a few more acquisitions which will be happening in the coming years. We have always mentioned that I think upwards of 24% is what we're targeting for the EBITDA margin this year, and I think going forward, yes, a percentage up or so in few years is expected.

We're not targeting a 28% EBITDA margin anytime soon, even at the consolidated group level.

Sir, if you could give a quantification on the possible operating leverage? For example, for a hospital like Faridabad Sector 20 that just hit break-even, as it goes from today's occupancy to say a mature 70%, roughly what incremental EBITDA margins do those additional patients carry?

Okay. Let's say, whatever the occupancy if the hospital is working right now, okay, incremental EBITDA, let's say we talk about the 70% occupancy, incremental EBITDA will be around 22% to 23% EBITDA.

Okay. Sir, got it.

Sir, on the capex front, now that we want to go to 5,000 beds, what new geographies are we looking at, and do those geographies also have higher ARPOB, like the Gurugram branch?

That's pretty much the strategy ahead that we will be looking for metro cities and big cities where the potential to reach ₹50,000 ARPOB is there. We are identifying assets.

We feel that there's still room within the NCR market and within the cluster where we operate to further add more beds there, as well as identify new clusters or new metro and big cities. Let's say, UP has been coming up very well as far as that is concerned.

There's capital cities of Rajasthan and Haryana which still has huge potential. That's what the upcoming areas for our expansion could be.

Okay. Sir, got it.

That's all from my side. Congratulations once again, and all the best.

Hello. Good morning, team.

Am I audible?

Sir, I wanted to know sir that what is the attrition numbers regarding the doctors and the ancillary staff we have? Do we keep the record of it?

We have attrition rate of nearly 7% overall at a group level. Sir, is it higher Even at a senior

It is Go on, go on, sir.

At the senior level, I think the attrition as far as senior doctors is concerned, it's even lesser than this, because, yes, there is certain movement of doctors, specially within the NCR, which is happening. In terms of the total number within our unit of the hospital, that's very less that moves.

I think attrition within the senior doctors is not even 3% to 4%. At the overall doctor level, it is 7%, and it has come down significantly for us, by the way, in the course of few years, because now we're doing DNB courses where, let's say even a junior doctor tend to stay in the hospital for 3 years as part of his degree.

Earlier, we were not having these programs, we used to have a lot of JRs, SRs which constantly move. Today, that has helped us to reduce our overall doctor attrition of close to 7%.

That is good for us. Sir, why I was asking this question, sir, because we have come with an option for ESOPs for our senior teams or the doctors.

Sir, what is the right way of keeping the team intact? How Yatharth as an institution rewards its doctors by its way of monetary or like ESOPs or something else it is?

What works for us?

I think ESOPs is definitely something that we've recently started, which does help in it, because sometimes a lot of star talent within the clinical and non-clinical, certain people are already on ESOPs within their other organizations, right? It's today's day and age, it has become a necessity rather than a must to have to attract and also retain top talent.

Also, it's not always about monetary and ESOPs, what also helps us to retain star and clinical doctors, it's about just pure freedom for them to govern the departments and practice the way they want. There's no typical P&L pressures on certain of these doctors, which is quite contrary to the other organizations within the regions where we operate.

That does help us, and we always pitch to doctors ourselves as a very doctor-friendly organization, which easier said than done, it does mean a lot to doctors and clinicians of the level and the respect that they deserve. It does help us in philosophy to also retain them for a long time.

Thank you, sir. That was very detailed, with the answer, sir.

Best of luck for the future, sir. Thank you.

Thank you for opportunity, and congratulations on strong Q1 performance. My question pertains to the newer hospitals.

The newer hospitals are currently operating at an ARPOB of around 50,000, which is very high. With the increasing focus on international patients and the additional infrastructure, do you see ARPOB

One second. Am I audible now?

Am I audible? Is it clear?

Okay. Okay.

With respect to the newer hospital, which is now ARPOB is around 40,000 to 50,000, and going ahead the initiatives like focusing on international patient flow, addition of advanced technologies such as LINAC, how do you see the ARPOB evolving over next 2 to 3 years?

I think we've maintained that ARPOB will continue to grow somewhere between 8% to 10% YoY from each year. We are well on track for that, and that's also expected for this fiscal year.

Okay. Additionally, what EBITDA margin levels do you expect these hospitals to achieve by FY28, '29, most of them are at break-even levels?

I think within 2 years from today, I think the new hospitals should be even upwards of 25% of EBITDA margin, somewhere around 26%, 27%, just like our existing mature units. We're quite confident achieving it with the performances that we've already seen from the recent quarters in these new hospitals.

Agra is already close to 22%, 23% of EBITDA margin, and so there it would be even much earlier than the 2-year number that I just said.

Okay. This strong growth from the newer hospital, can we take as a new base and expect to continue going ahead?

Yes, there's still long runway to grow because, as there's huge occupancy ramp up which yet remains. These are good-capacity hospitals, and each year at least we are going to add one new hospital.

Gurugram will be live very soon, I think we want to continue with this momentum and still continuing to deliver on the high KPIs of a higher ARPOB and low government mix for all these new hospitals.

Understood. Lastly, do you want to give any revenue growth guidance for FY28, '29, yes?

I think what we've said that this year will definitely be upwards of last year's revenue growth, and I think that also should be sustainable for the upcoming years ahead of that.

Understood. Thank you very much.

That's helpful, and all the best.

Hello. Am I audible?

Yeah. Hi, sir.

Congratulations on a great set of numbers. My question was you had given in last quarter's PPT that you have a target to reach 5,000 beds in the next 3 years, that is by FY29.

Can you confirm the same, or are you going to increase the timeline to operationalize these beds, will it be 5 years or will it be 3 years, that is by FY29?

I think it should be even less than 3 years. We did mention last time around 3 years, so as we also mentioned that we will be surpassing that target much earlier, as 3,200-bed capacity is already visible and it's already announced.

I think the remaining capacity would be much faster. We've always in the past achieved in lesser time the capacity expansion that we have planned.

Definitely it could be lesser than 3 years. Probably somewhere around 2.5 years, I think would be a right estimation.

Wow. That's impressive.

The other thing is are we going to see any more acquisition in this year?

We are in talks for certain assets. We are in talks for certain good and premium assets with good and high ARPOB potential.

We have always maintained that it's not just the geographies that we want to stay in, but also typically in the cities where we operate, we tend to have a largest capacities in those cities. In Agra when we went, we acquired the best infrastructure of that city, is the Jhansi-Orchha hospital, and also at NCR all acquisitions have been on that playbook.

We are in talks right now for capital cities within the nearby states. We have always said in the past that we like to add one new hospital at least each year.

On that basis, I think this financial year should see an addition of one new asset.

Sir. Thank you so much.

Hello, am I audible?

Over the last 3 years, your capex per bed has gone up from 30.7 lakhs to I guess 61.4 lakhs. I just want to understand what was the reason behind it and what should we project the capex per bed to be, let's say, for the next 1,800 beds that you'll add?

For 18 to 100 1,800 beds that we're going to add, I think the capex per bed should be around ₹75 to ₹80 lakhs capex per bed, which includes the greenfield, the brownfield, the acquisitions. It also includes certain lease-based asset-light models that we are in talks with.

In the past, why it was much lesser, see, those are the times when certain of these hospitals were not even fully equipped with the high-end oncology machines or all the equipments. Started off small, these hospitals slowly ramped up in capex.

Even the land of the Noida cluster hospitals that we purchased was way back when the prices was much lower. The real estate prices today in the cities where we operate has extraordinarily grown.

If we are to construct a same hospital today that we did in Noida cluster around 7, 8 years back, I think it would cost us similar to this amount of ₹75 to ₹80 lakhs capex per bed only. Gurugram we're constructing, and that's almost a ₹1 crore capex bed for us.

I think that this is the reason. Obviously, it's the equipments, and the higher land prices, and also the scale and size of the hospital today what the brand deserves is the reason for this high capex per bed.

What would be the mix of equity and debt structure going forward for the remaining capex that we have for next 3 years?

I will be giving the answer. I would like to give the answer on that front.

if you see about it, right, we have a debt in our books in the March of nearly around 210 crores, which is now being increased to around 300 Cr. Basically, it has increased because we have partly taken the acquisition fund from the debts, around 80 crores.

However, rest of the money we have paid through our internal accruals. That has been utilized in that front.

We believe that going further, we will be utilizing our internal accruals towards the acquisition and the maintenance as well as the growth capex whatsoever requirement in our existing hospitals.

We feel quite comfortable with the debt. We still have long runway to take debt.

I think somewhere around 2x of the trailing last 12 months EBITDA at a group level, we are comfortable with that debt level even in the times ahead. I think we have enough internal accruals, we have cash, we have debt to fund easily the capex for this 1,800 beds remaining.

Thank you.

Thank you for the opportunity. Just one quick question.

Considering the addition of the assets from the recent acquisitions, what should be the expected depreciation for current year? Should we expect similar to Q1 number to continue for the year?

If you see for the depreciation, our running around 28 to 30 Cr, okay. The same trend will maintain.

As and when we added the Gurgaon facility, then there's a margin increase in depreciation at a group consolidated level. What the trend we have projected right now is around 29 Cr for a quarter.

That we expect to continue for the next three quarters of the year?

Yeah. For next three quarters because we are not going to add Gurgaon in this financial year, okay.

It's more or less close to the March or the first quarter of FY28,

okay. Okay.

That fixed asset that we have around ₹1,200 crores, this is the expected depreciation, right?

Which one? Can you please repeat the question?

In the balance sheet, we have around ₹1,200 crores fixed assets, considering the recent acquisitions. Considering that fixed asset, the estimated depreciation is around ₹29, ₹30 crores per quarter?

Yeah, ₹29, ₹30 Cr per quarter, including all the new acquisitions, yeah.

Right. The interest cost is going to continue similar that we have in Q1 for the year?

If you see, now, we have reported around a interest cost of last quarter is 5 Cr. This quarter, we have reported around 6.6 Cr, okay.

The same will continue as we are not going to take any fresh loan further.

Thank you for the answer.

Thank you.

Hello, sir. Congratulations on great set of numbers.

I had two questions. First, if you could please share progress on brownfield expansion in Noida Extension and Greater Noida and their timelines, please, if you can reiterate.

I think the Greater Noida construction is up and kicking. The architecture drawings and the maps have all been approved.

As you can understand, in Delhi NCR, monsoons are happening right now, the construction is just a bit delayed due to the rains. As soon as that season ends, the construction will be fully back live.

Similar is the trend for Noida Extension. We are evaluating all the final drawings and the structural layout.

We feel, as mentioned earlier in the call, somewhere around 15 to 18 months, the capacity will start coming live for the brownfield capacity expansion.

Right. Thank you.

Sir, second question was our other expenses as a percentage of sales has increased. Is there some one-off, because our gross margin, COGS have declined, but other expenses have increased?

Is there some one-off or change in accounting practice?

You're discussing for the Q1, now? If you see, our doctor cost has been increased by 2%.

That's the only change. If you see, there's only change of 2% quarter-on-quarter, and that is only because of the doctor cost.

It is a component of other expense, yeah.

It is specialist charges that we pay.

It's a specialist charges, revenue-generating doctors. Okay.

Okay. Thank you so much.

Thank you, everyone, for your questions and attending the earnings call of Yatharth Hospitals. Thank you.