Thank you, sir. Good afternoon, everyone.

On behalf of Elara Capital, I would welcome you all to Q2 FY '26 earnings conference call of Yatharth Hospital and Trauma Care Services Limited. From the management, we have Mr.

Yatharth Tyagi, Whole-time Director; Mr. Amit Kumar Singh, Group CEO; Mr.

Nitin Gupta, President Finance and Chief Operating Officer; Mr. Pankaj Prabhakar, Group CFO; Mr.

Ashutosh Kumar Jha, Group Finance Strategy, Mergers & Acquisitions, IR; and Mr. Sonu Goyal, Group Finance Controller.

I now hand over the call to Mr. Tyagi for his opening remarks, and then we will open the floor for question-and-answer.

Over to you, Mr. Tyagi.

Thank you.

Good afternoon, and welcome to Yatharth Hospitals and Trauma Care Services Limited's earnings conference call for the quarter ended September 30, 2025. Joining me today are Mr.

Amit Kumar Singh, Group CEO; Mr. Pankaj Prabhakar, Group CFO; Mr.

Nitin Gupta, Group COO and President Finance; Mr. Ashutosh Kumar Jha, Group Chief Strategy, M&A, and Investor Relations; and Mr.

Sonu Goyal, Group Finance Controller. Our earnings presentation is available on the stock exchange and on our website.

We hope you have had the opportunity to review it. This quarter marks a significant phase of operational and strategic progress for Yatharth Hospitals, delivering industry-leading performance with our highest-ever revenue and EBITDA.

A key positive milestone this quarter has been the order from income tax authorities unfreezing the provisional attached properties and fixed assets of the company, restoring full financial flexibility for expansion initiatives. This milestone marks an important step towards the resolution of a long-pending income tax issue.

Upholding highest standard of governance, we are happy to announce the appointment of Mr. Ramesh Krishnan as Independent Director.

He is a healthcare veteran with three decades of experience leading hospitals and private equity in the healthcare space. In our latest Annual General Meeting, we have also appointed MSKA & Associates, a member firm of BDO International, as our statutory auditor with effective from Quarter 2 itself, further reinforcing highest standard of transparency and governance for all our stakeholders.

We are also pleased to share that CRISIL has upgraded our credit rating to CRISIL A/Stable, reflecting the strength of our business prospects. During the quarter, we operationalized Model Town Hospital in New Delhi during mid-July, adding 300 beds to the capacity.

Moreover, we also commenced operations at our Faridabad Sector 20 Hospital, adding 400 beds to the capacity. We are already seeing increasing footfalls at both these new hospitals.

With our advanced infrastructure and clinical team, we expect both these facilities to be key growth driver in the upcoming quarters. Continuing our expansion strategy, we also this quarter acquired Shanti Ved Hospital in Agra, having an expandable capacity of 250 beds.

This hospital is already running and hence will contribute meaningfully to both our revenue and profitability from day one of its integration. We expect this integration to be completed by H2 of this fiscal itself, and we should be adding revenues and EBITDA of this hospital from Quarter 4 of this financial year.

Our commitment to clinical excellence is also demonstrated by several technological adoptions and complex procedures conducted this quarter. We utilized the latest navigation system and IntelliJoint software to perform Delhi's first-ever robotic IntelliJoint hip revision surgery at our newly started Model Town Hospital.

We also adopted RapidAI, an advanced AI-enabled neuroimaging technology for fast and accurate stroke detection at our Greater Noida facility, enhances diagnosis and treatment timelines. These advanced procedures position us among a select group of hospitals in North India providing these cutting-edge clinical care.

We've also made significant strides on the medical value travel front. In Q2 FY '26, we established Yatharth representative offices in Baghdad and Tashkent in partnership with Chinor Medical Center, and expanding into Cameroon through both institutional and private partnerships.

We are also in the process of being the exclusive healthcare partner for the upcoming Jewar Airport, which is expected to drive international patient volumes from these regions, and presence of Yatharth Hospital's clinical, medical examination room at the Jewar Airport will also enhance our visibility to the passengers, both domestic and international, using the airport. I would also like to take this opportunity to highlight a key industry-wide development this quarter, with a long-awaited Central Government Health Scheme, CGHS, rate revision after more than a decade, effective October 13, 2025.

We welcome this move, and the new framework introduces rationalized tier-based rates with higher reimbursement for accredited superspeciality providers in metros. The structural change will significantly enhance our revenue realization and profitability across all our hospitals.

Looking ahead, our focus remains on ramping up the new facilities, expanding superspeciality offerings, and driving operational efficiencies across the network. We are confident that these initiatives, combined with a robust governance practices and strong management team, will help us deliver sustained value to all our stakeholders.

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 another quarter of record revenue and EBITDA.

During Quarter 2 FY '26, we recorded revenue of ₹2,794 million, reflecting a healthy 28% year-over-year and 8% quarter-over-quarter growth. Our newer hospital were key growth drivers, reporting a significant 110% YoY increase, while our mature hospitals sustained the upward trajectory, reporting a 19% year-over-year increase.

Notably, Greater Faridabad, in its first full year of operation, now contributes 10% of our overall gross revenue, reflecting the strength of our expansion strategy. During the quarter, we have added 700 beds with commencement of our New Delhi and Faridabad hospital.

However, despite the bed addition, our occupancy stood healthy at 66% during the quarter. As far hospital-wise occupancy is concerned, our Noida Extension facility achieved an occupancy of 89%, Greater Noida at 69%, Noida Extension at 64%, and Jhansi-Orchha at 71% during the quarter.

Our strategic focus on high-value superspeciality care and continued investment in cutting-edge medical infrastructure has resulted in an increase in consolidated ARPOB to ₹32,015 in Quarter 2 FY '26. Notably, mature hospital, which includes Noida, Greater Noida, and Noida Extension, achieved ARPOB growth of 9% year-over-year, while our newer hospital registered an ARPOB growth of 19% year-over-year, reflecting our continuing focus on improving the mix.

Our Noida Extension Hospital achieved its highest-ever ARPOB of ₹40,800, up by 7% year-over-year, given its approximately 70% contribution from superspeciality services. Our Noida Hospital reported ARPOB of approx ₹31,100, Greater Noida at ₹38,300, and Greater Faridabad at ₹31,900.

Our Model Town New Delhi facility began operation in the quarter with an initial ARPOB of ₹33,600. As we ramp up our Model Town and Faridabad Sector 20 hospitals, we expect these hospitals to generate ARPOB much higher than our group ARPOB.

On the profitability front, EBITDA stood at record level of ₹645 million, up by 18% year-over-year. Given the initial operational losses at our newly operationalized Delhi and Faridabad Sector 20 hospital, our adjusted EBITDA was ₹737 million, up by 35% year-over-year, while our adjusted EBITDA margin stood at healthy 26.7%.

Accordingly, our adjusted profit after tax grew by 63% year-over-year. Our balance sheet position continues to remain robust with a strong net cash position of ₹3,692 million, providing ample financial headroom to capitalize on suitable growth opportunities.

Looking ahead, we remain optimistic for sustaining our growth trajectory. Our strategic priorities will focus on expanding our footprint across North India, optimizing existing clinical infrastructure, enhancing clinical excellence to drive higher ARPOB, and capitalizing on emerging opportunities in the sector.

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

Thank you.

Hi. Thank you for the opportunity.

I just wanted a bit of clarity on Faridabad and Delhi hospitals, the amount of losses that you would be looking at, and since Faridabad has been operationalized right now, I and the minority share share has been positive, that minority share, are the Faridabad losses being booked? What are the expectations going forward the two facilities?

You see in Q2, we have around 3.3% is the overall dilution in EBITDA because of the two new facilities, that is Faridabad Sector 20 Hospital and New Delhi Model Town Hospital. We are pretty much sure within next 15 months to 17 months, both hospitals will be EBITDA break-even.

Also, even though the Faridabad 20 facility was operationalized fully, that is the IPD started on 1st of November, but prior to that for a month or so, almost a couple of months, the staffing was already there. That's why a bit of the loss is already there, including some of the doctors, nurses, and admin staff was all stationed and getting ready for the hospital.

Yes, certain of the expenses have been booked for the FBD 20, and fully expenses will be booked from Quarter 3 itself.

If you can quantify what kind of losses are you looking at?

The EBITDA loss for the Q2 would be a bit similar also in Q3 because of these two hospitals, because Delhi Hospital will be then, probably 4, 5 months into the operations. The EBITDA drag there will reduce in Q3, but EBITDA drag of FBD 20 will increase a bit.

I think similar trend of the EBITDA loss of Q2 should be seen in Q3 from these two specific hospitals.

Also, for Delhi, what is your run rate currently, and what kind of occupancy are you seeing?

It's a very early to tell you the occupancy as of now, because just 2, 3 months of the operations. I think 13%, 14% of already Delhi is operating as of now.

Faridabad, we've just started it. As said earlier, that we are expecting both these hospitals to have a break-even reaching in a 15, 16 months kind of.

I think we are very much up to it, right? Yes, more empanelments and then insurances are yet to come.

Once it will be done next 4, 5 months, and as we had said earlier as well, around anything between 30%, 35% of occupancy, we reached an EBITDA break-even. That's what we are expecting in next 15, 16 months.

Thank...

For the Agra facility, when is it going to start?

Agra facility will be on our books from Quarter 4 fully. Somewhere from the first week of the new year, we should be starting the facility.

It's already a running facility, but it will be integrated on our balance sheet from the first day of Quarter 4.

Thank you. Lastly, just can you tell us the payor mix and what is the percentage of professional fees you're paying to the doctors?

Payor mix is somewhere around 37% roughly is the government business, and the rest is equally divided between private insurance, TPA, as well as self, that is the cash payor. As far as your second question of...

Overall, we are at 21.5% in the doctor share, doctor cost percentage to revenue.

Okay. And...

Sure.

Hi, thank you for the opportunity. I had a question on ARPOB.

Your slide shows that group ARPOB is moving from 32,395 in 1Q to 32,015 in 2Q. Despite the mature and new hospitals reporting ARPOB growth, this is what we are seeing the difference.

Can you reconcile the math, which hospital or the payor segment pulled the consolidated ARPOB down QoQ, and why did that happen?

The reason for that is the very strong increase in the occupancy of our Jhansi Hospital. We are quite happy that Jhansi-Orchha Hospital has reached an occupancy of 70%, as per our target, and it's now become a leading service provider in that area.

Because the ARPOB in Jhansi Hospital is almost half of that of the group average, increase in the occupancy in Jhansi Hospital led to the muted ARPOB growth. However, with the Delhi and the Faridabad 20 Hospital ramping up in the coming quarters, which will have the ARPOB much higher than the group average, we will still be on the track for our yearly ARPOB growth for the whole year somewhere around 8% to 9% from last year.

Got it. Also on the income tax matter, you've reported that the assets have been unfrozen and the FDs have been unfrozen.

Are there any residual contingencies or appeal windows or any potential future claims? Any clarity on this matter?

I think this was a major development as far as the whole matter is concerned. We expect the whole matter also to be resolved somewhere, I think, before the end of the financial year.

Probably before the end of the calendar year, it will also significantly move towards closure, but I think the right timeline should be before the end of this calendar year.

My last one is on the capex plan. We had announced in the previous concall that somewhere around 1,400 to 1,500 crores for 3 years.

Just wanted to know how much additional debt do you plan to take in the next 12 months to fund the brownfield, and what will be the highest cost of borrowing you could consider as an acceptable level?

Just a correction here, the 1,500 to 1,400 crore capex for the 3 years means that we will end up spending it technically in next 5 years, somewhere around 4.5 to 5 years, because, yes, deals would be announced for that capex within next 3 years. Let's say after 3 years is a greenfield expansion that we're doing.

The complete utilization of that fund would take somewhere around 4.5 to 5 years. Technically, we will be spending 1,500 crores over the next 4.5 years.

That's first correction. Second is as far as the next 12 months are concerned, so, obviously Agra's 250 beds will be with us in Q4.

Then we also remain committed post that. That means, somewhere around H1 of the upcoming next financial year '27, we should also be looking to add somewhere around 300 to 400 beds through an acquisition or an upcoming project that we are working on.

Got it. I have one more question if I may.

Sure, we'll do that. Thank you.

Hello. Thank you for giving me this opportunity, and congratulations for a great set of numbers.

Sir, your Q2 revenue growth is strong. Can you break down the quarter's revenue growth, what did it lead to the growth?

Was it the patient footfalls that has increased, or is it the mixing shift specialties towards high-margin specialty or maybe the pricing?

It is a mixed. A, definitely, as you had said that, in existing hospitals, we have a drive, be it change of mix, say, or bit of fine-tuning that our existing mix.

Second is a very good growth, as mentioned in my commentary, that's a 10% contribution is from the new hospital, Faridabad 88, right? All these things, we believe that's adding a Delhi and Faridabad Sector 20 will add up much more growth.

However, there is still a good room for our existing hospital, be it a Greater Noida, Noida Extension, for a upward growth.

Thank you.

Hi, am I audible?

I want to congratulate you on that good sets of number. I have basically question regarding this international medical value tourism.

What's your plan regarding this for upcoming financial '26 and financial '27?

We have a strong team now, and then we've already rolled out our strategies. As recently, we had open two information center and OPD center, one is in Tashkent and other is in Iraq.

A few more going to come in African market. I think we have identified the pockets, and this financial year, I think that strategy is very, very clear that we will open around 5 to 6 information centers, and we're working on that channel partners, be it in that particular specific country or the local.

We believe that this financial year or probably the H1 of the next financial year, we will have a very good percentage contribution from the international business, as airport is also going to start by probably the end of this financial year.

Okay. What kind of ARPOB lift you are seeing from this?

Could you quantify on that?

See, I think there is a always upward of around anything between 45% to 55% that's up from your domestic, you can extrapolate from there.

My last question is regarding the Agra hospital, when will we see the results in our books regarding that hospital?

As earlier mentioned, from Quarter 4 of this financial year.

Okay. What kind of ARPOB are we expecting from that hospital?

I think upwards of 30,000 somewhere around that to begin off with, and slowly, as we ramp up more superspecialties, this has the potential to be somewhere at the group average ARPOB and also a bit higher also in the future, if possible.

Okay. That's it from my side.

Thank you. All the very best for upcoming quarters.

Hello, sir. Thank you for the opportunity, sir, and congrats on a great set of results.

I have a few questions here. One is that in the Delhi Hospital that is just started, we had earlier guided for a 39, 40,000 kind of an ARPOB number, but in this quarter, we've seen a 34,000 roughly ARPOB.

Can you help us explain what was the difference here?

See, Delhi, I would say, it's too early to judge Delhi. Still there is no insurance, even a cash patients.

Initially, there is a very early rates which we have throwed in market. In next 2, 3 months, if you see when our tariffs and everything is frozen as per the competitive, the insurance negotiation happened, and more and more international flowing in that particular hospital, you'll see this ARPOB will be much more than what you're seeing as of now.

What we have said earlier, it is absolutely realistic. Whenever a hospital start, usually first few months, it takes for ARPOB building.

In fact, we are quite happy that the first month itself, it has started with 33,000 ARPOB. That gives us confidence that within 12 months or even earlier, this ARPOB can cross ₹40,000.

That's the trend across our other hospitals also that we witnessed when we started them.

Sir. Next question is that I want to understand that with the losses that we've seen from the new hospitals, and that will continue in Q3 and probably in Q4, with the Shanti Ved also be adding, what kind of margins can we look at on a full-year basis?

With the new hospitals being added, I think we can overshoot our number of 30% revenue growth also. If you can provide a guidance on that as well.

Agra will not be a EBITDA drag because when it comes to Q4, it is already an EBITDA-positive hospital and even a profitable. There will be no drag due to Agra.

That's one. Second, as far as the margins are concerned, I think what we closed the H1 margin for, I think somewhere around that would be a realistic number for the whole of the entire year also.

Maybe a 0.5% up and down here, but I think these margins that we have already will not be dragged further. We are quite confident even for the Quarter 2 margins, which are here, it will be only upside from here for the whole financial year.

Agra will be EBITDA-positive from day one. Lastly, your question on the 30% revenue growth, yes, I think that's easily visible.

I think we're being actually a bit conservative when we're saying 30% revenue growth. We feel that this number should be easily overachieved.

Sir. My next question is on the overall capex side as well.

This year, sir, what is the kind of this and next year, what is the kind of capex that we are seeing, that we will spend?

I think we have already given the guidance for next 4, 4.5 years of 1,500 crores of capex. I think we'll just stick to that.

We have a good cash position, we are debt-free, and we are generating good internal accruals. Whatever capex is required, the company will be able to very well fund it also.

Thanks. Sir, one bookkeeping question...

Sure.

Yeah. Am I audible, sir?

Thank you for giving me opportunity and congratulations for a good set of numbers. Just want the understanding about the Agra hospital.

When we took over, I believe it is operating at around 40% occupancy, and we have plan to expand it to 250. Over what period of time the hospitals will be ramped up?

I understand that it will be acting as a feeder hospital, then when we will be able to incorporate all kind of superspecialties in it, and when we will be able to get a kind of ARPOB at least of 35,000-plus? That is first question.

Agra, we are not just seeing it as a feeder hospital. Agra is a big standalone 250-bedded superspeciality hospital.

Agra as a market is very fertile. We are first corporate hospital in that region, and it has huge population of not just Agra, but nearby places like Hathras, Saifai, Etawah, Shikohabad.

All these patients drain to Agra, and the combined at this level of facility is not there in that whole region. Agra will be a full standalone superspeciality hospital where we will be providing all the superspecialties.

Even, it will be on our books from January itself of the next calendar year. We will start with 150 beds, but we do not need to do any more capex to reach that 250-bed expansion.

Just beds need to be added. The whole infra is almost ready there for 250 beds.

As and when required as per occupancy, we will see, and we will just keep on opening floors and putting in beds there. As far as the ARPOB full maturation is concerned, remind you that because it's already a running hospital, it will not take time for us to develop superspecialties much time.

Because already, there's a cath lab there, cardiac surgery is happening there, angioplasties happening there, a lot of superspecialties are already existing in that hospital. We will see a very good and a very quick ramp-up of both the ARPOB, superspecialties, as well as occupancy as far as the Agra hospital is concerned.

Okay. Just in the previous one of participants' answers, I just missed the year-ending EBITDA margin considering the two quarters heat on the new hospitals' cost absorption.

What will be the guided EBITDA margin for FY '26? Whether that will be fully absorbed and we will not be incurring more loss in the FY '27?

No, so as we earlier said, the EBITDA margin what we have for this quarter, there is only upside from here that will happen for the coming quarter and the whole financial year also. It will be fully absorbed, because, yes, there would be next year also, we would be adding capacity.

This year, if you look at it technically, including Agra, the whole financial year, we would be adding 1,000 beds. That's three new hospitals that have come up.

Even with the three new hospitals in a financial year, we are able to maintain margins upwards of 23% of EBITDA. Whatever in the future is going to be upside from here only.

Sir, regarding...

Just one follow-up question, sir.

Okay. Can I, sir?

Thanks. Sir, just with a long-term ambition of 1,500 crores capex over 4.5 years, can we assume that we will first see that the consolidation of this additional 1,000 beds happens, and maybe then we will think of having inorganic?

Because we have brownfield plans as well going ahead. Can we assume that we will expect some kind of consolidation at the existing new facilities, then we will think of inorganic expansion, and whether inorganic expansion will limit to NCR region or periphery of NCR?

That is what I just want to understand.

At least for the remaining of this financial year, there will be no additional capacity that would be coming to be utilized. We might take a greenfield project upcoming soon, but that will take time for the capacity to come into play.

If these hospitals, as we are targeting that in 15 months, they're getting break-even, it's not that we have to wait a long to first consolidate and then add capacity. I think we are very well in a position right now also, not this financial year, but in maybe the next financial year, to add more acquisitions, more hospitals in H1 itself, and that's the plan.

Second, to your question as far as the location and geographies, we believe that the markets where we are present, that is the NCR market, the whole North India market of like big cities in UP, Haryana, Punjab, Rajasthan, I think we want to be in metro cities, we want to be in big cities. It will technically not be just peripheral hospitals.

All our hospitals so far, if you look at it in last few quarters, we've added in the hardcore Delhi and Faridabad market, which are big cities, and this is what we also want to continue going forward. Agra is also big city in UP.

These are the big metro cities where we want to be in the coming years also.

What is the cutoff ARPOB you have set in?

Sorry, can you repeat that?

What is the cutoff ARPOB you have planned for new acquisitions? Below...

Below a certain threshold, you will not look at location-wise. Is it 35,000?

I think upwards of that. That should be the minimum.

That's the criteria.

Thank you, sir.

Hi. Thanks for the opportunity.

Yatharth, just wanted to check your view on this CGHS rate revision that has happened from October. Have we seen any benefit flowing in, and does it anyway impact us positively?

The CGHS rate has been implemented recently in the month of October. We are looking that the upside of the CGHS revenue will be nearly around 1.5% in this FY '26, with the benefit of the EBITDA to nearly around 1% in this financial year, which may go up to 2.4%, 2.5% in the next year on the revenue front and nearly around 1.75% on the EBITDA front.

Okay. Say on a base of 37% of government revenues that you have, we will see an incremental benefit coming in on that to the extent of 1.5%?

Mostly it's a price benefit. Yes, it will be benefit towards the company.

The rate revision will be adding to the more ARPOB as well, and it will be benefit to the company.

That's it from mine. Thank you.

Thank you for the opportunity and great set of numbers, Amit. Amit, it's quite noticeable trend for the past 6, 7 quarters your ALOS has been coming down, and your occupancy ratios have also been going up.

In a way, your throughput has been increasing pretty significantly. What explains this drop in ALOS over the last six quarters from say 4.8, 4.9 to where this quarter we're reporting this at 4.06?

Introduction of the new sets of technology, it's like robotics, that's reduced your ALOS significantly, right? High-end speciality, state-of-the-art infrastructure.

That's anything which is earlier, I'll give you example, for any lap surgery where patient used to stay for 3, 3.5 days or 4 days kind of, now you can discharge that patient in 2 days, right? Adding of the new technology has played a big role in reducing the ALOS and very, very new sets of treatment modalities.

This has a role to play.

If that is the case, then should your ARPOB not have increased by much more than what it has actually? Even if I strip off the government segment, which is about say 37%, your ARPOB has gone up by just about say 5%, 6% over the last six quarters despite the significant improve in the case mix.

What explains this? Or do you think there's a significant upside in your ARPOB to go up over the next 4, 6 quarters?

See,

you need to see the data of our flagship hospital, particularly the Noida Extension, where, we have all good sets of modalities and new technology. There the ARPOB has significantly increased, right?

It's not like directly you see the ₹1 increase here and ₹1 increase there should be, but I think this is how it should play. We believe that's, our our more and more, the capacity gets ramp up in more superspeciality, we believe that I believe that the ARPOB will also increase.

Also, for last 2, 3 years yearly, we have shown 8% to 10% ARPOB growth. I think for next 3 years also, we do expect 8% to 10% ARPOB growth yearly.

Specially now with the Delhi market and the Faridabad bigger hospital having oncology, transplant, increase in international share, ARPOB will be a huge lever for us also for going forward if we continue to be in, as I talked about, big and metro cities. Obviously a market like Jhansi-Orchha would have been a drag on the ARPOB.

If we are expanding our facilities here in Noida Extension, in Delhi, ARPOB should significantly increase at a faster pace as the capacity happens in these new hospitals.

Sure. Just one more question.

This is continuing from the previous participant's question that if your government share of revenue is roughly about say 37-odd percent, if I take the full-year impact for next year, wouldn't 2% be too conservative? Or this is what you're seeing from your kind of case mix that a blended increase is going to be 2%?

No, it's 2.5%. It's

I think 2.5%...

Please go on.

Please go on.

Sir, also if you could kind of split the government revenues into what is direct to CGHS and what is non-CGHS.

So 2.5% is the minimum that we have said conservatively. Whatever upside we get from there, we will very well take it.

I think it's realistic to take a 2.5 number because at a 37% revenue, it's not that 100% of that revenue will fall under the new rate revision scheme. There is part, for example, we do a bit of Ayushman in Jhansi-Orchha Hospital, and Ayushman doesn't fall and benefit from this schemes.

Overall, I think it's when we have calculated, I think minimum to minimum 2.5% gain we should be seeing next year on the overall revenue, not the CGHS revenue. Overall revenue upside is 2.5%.

The whole company will be benefiting significantly from this rate revision. 2.5% of the whole revenue, you can imagine, is a big quantum that we will be benefiting next year and in the coming years also.

Got it. This is helpful.

Thanks a lot.

Hey, hi. Thanks for taking my question.

Two questions. First is there any scope of further margin improvement in the mature facilities?

There is, yes, because there is still capacity left to utilize in the mature capacities. When we say they're mature, that doesn't mean that they're saturated in terms of occupancy.

For example, both Noida Extension and Greater Noida can reach optimized utilization of 75% of occupancy. Still a 10% room way for occupancy to grow, which will directly flow to the EBITDA.

Yes, there is scope for EBITDA expansion in our mature facilities also. Okay.

Because over the last 1.5, 2 years, I think it is at 26% to 27% kind of range, and majority of the drag obviously is coming from the new hospital. This 27 can reach around 28.5%, 29%?

It can in the coming years.

Basically, Noida Extension would be running at 32%, 33% kind of margin if I'm sure basically, I just want to ask on Noida Extension as well as Greater Noida.

Not that high, but, as I said, there are also a lot of recent additions in terms of doctors and star doctors' expenditure that we have done in last one year. Going forward, a lot of those expenses are being done now that happened over the course of one year.

Going forward, we will see an upside from those expenses done, which should be able to drive the numbers that you are just mentioning.

Understood. Okay.

The additional 300 to 400 bed M&A that you plan to do over the next 12 to 15 months, is it additional to the capex plan mentioned in the presentation? No,

it is inclusive of that 1,500 capex.

Okay. Cool.

Thank you.

Hi, sir. Thank you so much for the opportunity.

I just had two questions. First one is: so what is the cost to set up a bed in a mature or a developing hospital, and how many days does it takes for it to break even?

If you're doing a greenfield today in NCR, it would take you roughly around 1 crore capex per bed, at least for our brand. That's the threshold we would be spending.

It takes almost, I would say, 15 to 18 months, which we personally target as a brand to achieve break-even after operationalizing of that hospital. If you're doing brownfield, then that capex per bed can be somewhere around 75 lakhs per bed because a lot of medical equipments are already present in one tower.

Brownfield expansions are a bit less than the greenfield expansion of 1 crore capex per bed.

What is the time period for break-even for brownfield?

We generally have a break-even, EBITDA break-even of around 15 months for the new brownfield expansion projects.

All right, got it. How many total number of...

right, fine.

so much. Thank you.

Hello, sir. Thanks for the opportunity.

My question is related to working capital. Your receivable has increased in this quarter, and cash balance also have declined due to capex and working capital need.

Could you elaborate on which specific receivable buckets are stretching the cycle, and by when the debtors days should normalize? Also, when do you expect the operating cash flow to EBITDA return to the historical level of 70% to 80%?

If you see, our debtor days has been reduced. What we have given in the projections earlier also in our earning calls, this time also, we have reduced the debtor days by 8 to 10 days.

We are very much sure we will follow the same trend, and we will clock the same 8 to 10 days reduction as on March 2026. Yes, sir.

And... Okay.

Next...

Yes, sir.

Sorry?

Yes, sir.

Regarding cash flow?

Yes, sir.

Regarding cash flows, OCF to EBITDA, currently, we are at 58%. We have changed the policy.

Earlier, we have paid salaries on next mid-day of a month. Now we are matching the salaries payment as per the competition, as per the peers.

Now we are making the payment on the same last day of a month. If we neutralize that effect, our OCF to EBITDA will be around 78%.

That is better than what we have reported earlier.

Sir. Thank you.

That's all from my side.

Hello, sir. I wanted to ask on the EBITDA margins, you said it will only go upward henceforth.

I want to know with the new capacities coming in future, how do you see the EBITDA margins improving further? Won't there be any margin dilution?

No, there will be no margin dilution because, as we earlier mentioned, that we still have added 700 beds in just one quarter and still have this base margin. Going forward, there's no plan to add 700 beds in one quarter, at least for next 4, 5 quarters.

There's only an upside on the margin. In fact, if you look at it, we have clearly mentioned that excluding the capacity expansion that we have done, our EBITDA margins would have been close to 26.5%.

That is the reason why we feel confident that when these new facilities start ramping up on occupancy, there is a big margin expansion that should happen in the coming years.

All right. Can you give me a guidance...

It's my second question, sir.

Good afternoon, sir. Can you hear me?

I just wanted to know the census beds of each of the hospitals for this quarter.

We have a census of around 750 as of date for all the capacity we are in operating.

Could you just break it up from the older and newer capacities as well?

You need unit-wise breakup?

Yeah. Breakup by hospital

to hospital. Greater Noida facility, we have 330 beds census beds; Noida 110, we have 215 beds; Noida Extension, we have 390 beds; Jhansi-Orchha, we have around 250 beds; Greater Faridabad, that is Sector 88, we have 150 beds; and the rest, the new facility we just added in this quarter and who just started in the Delhi as well, we have been going to ramp-up stage of nearly around 150 each.

That's comes to around 1,750.

Okay. Thanks.

Thank you.

Hello, sir. Good afternoon, sir.

Yes, please go ahead. Good afternoon.

Please go ahead. Sir, I have one question.

Sir, could you please explain the reason behind the reclassifying loan amounting to 516 crore in this quarter? Additionally, which subsidiary has received this loan, what does the subsidiary do, and what is the intended purpose of the loan, like for working capital or the expansion or any specific project?

Basically, it's a subsidiary who has just added the new hospital which we have added in Sector 20, Faridabad, is one of the subsidiary for which we have given the capital outlay as per the object clause. We have raised the funds in a QIP.

There is no basically the loan for anything, but it's a kind of object for the deployment and the deployment for the capex as well as the expansion of the hospital.

Sir. Thank you.

Got it.

Our current debt levels are standing at almost zero, the company is actually debt-free. There's no current debt that any of the holding company or its subsidiaries have taken as of now.

Thank you for the opportunity and congratulations on a good set of numbers. I just wanted to know that what are the initiatives taken to improve clinical program depth?

Are there any specific specialty lines, for instance, cardiac, neuro, or oncology, or any other seeing faster ramp-up in any of the units?

We're going to the unit-wise. We see that's what is in the market and which all the facility we are lacking in that superspeciality and quaternary care, right?

Year and half back, we started in our flagship hospital, Noida Extension, with the entire spectrum of cancer treatment, then all the transplant programs. Similarly, Greater Noida, we started our kidney and liver transplant program.

Delhi definitely going to be a full-fledged quaternary care hospital, including the transplant. Similarly, Faridabad as well.

What clinical the treatment modalities should be added, that depends on which area we are operating and what are the competitive advantage what we will have by adding those superspecialties to us. Similarly, Agra also we think that's definitely we'll be having a entire tertiary care of the facilities in that particular, including probably in long term cancer, right?

This is how we analyze it, which are the gray areas where we need to invest and what would be the ROI, and all those things matrix works.

Perfect. Thank you, sir.

Just a follow-up on that...

Sure, sir. Thank you so much.

All my questions have been answered. Thank you.

Hi, thank you for the opportunity. Just one question from my end.

Can you share the status of the brownfield expansion of Greater Noida and Noida Extension hospitals, when can we expect this to be operational? Post FY '28 after we achieve our target of 3,000 beds, how are we looking at our bed expansion strategy?

Thank you.

I think both these two hospitals' capacity should be available for us to be utilized somewhere 15 months from the date today. So 15 should be Greater Noida and maybe 17, 18 months from today should be the Noida Extension.

The 3,000-bed capacity by '28, I think we should cross it much more even earlier, because there's something planned next year in terms of acquisitions concerned. In fact, we have revised our bed capacity target rather than now talking about 3,000 beds in 2028.

The bed capacity would be much more for next 3 years from today. With the Agra addition, we would be around 2,550 beds.

We feel that probably in next 3 to 4 years, there is still scope in the company to even close to double this capacity in next 3 to 4 years, including all these brownfield expansions that are already in place, the upcoming acquisitions, and one more greenfield that the company is planning very soon within the NCR region. I think we're looking at much bigger bed capacity after 4 years from today.

Great. That's really answers the questions.

Thank you so much and all the very best.

Thanks for the opportunity. Just one question.

There is a GST rate cut on consumables, reagents, and chemicals. Will it be safe to assume that we can retain the benefit?

There is a change in GST that will definitely help us. That will lead to a around 0.3% to 0.5% of the overall revenue.

That will change only 0.3% to 0.5% in EBITDA.

Okay. Thank you.

Yeah.

Thank you.

I just had a follow-up on the cost of borrowing. What is the highest cost of borrowing that you can consider acceptable?

As on date, we don't have the kind of a debt in the books. However, when we take up the debts, if required be, then generally it comes to around 7.5% to 8% on a rate coupon from the PSU banks.

Okay. We are guiding 40,000 ARPOB for FY '28.

We are consistent on that?

So 10% 8% to 10% growth yearly from now, I think we're quite confident of reaching there.

That's helpful. Thank you.

Hello, sir. Just one bookkeeping question, sir.

In this quarter or in this half year, we've seen a slight reduction in our cash flow from operations, and there is a bump-up in other financial liabilities. Can you help us understand what is that?

Basically, so as we already mentioned, na, there is a change in policy. Company has taken a call to match the salary payment as per the peers.

Now we have started making salaries on the last day of a month. That's why there is a change in other financial liability.

Earlier, we used to make on the first day of the month.

Yeah.

Sir. Thank you.

Thank you, everyone, for tuning in to the earnings call of Yatharth Hospitals and Trauma Care Services Limited for the Q2 FY 2026. Thank you for your presence.