Yatharth Hospital & Trauma Care Services Limited (YATHARTH) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Yatharth Hospital and Shoma Care Services Limited Q4 FY26 Earnings Conference Call hosted by Antic Stock Broking Limited. Let me draw your attention to the fact that on this call, discussions will include certain forward-looking statements which are predictions, projections, or other estimates about the future events. These estimates reflect management's current expectations about the future performance of the company. Please note that these estimates involve several risks and uncertainties that could cause companies' actual results to differ materially from what is expressed or implied. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sumat Gupta, Senior VP, Institutional Equity Research Healthcare from Antique Stockbroking Limited. Thank you and over to you, Mr. Gupta.

Thank you. Good day, everyone. On behalf of Antiques of Hoping, we welcome you all to the Q4 and FY26 Earning Sponsors Call of Yathak Hospitals and Common Care Services Limited. From the management side, we have with us today, Mr. Yathak Tyagi, full-time director, Mr. Amit Kumar Singh, Group Chief Executive Officer, Mr. Nikhil 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 Goyer, Group Chief Finance Controller. I now hand over the call to Mr. Yathas Piyagi for his opening remarks. Thank you, and over to you, Yathas.

Good afternoon, and welcome to Earhart Hospital and Trauma Case Services Limited's earnings conference call for the quarter and year ended March 31, 2026. 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. FI26 has been an exceptional and a transformative year for Earhart hospitals, marked by strong operational execution. Strategic expansion into high-potential healthcare markets, accelerated ramp-up of new facilities, and continued strengthening of clinical excellence across our network. During the year, the company reported consolidated revenue of approximately Rs. 12,072 million, reflecting a robust growth of 36% YOY, while EBITDA increased by 30% YOY to Rs. 2,921 million. On the clinical front, we continue to strengthen our position as a leading quaternary care provider through ongoing investments in advanced medical technologies, expansion of high-end specialties, and onboarding of repetitive clinicians. During the quarter, our hospitals delivered several noteworthy clinical milestones, reinforcing the depth of our tertiary and quaternary care capabilities. Some of them are... At Greater Noida Hospital, the neurosurgical team managed a complex pambarachial plexus injury using a precision intercostal nerve-to-nerve musculoskeletal nerve transfer to restore motor function. In another case, reinforcing our neuroscience leadership in Noida Sector 110 Hospitals performed a navigation-guided awake crannotomy for an intracranial lesion in the speech area, followed by continuous intraoperative speech monitoring enabling the patient to recover without neurological speech deficits. In Sector 20 Faridawad Facility, This has also emerged as a strong center for advanced GI interventions, performing 13 POEM procedures within two months of its starting and further strengthening our minimally invasive gastro-sciences capabilities. We are also pleased to witness growing recognition of our clinical leadership. Dr. Vinesh Mahajan was honored as Pediatric Cardiologist of the Year at National Cardiovascular Summit 2025, while Dr. Dhansook received the prestigious Desh Ratan Award 2025 for its contribution to pediatrics and unitology. Dr. Kunal Bharani was recognized as a Leadership in Neurological Services Award at VOH National Health Care Awards 2025. And also doctors Swaradeep Ghosh received the Chairman Award for the Lifetime Contribution to Critical Care Medicine from ISCCM Teri Noida Guru Gram. These recognitions underscores the strength of a growing clinical talent and a continued commitment to delivering world-class patient care. Nine, with a cluster-based expansion strategy and following the early success of a Faridabad cluster, we have seeded our next high-potential cluster in the Gurugram market through the acquisition of an ultra-modern, under-construction, super-specialty hospital in sector 40, central Gurugram. The upfront consideration for this project is approximately Rs. 100 crores. Along with an additional proposed investment of nearly 100 crores towards finishing and providing medical infrastructure. Once operational, the hospital is expected to deliver R-pop in the excess of Rs. 50,000, positioning it among premium healthcare assets in NCR. Strategy located near IGI Airport and key residential and corporate catchments, the facility is well-placed to strengthen our premium healthcare positioning and expand medical value travel opportunities. We expect the hospital to become operational by April 2027. During the year, our newly operational hospitals at New Delhi and Faridabad Sector 20 witnessed a strong ramp-up. These facilities scaled up ahead of internal expectations and have emerged as meaningful contributor to the growth within a short period of commencements. Together, these two new hospitals contributed approximately 11% to revenue in Q4 F526 and continue to deliver healthy operating metrics, including superior R-Corp levels and a favorable pair mix, largely comprising cash and TPA patients. We also successfully integrated our 250-bedded Agra Hospital, which strengthens our presence across the NCR Agra Healthcare Corridor via the Yamuna Expressway. Since its integration effective February 2026, the hospital has demonstrated encouraging traction, achieving a monthly revenue run rate of approximately 7 crore along with double-digit EBITDA margins, reflecting strong patient inflows and a healthy operating start. Establishing our clinical excellence. Aren't you a robot? This has been provided for the first seven-year heart group has taken. So isn't that easy? This is our focus on international collaborations and global outreach. Thank you. Significantly enhanced international patient access. In North India. For this year, for the year to come. Pass on to Mr. Pankaj Prabhakar, Group CFO, for his management commentary on the financials.

Good afternoon, everyone. I am pleased to share that Yathart Hospitals has delivered a strong performance in quarter for financial year 2026, concluding the year on a robust move. During the quarter, we reported a revenue of Rs. 3,416 million, reflecting a growth of 47% year over year and 6% quarter over quarter. For financial year 26, the company reported a revenue of Rs. 12,072 million, registering a 36% year-over-year growth. This performance was driven by sustained momentum across our existing hospitals, along with increasing contribution from our newly operational facilities. Please. Our established hospitals Maintain the healthy growth trajectory during the quarter and throughout the year, supported by higher occupancies, strong patient footfalls, increasing surgical volume, and a rising contribution from super-speciality treatments. Occupancy across the network is 2.71% in quarter four, financial year 26. While Finance Year 26, Occupancy Year stood at 68%. Our Noida Hospital operated at 86%, Greater Noida at 76%, Noida Extension at 61%, Dhansi Otra at 86%, and Greater Khalidabad at 69% during the quarter.

Our ARPOV improved to Rs.

33,282 in Q4 FY26, up 5% year-over-year, while FY26 ARPOV stood at 33,124, up 7% year-over-year. Notably, during Q4, our Noida Extension Hospital reported its highest ever RPOP of Rs. 47.8k, up 23% year-over-year. Greater Noida Hospital at Rs. 40.3k, up 15% year-over-year. While our newer hospitals reported encouraging initial RPOPs. With New Delhi at approximately Rs. 40k, Faridabad sector 20 at 38k, and Greater Faridabad at 31k, reflecting sustained improvement in mix. On the profitability front, we achieved our highest level, particularly EVITA, of Rs. 799 million, reflecting a growth of 37% year-over-year, with EVITA margin at 23.4%. For FY26, Evita stood at Rs. 2921 million with margins at 24.2%. Adjusted for initial ramp up losses at our new hospitals, adjusted Evita margin remains strong at 30.4% in Waterford and 28.5% for FY26, reflecting operating leverage and improved mix. Profit after tax for Q4 FY26 stood at $447 million, up 15% year-over-year, while FY26 tax stood at $1,703 million, reflecting a growth of 30% year-over-year. The improvement in profitability was driven by a strong revenue growth, operating efficiencies, better realizations, and the scale-up of newer hospitals. Our balance sheet demands robust supported by a strong cap generation and disciplined capital deployment. During the year, pre-tax operating cash flows stood at Rs. 2,866 million with a cash conversion ratio of 98%, reflecting significant improvement in working capital efficiency. We ended the year with a healthy total cash position of Rs. 3931 million, a net cash position of Rs. 1160 million, providing us with ample financial flexibility to pursue growth opportunities, while continuing investment infrastructure, technology, and clinical excellence. With a strong execution engine, improving our occupancy trajectory, ramp-up of new hospitals, including Agra, and continuous focus on operational efficiencies and specialty expansion, we remain confident of sustaining healthy growth momentum in the coming quarter. Thank you for your attention. I would like to hand over the call to the moderator for question and answer session. Thank you.

Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press star and one on the touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Five spins are requested to use only handsets while asking our questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press star and one to ask questions. We'll take the first question from the line of Ashutosh Adzare from Universal Sampo. Please go ahead.

Hi, how are you?

Yes.

Yeah, good morning, all, and thanks for the opportunity. I just wanted to understand about the new hospitals, Agra, Model Town, Faridabad, and Jasi, and Gurgam also. Just to tell about the operational parameters, how those things are performing on these newer hospitals, and one is that Jasi, what is the, specifically Jasi, what is the condition, how much occupancy is currently running at, you said 86%? Is it that the ARPA has increased in that because we've been seeing that the ARPA for this particular JSI was not up to the mark or not up to the company level? One is that. And second question on the interest cost, we have seen a significant rise on a sequential basis on the interest. So just wanted to understand how is your debt position and what would be the...

Yeah, so basically on the occupancy front, as you've been saying about it, our new hospital primary, we have opened in Delhi, Frida Bar, Sector 20, Agra. So we have enough headroom in the occupancy level. We have a current occupancy level of 32% in the moral town, that is Delhi, with the census capacity of 100 beds, but we have capacity bed of 300 beds. In Delhi. Similarly, if we say about the freedom at the New York Hospital, we have a current occupancy of 52% on 100 beds with the capacity of 400 beds there. In the Agra, we have a current occupancy level of 52% with the census bed of 110 with the overall capacity of 250 beds. So, the overall bed expansion and the capacity, we have enough headroom to grow with the occupancy level, and on the kind of a Jhansi, the Jhansi is currently operating around 85% of the occupancy, on the 250 bed expenses level, with the bed capacity of around 305. So, we have enough headroom there also, to have a complete network occupancy and expansions.

As far as, you know, your question on the RPOP impact of Jhansi on the overall group is concerned, even though Jhansi RPOP is, you know, lower than the group average, the impact at a group level is not significant because the whole contribution to Jhansi in terms of our revenue paisa is very less. So, if you look at it, in fact, as we mentioned in the commentary, the RPOP has been growing really at a good pace for even our matured hospitals of Nord Extension, Greater Nord, which has touched upwards of 43,000 and 48,000 as far as the RPOP is concerned. Thank you.

And in relation to the interest cost, that was your third question. So, as we know, we have invested in Agra. So, we have taken a certain loan to fund the Agra unit. That's the main reason there is aspect in the interest cost, what you are asking for.

And as far as the debt levels are concerned, you know, somewhere our debt today is at 230 crores. But, you know, going forward, there would be still, you know, certain debt, but we will also be generating strong internal accruals as well as strong cash flow conversion cycles, which will be further leading to higher, you know, internal accruals. So going forward, yes, we will also take a net, but even if you look today, as far as our net debt cash position is concerned, so we stand, our net debt today stands at. 116, yeah. So our net debt is today's 100, net cash position is 115 crores.

Okay, and any waivers for increasing the RPOP going forward?

So, you know, if you look at the strategy we have had for the new hospitals, even the Delhi Hospital, the Sector 20 Faridawad Hospital, these two, you know, have just recently started, but then also showing a startening ARPOP of upwards of 40,000. So, as volumes and cases, specialties mature in these hospitals, these will be significant ARPOP levels for further growth. As far as Gurgaon Hospital is concerned, you know, we expect ARPOP in Gurgaon to be upwards of Rs. 50,000. That has to do primarily because of three reasons. First is, you know, the optimized case mix there, you know, having international patients, a high pricing of private insurance and cash service in that Gurgaon region would also significantly help us for the growth cleavage in ARPOV. And, you know, constantly we have been increasing the pie of our private insurance as well as cash and international patients, which has also led us this year to a worldwide growth of around 7%. As far as ARPOV is concerned and going forward also, this growth should be, you know, close to 10% for upcoming years is concerned.

So, to add, we are also improving our specialty mix across all our hospitals.

So, while Noida Extension has a large share of super specialty hospitals, we are also...

That's it from my side. If I have any further questions, I will join back in the queue.

Thank you. We'll take the next question from the line of Satyam Kumar from GM Group Financial Family Office. Please go ahead.

Thanks for the opportunity. Am I audible? Yes.

Yes, sir.

Sure. So, like, I have a couple of questions. First is, like, can you, like, talk us through, like, how, what steps has companies taken, like, since listing for strengthening the corporate governance? And how do you see, like, going forward, what steps company would take? Or is it now things are more or less settled? So, first question is with regards to overall corporate governance. How do you see evolving it going further?

So for us, you know, since our listing, corporate governance is one angle that has been a top priority for the management. And if you look at our journey since listing, and especially in the last, you know, one and a half years, we have taken multiple steps to further strengthen our corporate governance. It all starts with, you know, appointment of, you know, top six auditory firm, you know, BDO International, the MSK and Associates. They have been appointed as company's statutory auditor a couple of quarters back. In fact, this year's financial results were the first, you know, results with the BDO International as a statutory auditor. Second step we took was appointment of Mr. Ramesh Krishnan, you know, as an independent director. So we have expanded our board. We have added a strong independent director. So today, you know, we have him and his expertise. He's a professional seasoned healthcare leader who has worked across different, you know, organizations and helping. Strengthening our corporate governance as far as the board level is concerned. Another step that we took was appointment of Deloitte as an internal auditor. You know, this also happened during the course of last one year, which has further, you know, helped us to, you know, fast track our financial systems, our processes, and strengthening governance mechanisms through the help of Deloitte. So these are the few steps that, you know, we have taken as far as improving and, you know, strengthening our corporate governance is concerned.

Going forward also, just to add, on our quality side of business, we are adding a couple of key positions as far as operations are concerned for taking care of our medical operations as well as in the quality side of it.

Thanks for answering. Another question which I have that is more on the expansion side. As you have shared that companies, I need to have 5,000 debt counts in the next three years. So just so I would like to, like, first I would like to acknowledge that I literally like the way you have expanded your portfolio, the kind of acquisitions you have done. So going forward, do you see like acquiring those hospitals or you will be building hospitals from scratch also? Like in any vision, if you'd like to share, I know it's far-fetched, but anything in your mind and will that increase the debt levels as well? And how it will impact profitability? Profitability is a kind of thing, but how you are looking to expand, basically.

So, as far as the bed target of 5,000 beds is concerned over the next three years, so, you know, 3,200 beds have been already announced, you know, over and above the 2,500 beds that we currently operate, the Nord Extension and the Gritten Order and, you know, the Gurgam Hospital upcoming, that adds to the 3,200 beds. As far as the targets of 5,000 beds over the next three years is concerned, firstly, we feel that we might even reach their bed earlier rather than the three years. We've always, you know, surpassed our bed capacity targets in the past, and it might be possibly going forward also. As far as, you know, the question on the greenfield, brownfield, and the acquisition split is concerned, of these upcoming beds, you know, we feel around 70% would be acquisitions, you know, mostly, and 30% beds would be through greenfield. That we will be adding. And these would be primarily be in the cities that, you know, we very well understand and knows. You know, we have not just gone to any outside area just because, you know, there's a hospital to acquire. We have been selectively choosing an asset and then, you know, going forward for an asset. Because for us, geography matters a lot. You know, there's a reason why all the recent acquisitions have done very well because they have been started. in the well-established markets of NCR, bigger cities of North India, you know, capital cities of the states, and, you know, Uttar Pradesh, Haryana, Punjab, these have, you know, major cities and metro cities where, you know, we would also like to be going forward. As far as the CapEx plan for these bed expansions, Good cash position as of today, and, you know, there's still room for certain debt is concerned, and as we said that because of high cash conversion percentage, we would be generating higher internal materials going forward. So we are well in a position to fund this capex. There is no plan to raise any fund going forward. But for these...

Just a small follow-up on this. Like, as you said, like, the geography is important for you, and also the 70% might come to acquisitions. So, just wanted to specifically understand what Yathath Hospital does differently. Like, we have M&A team, or like, how we do, like, so that we come up with such good acquisitions. Just an operational thing, I would like to understand how a company is different from any other company when it comes to acquisitions, because I believe we are at the forefront of acquisitions. So, operationally, if you can share what difference we do.

So, I think there's a strong team, which is led by, you know, Ashutosh, who's sitting with us today. He heads the group MNA strategy. So, he has been instrumental in some of the acquisitions that we have done recently. Also, you know, we have a team who's constantly looking out for assets. But, you know, we also have a very straightaway clear-cut guideline as far as acquisition is concerned. You know, it's not that we need to frame guidelines for every asset that we see. For us, you know, the CapEx per bed needs to make sense. For us, you know, if the geography is big enough, if it's a proven healthcare, you know, market within the micro markets also. And what has been instrumental is the cluster approach that, you know, we have taken. If you look, we started with one hospital in Norden. We have three hospitals there. We started with one hospital in Faridabad. We have two there. Similarly, we have just seeded a new cluster in Gurugram with one hospital. But each of these clusters, and again, the UP cluster that we operate with as the Agra and the Jhansi Osha Hospital, has the potential for a cluster-based approach, which really helps us to sort of ease into the acquisitions while identifying the clusters that we want to operate in, and then we choose the assets that are available in those clusters.

Understood.

Thanks for patiently answering my question. I'll get back into the queue if I have any wish.

Thank you. The next question is from the line of Akshat Mehta from Seven Rivers Holdings. Please go ahead. Sir, may I request you to kindly use your handset, please? Yeah. There is a static. Yeah. Please continue.

Yeah. So my first question is on, you know, understanding, you know, this big jump in NOIDA extension greater NOIDA for 80% or 15%. Is this purely because of, you know, case mix jump or is there something else behind, you know, increase?

First, more with a jump on OPD, which is translated into the IPD. And first, yes, all these, as we have mentioned in our previous comment, these superhospitalities are not mature. So, I think quarter and quarter, they are getting matured. New, you know, line of treatment getting added within the superhospitalities. So, I think these are the factors which has, you know, improved significantly.

There's also a growing increase in our, you know, international patients as far as, you know, Great Anoida and Nord Extension hospitals are concerned. The pie of the international patients, specifically in these two hospitals, have significantly increased, which has, you know, hugely contributed and even surpassed our FOB expectations for these two hospitals' growth is concerned. And especially with, you know, now the new Noida airport starting with very soon, international flights will be taking off. From there, the ecosystem around the whole international tourism and medical tourism within the Noida zone is really at an increasing trend. And we feel that both these two hospitals are benefiting from the industry trend.

Just to follow up, you know, can you share with us what we want to share in NOID extension now? It was 19-20% earlier.

It is, you know, somewhere around 30% today, as far as non-extension hospital is concerned. So, the oncology share is growing close to, I would say close to 30% from 20%. And, you know, this is primarily due to increase in key areas within oncology, that is the surgical oncology and the bone marrow transplant is concerned. So, we have been performing very good numbers of bone marrow transplants, which is also contributing. We have also added a new oncology team of doctors within the Nord Extension Hospital, which is further helping us to drive this volume.

My second question is on the revenue and margins. How should we look at those in FY27? Because we've done an acquisition which will come in April 2027. All the acquisitions that we've completed in 26 are just going to ramp up in 27. So how should we look at the margins and the revenue?

So, as far as margins are concerned, we have always maintained that, you know, at a consolidated level for the full year, you know, our margin guidance has always been somewhere around, you know, 24 to 25%. And, you know, we have been delivering on that. And going forward also, we do not see any variation from our margin guidance is concerned. Even, you know, yes, a new hospital might be coming in 27, but we have had three new hospitals that have come up in 26 also. We have added around 1,000-bit capacity in the financial year of 26, and even then, we have been at a steady margin of upwards of 24% for the whole year is concerned. So, we feel that, in fact, from this financial year, EBITDA margins, next financial year EBITDA margins should actually be better. And similar story would also be seen as far as our revenue growth is concerned. This full financial year, we have grown somewhere close to 36% in the revenue YOY. We feel that, you know, in 27, we would surpass this 36% YOY revenue growth.

A follow-up on that, sir. When do we expect a break-even for this New Delhi and Sahilabad hospitals approximately?

So, both these hospitals are, I mean, doing fantastically well. To be very honest, it has gone beyond our expectations. So, probably the Faridabad unit, Dr. 20, I think that's probably the first hospital would be in our, you know, group, which will be obviously between in a month or probably 10th or 11th month maximum. Delhi is concerned. Delhi will take probably close to around 14 to 15 months.

I think both these two hospitals, you know, combined together, you will see in this FI27H2 that, you know, both these two hospitals would be EBITDA-breaking.

Okay. If I may ask one last question. So, I just want to understand where are we in the cycle of, you know, our brownfield additions, you know, have we started construction or exactly where are we and, you know, why is it taking kind of, is that taking a backseat with all the new beds coming in, you know, with the brownfield additions or, you know, where is it exactly?

So, you know, we have commissioned the Greater Northern Hospice Brownfield expansion plans. We have, you know, just finalized the structural drawings, and, you know, the basic construction work has also started. As far as the non-extension is concerned, a similar, you know, phase is there. It's not that, you know, we have deliberately slowed it down. It's just that, you know, we feel that when we were adding the new beds in the other parts of NCR, you know, that became a first priority. However, you know, the legal formalities and everything have now been completed for both these hospitals. And, you know, we feel that, you know, at the right time, because these both hospitals still have some occupancy ramp up yet to be seen. So by the time we will have these brownfield capacity with us is when, you know, we will actually be requiring them. So as far as those two brownfield hospitals plans are concerned, it's pretty much on track.

Okay, thank you. I will come back.

Thank you. The next question is from the line of Nilay Parekh from Puppetivity Ventures LLP. Please go ahead.

Hello, everyone. So, I'm having two questions. First is that can I get ARPOV in the occupancy percentage across all the units? And my second question is what is the outlook for the for this better days for by the end of FY27? Thank you.

Yeah. So, we have an overall blended occupancy of 70% in the quarter, so, with the kind of a new hospital adding, having enough bedroom there, as we explained in the earlier question as well. So, the Molotov Hospital, which has been recently opened in this financial year, having an occupancy of 32% on the census bed of 100, with a capacity of 300 beds. On the Frida Park, we were having an occupancy of 52% with the census bed of 100, having a capacity of 400 beds. Agra having an occupancy of 52% on the census of 110 with a capacity of 250 beds. Greater Noda having an occupancy of 76% with a census of 330 and a capacity of 400 beds with a further expended as we explained in the brownfield expansion. Noda 1 will have an occupancy of 86% with a census of 215 with a capacity of 250 beds. North Extension, who has occupancy of 61%, with the census of 390 beds, with the total capacity of 150 beds, with the further expanded capacity in the Brownfield project. Jhansi Orcha, who is having an occupancy of 86%, with the census bed of 250, with the full capacity of 305 beds. And the Greater Frida Bath, the old Frida Bath Hospital having an occupancy of 69% with the census bed of 150 with a capacity of 200 beds. The overall occupancy is around 71% in Q4 with a year end of 68% in totality.

Okay, thank you, sir. My second question was regarding this outlook for the data days by the end of FY27. Thank you.

Yeah, so, sir, as we informed earlier, for FY2025, we clocked data days of 124 data days, and this year, that is financial 2026, we had a data days of 112 data days. This is by driving process efficiency and controls, and by reducing time to dispatch the base and upload through outsourcing the same. Further, for FY27, the outlook tend to around 90 to 95 days. We are aiming for 90 to 95 days for FY27.

Thank you.

The next question is on the line of Dikshant Gupta from Geojit PMS. Please go ahead.

Just one question. So what is your tail for FY26 versus FY25?

So, the pair mix is almost the same. Only thing is that it's 2-3% down. So, the government pair is around close to 35% and remaining is a cash in TPA. But as we had mentioned in our previous, I think the reports are going on to reduce it by closer to around 25% in next probably two financial years.

So, yeah, I'll

just add you the report that if you look at it in any of our hospitals, the government business percentage are very, very low, and that's what we are keeping control on it, and an existing one also, we are, you know, very selectively choosing it.

So, you know, when the Sector 20 Faridabad have started and the Model Town Hospital have started and, you know, the Gurugram Hospital is starting in few quarters, the government business in those hospitals, we are not expecting more than, you know, 10-12% within, you know, two years. So, this is where, you know, the overall pie of the government business will come down when the impact of these newer hospitals increases as far as the revenue contribution is concerned. You know, we are able to do it because today we are, you know, being joined by most reputed and clinical star doctors within those cities, you know, who are bringing a huge advantage of private insurance and self-care patients, as well as, you know, international patients, which now we can cater to at a large scale because we have those treatments which are required for international patients, something which we are not having for five years back. This is how we are very confident and already being reflected on the numbers of new hospitals that in two years down the line, the government business should be somewhere around 25%.

Thank you so much. And in the 35% comments list that you said, majority CJK.

So, it's basically three teams. It's CGHS, ECSS, and ESI. So, the rates of all these are sort of CGHS rates.

It varies hospital to hospital, but, I mean, it's difficult to say overall what it is. It seems that it has, you know, some of the hospitals as a CGHS is a higher percentage. One of the hospitals, which is, you know, just across the ECSS largest ECHS society, has the ECSS patients and more. So, it's largely, you know, on a similar trend.

Yes, but that means most of the rates are linked to CGHS rates.

Yes.

Okay, okay. And last question for me, are you seeing any, there's been international patients in Q1-SY27 due to the West Asia crisis?

Yeah, so it's overall, you know, we saw that whatever had happened in the last three, four months, there was a dip across the industry, but we believe that some of the, you know, particularly for India, like Bangladesh was closed, Afghanistan was closed, Middle East has got disrupted, but we believe that the coming quarter, I think these things will get over and will be benefited largely. Our efforts are very much into it. In fact, we are very strongly focused on the African market. We have seen our, you know, very senior resources in those countries. Two, three medical centers are getting operated. They started very soon. There are some of the initiatives which we took in the last financial years. I think these are getting matured. So we are getting a substantial, you know, inflow from those regions. So, yes, we feel that the next quarter, coming quarter, I think the numbers will be much better.

Okay. Thank you so much.

Thank you. The next question is from the line of Dhaval Sanghoi from Canura HSBC Live. Please go ahead.

Yeah, hi, good morning. Thanks for my question. So, could you quantify the EGLSS rate benefits which we would have booked in at by 26 and Q4?

So, yeah, so there is an upside of around 5% in our overall business with the revised guidelines by the government, which was come in the month of December.

So, you know, from December onwards, if we see, you know, each month on month, we have benefited 5% in the overall revenue for the increase in the rates is concerned, and around more than, you know, 3% of that has flown to the EBITDA, as far as that is also concerned.

Okay, so suffice to say on a base of about 1200 of crores, so maybe 60 to 70 crores would be the benefit in terms of the overall revenues.

So, that happened from December onwards, right? So, the real impact you will see would be from this year. So, I think from Q3 and Q4 majorly, Q3 second half and Q4 majorly is where the 5% increase was.

So, complete effect of 5% was come only in the Q4 quarter of FBA 2026, or the complete effect of 5% will come in the next financial year, that is FBA 2026.

Okay, and my second question is on the oncology side. So, some of our peers have sort of reported disruption with regards to the chemotherapy drugs and there has been some, you know, size control and some conflict. So, have we seen any impact at all in terms of volumes or numbers?

So, yes, you know, there has been an impact, but it's not a huge impact as far as we are concerned. So, you know, if you see at a group level, oncology contributes to 10% of our overall revenue. Now, what we have measured is, you know, certain oncology drugs, you know, that were sort of, you know, the pricing had been capped. As far as those impacts are concerned, within that 10% oncology revenue, you know, we see somewhere an impact of close to, you know, 20% or 30% of the pricing within that 10% of oncology. So, it's not that, you know, we have stopped those drugs completely. We do also understand that, you know, the substitutes of drugs are not straightforward and not that easily available. So, yes, you know, we have been seeing a marginal impact. However, for that also, you know, we feel that going forward this year, as far as because of the revision of the CGHS rate, you know, still the pie of oncology revenue will still continue to grow for us. And still for oncology, if you see, you know, there are certain of our hospitals that we have recently started oncology, and oncology machines like the traditional oncology is still, you know, going to start soon in the sector Faridabad 20 is concerned, for the Model Town, New Delhi is concerned. So for us, the oncology revenue will still continue to increase. However, there is a very marginal impact that we have seen because of the new government policy that has come up.

Further, as I already mentioned by Mr. Azhar, we have not stopped yet. Some of the patients are bringing medicines from CCHS dispensary. We are also doing parallel exercise to minimize the impact. There are also other extremes in oncology like radiation oncology, surgical oncology, and bone marrow transplant. We are focusing more.

Okay, thank you.

Thank you. A request to all the participants to kindly limit their questions to two per participant. Should you have a follow-up question, please rejoin the queue. We'll take the next question from the line of Surya, Narayan, Nayak from Sunidhi Securities. Please go ahead.

Hello, everyone. Am I audible?

Yes, sir.

So, I want to ask a question, with the acquisition of the hospital in Gurgaon, what kind of specialty mix are you targeting for this facility?

So, Gurgaon, see, if you see any of our, you know, hospital, completely tertiary and quarterly care services you would be offering in the same way, Gurgaon. But we believe that Gurgaon is a very competitive market as well, but at the same time, it has a huge potential catchment, right? So, we have to have a very tertiary and quarterly care facility in Gurgaon.

Okay. And could you elaborate on the extended timeline? Are you targeting both this Gurugam facility to reach break-even? Additionally, it would be helpful to understand expected mix both from a specialty perspective and from a peer mix standpoint.

So, I think that Gurugam will be up in the next 13 to 15 months time, right? And as far as mix is concerned, there definitely will be more on the self-aware and the insurance business. As we've mentioned just now, we're going to have a bit of control on the government-style business.

And, you know, similar expectations would be to break even would be somewhere around 15 months from the date, you know, it gets auctioned. We're quite confident, you know, it should be on our books from the first day of the very new financial year is concerned.

Okay. That comes out. Thank you.

Thank you. The next question is from the line of Arjit Agarwal from Step Trade Capital. Please go ahead. Mr. Archive Nagarwal, please proceed with your questions. I have unmuted your line, sir. As there is no response, we will move on to the next question from the line of Vidhi Shah from CR Kothari & Sons. Please go ahead.

Good morning, sir. Sir, I would like to know what is the current loss that we are incurring from the new hospital, and when do we expect the Agra Hospital to break in?

Great. Losses. So, among us, the entire pie at the Malatown, New Delhi. So, we have a beta loss of 21 CR. Similarly, in the Feedabad New Hospital, which has started in this year, having a beta loss of 9 CR. Overall, the percentage of the beta drag is around 2% in the overall pie in the net losses. But as we said about it, in the H1, nearly around 12 months to 15 months, we will be able to have the breakeven of the arbiters to be kind of a sport on the entire one.

For Agra, Agra itself is contributing around 18%.

It's a profitable hospital and it is contributing EBITDA margin. It is having an EBITDA margin of already 18%. So, you know, when we acquired the hospital, it was already break-even. So, you know, it's not EBITDA drag for us.

All right, that's wonderful. Is there any revenue and margin guidance for FI27-21?

See, we already have said that, you know, we will surpass the growth that we have shown this year as far as both the EBITDA and as far as the, you know, top-line is concerned.

Okay, thank you, sir.

Thank you. The next question is from the line of Rishikesh Bhoi from Purnardha Investment Advisors. Please go ahead.

Yeah, good morning. So, I have one follow-up question, which is towards the brownfield expansion. So, what is the cost per bid for greater NERDA and NERDA extension expansion? Is there any cost escalation down the line due to uncertainty in current energy prices?

So, I think the cost for both these two hospitals' brownfield expansions concerns is somewhere around 75 lakhs capex per bed. That is because, you know, we have already acquired land. So, that does not include the land. And also because, you know, certain machines and certain things are already there in the towers which are already running. So, that's why the capex per bed would be around 75 lakhs per bed and there is no escalation of the cost that, you know, we expect there.

Thank you. The next question is from the line of Satyam Kumar from GM Group Family Office. Please go ahead.

Thanks for the opportunity. Sir, just wanted to know, like, what's the current status of the income tax issue, like, where we are sitting right now?

Income tax issue is almost at its final leg of conclusion. You know, if you go through the order notes of this fiscal year's balance sheet also, you know, we have, you know, closed certain years, you know, and certain years order has come. However, you know, the company has, you know, looked into that and did not see any major financial liability or any large cost as far as that is concerned. For the complete case of, you know, order to be out there, we feel that before the end of quarter two for this financial year, it's somewhere when the whole matter would be resolved. And, you know, today, as far as we're concerned, there's no, you know, financial liability or any impact as far as our operations or any financial operations are concerned. And there has been, you know, no FDs or any assets that have been provisionally blocked or prison. Everything is free for the company to be utilized as per hour.

I understood. And just one last thing. Sir, is the margin profile of procedures conducted under different government schemes are, like, different? Like, margin profile? Is it the case?

So, you know, it is, if you look at the CGHS, ECHS, and ESI, the margin profile is sort of similar as far as these three schemes are concerned, because the pricing is late. They all follow, you know, CGHS rate. As far as Ayushman is concerned, that is where the margin profile differs. It tends to be much lower. However, Ayushman is something that we, yeah.

No, no, sir. I was actually asking the margin profile of the different procedures, like the margin profile which a cardiac procedure will give. Is the same for neurology or the nephrology under government scheme? So is the margin profile different for the different procedure under the same government scheme? Is it? Do we focus on conducting high margin procedures under government scheme? Is it the case? I just wanted to end all the questions I have.

Yes, the margin profile definitely varies within the government scheme as well. It depends on what procedures you are applying. If it's a surgical procedure, margins are different. If it's a conservative, the margins are very different there, right? And what was the second question?

So, for example, you know, oncology tends to have a better margin than compared to, let's say, any other procedures within the government scheme as well. So does, you know, cardiac procedures. So, yes, we also selectively sometimes, you know, try to focus on high-margin specialties even within the government profile.

But again, that depends on, let's say, we're starting a hospital in particular regions. When we have a bed capacity, you know, maybe you need those numbers to fill the beds. So, I mean, that's the journey, right? So, as you get matured, as your occupancy gets failed, you know, you try to be a bit more selective and the controls over the business.

Understood. And, sir, ARPOP for Agra Hospital?

Agra is giving around close to around 26,000-27,000 ARPOP, which is from that reason is quite good.

Okay. Got it. Thank you. Thank you for patiently answering that question. Thanks.

Thank you. The next question is from the line of Akshat Mehta from Seven Javors Holdings. Please go ahead.

Sir, just one person meeting you just said after a month of what was that?

26,000.

26,000. Okay. My other question was on the overall... I just wanted to understand on the CGHS benefit as well, you said that 5% on the revenue front and 3% on the EBITDA front rate. A couple of calls back, you know, in FY27, we had estimated that the revenue impact will be 2.5% and it would be 1.75% on the EBITDA front. Does the benefit kind of go on or is this, I mean, because 5 and 3% are for, you know, Q3 and Q4, we should accordingly take it for the full year.

So, you know, the benefit always as far as the CCHS thing is on the overall business, you know, has been similar. You know, the benefit of CCHS on the purely government business, if you compare on that percentage, tends to differ. So, probably, you know, that is where the different numbers might be, you know, in your…

So, the numbers that you were quoting, 4.5% and 1.7%.

So, 4.5% was for the full quarter, and that's the same that we are quoting now also. 1.7% was in the quarter when the price increase was implemented. So, we did not get the benefit for the full quarter. That's why the benefit for that quarter was 1.7%. And, you know, the benefit also happened in a stage-wide. Certain schemes first implemented the rate revisions. Certain schemes took, you know, more time. So, you know, now as far as, you know, the full implementation of the rate revision has been done across ECHS and, you know, EFI. That's where, you know, in our overall calculation, we feel it should contribute 5% to our overall revenue.

Okay. My next question is if you look at a balance sheet, sir, there's been a big jump in your other access to financial assets and other current assets. Why is that?

So, there is an FD. So, there is a presentation of a book of accounts as per the end days. So, these are FD parked in the other financial assets. That is the only reason you are getting upset in the number as compared to the last year.

So, in the last week of the financial year, we have a good collection in hand from the different payers. So, we have parked the funds and really into these FDs so that we can get the best returns from that.

Okay, okay. Thank you.

Thank you. The next question is from the line of Gopal Bhatt from Baroda BNP Paribas ANC. Please go ahead.

Hello. Hi. Thank you for taking my question. Yeah, I wanted to check, I was having a look at the strategy slide in the deck, and I see that you have sort of emphasized the cluster-based approach in Delhi. I just want to check that, given, how do you view the competitive dynamics in the overall market, given you have much larger players in the market as well, and something related that, yeah, what is the differentiation in the strategy of Yathart versus other peers?

You know, when we talk about, you know, cluster based approach, if, you know, we sort of tend to become the largest player in the areas of our core operations, you know, so similar to what happened in Noida, we have already proven that with, you know, three hospitals, you know, these are sort of different micro markets within the same city. And this is what we are doing with Faridabad. You know, the two hospitals in Faridabad and the three hospitals in Noida are each located sort of 20 kilometers from each other. So, we tend to cater to different micro markets within that same city. However, that gives us an upper hand in that brand building within that city is concerned. So, you know, today when we are trying to attract start offices in Faridabad, having two hospitals on different sides of the town, each catering to different micro markets within that city, It helps us to, you know, to have that, you know, talent on board. You know, within the Delhi region also, within the Gurugram region also, this is the same approach that we will follow. You know, what makes a sort of difference in the sense that, you know, we identify micro markets. which are sort of unmet. Within NCR and the regions beyond, there are still a lot of areas, you know, which a city might have a lot of hospitals, but within... And with the high rise, I was just like, to move early into those regions and build a bigger brand within those cities are concerned. And it's just not that hardcore NCR is what we're looking at. Our UP cluster, which started the seed from Agra, still has huge potential. So does Haryana beyond just Grugram. And we would be looking at a much bigger market across North India, and we feel there are assets available to acquire. Some might not fit the, you know, certain other players who might be looking for, let's say, a bigger land. And sometimes for us, it might be okay as far as that size is concerned. You know, some other players that you mentioned might be already present in those areas. But for us, it could be a good entry to those areas. And these are the things which have sort of helped us to make these acquisitions. And that's why we're quite confident of, you know, surpassing of target of 5,000 bezos the next year. I think we should be there much earlier.

Okay, sorry, the second part, or if I could just follow up, what is the differentiation in our offerings versus other players in Delhi NCR, given it is fairly competitive?

See, healthcare has a huge scope within Delhi and Sierra is concerned. You know, cities of Noida, Gurugram, Faridabad, and even Gaziabad and so that other parts of Delhi are still growing massively of population. So, you know, in fact, this is far from saturation. So, there's enough space for, you know, quality hospitals, for quality clinical talent to establish themselves. Something that, you know, sort of has helped us in the past that we have been a very, you know, doctor-friendly organization. Sort of we have been able to attract clinical talent, you know, based on that approach. You know, we have not typically followed, you know, the concepts of, you know, penal-driven corporate-led organizations where, you know, clinicians are giving targets to perform certain numbers. We've always sort of provided an easy environment for the clinical talents to join us, and sort of that is the reputation that we have created, and that is the reason why a lot of other clinical talents today wants to join us when we are going to the new areas. As far as, you know, our interest is concerned, still it's at par with all the other players in the region. As far as, you know, certain of a new hospital, we are trying to create a sort of a much more boutique hospital environment where, you know, sometimes these days when patients are going to big massive hospitals, they feel lost. But with the much more patient-centric approach, with the same clinical talent. And a much more customized boutique hospital experience is where we feel that we are filling the gap within the metro cities, within the regions which might have certain bigger players, you know, 10, 20 minutes from us. But this is sort of the gap which we are trying to also fill within the capital and metro cities that we are operating.

Okay. Thank you.

Thank you. Ladies and gentlemen, we will take that as the last question for today. I will now hand the conference over to Mr. Yadhar Syagi for closing comments. Thank you and over to you.

Thank you, everyone. Thank you for joining the conference call for this financial year of 26, and we appreciate your questions. Thank you.

Thank you, members of the management. On behalf of Antic Stock Broking Limited, that concludes this conference. We thank you for joining us and you may now disconnect your line. Thank you.