Yatharth Hospital & Trauma Care Services Limited (YATHARTH) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Yathart Hospital and Trauma Care Services Ltd. Q2 FY27 earnings conference call, hosted by Ilara Securities. 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 take the line operator by pressing start and zero on your touchtone phone. I now hand the conference over to Mr. Kashish Chakur from Ilara Securities. Thank you and over to you, sir.

Thank you so much, Ritja. Good morning, everyone. On behalf of Ilara Securities, we welcome you all to queue to FY27 Earnings Conference Call of Yadath Hospital and Trauma Care Services Limited. We have with us senior management of the company represented by Mr. Yadath Tyagi, full-time director, Mr. Amit Kumar Singh, group chief executive officer, Mr. Nitin Gupta, president finance and group chief operating officer, Mr. Pankaj Prabhakar, group chief financial officer, Mr. Ashutosh Kumar Jha, group chief strategy merger and acquisition investor deletion, and Mr. Sonu Koyal, group chief financial controller. I now hand over the call to Yadath management for the opening remarks. Over to you, Idafto.

Thank you. Good morning, everyone. This is Yathas Yagi, whole-time director. Welcome to Yathas Hospital and Trauma Care Services Limited, earning conference call for the quarter and half year ended, September 30, 2026. Our earnings presentation has been uploaded to the stock exchanges and our website. I hope you have had an opportunity to review it. Well, this is an important moment in Neesat Hospital's journey. Quarter 2 F527 was the strongest quarter to date, with revenue growth of 52% year-on-year and EBITDA growth of 50%. Our existing hospitals at Noida, Greater Noida, Nord Extension, and Jhansi Orcha continue to deliver sustained performance with 24% year-on-year revenue growth. These have been true contributors to our profitability, with an EBITDA margin upwards of 28% for these specific hospitals. At the same time, our newer hospitals continue to ramp up, now contributing 28% of group revenue compared to 11% in the corresponding period last year. Collectively, these hospitals have moved from an EBITDA loss a year ago to positive EBITDA during H1. Notably, since our listing in August 2023, ETHAS Hospitals has not only more than doubled its capacity from 1,405 beds to about 2,800 beds, but also tripled its revenues and profits. In our earlier communications, we have shared our target to further doubling this capacity in the coming few years. However, the opportunity in healthcare sector is much, much bigger. Hence, to accelerate our journey further, we have entered into a strategic partnership with Advent International for a primary capital investment of 3,150 crore through a preferential issue of equity shares and warrants. The transaction is awaiting necessary regulatory approvals, which view this partnership as much as more than just a capital infusion. Advent brings over 35 years of healthcare investment experience and a significant expertise in building and scaling healthcare platforms. We believe this combination of long-term capital and institutional experience will strengthen our ability to pursue growth opportunities with greater scale and discipline. With Advent as a partner, we now aim to build a larger franchise of 7,000 to 8,000 beds over the next 3 to 5 years. We can now move faster and act on larger opportunities while ensuring the same discipline in execution. This partnership is also a vote of confidence in what our team has built. A growing network, a proven ability to turn around the hospitals we acquire, I would like to acknowledge the people behind this progress, our doctors, nurses, management, and all our employees for their commitment, our patients and their families, for the trust they place in us, and our shareholders for their continued support as we have expanded the network. Against the strategic backdrop, our teams continue to remain focused on clinical excellence. At a cluster in Noida and Faridabad, we are now among the most reputed hospitals of the region. At Greater Noida, our teams managed a rare liver condition and reconstructed two nerves in a single sitting for a brachial plexus injury, a procedure of very few centers in the region offer. At Faridabad Sector 20, we launched the region's first memory clinic. In recognition of Clinical Excellence, we have received the Hospital Excellence and Innovation Award at the Health and Wellness Excellence Awards 2026 for the ASO-CHAM organization. A Noida and Greater Noida Hospitals ranked among the top in the Noida-Gazibad region in Times of India ranking. We were recognized across multiple specialties in the Outlook Best Hospital Rankings 2026. Difting to the operating highlights for the quarter, our R-pop rose 11% year-on-year to approximately Rs.

36,000.

Our occupancy stood healthy at 72% on the currently operationalized beds. As we ramp up, about 350 to 400 beds are yet to be operationalized across Faridabad, Model Town, and Agra, presenting a meaningful headroom for growth. While existing hospitals continue to compound, our newer hospitals are scaling well and contributing more to the network every quarter. Faridhavar Sector 20 shows what our acquisition and turnaround playbook can deliver. The hospital has turned EBITDA positive in a record period and generated revenue of approximately 40 crores in the last quarter. More than 80% of his business comes from cash and private insurance patients, with an ARPOP of approximately Rs. 40,000. A new Delhi Hospital at Model Town is following the same path. In quarter 2, it reported revenue of approximately 26 crore and RPOP of around Rs. 50,000, which places it among the premium hospitals and NCR, alongside Nord Extension, where RPOP has also crossed Rs. 50,000. We expect it to break even, the Model Town Hospital Delhi, in the second half of this financial year. Agra, which is our first corporate hospital in that region, has improved steadily since we took it over. In quarter two, the hospital remained EBITDA positive on the revenue of approximately 20 crores. Next is Guru Gram, our upcoming 250-bedded hospital in sector 40, which is progressing well and is expected to operationalize the next financial year. The hospital is expected to serve the premium Gurugram market, giving its location in a highly potential catchment and its proximity to the Delhi airport with an anticipated hour pop of above Rs.50,000. We will continue to evaluate further expansion opportunities with a careful view on strategic fit, quality, and returns. We have a model that has been tested, a network that is delivering growth and profitability, and the resources to scale it further. Our aim is to build a high-quality, scaled healthcare network and to create lasting values for all our shareholders. We begin this next phase from a position of strength and with confidence in what lies ahead. Thank you once again for your continued trust and support. I will now hand over to our group CFO, Mr. Pankaj Prabhakar, who will take you through the financial performances in the greater detail.

Thank you, Yadhar. And good morning, everyone. I will take you through the group's financial and operating performance for Quarter 2 and H1 FY27. The group delivered its highest ever quarterly revenue of $4,314 million in Quarter 2 FY27. Represented growth of 52% year-on-year and 10% sequentially. Revenue for H1 FY27 stood at $8,241 million, up 52% year-on-year. This performance reflects the contribution of our established hospitals. As well as the increasing scale of our newer facilities, our existing hospitals at Noida, Greater Noida, Noida Extension, and Jhasi Orcha contributed 3,109 million in quarter two, resisting year-on-year growth of 24%. In patient volumes across these hospitals, Increased 28%, while occupancy improved to 78% from 71% a year ago. Noida and Jhasi Orcha operated at occupancy level above 90%, while Greater Noida reported 78%, and Noida extension 61%. Our newer hospitals at Greater Faridabad, New Delhi, Faridabad Sector 20 and Agra contributed $1,205 million representing 28% of group revenues. Greater Faridabad achieved a healthy occupancy of 77%. Faridabad Sector 20, Agra, and New Delhi continue to ramp up their operational census date. Group Alpobs. Released an all-time high of 36,000, up 11% year-on-year. Noida Extension in New Delhi reported an ARPA of approximately 50,000, Greater Noida approximately 43,000, Faridabad at 40,000, Noida 37,000, Greater Faridabad 35,000, and Agra at 33,000. As some of our newer and premium hospitals are scaling up, and the speciality mix continues to improve, we expect our group R4 to improve meaningfully in the coming years. Talking about margins and profitability, quarter 2 editor was a record $1,020 million. Increasing 50% year-on-year and 11% quarter-on-quarter. EBITDA margin improved to 23.6% as the newer hospitals are running profitable. Excluding the ram hop losses at New Delhi and Sardisabad Sector 20, our adjusted EBITDA margin were healthy at 28%. Profit after tax stood at $485 million for Q2, up 17% year-on-year, and $939 million for H1. However, cash profit, which add back the impact of depreciation to the past, actually increased 36% year-on-year. Our operating cash flow during H1 1,113 million, an increase of 49% year-on-year. As of September 30, 2026, the cash and bank balances stood at 4,289 million and net debt stood 392 million. This provides us We have a comfortable balanced seat position as we continue to invest in the network and prepare for the next stage of expansion. To summarize, Part 2 and H1SY-27 has been marked by a strong revenue growth and improving contributions from our newer house sitter. We have also maintained healthy cap generation and a comfortable leverage position. With the proposed Advent partnership, we believe we are well positioned to pursue the next phase of the growth while remaining focused on exclusion, returns, and quality of care. Thank you for your time. I will now hand over the call back to the moderator for question and answer session.

Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets and also to restrict their questions to 2 per participant. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Aryan Chen from Grow Mutual Fund. Please go ahead.

Yeah, hi. Thank you for the opportunity and congratulations on a great set of numbers. So my first question was, what would be our pair mix for this quarter?

So, pair mix for this quarter is

close to 34%, which is down, you know, a few percent from the last quarter.

That's the government institution business.

That's the government institution business, and the rest is, you know, equally divided between private insurance and cash patients, with private insurance having a few percentage more than the cash business. International business remain close to, you know, around 4% to 5% at the current pay mix level.

So you said 34%, right, government mix, and how much was it last year?

34% is the quarter government makes, and last quarter it was 37%.

Okay, understood. And second question was, sorry if I missed it in the initial remarks, but what are our occupancy levels at Delhi, Saritabad, and Agra?

So, we have ramped up the kind of occupancy from 68% in the last quarter to 72% in this quarter on a blended level. However, as you've been mentioning about the model down, it has increased to 41% in this quarter. The new hospital at Frida Pada has increased to 59% and the Agra has been at 58% as of now.

Also to note is that all the beds are not operational in these hospitals, so there are beds yet to be opened.

Yeah, that was my follow-up actually. Since now the occupancies are closer to 60%, any timelines for further opening of the rest of the beds?

So I think within the next couple of quarters, maybe two to three quarters, we should be opening all the beds.

Okay, and just one last question. What would be the share of pharmacy business to our overall revenue?

So, I think that there are lots of procedures coming with the practices and all, so we don't calculate and look at it in that way as a pharmacy business standalone, right? But if the questions could be to, you know, draw some inferences about that, so what is going on in the government and the court comments on all these things, I think it's a very premature as of now, that's how being directed. I think the industry is also highly presented, the government is part of it. So, let's see how it goes up, but this giving you this thing, I think we don't look at it in that way.

Okay, understood. Thank you. I'll join. Thank you for further questions.

Thank you. Next question is from the line of Praveen from Fortune Tauvis Investment. Please go ahead.

Hello, sir. Can you hear me?

Yes.

Good morning. So, congratulations on good service members. And let's address the elephant in the room. So, can you write comment on? So, what will be the implication on your top line and bottom line, you know, because of cancer medication capital? That's our first question. And the second question is, so, any new assets we're planning in this year? And so, when can you expect the closure of the Advent Day? These are my two questions.

Thank you. So, on your first question about the, you know, the capping on the certain list of cancer drugs, you know, we have did our homework. We have calculated that, you know, at the existing list for cancer capping of the margins of 30%, the overall impact that it will, you know, have on our EBITDA numbers is around 0.3% reduction because of that specific, you know, pricing on the Oncothene. However, because of the 0.3% reduction due to cancer drugs, our, you know, guidance for the overall company level EBITDA, you know, which is in the coming, you know, quarters and years ahead, close to 24%, that remains unchanged. Because this 0.3% reduction in the cancer, we are already, you know, figuring out and coming with strategies to compensate this into other, you know, operational efficiencies and line items and other ways of, you know, compensation of this or overall group level EBITDA will not change going forward because of this policy.

Understood. Thank you. So, can you comment on the second question, please, Advent deal?

Yeah, I think the Advent deal is, you know, at the CCI approvals, final stages. I think post-Diwali, we can expect it to get the approval this month itself. So, we are looking forward for that.

All right, yeah. Thank you so much, sir. And I wish you all the best and let more people be ticketed from your hospitals. Thank you so much.

Thank you. Next question is from the line of Shrikant Akolkar from Novama. Please go ahead.

Hi, good morning. Thanks for taking the question. Just on Advent Day, just want to know in how many branches will you receive this money?

We'll come in two tranches. The first tranche will be $17.50 crores, which will be received after the CCI approval, you know, this month, and the next tranche will be received after 15 to 18 months based on certain conditions. So, in terms of the utilization of parts. Understood.

And on the expansion strategy now, because we've got a solid partner as well, so how are we thinking of the expansions in terms of the size of the asset, maybe potentially kind of a problem that we may look at, is it multi-specialty, single-specialty, or maybe standard hospital or chain of hospital. So what should be our strategy?

So, our focus remains on multi-specialty hospitals. Now, we are, of course, looking at much larger deals, and we are looking for a chain of hospitals also. So, I mean, we are looking for hospitals which… We are looking across North India as a priority, and we are also open to other areas if we have a chain of hospitals available.

Also, the assets that we will continue to acquire from this fund will always be EBITDA-positive hospitals. So, there will be no absolute drag on the absolute EBITDA because of these acquisitions going forward.

Understood. And in terms of the timeline, so you have said that in the next three to five years, you want to know more about the capacity. And at the same time, we also have our own expansion ongoing, and now we've got additional money. So if you can, a little bit, how many banks will get added next year, and maybe if there is a broad schedule, that will really help us.

So, I think we do not have a specific one-year or, you know, six-month guidance. The breakup of the, you know, expansion is that on our existing organic plan, you know, we had announced going to 5,000 bed capacity, you know, close to three to, you know, four years going forward. So, that remains the same. On top of that, around 2,000 to 3,000 beds, we expect to add because of this recent deal, Again, you know, somewhere in close to four years going forward.

Thank you very much for responding to me. Thank you.

Thank you. Next question is from the line of Achir Maheshwari from Naredi. Please go ahead.

Sir, if I may, can you please repeat the RPOP for each of the hospitals?

Yes, sure. As we said about today, the blended RPOV for this quarter is nearly around 36,000, and we are pleased to share with you that the highest RPOV has been at the Nodakstention Hospital nearly around 51,000, likewise in the daily of around 47,000, proceeding by the greater Nodavap of 43,000. Borrowed and Gator Fridabad of 33,000, Noda at 37,000, the new Fridabad Hospital of 37,000, Agra of around 33,000, and Jhansi is around 14,000. Thank you.

The YUI growth of the RPOP is around 11%.

Great.

Thank you so much.

Thank you. Next question is from the Lion of Surin Aranayev from Sunidi Securities. Please go ahead.

Hello, congratulations on the question of numbers. So, one question is that now, considering the EBITDA to CFO conversion of historically 70%, so this quarter, this half, we have seen some kind of softness. So, when can we expect the things to improve as the pair mix has improved also compared to last year? So, what is the take on that?

So, Surya, normally the collection in the H1 is, you know, lower than the full year collection. That's why you would see a slightly dip in the OCF conversion rate. But at the end of the year, we should expect upwards of 70% conversion.

Okay, and secondly, you are saying that you are looking for the hospitals which are actually having ARCO potential higher than us. So, in that case, will your stand of increasing to the bed capacity beyond 5,000 will stand given the cash flow of the cash in and you are having?

Yes, our existing, you know, plan of 5,000 beds organically within our internal, you know, accruals remains as it is. The additional money that we are receiving from ADVENT, this is more for further expanding the growth, you know, as we have mentioned, to buy, you know, about 2,000 plus beds.

So this 2000 builds your planning in which year? I mean, is it F28 or F29 scenario?

You see, I mean, you know, the way we're looking at it is, you know, the total bets should close to 2,000 bets should be, you know, clocking the combined revenue within next three to four years. However, the acquisition of the, because we are receiving the first tranche anytime this month, you know, we would like to deploy the first tranche as soon as possible. So maybe, you know, around 40% to 50% of that bet can actually come live from next financial year itself.

Okay, and can you give some traction, we have some understanding till F28, but what is, how will be the incremental flows to come so far as the P&L traction from F529, because if you can guide, because I understand that now there are some which will be, you know, which will be related to the kind of hospitals we are going to acquire. So maybe if it is a running hospital, obviously the cargo will be improving, and obviously there will be not a big under. But if you can give some color for F529 set, because we have clarity till F28.

We are existing organic plan of, you know, you know, 30% revenue growth, you know, as far as, you know, by basis concern is easily visible for next three to four years on the existing plan before the Airbnb. So that will continue on that same trend. What we expect is, you know, how we're looking at it, we have not made a, you know, a year or two target. How we looked at is the 3,150 crores, that additional, we will be deploying to acquire more, you know, assets of, you know, absolute EBITDA and revenue. So, this will be above and beyond that. So, I mean, even if our existing plan of 30% revenue growth in the next 3.5 years, that is almost around 2.5x. And if we add the 3,150 crores of deployment to that, I think easily EBITDA can be added on top of this 2.5x, which should be easily able to cross us a 3x from the current, you know, numbers in next, you know, 3.5 to 4 years.

Okay, okay. And lastly, from model point of view, when the ramp-up will happen, or let's say occupancy will improve to close to 50-60%, are you facing any kind of competition in that property area?

So the Moral Town, yes, there are a couple of hospitals in there, but we are very clear in our thought process where we are. It's an absolute, a very mostly populated area, right? So very densely populated. We, so far, the growth is very good. I think the next quarter, probably, end of the quarter, we should be a bit of positive.

Okay. Okay. Thank you.

Thank you. Next question is from the line of question from Niamh Mani.

Please go ahead.

Mr. Kojjan, please go ahead with a question. Your line is unmuted.

Can you hear me?

Yes.

So, sir, my first question is regarding the medical tourism. What is your strategy to increase the contribution of international patients to your overall revenue? What is the international, which international market are you targeting? And what incentive you are taking to attract more patients, such as partnership with overseas? Hospital or international healthcare agencies. Additionally, what are the targets are you aiming for over next year to five years? And how could this segment improve your RPUB revenue growth and overall profitability?

International, we started, you know, focusing on international markets last year, right? I think I'm very happy to see the kind of, you know, strategic alliances, partners, which we did in the various international markets. I think it started paying off. So just to give you the perspective that, you know, last year H2 versus this year H1, we had grown over more than 45% of international business. However, still it's in a single digit as compared to the top time, but we are making a very significant move, and various areas like CIS is contributing. However, it has been affected with the last couple of months because of the war, the other thing. But still, I think we are making a very, you know, steady progress in this region. CIS particularly in African market is contributing very well, and lots of, I mean, tie-ups which we have done yet. Whether it's a Mauritius, whether it's Ethiopia, South Sudan, another region. So we have a channel partners there. There are a couple of, you know, which we've done with the hospitals as well. So we are going good, and as far as contribution is concerned, I think that's the RPOBs always, and we all know that the international business contribute a very high RPOB. So I think going as per the expected line, in the next three, four years, it's going to be fantastic It's fantastic because, you know, Moda Airport has not opened for the international market, so that is what is going to be a significant addition for us. That's what we are hoping for. And we have a great plan. As far as international is concerned, there is a sector team working on it. So it's quite, it's very, very positive.

Yeah, interesting. So next question is regarding the Advent International. So Advent International. So what would be the CAPEX project for the Greenfin expansion you are planning?

So, mostly, we are not planning any major greenfield expansion from the money that we have received from Advent. As we said that we will be acquiring running assets, we will be acquiring, you know, EBITDA positive assets, you know, and the total, you know, bed capacity that, you know, we can look to add from that amount should be close to 2,000 beds in total.

Okay, so from 3,000 crores of money, you can additionally acquire 2,000 beds, yeah? That's right?

Roughly around that month, yes.

Thank you.

Thank you. Next question is from the line of Akshat Mehta from Seven Rivers Holding. Please go ahead.

Hello, sir.

I'm audible.

Hi, sir. Congratulations. You've done a great set of results. I had a few questions on the business. One is, sir, we've seen that the debt numbers, you know, on a gross level is increasing for you, an FY26 end and an H1 end as well. I just wanted to understand, you know, where the debt is going and, you know, what is the kind of repayment that we see over the years.

So, I think as far as the total, you know, debt is concerned, the addition to the debt from the last financial year has been, you know, primarily for a… You know, the 100 crore that we have spent on the Gurugram facility, plus, you know, around 100 crore or more has been taken for certain, you know, medical equipments that will be, and that have been added to both the Model Town Hospital, the Sector 20 Faridabad Hospital, as well as certain, you know, construction that is already happening at a full swing in the Gurugram Hospital. But, you know, we feel that this is the peak level of debt for us, at least for next, you know, a few, you know, quarters to come. Debt will definitely eventually could go down also from here. Even, you know, we feel that, you know, going forward, you know, even though the full focus is on the acquiring new hospitals with the admin money. But if the acquisitions are taking time as far as certain assets are concerned, we can also, you know, briefly look to certain at a minute level reduced debt from that amount also from a small amount. So I think this is the peak level of debt that the company is expecting in the coming quarters.

Okay, okay. My next question, sir, looking at other hospitals, what's happening there? So in one quarter, you've seen the, you know, occupancy go down sharply, but then your RPOV is also gone up. Are you seeing a big mix change, case mix changes in Agra?

No, I think, you know, as far as Agra is concerned, we are very happy with the numbers and the way that hospitals, you know, ramped up and scaled well. We have become the most preferred of hospitals in that area. And I can also say that the number of robotic surgeries that we are doing in Agra is probably, you know, at par or even higher than certain, you know, NCR hospitals. Definitely, you know, the Agra is on a similar monthly trend now as to what it was in quarter one as well as earlier months of, you know, quarter two. So I think going forward, we are not just optimizing, you know, pair mix there, but we are in the line to, you know, renovate the facility as well as add certain more beds and certain floors are also in the renovation stage there.

In terms of, you know, the case mix or the treatments, any new additions have been done or, you know, anything that you're planning to add in Agra?

So, yes, absolutely. We recently added CPVS surgery and cardiac surgery. We recently, we are planning to add pediatric cardiac as well, right? We are also strengthening a couple of the, you know, specialties which we felt that was not that up to the mark. So, that's happening, and I just said it, I mean, robotics is happening there. So, I mean, in a way, largely, we are doing everything except, you say that, I mean, the radiation, and then the transplant program. But Agra is doing good. Yes, there are a few changes going to happen, depends on how the, you know, the facilities or the department, you know, perform in the future.

Okay. And for the last question, sir, what's happening on the IT matter, sir? We received the demand notice after that. What has happened? I mean, what is the formal plan?

So, I think as we said that the IT matter, you know, has been resolved, you know, and then we have received the final demand.

Okay.

So, you know, as far as, you know, we were saying that the final demand has come and the matter is resolved now. There has been no, you know, earlier also all the assets and, you know, the FDs were released for the company. As far as even, you know, going forward is concerned, because even the existing demand we feel can significantly reduce. That is what, you know, that is the only reason why we feel that, you know, and because of taking legal opinions and even with the talks from the department itself, we have been advised to, you know, go into appeal against that. However, it is a normal course of appeal. It is not that, you know, the whole matter is still pending at a larger scale. The capping has been done as far as the demand is concerned, and we also feel that this will significantly reduce. So that's what we are doing, and, you know, we expect this also to, you know, reduce in the coming quarters ahead.

Okay, sir. Thank you and congratulations once again.

Thank you. Next question is from the line of Meet Meta from Integrity Ventures and Partnerships. Please go ahead.

Yeah. Hi, team. Very congratulations on great set of results. So, my first question is on the Onco status of the Model Town and the Faridabad hospitals. When we are expecting the oncology segment to go live in both of the hospitals?

In particular, I think everything is done now. The equipment has already been installed. Now it's in some form. It will take 40-45 days. So we are on the last leg of this thing. The clinical manpower has already been, you know, on role, right? So, probably, we think that the next 45 to 60 days, the entire spectrum of the on-quancing, medical and surgical, already we are doing it. So, the radiations and nuclear, we're going to start in next two months. So, this is sector 20. Model Town is going to take time. I think that's still in a drawing phase as of now because we have to complete, we have to start, you know, new setup for this entire, you know, radiation thing, the bunkers and all. Because, in fact, it was already there. Here, we need to, you know, start it. So, that is on a planning phase. I think, already. The drawing has already been calm, so we will work it out, but as you know that Delhi has got a graph too now, the constructions are on hold, so probably it will take 2-3 months, we will take to start our work, so another 6 months, we will say.

However, we have already started medical and surgical oncology in Model Town, and recently we have hired certain doctors as far as oncology for those specialties is concerned, and we have already started seeing good numbers. You know, as Abit mentioned that we will be adding radiation oncology in that hospital. I think the timeline should be somewhere around, you know, close to 8 to 9 months.

Got it. And are we on track to break even on the Delhi-Mondletown Hospital? You said after the next quarter, I think we should be.

So, it's very much Delhi is doing as per the expected line, right? So, next quarter, I think Delhi should be break even.

So if you see, so losses, losses of, losses of modern town has been reduced quarter on quarter. For Cuban losses was 55 million. This quarter we reported losses of 38 million. Okay. So next quarter we are very much sure in the month of December. December is a break-even month for the Delhi quarter, for Delhi hospital.

Got it. And last on the, you know, bed addition, anything on the Noida, Greater Faridabad Hospital, and the Jhati Hospital, because we are reaching to, you know, optimum utilization of the capacities. So, any color on those three facilities?

So, you know, there is not much scope for expansion in those three hospitals, you know, however, you know, we are looking to improve marginally in terms of the ARPOP and the fair mix is concerned in those hospitals, but there is no specific plans for any brownfield capacity expansion in those hospitals.

Any new hospitals that we are looking in those geographies?

I mean, as you said that we are targeting a huge capacity addition in terms of, you know, new hospitals and new beds. So we are, you know, focusing across, you know, other areas of NCR, micro markets of NCR where we are still not present. And at a larger scale within the whole North India market, you know, I mean, especially we still feel UP, Rihanna, Punjab, and of course, Delhi NCR has, you know, good scope for growth. And as I said, now along with the admin deal, you know, we have expanded our horizon. The priority still remains north, but if there's a good cluster of hospitals available outside north, we will be actively looking to evaluate that.

Yeah, sure. Very congratulations on the great set of results and all the best for the coming future.

Thank you. Next question is from the line of Aryan Jain from Grow Mutual Fund. Please go ahead.

Yeah, hi, thank you for the follow-up. So my first question was, is there any change in our 24% plus margin guidance for the year, given that both our new assets are seeing faster ramp up?

I think the guidance remains same. In fact, you know, we also have to cover up the difference from the oncology pricing differences, but we remain sure that the guidance we have for the EBITDA margins will continue to be same.

Okay. And with Gurugram coming up next year and also the advent funds being deployed mostly next year, should you expect the margins to be kind of flat over the next couple of years from FY2711?

I think, you know, we have not made a blended margin plan because, you know, that will depend upon the type of assets and the type of deals we're able to close from the first chance we get. However, you know, what we are forecasting is our existing, you know, plan where the EBITDA margins, you know, will continue to be, you know, on a rising trend. But they will be upwards of 24% for the upcoming years, and the blended margins from the new hospitals will depend on the type of deals we are able to close.

Just remember that that our existing hospital, particularly the Faridabad and Delhi, will start contributing, whatever the drag would be.

Okay, fair enough. And one last question. How soon do we expect our Gurugram facility to break even, given that it's a competitive market?

I think Gurugram, we are also targeting to break even in 15 to 15 months, but, you know, it will be a very high premium RPOP facility with, you know, very high fair mix of cash and private insurance as well as international patients. As far as breaking even is concerned, I think 15 would be right on the conservative side.

Okay, thank you. Those were my questions.

Thank you. Next question is from the line of Akshaya Shunde from Centrum Broking.

Please go ahead.

Akshay Ashande, please go ahead with a question. Your line is unmuted.

Akshay Shandai, may we request you to please unmute yourself and proceed ahead with the questions. As there is no response, we'll move to the next question, which is from the line of Praveen from Fortune Tower Investments. Please go ahead.

Yes, sir. Thank you for the question. Sir, my question is on your next leg of expansion. So, what kind of assets will you be more interested in? Will you be interested in acquiring more of operational assets or you want to follow this, you know, operational maintenance asset-like model? And if you're planning for both, can you help us, you know, what would be the kind of breakup there, please? Thank you.

Yeah, I think because it would be a mix of both, but primarily, they would be 100% equity-owned assets because, you know, with a large capital, we have to deploy now. We can look at larger, you know, chain of hospitals that we can deploy. There are a few chain of hospitals that are available within the north market itself that we are carefully and, you know, evaluating. And those are mostly, you know, asset-owned, 100% equity-owned chain of assets. So, I think, yes, going forward, we can even look to have, you know, certain hospitals which are available in O&M, but they would be mostly standalone hospitals, which would be mostly part of our initially 5,000-bit capacity expansion is concerned. But from the new advent capital, it would mostly be, you know, fully owned assets.

Thank you, sir. Thank you for the answer.

Thank you. Next question is from the line of Rashaan Sharma from HEM Securities. Please go ahead.

Hello. Good morning, everyone. Sir, as you mentioned in the previous call to bring down the government business from 35% to 20%,

and by keeping the government business in certain days like 20% in the newer hospitals, are we following that trend in the newer hospitals, and what would be the outlook going forward for the government business in the next two to three years, sir?

So, you know, the new hospitals, as you can already see from the performance of Model Town and Sector 20 Faridabad, and even the, you know, Greater Faridabad, which was the newest before them, you know, the government business in the two new hospitals is not more than, you know, 15 to 20%. So, we're actually, you know, not following that playbook only, but also, you know, showing the results of that. And as the scale of these hospitals ramp up, that will significantly help us to, you know, reach that initial government business target is concerned. And even Guru Gram would be on a similar line next year when it starts. So I think we are very much following that trend and the guidance on that remains similar.

Okay, sir. Thank you. That's all for my success. And all the very best, sir.

Thank you. Next question is from the line of Akshay Shandev from Centrum Broking. Please go ahead. Akshay Shinde, please go ahead with the question.

Your line is unmuted. Akshay Shandi, may we request you to please unmute yourself and proceed ahead with the questions. As there is no response, we'll move to the next question, which is from the line of Rishikesh Boy from Purnata Investment Advisory. Please go ahead.

Yeah, hi. Thanks for the opportunity. I just have one question around the oncology share. So, in close proximity of greater noida, a hospital has recently launched comprehensive cancer care. Are you seeing any pressure from these oncology patients with phone or on retaining oncology talent there?

I think the full scale of oncology, if you say, I think the, except that one hospital which has a more of the, you know, medical college, I think I don't think any other, you know, hospital has got, but NODA has got a couple of hospitals as far as full spectrum of, you know, onco is concerned. And what is your second question amidst that second part of it?

Okay. So, the next update I want, what is the current status for Murugaram's sector quality facility in terms of construction?

So, a construction, yes.

Yeah, so we are revamping the existing building and we are kind of adding more capacity there. We have submitted the plans also and we have started, you know, modifying the existing building according to the plan. And as soon as we get the plan approval, we will start the construction on these.

And this facility is being, you know, created on a very premium end. You know, we have, you know, gone for one of the largest room sizes across the Gurugram, you know, market other hospitals have. So, I think we are equally waiting for the full launch of this facility.

Okay, okay. And I just want to add my first question. I think you missed the second. So for that one, are you seeing any pressure from the oncology patient footfall or in the retaining oncology talent in the greater Nevada for oncology?

No, so Greater Noida, you know, we have two hospitals technically with Greater Noida and even Nord Extension. The Nord Extension is technically Great Noida West also. So, you know, we both at that, you know, facilities are dating the highest number of oncology patients as far as any other hospital is concerned in Greater Noida. So, I think we do not see any impact. In fact, if you look at it, our absolute volume of oncology business has increased in both these hospitals. We are, you know, adding more doctors also in terms of leading doctors of NCR. We plan to add in these two hospitals as far as oncology is concerned. So far, there's no impact in terms of the volume.

Okay, I intend to help you, Anna.

So I think that we have enough pool of the doctors, right? So we've got eight hospitals and have enough pools of doctors. And then if you see the more and more hospitals coming up in that particular region, it's also, you know, attract clinical talent. So I think that's not going to be a, I think clinical, that is not there in that particular market. And we're very confident that when we have our entire spectrum, which is very soon, we're going to add, you know, nuclear as well as radiation oncology in greater order facilities. So, the doctor's level, I don't think there would be any challenge.

Okay, good. Thank you.

Thank you.

Next question is from the line of Kashish Thakur from Melara Securities. Please go ahead.

Hi, sir. Thank you for the opportunity. One question. Sir, how are we pursuing the Supreme Court's judgment? Probably that along with Onco, we should be having a capping on other drugs as well. That will probably erode much of our profitability and also just wanted to get some view from your end on that aspect.

No, as I said in my early commentary, so it is still that nothing has come up. Yes, there are discussions going on. So the matter is before the course, so we don't want to comment as such. But yes, I said that hospital industry has already met their representations and their talk going on. What will happen? We don't know. But I think that whatever will happen will be for the best. And industry and government will definitely be in discussions and we have met our representations. So, nothing much comments on it, but whenever it will happen, we'll see accordingly and then we'll plan.

See, we have always, you know, as an organization, try to, you know, restructure and evolve our strategies according to regulatory policies and new framework. Just like in oncology, you know, yes, there was a marginal and a small impact for us, but that impact was not high. But even then, you know, we have already, you know, worked out on certain other line items and operational efficiencies so that our EBITDA target guidance doesn't change. So I think any regulatory policy changes going forward, you know, maybe in the farm or any other aspects, I think, you know, we would be looking to, you know, evolve our strategies and work, you know, still trying to meet the guidance that we have for the next few years.

That was very helpful.

Thank you so much.

Thank you. Next question is from the line of Meet Mehta from Integrity Ventures and Partnerships. Please go ahead.

Yeah, thanks for the follow-up. You know, just wanted to get a sense on the CAPEX per bid. So, you know, historically, we have acquired assets which were still. So, if you can give some color on the CAPEX per bid that we are looking for the next phase of expansion with the Advent money coming in. So, any sense on that, please? That would be helpful.

So, I think because specifically from the admin money, we are not, you know, creating any, you know, greenfield assets, and we might not be going for, you know, absolute stress assets. We would be going for assets, you know, yes, there would be huge upside and potential for them, it would not be saturated hospitals. But they, you know, we are seeing more of a, you know, in terms of the total, you know, bed capacity as far as the and the absolute beta that we can add. And with the options that, you know, we have evaluated and certain more options can come going forward, you know, we feel that, you know, close to 2,000 beds can be added, but it shouldn't be looked at purely Capex per bed just on the bed angle because these 2,000 beds would be significantly contributing to the top line and the bedda. So I think that's where the real value will come, and not just from the bed edition of these for the expansion.

Yeah, that was helpful and thank you.

Thank you. Next question is from the line of Sanat Vase from Centrum Broken. Please go ahead.

Hello, sir. Am I audible?

Hello.

Am I audible? Yes, sir.

Yes, you may. Please go ahead.

Yeah, so let's, like, given your preference for acquiring large size and EBITDA positive hospitals, what kind of percent and valuation multiples are you currently targeting? And second one, how do you evaluate paying a premium for hospitals with the higher growth potential?

I think it's very difficult to put a number to what multiple, you know, the deals will happen. For us, the way we look at it is, you know, if a hospital has a good upside of potential of where it is and, you know, if we can really expand, only, you know, that is the biggest criteria. And, you know, for that also, premium really depends upon the percentage of, you know, the growth that a hospital is possible. Also, another factor that, you know, we can also consider in terms of a case of a premium given to a valuation, if that, you know, that hospital's average revenue per occupied bet is higher than our group average, or if the payments of that hospital or a chain of hospitals has more cash and private insurance mix than even our existing platform. So, that also becomes another criteria for us to consider a premium as far as the deals are concerned.

Okay, sir.

Thank you.

Thank you. Next question is from the line of Shubham Rai, an individual investor. Please go ahead. Mr. Shubham Rai, please go ahead with a question. Your line is unmuted. Mr. Rai, may we request you to please proceed ahead with a question. Your line is unmuted. There is no response from the participants, and as there are no further questions from the participants, I now hand the conference over to management for closing comments.

So, thank you, everyone, for this H1 presentation. So, looking forward for the next quarter result and meeting soon. Thank you. Thank you, everyone.

Thank you. On behalf of Vilara Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.