Yatharth Hospit. Q1 FY27 Results (NSE: YATHARTH)
Signal: Margin pressure
The read
The trajectory is still rapid group expansion, with consolidated revenue accelerating to +51.5% YoY from +46.1% in Q3FY26, but the operating inflection remains negative: EBITDA margin fell to 23.34% from 25.40% YoY for the fourth consecutive quarter of YoY contraction, while PAT grew only 8.0% because employee costs, other expenses and finance costs outpaced revenue.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹392.65 Cr | +51.5% | +15.0% |
| Net profit | ₹45.42 Cr | +8.0% | |
| EPS | ₹4.88 | +12.2% | |
| EBIT margin | 23.34% |
P&L walk
Revenue grew to ₹3926.54 million, +51.5% YoY and +15.0% QoQ, gross margin expanded to 82.35% from 79.87%, but EBITDA margin contracted to 23.34% from 25.40% as employee and other expenses grew faster than revenue; PAT rose only 8.0% to ₹454.23 million.
Segments
There is no reported segment split, but subsidiaries materially lift the group: consolidated revenue of ₹3926.54 million versus standalone revenue of ₹1763.08 million and consolidated PAT of ₹454.23 million versus standalone PAT of ₹281.68 million.
Key positives
- Consolidated revenue reached ₹3926.54 million, +51.5% YoY and +15.0% QoQ, with growth accelerating from +46.1% YoY in Q3FY26.
- Gross margin expanded 248bps YoY to 82.35% as raw-material costs declined to 17.65% of revenue from 20.89%, although the filing does not disclose the driver.
- The Group acquired an under-construction hospital for ₹1000 million with planned 250-bed capacity and expected operations within twelve months.
- Standalone PAT increased 18.6% QoQ to ₹281.68 million, while consolidated EPS rose 12.2% YoY to ₹4.88.
Key concerns
- EBITDA margin contracted 207bps YoY to 23.34% despite 51.5% revenue growth, as employee costs rose 61.7% and other expenses rose 65.4%.
- Finance costs increased to ₹65.92 million from ₹1.90 million YoY and ₹50.71 million QoQ, indicating a materially higher financing burden.
- Consolidated PAT grew only 8.0% to ₹454.23 million, substantially slower than revenue growth because operating-cost growth and depreciation offset scale benefits.
- The ₹1000 million Gurugram acquisition creates execution and ramp-up risk before the planned 250 beds begin commercial operations.
Research and educational content only. Not investment advice.