Yatharth Hospit. Q2 FY27 Results (NSE: YATHARTH)
Signal: Margin pressure
The read
The trajectory remains expansion-led, with revenue accelerating 52.4% YoY to INR 4,314.20 million, but margin has not yet inflected: EBITDA margin contracted 361bps to 23.6%, marking a second consecutive quarter below the 24% FY27 margin target referenced in prior context, while depreciation and finance costs rose 75.1% and 94.6%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹431.42 Cr | +52.4% | +9.9% |
| EBIT | ₹68.88 Cr | +18.4% | |
| Net profit | ₹48.46 Cr | +17.5% | |
| EPS | ₹5.25 | +22.7% | |
| EBIT margin | 23.6% |
P&L walk
Revenue increased 52.4% YoY to INR 4,314.20 million, but EBITDA grew only 32.3% and margin contracted 361bps to 23.6% as employee costs rose 56.8%, depreciation 75.1% and finance costs 94.6%; PAT still rose 17.5% to INR 484.59 million, helped by the operating scale-up but held back by higher costs and subsidiary losses.
Segments
The group-versus-parent gap is material: consolidated revenue was INR 4,314.20 million versus standalone revenue of INR 1,949.06 million, while consolidated PAT was INR 484.59 million versus standalone PAT of INR 370.61 million; subsidiaries therefore supplied substantial revenue and incremental profit despite a consolidated non-controlling-interest loss of INR 21.28 million.
Key positives
- Consolidated revenue rose 52.4% YoY to INR 4,314.20 million and 9.9% QoQ, sustaining the hospital expansion trajectory.
- Gross margin improved 127bps YoY to 82.0% as drugs, consumables and implants grew 29.0%, below revenue growth of 52.4%.
- Standalone EBITDA margin expanded approximately 206bps YoY to 23.5% as employee and other expenses grew slower than revenue.
- PPE and CWIP increased to INR 9,513.21 million and INR 2,420.75 million respectively, supporting future capacity growth.
Key concerns
- Consolidated EBITDA margin fell 361bps YoY to 23.6%, below the previously stated FY27 target of upwards of 24%.
- Employee costs rose 56.8%, depreciation 75.1% and finance costs 94.6%, all constraining conversion of 52.4% revenue growth into PAT growth of only 17.5%.
- Consolidated borrowings increased to INR 4,506.91 million and net debt to INR 1,751.70 million from INR 322.32 million at March 31, 2026.
- The consolidated group reported a non-controlling-interest loss of INR 21.28 million, indicating continuing drag from subsidiaries.
Research and educational content only. Not investment advice.