Nuvama Institutional Equities raised the target price for Yatharth Hospital & Trauma Care Services to Rs 950, up from Rs 920. This implies an upside of 16.4% from the current market price. 

As per the brokerage report, several key growth drivers and strategic initiatives, including aggressive bed expansion, a stronger focus on high-end specialities, operational efficiency improvements, and many other factors, were among the key reasons behind the bullish call.

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Aggressive bed expansion

The company is significantly increasing its capacity, with plans to reach 5,000 beds by FY29, up from 2,555 in FY26. This expansion is primarily driven by brownfield projects and acquisitions in the high-demand Delhi NCR and North India markets.

Optimised payer mix

According to the Nuvama report, Yatharth Hospital is strategically focusing on reducing its reliance on lower-margin government business. 

The hospital’s management expects the government’s share of revenue to fall from the current 35% to approximately 25% over the next two years as newer hospitals with lower government exposure ramp up.

Focus on high-end specialities

There is an increasing emphasis on high-end specialities such as oncology, which currently contributes about 10% of revenue. This shift toward tertiary care is expected to optimise the payer mix and improve overall profitability.

Strong ARPOB growth and medical tourism

Nuvama expects ARPOB (Average Revenue Per Occupied Bed) growth of approximately 10%, supported by a better speciality mix and a rise in international patients. 

Nuvama report noted that the tailwinds from the upcoming Jewar airport are also expected to bolster medical tourism in the Noida region.

Operational efficiency and financial momentum

The company anticipates its new units in Faridabad and New Delhi will break even within 10–15 months. 

Furthermore, Nuvama forecasts a robust revenue and EBITDA CAGR of 30% and 33%, respectively, over the FY26–28E period. Confidence is also bolstered by improving corporate governance and the anticipated resolution of outstanding income tax matters by Q2FY27.

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Yatharth Hospital’s share price performance

The share price of Yatharth Hospital has fallen 5% in the last five trading sessions. The stock has risen 8.4% in the past one month and 5.4% in the last six months. Yatharth Hospital’s stock has given a return of more than 58% over the previous 12 months. 

Yatharth Hospitals Q4FY26

Yatharth Hospitals’ net profit increased by 23% year-over-year to Rs 47.5 crore in Q4FY26 from Rs 38.7 crore in the fourth quarter last year. Its revenue from operations came in at Rs 341.5 crore in Q4 FY26, up 47% YoY from the previous year’s Rs 233 crore.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) gained 37% to Rs 80 crore in the fourth quarter from Rs 58.2 crore last year. However, margins contracted to 23.3% from 25% in the year-ago period.