Yatharth Hospital & Trauma Care Services Ltd. experienced a significant dip in its stock price, tumbling 7.18% to a day low of Rs 801 in Monday's afternoon trade. This sharp decline followed the release of the hospital chain's financial results for the fourth quarter of fiscal year 2026 (Q4 FY26), where margin pressures overshadowed an otherwise strong performance in revenue and profit.
Q4 FY26 Financial Performance Overview
For the quarter ending March 2026, Yatharth Hospital reported impressive growth in key financial metrics on an annual basis. Profit After Tax (PAT) increased by 15% year-on-year (YoY) to Rs 44.7 crore, up from Rs 38.7 crore in the corresponding period last year. Sequentially, PAT saw a 4% rise from Rs 43.1 crore in Q3 FY26.
Revenue from operations surged by a substantial 47% YoY, reaching Rs 341.6 crore in Q4 FY26 compared to Rs 233 crore in the previous year's quarter. Quarter-on-quarter (QoQ), revenue climbed 6% from Rs 321.4 crore in Q3 FY26. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also advanced, growing 37% YoY and 6% QoQ.
Margin Contraction Sparks Investor Concern
Despite the strong top-line and bottom-line growth, the primary concern for investors appeared to be the contraction in EBITDA margin. The EBITDA margin decreased by 161 basis points (bps) YoY, settling at 23.4% in Q4 FY26, down from 25% in the same quarter last year.
However, the company highlighted that its EBITDA margin, when adjusted for ramp-up losses from newer facilities, stood at a healthier 30.4% during the quarter. Similarly, adjusted PAT, excluding these ramp-up losses, demonstrated a 23.3% YoY growth.
Company Outlook and Expansion
Yatharth Tyagi, Whole Time Director at Yatharth Hospitals, commented on the results, emphasizing the successful scaling of newer hospitals. He noted, "Our newer hospitals at Model Town (New Delhi), Faridabad Sector-20, and Agra have demonstrated a rapid scale-up, contributing meaningfully to the Group's revenues within a short span of operations."
Tyagi also highlighted the successful integration of the Agra facility and the group's strategic entry into the Gurugram market with a new 250-bed hospital, enhancing its presence in the National Capital Region (NCR). The company reiterated its focus on maintaining a strong balance sheet and disciplined capital allocation. Operating cash flows for FY26 stood at Rs 286.6 crore, with a cash conversion ratio of 98%.