Yatharth Hospital & Trauma Care Services Ltd Management Discussions

Economic overview

Global economy 1

In CY 2024 the global economy grew at 3.3%, driven by moderating inflation, technological advancements and structural economic realignments across regions. This growth was achieved, despite the challenging macroeconomic environment marked by geopolitical tensions andsupplychaindisruptions.Withglobalinflationdeclining from 6.6 % in CY 2023 to 5.7% in CY 2024, inflationary pressures are gradually easing. Emerging Market and Developing Economies (EMDEs) outperformed advanced economies, recording a growth of 4.3%, compared to 1.8% in developed regions. The divergence in performance was underpinned by proactive monetary policies adopted by central banks worldwide. The easing inflation resulted in moderated price levels, restoring consumer confidence and accelerating economic activity.

Outlook

The global economy is projected to undergo modest growth, with forecasts of 2.8% in CY 2025 and 3.0% in CY 2026, supported by accommodative monetary policies aimed at stabilising prices and boosting employment. However, escalating trade tensions, particularly, for reciprocal tariffs imposed by the US, are disrupting global supply chains and dampening investor sentiment. Despite this, EMDEs are expected to grow at 3.7% in CY 2025 and 3.9% in CY 2026, continuing to outperform advanced economies, which are predicted to expand at 1.4% in CY 2025 and 1.5% in CY 2026. Asia remains a key driver of global economic momentum, with its dynamic markets and expanding consumer base. Simultaneously, global inflation is expected to maintain its downward trajectory, easing further to 4.3% in CY 2025 and 3.6% in CY 2026.

Global real GDP growth projection (%)

Indian economy

In FY 2025, the Indian economy grew at a rate of 6.5%, despite global economic headwinds and continued geopolitical tensions. One of the major drivers of the growth was the Government of Indias initiatives aimed at accelerating economic activity through large-scale infrastructure development. The Union Budget allocated 11.21 lakh crore towards capital expenditure, with a priority on improving rural connectivity and infrastructure, thereby, contributing to a sustained economic momentum. 2

This substantial capital infusion was achieved while maintaining fiscal discipline, keeping the revenue deficit contained at 4.4% of GDP. 3 Prudent fiscal management made the government flexible enough to expand public expenditure, therefore, stimulating domestic demand without compromising on macro-economic stability. The focus on infrastructure development boosted employment and had a multiplier effect across various sectors of the economy.

Additionally, declining prices boosted consumer confidence, leading to increased consumption in both in urban and rural India. The easing inflationary pressure has further prompted the Reserve Bank of India (RBI) to infuse 1.5 trillion into the banking system to further stimulate economic activity.

Outlook

Looking ahead, the Indian economy will likely continue its growth trajectory, with GDP projected to expand by 6.5% in FY 2026, supplemented by supportive government policies and accommodative monetary measures. Amongst these is the recent income tax revision exempting salaried employees earning up to 12.75 lakh annually, which will potentially improve consumption. 4 Supporting this, the RBI has reduced the repo rate by 25 basis points by way of successive reductions to infuse liquidity and sustain growth. While the imposition of the US tariffs could present a short-term challenge, ongoing bilateral negotiations offer optimism for stronger trade ties, potentially elevating Indias standing among the worlds trading partners. Additionally, India is poised for long-term growth and an increasingly prominent role in the global economy.

Industry overview

Indian healthcare sector 5

The Indian healthcare sector is marked by a significant increase in government investment and a continued focus on strengthening both infrastructure and service delivery. The Ministry of Health and Family Welfare has been allocated INR 90,659 crore for FY 2024-25. A substantial portion of this budget around 40% is directed toward the National Health Mission, which supports state-level efforts to improve maternal and infant health outcomes, reduce disease burden, and enhance access to essential services. Additionally, allocations for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM ABHIM) have seen notable increases, with PM ABHIMs allocation rising by 63% to bolster primary healthcare infrastructure and disease surveillance.

Government-backed initiatives such as the Ayushman Bharat Digital Mission (ABDM) have significantly advanced the digital transformation of Indias healthcare sector. With over 76 crore Ayushman Bharat Health Accounts (ABHA), nearly 6 lakh verified healthcare professionals, and 3.86 lakh registered facilities, the mission has laid the groundwork for a unified digital health ecosystem. Additionally, flagship programs like PM-JAY, Ayushman Arogya Mandir, PM-ABHIM, and the Jan Aushadhi Scheme have enhanced healthcare accessibility, affordability, and quality nationwide. 6

Despite these challenges such as workforce shortages, unequal regional access, underutilisation of schemes, and the rising burden of non-communicable diseases persist. Addressing these issues calls for focused policy reforms, robust public-private partnerships, and strategic capacity building. With sustained commitment and investment, India can strengthen its healthcare system and emerge as a global benchmark for developing nations.

Outlook

The Indian healthcare sector is poised for steady growth drivenbyasubstantial11%increaseingovernmentbudget allocation and a strong policy focus on infrastructure, innovation and accessibility. Key measures such as increased funding for healthcare research, and customs duty relief on life-saving drugs are set to create new opportunities for healthcare providers, pharmaceutical firms, and medical device manufacturers. Additionally, initiatives to promote medical tourism, digital health, and workforce development are expected to boost sectoral growth and encourage private sector participation. Overall, these developments signal a favourable environment for operating in the Indian health sector, supporting both business expansion and improved health outcomes nationwide.

Opportunities and challenges

Opportunities

Key government initiatives

Ayushman Arogya Mandir (Health and Wellness Centres)

The government has continued its flagship initiative of transforming 1,50,000 existing Sub Health Centres and Primary Health Centres into Ayushman Arogya Mandirs. These upgraded centres are designed to provide comprehensive primary healthcare, including expanded services for non-communicable diseases, mental health, geriatric care and trauma care, alongside traditional maternal and child health services. The goal is to ensure holistic, community-based healthcare and early detection and management of diseases through regular screening and follow-up, thereby improving overall health outcomes at the grassroots level.

Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM)

PM-ABHIM prioritises strengthening healthcare infrastructure, creating new Health and Wellness Centres, establishing critical care hospital blocks in high-population districts and setting up public health units and laboratories at the block and district levels. The mission is designed to enhance the capacity of health systems for responding to current and future pandemics thereby improving the quality and reach of healthcare services nationwide.

Relief on Life-Saving Drugs and Patient Assistance Programmes

To make critical treatments more affordable, the government has exempted 36 life-saving drugs from Basic Customs Duty (BCD) and extended similar relief to medicines supplied free under Patient Assistance Programmes (PAPs). This initiative aims to reduce the cost of treatment for diseases such as cancer and rare disorders, thereby increasing access for economically disadvantaged patients.

National Tele Mental Health Programme (NTMHP)

Recognising the growing need for accessible mental health services, the government has expanded the NTMHP, an initiative that leverages telemedicine to provide equitable and affordable mental healthcare, specifically in underserved and rural areas, ensuring that mental health support is within reach for all citizens.

Promotion of Medical Tourism and Heal in India Initiative

The government is actively promoting India as a global medical tourism destination via the Heal in India initiative. Efforts include simplifying visa procedures for medical tourists, partnering with the private sector and building capacity to accommodate international patients, thereby boosting the healthcare sectors contribution to the economy.

Company overview

Yatharth Hospitals and Trauma Care Services Limited is a network of super speciality hospitals across Delhi National Capital Region (NCR) and Madhya Pradesh, capitalising on the robust healthcare infrastructure in these regions to serve a wide patient base in need of tertiary care. Our hospitals have been designed to comply with international quality standards with our Noida Extension Hospital accredited by Joint Commission International ("JCI"), USA and all our hospitals accredited by the National Accreditation Board for Hospitals ("NABH").

Our hospitals have been built on a foundation of talent, trust, technology, service and infrastructure. We believe our current growth has been aided by the geographical advantage of being located in NCT of Delhi, Noida, Greater Noida and Noida Extension in Uttar Pradesh, Greater Faridabad and Faridabad in Haryana, where our six of our existing hospitals are situated out of total seven network hospitals which strengthen our positioning to be the leading healthcare brand in North India. Being located in these regions allows us to serve patients from Uttar Pradesh, Delhi, Haryana, Uttarakhand and other states as well. Our experience in these markets over the years has provided us with an understanding of patients in the region. Further, NCR region is the hub of specialty hospitals in the whole of North India. It has significant and growing need for quality and affordable healthcare services and also a major opportunity to expand and grow here. Facilities and talent at top chains in NCR region help patients visiting from various regions in battling critical ailments. (Source: CRISIL Report) Our recent acquisitions are aimed at further expanding into new geographies and growing our presence in the regional healthcare market. Our total bed capacity is 2,305 beds and our critical care program comprises 640 critical care beds.

All of our hospitals offer spacious suites along with modern deluxe and super deluxe rooms, and comfortable patient waiting areas. Our diagnostic areas are designed with the goals of providing patient-friendly, spacious and relaxing environments. We have advanced medical equipment such as Azurion catheterization laboratory and are equipped with the latest robotics surgical equipments like the DaVinci, Mako and Cuvis, 1.5 Tesla whole-body MRI with optical digital broadband and embedded express coil technology for minimal patient repositioning and advanced non-contrast MR Angiography, 128 slice CT scan, endo bronchial ultrasound, nerve conduction velocity ("NCV"), advanced surgical equipment including Thulium Uro laser, flexible scope, advance laparoscope, advance microscopes, Cusa set. These advanced equipments provide for a better and more accurate diagnosis, as well as insight into the surgical procedure, which increases the surgical success rate. Some of our modular operation theatres are equipped with high efficiency particulate air ("HEPA") filters and laminar flow, operating microscopes with image intensifiers. Our in-house diagnostic radiology setup and diagnostic labs are well-equipped centres with comprehensive diagnostic capabilities including, haematology, biochemistry, microbiology, molecular biology and histopathology along with 24x7 in-house pharmacy shops.

Competitive strengths

Premier super-speciality hospital in North India

Yatharth Hospital ranks among one of the largest private healthcare institutions regionally, distinguished by its state-of-the-art infrastructure, broad range of specialities, and customised best practices that enhance its competitive positioning.

Cutting-edge technology and infrastructure

The hospital is equipped with advanced diagnostic and treatment technologies including robotic surgeries, radiation oncology, and transplantation services, thereby delivering timely and high-quality care. All critical care units are outfitted with advanced monitoring systems and ventilators, further strengthening its clinical capabilities.

Skilled and certified medical team

Yatharth Hospitals prides itself with a team of highly qualified and certified healthcare professionals. The hospital fosters a supportive environment that encourages progressing professional development, thus, resulting in a consistently low attrition rate among doctors.

Veteran leadership and strategic management

The hospitals experienced leadership team plays a vital role in driving its strategic growth. With a strong combination of healthcare and business experts, Yatharth Hospital benefits from a well-rounded leadership.

Performance in FY 2025

The Company exhibited strong operational and financial results, with significant growth across key indicators. It maintained high occupancy rates despite adding capacity and broadened its presence through strategic acquisitions in Delhi and Faridabad. Revenue growth was driven by increased contributions from high-value specialties such as oncology, higher average revenue per occupied bed (ARPOB), and a well-diversified portfolio across hospitals and services. Operational efficiency improved through technology enhancements, capacity growth, and stronger governance structures. The companys consistent delivery of quality care, geographic expansion, and disciplined financial management highlight its position as one of the leading hospital chains.

Greater Noida Hospital

Established in 2010, this super speciality tertiary care hospital currently operates with 400 beds, including 112 critical care beds and 9 modular operation theatres, among other surgical facilities. In FY 2025, the hospital successfully handled 18K inpatient admissions and recorded136Koutpatientvisits.Itoffersabroadspectrum of specialised medical services, including Urology, Neurosurgery, Nephrology, Oncology, Gastroenterology (both medical and surgical), Cardiovascular and Thoracic

Surgery, Joint Replacement and Sports Medicine, Cardiology, Neurology, and comprehensive Mother and Child Care services, which also feature advanced in-vitro fertilisation (IVF) capabilities.

Total revenue in FY 2025 and FY 2024

Noida Hospital

The Noida hospital, operational since 2013, is a 250 bed super-specialty tertiary care facility. It served 13K inpatients (IPD) and 88K outpatients (OPD). The hospital features four modular operation theatres, an emergency resuscitation and observation unit, 81 critical care beds, an endoscopy suite, and a state-of-the-art dialysis unit. As of March 31, 2025, it was equipped with advanced diagnostic infrastructure, including a 128 slice CT scanner, a 1.5 Tesla MRI machine, and a modern Cath Lab.

Total revenue in FY 2025 and FY 2024

Noida

Noida Extension Hospital

Yatharth Hospitals Noida Extension facility, operational since 2019, is a tertiary care centre with a capacity of 450 beds, featuring 11 modular operating rooms and 125 critical care beds. In FY 2025, the hospital recorded 20K inpatient admissions and catered to 117K outpatient visits. It offers a wide range of medical specialities, including Cardiology, Orthopaedics, Spine and Rheumatology, Oncology, Neurosciences, Nephrology, Urology, Gastroenterology, and general surgery. The facility is also equipped to carry out advanced surgical procedures such as ENT and cochlear implant surgeries, complex laparoscopic operations, and cosmetic and plastic surgeries. Moreover, it is authorised to perform kidney transplants and provides bone marrow transplant services.

Total revenue in FY 2025 and FY 2024

Noida Extension

Revenue (in INR million)

Jhansi-Orchha Hospital

The Jhansi Orchha facility of Yatharth Hospital, operational since 2022, has been accredited by the Quality Council of India (QCI) under the NABH standards and is empanelled under the Pradhan Mantri Jan Arogya Yojana (PM-JAY). With a capacity of 305 beds, including 76 dedicated critical care beds, the hospital catered to 12K inpatients and 20K outpatients during FY 2025. The facility is built to support major super specialities, reflecting Yatharth Hospitals commitment to high-quality healthcare.

Total revenue in FY 2025 and FY 2024

Jhansi Orchha

Revenue (in INR million)

Faridabad Hospital

Yatharth Hospital acquired 200 beds hospital in Faridabad, Haryana. Operational since May 2024, this acquisition expands its geographical presence, offering a 200 beds capacity, 61 Intensive Care Units (ICUs) and NABH accreditation. The hospital is being developed into a super-specialty center, with plans to offer advanced treatments such as Oncology and Robotic Surgeries. This growth trajectory positions Faridabad Hospital as a key component of Yatharths expanding healthcare network

Financial performance

The financial statements of Yatharth Hospitals are prepared according to the requirements of the Companies Act 2013 and applicable accounting standards provided by the Institute of Chartered Accountants of India.

Analysis of the profit and loss statemen

Particulars	FY 2025	FY 2024
Revenue	8,805	6,705
EBITDA	2,202	1,799
PAT	1,306	1,145
Operating Expenses	6,602	4,906

Significant changes in the financial ratios in FY 2025

Particulars	FY 2025	FY 2024	Change (%)	Reasons behind the change
Inventory	60.54	94.42	-35.88%	Change during the year is on account of almost
Turnover				doubling of average inventory in comparison to
				average inventory at the end of previous year
Debt Serving	66.98	17.84	275.32 %	The EBIDTA has increased over a period of time
Coverage Ratio				whereas the loan liabilities have come down due to
				prepayment of its loan
Current Ratio	10.12	7.59	33.29 %	The current assets of the group have increased on
				account of receipt of QIP funds by holding company
				and slight increase in operations in comparison to
				previous year.
Debt Equity Ratio	0.00	0.09	-97.36%	The change is on account of prepayment of most of
(D/E)				the borrowings on account of funds availability from
				QIP proceeds.
Net Profit Ratio	0.15	0.17	-13.15%	Since the reporting year we added new unit hospital
				at Faridabad, Depreciation applied for complete year
				therefore PAT declined slightly.
Net Capital	1.14	1.51	-24.56 %	The current assets of the group have increased on
Turnover Ratio				account of receipt of QIP funds and slight increase in
				operations in comparison to previous year.
Return on Equity	0.08	0.13	-39.09 %	The holding company has undertaken QIP leading
(ROE)				to increase in shareholders equity due to which the
				ratio has decreased during the period.

Human resources (HR)

Risk management

The Company navigates a highly competitive healthcare environment, harnessing advanced technologies and prioritising high-quality patient care. However, economic uncertainties such as inflation and fluctuating interest rates present challenges to operational efficiency, prompting the need for effective risk mitigation strategies to preserve competitiveness and financial stability. The hospital group further proactively responds to evolving regulatory frameworks, ensuring compliance through aligned operational and strategic decisions to minimise associated risks. Recognising the critical role played by medical professionals and key staff, Yatharth Hospitals emphasises on talent retention through continuous training and fostering a supportive workplace culture and understanding that high attrition can hinder growth. Despite its strong brand presence in Delhi, the organisation is aware of the limitations posed by its concentrated geographical footprint.

Outlook

Disclosure of accounting treatment

The Company has compiled its financial results for the fiscal year ended March 31st, 2025 by the Companies Act of 2013, along with the Institute of Chartered Accountants of Indias relevant accounting standards.

Internal control systems and their adequacy

At Yatharth Hospitals, the internal control system has been designed to correspond to the size and complexity of the operations and the incremental changes made. All aspects are continuously monitored by the management to provide reasonable assurance that the objectives and prescribed benchmarks are met. We have a robust system for checking the effectiveness and efficiency of the operations, including the reliability of financial reporting and compliance with applicable laws and regulations. It is overseen at several layers including where required by the Committees of the Board. The internal control framework is supplemented with an internal audit programme that provides an independent view of the efficacy and effectiveness of the process and control environment. Therefore, through its observations provides an input to the management to support continuous improvement programme. The internal audit program is managed by an Internal Audit function directly reporting to the Audit and Risk Management Committee of the Board.

Cautionary statement

The Management Discussion and Analysis report presents the Companys objectives, predictions, assumptions, and expectations. These might contain predictions as those terms are defined by the applicable laws and rules. It is crucial to remember that the results could differ greatly from what was expected. Important variables that might affect the Companys performance include modifications to tax laws, government regulations, Indian economic conditions, and other unanticipated variables.