Detailed rationale

Crisil Ratings has upgraded its corporate credit rating of Yatharth Hospital and Trauma Care Services Ltd (Yatharth Hospital; part of the Yatharth group) to ‘Crisil A/Stable’ from ‘Crisil A-/Stable’.

 

The upgrade reflects improvement in the business risk profile of the group, driven by the expanding operational reach, increase in revenue and sustained profitability. The operational bed capacity increased from 1,185 beds in fiscal 2024 to 1,285 beds in fiscal 2025, along with the group expanding its reach to five cities from three. The same resulted in operating income improving by 32% from Rs 673 crore in fiscal 2024 to Rs 886 crore in fiscal 2025, driven by increase in bed capacity and occupancy. The group achieved operating income of Rs 258 crore in the first three months of fiscal 2026 compared with Rs 212 crore for the corresponding period of fiscal 2025 and is expected to achieve Rs 1,000-1,100 crore for the full fiscal. The group also acquired two hospitals —MGS Infotech Research and Solutions Pvt Ltd (MGS) in Faridabad and MD City Hospital (MD City) in Model Town, Delhi, in October 2024. The former commenced its operations in November 2025 and the latter in July 2025. Successful ramp up of operations will remain monitorable. The operating margin is expected to remain healthy at 24-25% in fiscal 2026 (26% in fiscal 2025), driven by increasing scale and occupancy.

 

The group in September 2025 announced the acquisition of Shantived Institute of Medical Sciences (Shantived Hospital), Agra (at an investment of Rs 260 crore). The group plans to fund the acquisition through term loan of Rs 200-220 crore and may go for a fund raise in the near term. Successful ramp up of operations in the new hospital will remain monitorable.

 

The rating also factors in the comfortable financial risk profile backed by networth expected at Rs 1,650-1,660 crore as on March 31, 2026 (Rs 1,532 crore a year earlier), driven by healthy accretion to reserve. The group raised Rs 604 crore through Qualified Institute Placements (QIP) in December 2024, which were utilised for funding the acquisition of MGS and MD City, capital expenditure (capex) and reduction of debt.

 

The rating continues to reflect the Yatharth group's established market position in the healthcare industry, backed by the extensive experience of the promoters and comfortable financial risk profile. These strengths are partially offset by geographic concentration in revenue, exposure to intense competition and regulatory changes, and working capital-intensive operations.

Analytical approach

Crisil Ratings has combined the business and financial risk profiles of Yatharth Hospital and its wholly owned subsidiaries, AKS Medical and Research Centre Pvt Ltd (AKS), RamRaja Multispecialty Hospital & Trauma Centre Pvt Ltd (RamRaja), and Pristine Infracon Pvt Ltd (PIPL).

 

Now, Crisil Ratings is also combining the business and financial risk profiles of MGS, MD City and Shantived Hospital as together they are referred to as the Yatharth group.

 

Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

Key rating drivers - Strengths 

Extensive experience of the promoters and established market position: The two-decade experience of the promoters in the healthcare industry, their strong understanding of the market dynamics and healthy business relationships in the region will continue to support the business risk profile. Strong recall of the Yatharth brand with diversified reach through multiple hospitals has helped the group to sustain revenue growth over the past few fiscals. The group has been offering multispecialty primary healthcare services since 2010 and has been expanding its presence with nine hospitals having capacity of 2,555 beds. The business acumen of the promoters has helped the operating income to grow at compound annal growth rate of 30% for the three fiscals through 2025. There was a steady increase in average revenue per occupied bed from Rs 30,829 in fiscal 2025 (Rs 28,599 in fiscal 2024) to Rs 32,395 in the first three months of fiscal 2026 owing to high number of specialised treatments as the group has introduced medical services such as radiation oncology, human organ transplant, robotics surgery and medical tourism over the years.

 

The group began operations with one hospital in Noida in 2010 and expanded its reach to Greater Noida (both in Uttar Pradesh [UP]) in 2013. Through its subsidiaries, it has further diversified its presence in Greater Noida West in 2019, Jhansi (both in UP) in 2022 and Faridabad (Haryana) in 2024. The Faridabad hospital was added after the recent acquisition of PIPL on March 28, 2024. They also added one hospital in Delhi and one in Faridabad in October 2024. The group also recently acquired a hospital in Agra.

 

Comfortable financial risk profile

Networth is expected at Rs 1,650-1,660 crore as on March 31, 2026 (Rs 1,532 crore a year earlier) driven by healthy accretion to reserve. Gearing is expected to remain below 0.15 time (nil). Debt protection metrics were robust due to low leverage and healthy profitability: interest coverage and net cash accrual to total debt ratios are expected at 28 times and 0.94 time, respectively, in fiscal 2026 (18 times and 39.8 times, respectively, in fiscal 2025). The metrics are expected to improve further over the medium term.

 

Apart from the recently announced acquisitions, the group undertook capex to commence its operations in MGS and MD City totaling Rs 400-450 crore in fiscal 2026. The same is expected to fund through term loan of Rs 200-220 crore and rest through the surplus liquid funds (post raising funds through QIP in December 2024) and internal accrual. Hence, the financial risk profile should remain strong driven by strong networth.

Key rating drivers - Weaknesses 

Geographical concentration in revenue and exposure to intense competition and regulatory changes: Operations are largely localised in north India against corporate hospitals that have presence across India. Eight out of the nine hospitals of the group that are currently operational are in Delhi-NCR (three in Noida, two in Faridabad and one in Delhi). Also, the group is exposed to competition. Around 51% of the revenue is driven by the flagship hospitals in Noida and Greater Noida. The Faridabad hospital has been added after the acquisition of PIPL and MGS, Delhi Hospital added after acquisition of MD City. Hence, ramp up in operations of the Delhi and Faridabad hospitals aiding geographical diversion will be monitorable. The healthcare industry is susceptible to government guidelines related to medical practices such as disposal of solid waste and timely renewal of approvals, licences and permits. An increase in compliance cost or regulatory changes may adversely affect the business over the medium term.

 

Ramp up in operations and occupancy yet to be established in new geographies: The overall occupancy is improving and remained at 61% in fiscal 2025 (54% in fiscal 2024). The low occupancy is due to the hospitals in Faridabad and Jhansi, which were operating at 38% and 50%, respectively, in fiscal 2025. The group acquired two hospitals — MGS in Faridabad and MD City in Model Town, Delhi — in October 2024. The former commenced its operations in November 2025 and the latter in July 2025. Successful ramp up of operations will remain monitorable. The ramp up of the newly set-up hospitals will remain a critical factor over the medium term.

 

Working capital-intensive operations: Gross current assets were high at 243 days as on March 31, 2025 (217 days a year earlier), owing to stretched receivables of 125 days (124 days) as majority of the clients are government entities that delay payment. Receivables for more than six months stood at Rs 192 crore (58% of total receivables) as on March 31, 2025, which increased from Rs 94 crore (35% of total receivables) a year earlier. These are partially supported by payables of 60-90 days. Improvement in the working capital cycle will remain a key rating sensitivity factor. 

Liquidity Strong

Annual cash accrual is expected at Rs 210-260 crore against yearly term debt obligation of Rs 36-37 crore over the medium term. The group plans to fund the acquisition through term loan of Rs 200-220 crore and may go for a fund raise in the near term. The group had surplus free liquid funds of over Rs 365 crore as on September 30, 2025, which will cushion liquidity. The current ratio was healthy at 10.5 times as on March 31, 2025. The group also avails factoring limit of Rs 50 crore. 

Outlook Stable

The Yatharth group will continue to benefit from the extensive experience of its promoters and established relationships with clients.

Rating sensitivity factors

Upward factors

• Increase in revenue supported by ramp up in operations in its subsidiaries, along with sustenance of operating margin at 24-25%
• Improvement in working capital cycle with reduction in debtor of more than six months

 

Downward factors

• Decline in revenue or operating margin falling to below 20%
• Large, debt-funded capex, weakening the capital structure or substantial increase in working capital requirement, adversely affecting liquidity and the overall financial risk profile

About the group

Incorporated in 2008 and promoted by Dr Ajay Tyagi and Dr Kapil Tyagi, Yatharth Hospital operates hospitals in Greater Noida (operations began in 2010; 400-bed capacity) and Noida (operations began in 2013; 250-bed capacity). It is listed on the National Stock Exchange and the Bombay Stock Exchange.

 

Incorporated in 2009, AKS operates a 450-bed multi-specialty hospital in Noida Extension. The company is a wholly owned subsidiary of Yatharth Hospital. It began operations in May 2019.

 

Incorporated in 2012, RamRaja operates a 305-bed hospital in Jhansi and was acquired by Yatharth Hospital in fiscal 2022. This was acquired by the group in fiscal 2022 and operations commenced from April 2022.

 

Incorporated in 2010, PIPL operates a 200-bed hospital in Faridabad, providing comprehensive medical, surgical, ortho, neuro, dental, and obstetric care. This was acquired by the group on March 28, 2024, and operationalised in April 2024.

 

Incorporated in 2004, MGS operates a 115-bed hospital in Faridabad. This was acquired (60% shareholding) by the group in October 2024, and operationalised in November 2025.

 

MD City was acquired (wholly owned subsidiary) by the group in October 2024, and operationalised in July 2025. MD city operates a 100-bed hospital in Delhi.

 

The group in September 2025 announced the acquisition of Shantived Institute of Medical Sciences (Shantived Hospital), Agra (at an investment of Rs 260 crore). The hospital has a 150-bed capacity.

Any other information: Not applicable