Ladies and gentlemen, good day, and welcome to Yatharth Hospital & Trauma Care Services Limited Q1 FY 2027 Earnings Call. As a reminder, all participant lines will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vishal Manchanda. Thank you, and over to you, sir. Thank you, Athava. Good morning, everyone. On behalf of Systematix Institutional Equities, we welcome you all to the Q1 FY 2027 earnings call of Yatharth Hospital & Trauma Care Services Limited. We have with us the senior management of the company represented by Mr. Yatharth Tyagi, whole-time director, Mr. Amit Kumar Singh, Group Chief Executive Officer, Mr. Nitin Gupta, President, Finance and Group Chief Operating Officer, Mr. Pankaj Prabhakar, Group Chief Financial Officer, Mr. Ashutosh Kumar Jha, Group Chief Strategy, M&A, and Investor Relations, Mr. Sonu Goyal, Group Chief Financial Controller. I now hand over the call to the Yatharth management for opening remarks. Over to you, sir. Hi. Yatharth Tyagi this side. Good morning, and welcome to Yatharth Hospital & Trauma Care Services Limited's earning conference call for the quarter ended June 30, 2026. Joining me today are Mr. Amit Singh, our Group CEO, Mr. Pankaj, Group CFO, Mr. Nitin, Group COO and President, Finance, and Mr. Ashutosh, Group Chief Strategy, M&A, and IR, as well as Mr. Sonu Goyal, Group Financial Controller. Our earnings presentation has been uploaded on the stock exchanges and on our website, and we hope you have had the opportunity to review it. I am pleased to report a strong start of FY 2027. We delivered our highest ever quarterly revenue and profits this quarter. More encouragedly, we achieved a record revenue growth of 51% year-on-year and an EBITDA growth of 39% year-on-year. This performance is a testament to the growth strategy we have been pursuing over the past several quarters. Our newer hospitals at Greater Faridabad, New Delhi, Faridabad Sector 20, and Agra collectively contributed 27% to the mix this quarter. Especially our acquisition playbook has delivered signs of early success. A key highlight was our Faridabad Sector 20 hospital turning EBITDA breakeven within a record period of nine months. The hospital is now contributing to a monthly revenue run rate of INR 12-13 crore, with an ARPOB closer to INR 40,000, and the potential to reach INR 45,000-INR 50,000 as we move ahead. Our New Delhi hospital has already approached the INR 50,000 ARPOB mark, positioning us among the premium hospitals in NCR. The hospital is currently operating at a monthly revenue run rate of INR 8 crore. Importantly, the revenue mix at both these hospitals is 90% plus cash and private insurance patients. Our Agra hospital, which was integrated last quarter, achieved a revenue run rate of INR 9 crore-INR 10 crore and delivered a strong 20% plus EBITDA within its first full quarter of integration. The Gurugram construction is progressing as per expectations, and we expect the hospital to go live by quarter one of the next fiscal, with the potential to achieve an ARPOB of INR 50,000+. Our performance across these hospitals demonstrates the group's ability not only to identify and acquire good assets, but also to integrate and turn around their operations within a very short span of time. Over the past couple of quarters, our profitability has also improved meaningfully with operating leverage kicking in, as reflected in our adjusted EBITDA margin, excluding the impact of New Delhi and Faridabad Sector 20, stood at 28.1% this quarter. In recognition to the above performance, the board today approved a maiden interim dividend of 5% of face value for all our shareholders, ensuring that shareholders benefit from the growth and investments being done by the Group. Behind this execution is a significant effort by the entire organization. In reward to this effort by our people, we have also approved our first ESOP grant and launched a new ESOP scheme 2026 to attract, retain, and align quality talent. These are meaningful steps for us, reflecting our confidence in the business that we are building and a commitment to sharing the value created with both our shareholders and our people. We are also in the process of identifying ESG priorities across our network of hospitals, with the objective of building a more sustainable and future-ready organization. Our focus on strengthening our international collaborations continued this quarter. Expanding our global outreach, we opened the Yatharth Information Center in Uzbekistan, and have also leveraged our partnerships with healthcare institutions, as well as undertook many OPD initiatives across key markets across Asia, Africa, and Middle East. With the infrastructure built over the last 12 months, we have expanded our network to 2,555 beds, setting the foundation for record growth this year. Looking ahead, we remain committed to a roadmap of doubling our bed capacity to 5,000 beds target over the next few years. The upcoming 250-bedded Gurugram facility, expected to commence operations by Q1 of next fiscal, will further strengthen our positioning in the premium NCR market and add another high-potential platform to the network. The opportunity now is to fill these beds, improve utilization, and allow earnings to catch up with the capacity we have created. Overall, we believe Yatharth is entering an exciting phase. We are continuously expanding capacity. Our specialty and payer mix is continuously improving, and we have substantial installed capacity to utilize, drive a stronger cash generation in the years ahead. With that, I shall hand over the call to our CFO, Pankaj, for further updates. Good morning, everyone. I will take you through the financial performance for quarter one of 2027 and the key drivers behind the quarter. The group reported its highest-ever quarterly revenue of INR 3,207 million, up 51% year-over-year and 15% quarter-over-quarter. Our existing three hospitals in Noida and Jhansi- Orchha, collectively contributed INR 2,862 million, growing 22% year-over-year. Our existing hospital occupancy reached approximately 75%, as in-patient volume improved 15% year-over-year. As far as hospital-wide occupancy is concerned, Noida and Jhansi- Orchha hospital achieved 90% plus occupancy. Greater Noida Hospital is currently operating at 74%, while Noida Extension stood at 56%. We expect occupancy level at Greater Noida and Noida Extension to improve further in coming quarter. The newer hospitals at Greater Faridabad, New Delhi, Faridabad Sector 20, and Agra collectively contributed INR 1,067 million in revenue, accounting for 27% to the group's revenue. This shift in revenue mix reflects the rapid scaling of our newer capacity alongside continued growth for our established base. The group's ARPOB reached an all-time high of INR 34,758 in quarter one, up 7% year-on-year. Importantly, our premium NCR hospitals at Noida Extension and New Delhi crossed INR 50,000 ARPOB mark for the first time in quarter one, which is a strong indication of the improving case mix. This was followed by Greater Noida, which achieved an ARPOB of INR 43,000. Faridabad Sector 20 approaching INR 40,000. Greater Faridabad and Noida at INR 35,000 and Agra closer to INR 30,000. This performance is largely driven by the benefits of a stronger specialty mix across our network. We are continuing to invest in advanced clinical capabilities and infrastructure as we believe deeper specialty capabilities are essential to building a differentiated hospital network and improving the quality of our revenue over time. Oncology has already started contributing close to 10% to the group's revenue, with only one LINAC machine currently at Noida Extension Hospital. We are in the process of adding another LINAC at our Faridabad Sector 20 hospital soon, followed by the New Delhi facility, which will meaningfully strengthen the oncology share at the group level in the coming years. With newer hospitals demonstrating higher ARPOB levels, we expect a meaningful uplift in overall group's realization as these facilities continue to scale up. EBITDA for the quarter was highest ever at INR 917 million, with PAT stood at INR 454 million. While the consolidated EBITDA stood at 23.3%, the adjusted EBITDA margin, excluding the impact of New Delhi and Faridabad Sector 20, stood at 28.1%. With newer hospitals progressively moving up the profitability curve, Agra delivers a 20% plus EBITDA margin while Faridabad Sector 20 achieves EBITDA breakeven in Q1. We expect our blended EBITDA margin to improve from the current level. The increase in depreciation and finance costs have been following the significant capacity addition made over the past 12 months. Despite which our cash profit, which is PAT plus depreciation, increased significantly by 32% year-on-year, largely reflecting a non-cash impact on the PAT growth. With the upcoming Gurugram facility and brownfield expansion plant at Noida Extension and Greater Noida, our total bed capacity will reach over 3,200 beds. We remain confident of achieving our target of 5,000 beds over the next five years. FY 2027 has started a strong note, and the early success of our newer facilities gives us the confidence in sustaining this momentum. Thank you for your attention. I would now like to hand over the call to the moderator for question and answer session. Thank you. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants are requested to restrict their questions to two questions per participant. We have the first question from the line of Surbhi Gupta from Trinetra Asset Managers. Please go ahead. Good morning, sir. My first question is that, in the PPT, it is mentioned 5,000 beds target by three years. You just mentioned five years. Is it three or five? Also, just second part of that question, we have one big cluster, which is Haryana and Delhi, and second would be U.P. and M.P. Are we targeting any more cluster, another cluster to add, or are we going to add beds in this cluster only? I think, yes, definitely the roadmap ahead is to double our bed capacity. In fact, our announced capacity, which includes the Gurugram and the brownfield expansions at Greater Noida and Noida Extension is already upwards of 3,200 beds. From there, if you look at the 5,000-bed capacity, we feel that we would be even reaching it much earlier than the three years announced target. This would be primarily within the north, the cluster that you mentioned, yes. We are also evaluating different clusters. One thing that we have done in the past, we've usually formed a cluster. It's not this standalone independent assets we have gone. We have also leveraged the benefits by adding assets within that surrounding, similar to what we have done here. I think, even we feel Gurugram is still a huge cluster for us to further explore. A new cluster, obviously, within the north, we identify, I think, U.P. has certain cities where a good cluster can be formed. I think we would still stick to the areas we very well understand, which is the north, the Delhi NCR, and the metro cities in the states that we operate in. These will all be higher average bed pay, right? Yeah. ARPOB would be much higher than the group average. In fact, the newest hospitals which we are doing is already clocking close to INR 50,000 ARPOB. That's clearly the strategy even going forward. No. Will it be more than 50k or mostly 50k? Around 50,000. Okay. Just my second question quickly. Sir, we are focusing on improving payer mix, so I think we are focusing on international mix as well. If you could just talk about a bit on that and what kind of benefit are we expecting to get from that. If you could just quantify on this. Yeah. Yes, definitely we are working on how to improve the payer mix, and that's the reason if you see, in fact, there's a dip of few percentage in Noida extension occupancy. This is totally as per expectation because we wanted to restrict the government business, and that's our thought process. Yes, international is concerned. That's the various activities we are planning. In fact, this quarter, I think five OPD centers, I mean, information centers we are planning in the various countries like CIS or African countries. We have posted our very Senior Marketing person also in African regions. So I think that they started showing the trends and believe that, I think this will help in a better payer mix as well as the ARPOB as well. Even the new hospitals, both the New Delhi Model Town and Faridabad Sector 20 already are displaying this playbook. These hospitals are close to 90% cash and private insurance business, so we are able to demonstrate it. Faridabad, we are glad that it has break even much before our target, but the way it has break even is also with less than 10% government business. I think that the playbook is clearly evident, and it's being reflected in all the new hospitals. As the volumes of these two hospitals continue to grow, significant changes will also be visible at the group level payer mix. Okay, sir. Thank you so much. Thank you. The next question comes from the line of Akshat Mehta from Seven Rivers Holding. Please go ahead. Hello, sir. Am I audible? Yes, please go ahead. My first question was on the newer hospitals, Delhi and Faridabad. What we've been seeing is the last two, three quarters, the occupancy has kind of stagnated around a similar area. When can we see that occupancy go up in these hospitals, and what is the status of government and insurance empowerments for these hospitals? I think occupancy has not stagnant. It has significantly increased. The reason why you see the numbers is because the occupancy is counted on different bed capacity. Earlier, not all the beds were operational. Now, quarter- on- quarter, we are increasing the capacity, and that's where the occupancy is being counted upon. The IPD volumes occupancy is definitely increasing. That's the reason why the revenue is quarter- on- quarter increasing there. As far as the empowerment is concerned, I think a lot of empowerments are already completed in these two hospitals. It's not that we're waiting for government empowerments and only that's why the government business is low. Even though we have a majority of the government empowerments already, we are sticking to our playbook of not increasing the government payor in these hospitals. And specific numbers, if you can tell them about the occupancy and the beds counted in Faridabad different to what we were counting last quarter. If you see about it in Delhi, the census bed is 150 on which the occupancy has been counted in this quarter as compared to the 100 beds in the last quarter. That's the thing, the overall percentage is impacting in that manner. However, the census bed at the new Faridabad hospital has been increased from 100 bed to 200 census bed. That's the overall thing that we have added 160 new census bed in this occupancy counting in this quarter. Okay. My second question was on the Delhi hospital overall. We started this hospital around three, four months before we did the Faridabad hospital. If you see after almost a year, sir, that hospital in terms of scale-up, in terms of occupancy, has been kind of slower than the Faridabad hospital. What is the strategy there to kind of achieve breakeven and then grow from there? I think Delhi hospital model town is as per our guidance. We are quite happy with the way it is progressing. In fact, it's not that the numbers are slow there. It's just that Faridabad 20 has overperformed than our expectations. We were thinking of Faridabad Sector 20 to be breaking around 12- 14 months, but it has broken even earlier than we expected, around nine months. As far as Delhi is concerned, we are sticking to our guidance. We expected that hospital to break even around 15- 17 months, and it's on track for that is concerned. We're quite happy with the way Delhi is progressing. I think we're quite happy with the ARPOB and the monthly revenue run rate that it has reached. The same strategies that similar to what we're following in the Faridabad, we are following in New Delhi, which is having one of the most reputed doctors in that area, having star doctors, having a strong brand recall and community connect in those areas with strong visibility within the communities. I think both hospitals are progressing the right track. Okay. If I can ask one more question, sir. On the Agra hospital, since you have reached 90% occupancy, are we planning to operationalize the other census beds as well out of the 250 beds? Yeah. As of now, on the 250-bed capacity, we are running on the census of 110 beds. And we are planning to the stage of increasing the census bed capacity to take the full leverage of the occupancy in the coming quarters. I think the census beds in Agra will definitely increase, and I think there is definitely much room headway for Agra hospital to grow in terms of the numbers are concerned. Okay. Thank you, sir. Thank you. The next question comes from the line of Nishita from Sapphire Capital. Please go ahead. Yes. Hello. I just want to understand this 3,200 beds that we are targeting, by when is this going to be operational? 3,200 beds is announced capacity. What we mean by that is it is already under our possession. Only a bit of construction is left. It includes the 250 beds in Gurugram, which will be live in the quarter one of the new financial year, and it includes around 450 beds of brownfield addition in the two Noida cluster hospitals, which will be live somewhere around next 15 months. Okay. The Noida cluster will be operational in next 15 months. Yes. It will start getting operational, maybe out of 450, 200 beds would be earlier, and 250 beds will be probably in 18- 19 months. Okay. Understood. So that still is not. So what is our current capacity? It is I think 2,800, right? So 2,800 capacity includes the new acquisition of the Gurugram. As I said- Okay. that has to be happen in quarter one of next financial year. Okay. Understood. My next question is on, we have had quite a good revenue growth in Q1 FY 2025 of 15%. Do we expect this growth to continue? What sort of growth can we see for the full year FY 2027? I think for the full year FY 2027, we are on track for the guidance that we have already done. As far as not just revenue, I feel even the revenue, EBITDA and the PAT numbers, what we are guiding for 2027, we will be on track for that. I think certain parameters we will also, if things continue on the ramp-up as expected, I think we should be surpassing certain of our guided targets. I think the company is on track to meet our guidance. Right. Can you reiterate the guidance? I am actually attending the call for the first time. I think we have said that last year we grew 37% YoY. As you can clearly see this year, we will easily surpass that growth. Even the EBITDA is concerned, I think company is on track close to upwards of 24% EBITDA margin for the full FY 2027 is concerned. I think similar is the ARPOB growth and the PAT parameters. Right. So ARPOB growth, we can expect around 10%-15%? I think 9%-10% is the right estimation to be taken. Okay, understood. Thank you so much. Thank you. The next question comes from the line of Prinita from RediStock Capital Limited. Please go ahead. Hi, am I audible? Yes, please go ahead. So could you please walk me through how the quarterly revenues arrived from the ARPOB occupancy and bed count. When I back calculate using these three metrics for the last few quarters, I am getting a number higher than the reported revenue. I just wanted to understand if there is a component that I am missing in this calculation. So if you see about this quarter with the ARPOB of nearly INR 35,000 on the census bed of 1,820 with the occupancy of 68%, you will be able to arrive to these numbers. When we calculate the ARPOB, it includes the total revenue, IPD as well as the OPD revenues. Would you not recommend doing it for every single hospital separately or just one for the complete chain of hospitals? I can give you the occupancy percentage of each of the hospitals. If you see about laid out, the Greater Noida hospital having an occupancy of 74%. Noida Sector 110 has an occupancy of 91%. Noida Extension having an occupancy of 56%. Faridabad Sector 88, that is the Greater Faridabad having occupancy of 63%. Faridabad new hospital having an occupancy of 49%. Model Town, Delhi having an occupancy of 29%. Agra having an occupancy of 89%, and Jhansi has occupancy of 91%. But to emphasize here, the census bed capacity has been 1,820, which in the previous quarter was 655. So it has increased by 175 beds. However, as we said that there is enough headroom to increase the census bed capacity to build up the case to 2,555 on the existing hospitals. Could you also highlight the ARPOB of each of these hospitals, please? Yeah, surely. So, Greater Noida hospital having an ARPOB of nearly INR 43,000. Noida Extension Hospital has an ARPOB of more than INR 50,000. Noida Hospital having an ARPOB of INR 35,000. Greater Faridabad Hospital having an ARPOB of INR 35,000. New Faridabad Hospital having the ARPOB of nearly INR 40,000. Model Town having an ARPOB of nearly around INR 50,000. Agra having the ARPOB of INR 27,000. And Jhansi hospital having an ARPOB of nearly INR 13,000. Okay. All right. So just to clarify, it would be better to look at all the hospitals together when we are calculating the ARPOB occupancy and bed count when we are calculating the revenue instead of each one of these hospitals. Is that correct? Yeah. When we calculate the hospital occupancy as well as a percentage overall, the drivers come to the overall occupancy percentage. And with the blended ARPOB, we calculate the performance at the blended level. All right. Done. Thank you. Thank you so much. Thank you. The next question comes from the line of Ashish T. from UTI. Please go ahead. Thanks for the opportunity. Excluding this Model Town and Faridabad, our EBITDA margins are pretty high at 28%. But obviously, including the losses, they are lower. When do you expect the new assets to fall in line and possibly when shall we start clocking 26%-27% EBITDA margin again? I think, if we talk about these two specific hospitals, as we said, Faridabad Sector 20 is already broken even. But EBITDA drag is there, right? Because I think the EBITDA margins there would be around 4%-5%. So it will take some time to catch up to the, let's say a 20% EBITDA margin. Model Town, we are expecting it to break even somewhere around between Q3, Q4 this year. That will also reduce the drag on the EBITDA. Both these two hospitals from here, we are targeting, let's say in around 15 months. Once they get breakeven, the EBITDA there could be somewhere around 15%-20%. However, at the group level, even though that will significantly reduce the drag, we might have new hospitals continuing to start. In less than 15 months, Gurgaon will also be live. I think the EBITDA drag from these two hospitals will shift to Gurgaon as well as certain other acquisitions that we do going on. However, as we said, these two specific hospitals will be in line within 15-18 months after the breakeven. At a group level, even with the new additions of the continuing EBITDA drag of all the upcoming new hospitals, we would still be closer to 24% of the EBITDA margins. Yeah. If you see the kind of performance we have delivered and demonstrated at the Agra, when we bought and started the operation at the Agra, it having a beta percentage of 11% nearly. Now we are already reaching much near to around 24%, 25%. That demonstrate the kind of a performance and the turnover of the kind of a performance of our group. Obviously, we are adding new assets. We are planning to double the bed counts to 5,000. In the overall scheme of things, as we go ahead over the next three to five years, I specifically had a question on this panel recommending limiting the hospital room charges to three-star hotel. Would you be worried about such recommendations, and if not, what's your view on this? Some color would be very helpful. Yes, sir. We recently got this news, so I think there's a recommendation about the ceiling of the room rent. As of now, there's no comment. See, price increase, there's various reasons and various factors on which this price increase there. How this entire ecosystem gets managed, that's very important. As of now, we don't want to comment on it. As industry moves on, when we receive some frameworks, then probably it will be appropriate for us to comment and see then. Also, see, it's something not for the first time a certain recommendation has been discussed. There have been multiple incidences in the past where center or certain petitions have said to look at the room rents and the rates of the private hospitals. So far, we've always seen that government, in fact, has always supported the growth of private hospitals. In fact, for the first time after a lot of years, CGHS's rates were also revised. So we feel in the past, government has always backed the private sector as well. I remember times when even the stent rates were capped for certain cardiac procedures, certain implants were capped for certain orthopedic procedures, and as well as certain medicines. This has not, and also possibly in the future, wouldn't cause a significant impact or something to worry about. In fact, if certain optimization of the cost can be done, I think hospitals will do it. They have continued to do it and always done it in the past. But yes, going forward, we'll get more clarity on this. And again, it's just a proposal, and I think long way than even close to a certain part of it being implemented as of yet. Perfect. This is very helpful. Thank you so much. Thank you. The next question comes from the line of Satyam Kumar from AAA Holdings. Please go ahead. Hi. Thanks for the opportunity. I have a couple of questions. First, can you help me to understand, as I see average length of stay of patient has been fallen below four days. I think this has been the first time when it is below four days. So can you help me to understand whether this is going to be new consistent below four days or how we should look at it? Is it one-off? If you can help to understand on this part. I think it is reflecting in the overall strategy of first when the new hospitals are ramping up. The ALOS in those new hospitals is lower than the group ALOS we used to have earlier. For the pure fact that there is very less percentage of government patients in these new hospitals. Government patients typically, traditionally tend to have had higher ALOSes because they come for critical care, they come for a lot of medical management procedures. I think as the new hospitals are ramping up and also being reflected in the higher ARPOB growth in the new hospitals. So I think it is a reflection of that, and I think going forward also, I think it should be closer to the numbers of the ALOS that we have had this quarter. To add on, the way we are moving towards the surgical mix in the new hospitals is actually demonstrated on lowering of the ALOS overall from lesser than four days. Understood. Sir, apart from this, how do you see competitive intensity with regards to your Delhi Model Town hospital? As I understand, I think 50 new beds have been added in Model Town hospital. But overall, how do you see this competitive intensity and how you are seeing that you can increase your rates for procedures or any new procedures you are adding to that hospital since it is in its ramp-up stage. Ramp-up stage. Delhi, the area where we operate, there are two, three big players within the range of 10 kilometers. I will tell you, Delhi population moves within two, 3 km of range. The area where we are is very densely populated and very affluent class are there. It is a huge opportunity for us to have a complete tertiary or quaternary care facility. In fact, very soon, we are going to have entire spectrum for oncology treatment, also the transplant program. Of course, team is working on, still onboarding the few eminent doctors on the various specialties. I believe we are very confident the way Delhi is coming up, and as you stated, within 15- 16 months, Delhi will be an operational break-even. The thought process in Delhi is that to take it up absolutely different level as a setting up a complete quaternary care center in that region. Sir, just a couple of bookkeeping questions. Can you share payer mix for this quarter? The pay mix is, government pay mix is close to 40% for the overall company for this quarter. Obviously, as I said, in newer hospitals, it is close to not more than 10% of the government business there. Sir, has the government mix increased? Because last quarter, what I remember, the insurance and cash were 32/32, that means government was 36, and now you said 40. Has government mix increased? The volume has not increased. I think the impact is 1%-2% of the price revision of the CGHS rates that the government did recently. Because of that, I think there would be an increase of around 2% or in terms of the overall revenue of the government business. But volumes are constantly decreasing quarter-on-quarter for us. That's why ALOS has decreased. Understood. Okay. Sir, one last question, if I can squeeze in. This is the last one. I wanted to understand, PAT margins have impacted severely. Any one-off or anything you would like to highlight the way we should look at PAT margins going forward? Because it has been a severe dip. I understand we are in a ramp-up phase, but no new hospital has been operationalized in this quarter, yet census beds have been added. How one should look at the PAT margin going forward? Thanks. If you see now, we are adding hospitals. Okay, so this year we have a plan to add a Gurgaon hospital. Okay, so there is a pressure of interest cost. This only will add up to the PAT margin. That's it. There's no other impact. If you see what the guidance we are giving for the EBITDA, we are touching approx 24%-25% EBITDA margin as per the guidance. Yeah. I think it is because we have done certain high CapEx over the last few months, as far as the acquisition of Gurgaon and the construction is going on. Also we have recently ordered for oncology machines for both Faridabad and Model Town. A lot of CapEx has been done in this quarter, and a bit of a debt increasing since FY 2026. That is why the interest cost is higher for that. Going forward, obviously, this will stabilize, including the depreciation, which was quite high for quarter one. So furthermore pressure on the margins, or this is the range we should expect going forward for near term, at least? I think the pressure should decrease from here going forward. Because this much high CapEx is not being planned anytime for any of the coming quarters soon. Got it, sir. Got it. Very clear. Understood. Thank you. Thank you. The next question comes from the line of Disha Parakh from Sunidhi Securities & Finance Limited. Please go ahead. Hello. Am I audible? Hello. Yes, please go ahead. Yeah, I had two questions. Could you help us understand by when the recently acquired units are expected to turn margin accretive and start contributing positively to overall profitability? I think we've already mentioned that as far as operational breakeven is concerned, Faridabad Sector 20 has achieved it in this quarter, and Model Town hospital is on track to achieve it somewhere between Q3 and Q4 of H2. We have also just said that in 15-18 months, we do expect, after breakeven, the hospitals to reach around 15%-20% of EBITDA margins. I think the EBITDA of these hospitals will only reduce from here on and the margins should expand further, because even technically, Gurgaon hospital will still not be live for the remaining of this financial year. That's why we feel the pressure on the margins would reduce from here on. Okay, and my second question was, separately, we've noticed the occupancy rate at the New Delhi unit remained on the lower side. Could you share the underlying reason for this? Was it driven by specific demand generation challenge or any other operational factors at play? I think it's a repeat of the earlier question. As we mentioned that the occupancy counted on Model Town of the number of beds, those census beds have increased in this quarter. Technically, occupancy has also increased. It's not decreased. That's one thing. Second thing is, it is pretty much on a line as far as guidance is concerned. We're quite happy with the progress. We're quite happy with the payer mix and the high ARPOB. Of course, Sector Faridabad 20 has outperformed and over passed our expectations. But Model Town also will be in line in the coming quarter as far as breakeven is concerned. Okay. Thank you so much. That will be it. Thank you. The next question comes from the line of Vidhi Shah from CRK. Please go ahead. Vidhi, can you hear me? As there is no response, we will move on to the next question. The next question comes from the line of Vedant Kabra from AVN Capital. Please go ahead. Sir, congratulations on a wonderful set of numbers. I just had one question on the margin front. You have given breakeven per hospital, but I wanted to understand the group-level picture. Given that Model Town has guided to breakeven in H2 and the other new hospitals are still ramping, at what point do you expect consolidated EBITDA margins to convert back to the 28% mark? Is that an FY 2028 exit story? I think there has never been a guidance for us at a consolidated level, the EBITDA margins to be 28%, because as we earlier mentioned, that we will continue to add new hospitals. So once New Delhi and Faridabad 20 are contributing significantly to the EBITDA margins, there would still be Gurugram, which is going live. Then there are a few more acquisitions which will be happening in the coming years. We have always mentioned that I think upwards of 24% is what we are targeting for the EBITDA margin this year. I think going forward, yes, a percentage up or so in few years is expected, but we are not targeting a 28% EBITDA margin anytime soon, even at the consolidated group level. So sir, if you could give a quantification on the possible operating leverage. For example, for a hospital like Faridabad Sector 20 that just hit breakeven, as it goes from today's occupancy to, say, a mature 70%, roughly what incremental EBITDA margins do those additional patients carry? So whatever the occupancy the hospital is working right now. Incremental EBITDA, let's say we talk about the 70% occupancy, incremental EBITDA will be around 22%-23% EBITDA. Okay, sir. Got it. And sir, on the CapEx front, now that we want to go to 5,000 beds, what new geographies are we looking at, and do those geographies also have higher ARPOB like the Gurugram branch? Yeah, that's pretty much the strategy ahead that we will be looking for metro cities and big cities where the potential to reach a INR 50,000 ARPOB is there. We are identifying assets. We feel that there's still room within the NCR market and within the cluster where we operate to further add more beds there, as well as identify new clusters or new metro and big cities. Let's say U.P. has been coming up very well as far as that is concerned. There's capital cities of Rajasthan and Haryana, which still has huge potential. And that's what the upcoming areas for expansion could be. Okay, sir. Got it. That's all from my side. Congratulations once again, and all the best. Thank you. The next question comes from the line of Anuj Kashyap from A3 Capital. Please go ahead. Hello. Good morning, team. Am I audible? Hello. Yes, please go ahead. Sir, I wanted to know, what are the attrition numbers regarding the doctors and the ancillary staff we have? Do we keep the record of it? We have attrition rate of nearly 7% overall at a group level. Even at the senior- Okay. Go on. At the senior level, I think the attrition as far as senior doctor is concerned, it's even lesser than this because, yes, there is certain movement of doctors, especially within the NCR, which is happening, but in terms of the total number within a unit of the hospital, that's very less that moves. I think attrition within the senior doctors is not even 3%-4%, and at the overall doctor level it is 7%. It has come down significantly for us, by the way, in the course of few years, because now we're doing DNB courses where let's say even a junior doctor tend to stay in the hospital for three years as part of his degree. Earlier, we were not having these programs, so we used to have lot of JR, SR which constantly move. Today, that has helped us to reduce our overall doctor attrition of close to 7%. That is good for us. Sir, why I was asking this question, sir, because we have come with an option for ESOPs for our senior teams or the doctors. Sir, what is the right way of keeping the team intact? How Yatharth as an institution rewards its doctors by its way of It is basic monetary or like ESOPs or something else it is? What works for us? I think ESOPs is definitely something that we've recently started, which does help in it because sometimes lot of star talent within the clinical and non-clinical, certain people are already on ESOPs within their other organizations, right? Today, as date and age, it has become a necessity rather than a must-to-have to attract and also retain top talent. Also, it's not always about monetary and ESOPs. What also helps us to retain star and clinical doctors, it's about just pure freedom for them to govern the departments and practice the way they want. There's no typical P&L pressures on certain of these doctors, which is quite contrary to the other organizations within the regions where we operate. That does help us, and we always pitch to doctors ourselves as a very doctor-friendly organization, which easier said than done. It does mean a lot to doctors and clinicians of the level and the respect that they deserve, and it does help us in philosophy to also retain them for a long time. Thank you, sir. That was very detailed answer. Best of luck for the future, sir. Thank you. Thank you. The next question comes from the line of Akshaya Shinde from Centrum Broking. Please go ahead. Thank you for the opportunity, and congratulations on strong Q1 performance. My question for today, the newer hospitals. The newer hospitals are currently operating at an ARPOB of around INR 50,000 per patient per month. With the increasing focus on international patients and the additional [inaudible] How do you see ARPOB evolving- Sorry to interrupt, ma'am. As your voice is not clear, may I request you to please use a handset? One second. Am I audible now? No, ma'am. Am I audible? Is it clear? Yes. Yes. Please go ahead. Okay. With respect to the newer hospital, which is now ARPOB is around INR 40,000 to INR 50,000, and going ahead, the initiatives like focusing on international patient flow, addition of advanced technologies such as LINAC, how do you see the ARPOB evolving over the next two to three years? I think we have maintained that ARPOB will continue to grow somewhere between 8%-10% YoY from each year. We are well on track for that. That is also expected for this fiscal year. Okay. Additionally, what EBITDA margin levels do you expect these hospitals to achieve by FY 2028, 2029? Most of them are at EBITDA breakeven level. Yeah. I think within two years from today, I think the new hospitals should be even upwards of 25% of EBITDA margin, somewhere around- 26%, 27%, just like our existing mature units. And we are quite confident of achieving it with the performances that we have already seen from the recent quarters in these new hospitals. Agra is already close to 20%-23% of EBITDA margin, and there it would be even much earlier than the two-year number that I just said. Okay. And this strong growth from the newer hospital, can we take as a new base and expect to continue going ahead? Yes. There is still long room way to grow, because there is huge occupancy ramp-up, which yet remains. These are good capacity hospitals. And each year, at least we are going to add one new hospital. Gurugram will be live very soon. I think we want to continue with this momentum- and still continuing to deliver on the high KPIs of higher ARPOB and low government mix for all these new hospitals. Understood. Lastly, do you want to give any revenue growth guidance for FY 2028, 2029 periods? I think what we said that this year will definitely be upwards of last year's revenue growth, and I think that also should be sustainable for the upcoming years ahead of that. Understood. Thank you very much. That's helpful. All the best. Thank you. The next question comes from the line of Prerana Amanna from Equity Research Program. Please go ahead. Yeah. Hello. Am I audible? Yes. Please go ahead. Yeah. Hi, sir. Congratulations on a great set of numbers. My question was, you had given in last quarter's PPT that you have a target to reach 5,000 beds in the next three years, that is by FY 2029. Can you confirm the same or are you going to increase the timeline to operationalize these beds? Will it be five years or will it be three years, that is by FY 2029? I think it should be even less than three years. We did mention last time around three years. As we also mentioned that we will be surpassing that target much earlier, as 3,200-bed capacity is already visible and it is already announced. I think the remaining capacity would be much faster. We have always in the past achieved in lesser time the capacity expansion that we have planned. Definitely it could be lesser than three years, probably somewhere around two and a half years, I think would be a right estimation. Okay. Wow, that is impressive. The other thing is, are we going to see any more acquisition in this year? We are in talks for certain assets. We are in talks for certain good and premium assets with good and high ARPOB potential. We have always maintained that it is not just the geographies that we want to stay in, but also typically in the cities where we operate. We tend to have largest capacities in those cities. In Agra, when we went, we acquired the best infrastructure of that city. So is the Jhansi- Orchha hospital, and also at NCR. All acquisitions have been on that playbook. We are in talks right now for capital cities within nearby states. We have always said in the past that we like to add one new hospital at least each year. On that basis, I think this financial year should see an addition of one new asset. Okay, sir. Thank you so much. Thank you. The next question comes from the line of Virat Pansuriya from Skyridge Wealth Management. Please go ahead. Hello. Am I audible? Yes. Please go ahead. Yeah. Over the last three years, your CapEx per bed has gone up from INR 30.7 lakh to, I guess, INR 61.4 lakh. I just want to understand what was the reason behind it, and what should we project the CapEx per bed to be for, let's say, for the next 1,800 beds that you will add. For 1,800 beds that we are going to add, I think the CapEx per bed should be around INR 75 to INR 80 lakh CapEx per bed, which includes the greenfield, the brownfield, the acquisitions. It also includes certain lease-based asset-like models that we are in talks with. In the past, why it was much lesser? See, those were the times when certain of these hospitals were not even fully equipped with the high-end oncology machines or all the equipment. Started off small, so these hospitals slowly ramped up in CapEx. Even the land of the Noida cluster of hospitals that we purchased was way back when the prices was much lower. The recent prices today in the cities where we operate has extremely grown. If we are to construct a same hospital today that we did in Noida cluster around seven, eight years back, I think it would cost us similar to this amount of INR 70 to INR 80 lakh CapEx per bed only. In Gurugram, we are constructing, and that is almost a INR 1 crore CapEx bed for us. So I think that this is the reason and obviously it is the equipment and the higher land prices and also the scale and size of the hospital today that what the brand deserves is the reason for this high CapEx per bed. What would be the mix of equity and debt structure going forward for the remaining CapEx that we have for the next three years? Sorry to interrupt, sir. May I request you to please rejoin the queue for any follow-up questions. Thank you. I will be giving the answer. I would like to give the answer on that front. Okay. If you see about it, we have a debt in our books in the March of nearly around INR 210 crore, which is now being increased to around INR 300 crore. Basically, it has increased because we have partly taken the acquisition fund from the debts around INR 80 crore. However, the rest of the money we have paid through our internal accruals. That has been utilized in that front. We believe that going further, we will be utilizing our internal accruals towards the acquisition and maintaining the maintenance as a growth CapEx. With the requirement in our existing hospitals. As far as we feel quite comfortable with the debt. We still have long room way to take debt. I think somewhere around 2x of the trailing last 12 months EBITDA at a group level we are comfortable with that debt level even in the times ahead. I think we have enough internal accruals, we have cash, we have debt to fund easily the CapEx for this 1,800 beds remaining. Thank you. Thank you. Ladies and gentlemen, you are requested to restrict your questions to one question per participant. I repeat, you are requested to restrict your questions to one question per participant. We have the next question from the line of Bhagwat from Prosperity Wealth Management. Please go ahead. Thank you for the opportunity. Just one quick question. Considering the addition of the assets from the recent acquisitions, what should be the expected depreciation for current year? Should we expect similar to Q1 numbers to continue for the year? If you see, sir, for depreciation, I was looking around INR 28 crore-INR 30 crore, okay? The same trend will maintain. As and when we added the Gurugram facility, then there is a marginal increase in depreciation at a group level, group consolidated level. The trend we are projecting right now is around INR 29 crore per quarter. That we expect to continue for the next three quarters of the year? Yeah. For next three quarters because we are not going to add Gurugram in this financial year. It is more or less close to the March or the first quarter of FY 2028. Okay. And that fixed asset that we have around INR 1,200 crore. So this is the expected depreciation, right? Which one? Can you please repeat the question? In the balances, so we have around INR 1,200 crores fixed assets considering the recent acquisitions. So considering that fixed asset, the estimated depreciation will be around INR 29, INR 30 crore per quarter. Yeah. INR 29, INR 30 crore per quarter. Okay. Including all the new acquisitions there. Okay, right. And the interest cost is going to continue similar that we have in Q1 for the year? If you see now, we have reported around interest cost of last quarter is INR 5 crore. This quarter we have reported around INR 6.6 crore. Okay. The same will continue as we are not going to take any fresh loan further. Okay. Thank you for that. Thank you. Thank you. We will take the last question from the line of Vicky Waghwani from Guardian Capital. Please go ahead. Hello, sir. Congratulations on great set of numbers. I had two questions. First, if you could please share progress on brownfield expansion in Noida, extension in Greater Noida, and their timelines, please, if you can reiterate. I think the Greater Noida construction is up and kicking. The architecture drawings and the maps have all been approved. As you can understand in Delhi NCR, monsoons are happening right now. The construction is just a bit delayed due to the rains. As soon as that season ends, the construction will be fully back live. Similar is the trend for Noida extension. We are evaluating all the final drawings and the structural layout. We feel, as mentioned earlier in the call, somewhere around 15-18 months the capacity will start coming live for the brownfield capacity expansion. Great. Thank you. Sir, second question was, other expenses as a percentage of sales has increased. Our gross margin COGS have declined, but other expenses have increased. Is there some one-off change in accounting practice? You are discussing for the Q1 now. If you see, our doctor cost has been increased by 2%. That is the only change. If you see, there is only change of 2% quarter-on-quarter, and that is only because of the doctor cost. It is a component of other expense. Yeah. It is specialist charges that you think? Yeah. It is specialist charges. We haven't generated doctors. Okay. Thank you so much. Thank you. We will take that as the last question, and I would now like to hand the conference over to the management for closing comments. Thank you, and over to you. Thank you everyone for your questions and attending the earnings call of Yatharth Hospital. Thank you. Thank you. On behalf of Systematix Institutional Equities and Yatharth Hospital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.