Yatharth, Fortis jump up to 4%, record new highs; what triggered the rally?

Business Standard

4 days ago

Fortis Healthcare, Yatharth Hospital & Trauma Care Services shares price today
Shares of Fortis Healthcare and Yatharth Hospital & Trauma Care Services (Yatharth) hit their respective new highs on the BSE in Thursday's intra-day trade in an otherwise weak market.
Shares of Fortis Healthcare rallied 4 per cent to ₹892.70, while the stock price of Yatharth gained 2.4 per cent at ₹719 on the BSE. In comparison, the BSE Sensex was down 0.18 per cent at 80,395 at 09:32 AM.
In the past six months, the stock price of Yatharth has zoomed 66 per cent and of Fortis 35 per cent, as against 3 per cent rise in the benchmark index. CATCH STOCK MARKET LATEST UPDATES LIVE
What's driving hospital stocks?
Fortis Healthcare and Yatharth reported strong earnings for the quarter ended June 2025 (Q1FY26).
Fortis Healthcare on Wednesday reported a 53 per cent year-on-year (Y-o-Y) rise in consolidated net profit for Q1FY26 at ₹266.78 crore, up from ₹173.98 crore in the same period last year. Revenue from operations rose 16.6 per cent to ₹2,167 crore in Q1FY26 from ₹1,859 crore in Q1FY25.
Consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 43.2 per cent Y-o-Y to ₹491 crore, with the Ebitda margin improving to 22.6 per cent from 18.4 per cent a year earlier.
Fortis attributed the growth to strong performances in both its hospital and diagnostics businesses. In the diagnostics business, the company witnessed a strong recovery in both revenues and EBITDA margins which is reflective of the brand building initiatives undertaken over the last few quarters. The management expects this growth momentum to continue going forward.
Meanwhile, Yatharth has reported 40 per cent Y-o-Y jump in profit after tax at ₹42.5 crore. EBITDA at ₹64.5 crore, was up 20 per cent Y-o-Y and 13 per cent quarter-on-quarter (Q-o-Q), reflecting 13 consecutive quarters of EBITDA growth. EBITDA margin improved 41 bps Q-o-Q to 25.0 per cent. Operating revenue was at ₹257.8 crore, up 22 per cent Y-o-Y and 11 per cent Q-o-Q. Bed occupancy increased to 65 per cent, from 61 per cent in Q1FY25.
With the Model Town and the Faridabad facility, having a combined capacity of 700+ beds, the management expects to further accelerate the company's growth momentum from Q2FY26 onwards.
Future Outlook
In the coming years, healthcare delivery in India is expected to be primarily shaped by technological advancements and the growing adoption of digital health solutions by both providers and patients. This transformation will be fueled by shifts in mindset, advancements in technology, infrastructure development, government initiatives, and more. Key government programs, such as the Ayushman Bharat Digital Mission (ABDM) and e-Sanjeevani, are laying the groundwork for a digitised healthcare ecosystem. At the same time, private sector players are exploring digital technologies like robotics, telehealth, AI, and 5G to offer technology-driven care to their patients.
Overall, the Indian healthcare industry has maintained robust growth momentum and is poised for continued expansion, fuelled by strong government support, rising private sector investments, technological advancements, and a steadfast commitment to enhancing healthcare access and affordability for all segments of the population, Fortis Healthcare said in FY25 annual report.