Yatharth Hospital & Trauma Care Services shares rallied nearly 6% to a fresh high of ₹1,024.95 on Friday, August 28, following reports that Advent International and Blackstone-backed Aster DM Quality Care were in discussions to acquire a controlling stake in the hospital chain. According to Business Standard, the stock hit a new peak with 1.12 million cumulative shares changing hands on the exchanges as of 1 PM. The stock was trading 2.20% higher at ₹991.60 at the time of writing, while the BSE Sensex was up 0.16% at 77,053. Yatharth Hospital denied being engaged in sale discussions, while the stock has gained around 50% in 2026 and has delivered multibagger returns of more than 167% in three years.
A transaction involving a controlling stake would trigger an open offer for an additional 26% of the company under takeover regulations, as reported by Business Standard. Yatharth's promoters currently hold 55.80% of the company as of the June quarter. Depending on the response to the open offer, the acquirer could eventually hold more than 75% of Yatharth. For Aster DM Quality Care, a potential acquisition would strengthen its presence in North and Central India, supporting its ambition to become India's largest listed hospital company within three to four years. The existing promoters may retain a sliver of ownership, but final negotiations are still underway with no guarantee that talks will lead to a transaction.
For Q1 FY27, Yatharth Hospital reported impressive financial results with consolidated revenue increasing 51% year-on-year to ₹392.70 crore, as reported by The Economic Times. PAT rose 8% YoY to ₹45.4 crore, while EBITDA reached a record ₹91.7 crore, up 39% YoY and 15% QoQ. EBITDA margin (adjusted for ramp up losses) stood strong at 28.1%. The company's average revenue per occupied bed rose 7% year-on-year to ₹34,758. The company currently has a market capitalisation of around ₹9,676 crore.
According to The Economic Times, whole-time director Yatharth Tyagi indicated the company grew 37% in FY26 and expects to easily surpass that growth in FY27. The company is on track to achieve an EBITDA margin of more than 24% in FY27. Yatharth is expanding its presence in Agra and operates hospitals across key regions including Noida, Greater Noida, Noida Extension, Greater Faridabad, New Delhi, Gurugram and Jhansi-Orchha in Madhya Pradesh, with an overall announced capacity of around 3,250 beds across its expanding network. The company is targeting a total capacity of over 5,000 beds in the next three years through new facilities and expansion.
Krathi Bathini of Wealthmills Securities noted that the merger ratio will be extremely crucial in determining the attractiveness of the deal. As reported by Business Standard, "Aster has been steadily increasing its presence in the South and is now looking to expand into the North, and its recent acquisition activity suggests that the company is on the prowl for opportunities to scale up in healthcare." Bathini believes the merger could be strategically positive as it would increase Aster's presence, brand and reach, while also creating opportunities for doctor exchanges and improving the quality and depth of its clinical talent. "There could also be significant economies of scale across operations. Overall, the opportunity looks interesting, but the key factor to watch will be the merger ratio and the terms of the transaction," he opined.
