Shares of Yatharth Hospital & Trauma Care Services Ltd fell sharply in Monday's afternoon trade, shortly after the company reported its March 2026 quarter (Q4 FY26) results. The stock tumbled 7.18 per cent to hit a day low of Rs 801 despite the hospital chain posting record year-on-year (YoY) revenue growth.

The decline in the stock appeared to be driven by margin pressure during the quarter, despite improvement in profit and revenue on both annual and sequential bases.

During the period under review, profit after tax (PAT) rose 15 per cent YoY to Rs 44.7 crore from Rs 38.7 crore in the corresponding period last year. Sequentially, PAT increased 4 per cent from Rs 43.1 crore in Q3 FY26.

Revenue from operations surged 47 per cent YoY to Rs 341.6 crore in Q4 FY26 compared with Rs 233 crore in the year-ago period. On a quarter-on-quarter (QoQ) basis, revenue climbed 6 per cent from Rs 321.4 crore in Q3 FY26.

EBITDA advanced 37 per cent YoY and 6 per cent QoQ. However, EBITDA margin contracted 161 basis points (bps) YoY to 23.4 per cent in Q4 FY26 from 25 per cent in the same quarter last year.

The company, however, said EBITDA margin adjusted for ramp-up losses stood at 30.4 per cent during the quarter. Adjusted PAT, excluding ramp-up losses, grew by 23.3 per cent YoY.

"Existing hospitals continue to demonstrate strong profitability improvement, driven by operating leverage and improving mix. Agra hospital remained EBITDA positive (>15 per cent) in Q4," Yatharth said.

The company also highlighted that the group continues to maintain a strong balance sheet with disciplined capital allocation.

Commenting on the earnings, Yatharth Tyagi, Whole Time Director at Yatharth Hospitals, said, "Our newer hospitals at Model Town (New Delhi), Faridabad Sector-20, and Agra have demonstrated a rapid scale-up, contributing meaningfully to the Group's revenues within a short span of operations. The successful integration of the Agra facility has further strengthened our regional presence, while the Group’s entry into Gurugram with a 250-bed ultra-modern, high-end hospital enhances our positioning within the NCR market."

Yatharth Hospital further stated that its operating cash flows stood at Rs 286.6 crore during FY26, with a cash conversion ratio of 98 per cent.