Yatharth Hospitals shares rally 10% to fresh record high as Advent set to acquire 25% stake; stock up 20% in two days

Shares of Yatharth Hospital & Trauma Care Services rallied sharply over 10% on Friday, extending gains from the previous session after US-based private equity firm Advent International announced that it will invest Rs 3,150 crore to acquire a 24.9% stake in the Indian hospital chain.

The company's shares jumped to a fresh all-time high of Rs 1,184 apiece on NSE on Friday morning, breaking the previous record made just yesterday. The stock has gained 20% in just two days since the stake acquisition was announced.

Also read | Advent inks pact with Yatharth Hospital to invest Rs 3,150 crore for 24.9% stake

Advent to pick 25% stake in Yatharth Hospitals

Advent International on Thursday announced that it entered into a definitive agreement with Yatharth Hospitals to invest Rs 3,150 crore of primary capital to acquire a significant minority stake of 24.9% in the latter, subject to customary closing conditions.

After the investment, Yatharth Hospitals’ promoter, the Tyagi Family, will remain the largest shareholder and continue to guide the company’s long-term vision, alongside a strong leadership team of healthcare and business professionals, the companies said in a joint press release. The transaction marks a pivotal milestone in Yatharth Hospitals’ growth journey and reflects Advent’s confidence in the company’s differentiated healthcare platform, strong clinical capabilities, scalable operating model, and experienced management team, the press release further said.

Yatharth Hospitals has built one of North India’s leading healthcare networks, operating nine multi-speciality hospitals with around 2,800 beds and an overall announced capacity of nearly 3,250 beds. Speaking about Advent’s stake acquisition, Yatharth Hospitals Whole-time Director Yatharth Tyagi said it marks a pivotal milestone in the company’s journey and helps validate the strength of our platform and long-term vision. Beyond capital, Advent brings deep healthcare expertise, global insights, and a strong value-creation mindset that will help speed up the Indian hospital chain’s next phase of growth, he added.

“Together, we aim to expand our reach, strengthen our capabilities, and build one of India’s leading healthcare networks while remaining committed to delivering high-quality outcomes for patients,” Tyagi further said.

Advent MD Pankaj Patwari, meanwhile, said the investment underscores the US-based private equity company’s deep and long-standing commitment to India’s healthcare sector, which it believes is entering a decade of structural growth as access expands, quality improves, and consolidation advances. “We are pleased to partner with the Yatharth family, bringing our global healthcare expertise and experience investing in founder-led businesses to help support and accelerate the Company’s next phase of growth,” he wrote.

Advent has been a big backer of Indian pharma companies but has, so far, not made an investment in the hospitals sector other than a 2012 investment in Care Hospitals. Aster DM Quality Care was formed by a mega merger of Moopen family-founded Aster DM Healthcare and Quality Care India, unifying four healthcare brands — Aster DM, CARE Hospitals, Evercare and KIMSHEALTH. It also saw two of the biggest PE groups, TPG and Blackstone, join forces to create the country’s second-largest healthcare chain.

For the first quarter ended June, Yatharth reported a 51% year-on-year increase in consolidated revenue to Rs 392.70 crore. Average revenue per occupied bed was Rs 34,758, up 7% from a year ago. Whole-time director Yatharth Tyagi recently told analysts on an earnings call that the hospital chain grew at 37% in FY26 and is set to “easily surpass that growth” this year.

Also read | Advent International joins India’s hospital gold rush with Rs 3,150 crore Yatharth bet

Yatharth Hospital share price

Shares of Yatharth Hospital have delivered strong returns for its investors, jumping more than 70% in 2026 so far. After hitting a 52-week low of Rs 538.25 apiece, the stock more than doubled in less than eight months to hit a fresh record high of Rs 1,184 apiece today.

In the longer term, Yatharth Hospital shares have jumped around 46% in one year and more than 203% in three years. The company has a market capitalisation of around Rs 11,163 crore.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.