Aster DM Quality Care, backed by Blackstone and TPG, and global private equity firm Advent International are reportedly exploring the acquisition of a controlling stake in Yatharth Hospital and Trauma Care Services, according to ET. The potential deal has triggered renewed investor interest in the listed hospital chain, with Yatharth shares rising 4.5% on August 28. However, Yatharth Hospital has denied that it is involved in any sale discussions.
Yatharth Denies Sale Discussions
Yatharth Hospital said the reported information was incorrect and that the company was not engaged in discussions regarding a potential sale. Blackstone has also denied evaluating or participating in any transaction involving the hospital chain.
Advent did not respond to queries, while Aster DM Quality Care had not responded at the time of the report.
According to ET, due diligence by Advent and Aster DM Quality Care is reportedly nearing completion. The discussions remain at an ongoing stage, and there is no certainty that a transaction will be completed.
Controlling Stake Could Trigger Open Offer
Yatharth Hospital’s promoters, Ajay Kumar Tyagi and his family, along with Kapil Kumar, collectively hold around 55.8% of the company.
Any acquisition of a controlling stake could trigger a mandatory open offer for an additional 26% stake. Depending on shareholder participation in the offer, the eventual acquirer could potentially own more than 75% of Yatharth.
The promoters could also retain a small stake under the reported structure.
Yatharth Shares Gain Amid Deal Speculation
Yatharth Hospital’s shares have gained around 15.3% over the past month amid expectations of a potential transaction. The stock recently touched a fresh 52-week high of Rs 982.65 and closed at Rs 973.05, giving the company a market capitalisation of approximately Rs 9,462 crore.
On August 28, the stock traded as high as Rs 1,018.50, representing a rise of about 4.5%.
Yatharth Plans Rapid Bed Expansion
Headquartered in Noida and Greater Noida, Yatharth Hospital operates around nine hospitals with a combined capacity of more than 2,800 beds. The hospital chain plans to expand its capacity to more than 5,000 beds over the next three years through new hospitals and expansion projects.
Its network extends beyond Uttar Pradesh to Jhansi-Orchha in Madhya Pradesh and Faridabad in Haryana, strengthening its position across North India.
The company is also expanding capabilities in high-growth areas such as oncology, robotics and transplant care.
Aster Seeks Pan-India Expansion
For Aster DM Quality Care, a potential Yatharth acquisition could accelerate its expansion into North and Central India, where its current presence is relatively limited.
Aster is reportedly more inclined towards a cash transaction rather than a stock-based merger. The company was formed through the merger of Aster DM Healthcare and Quality Care India, bringing together Aster DM, CARE Hospitals, Evercare and KIMSHEALTH.
The combined network comprises around 40 hospitals across 27 cities and is backed by Blackstone and TPG.
Aster Targets 15,000 Beds by FY29
Aster DM Quality Care is pursuing an aggressive expansion strategy. Alisha Moopen, Executive Director of Aster DM Quality Care, recently said the company aims to increase its bed capacity to around 15,000 by FY29 from approximately 10,800 beds currently.
The company is expanding its presence in Kerala and Karnataka while entering markets including Indore, Raipur, Aurangabad and Bhubaneswar.
Aster is pursuing both organic expansion and acquisitions as it seeks to build a larger pan-India healthcare platform.
Strong Financial Performance at Yatharth
Yatharth Hospital reported a 51% year-on-year increase in consolidated revenue to Rs 392.70 crore for the quarter ended June 2026. Average revenue per occupied bed increased 7% year-on-year to Rs 34,758.
Yatharth Whole-Time Director Yatharth Tyagi recently said the hospital chain grew 37% in FY26 and expected to surpass that growth in FY27.
The company is targeting an EBITDA margin of more than 24% in FY27, while average revenue per occupied bed is expected to increase by 9-10%.
Potential Deal Could Reshape Hospital Landscape
If completed, a transaction for Yatharth could significantly strengthen Aster DM Quality Care’s geographic footprint and accelerate its ambition of becoming a pan-India hospital operator.
The potential combination would also provide opportunities to leverage Yatharth’s expansion pipeline and Aster’s capabilities across specialties such as cardiology, oncology, transplantation, paediatrics and neurosciences.
For now, however, both the reported negotiations and the possibility of a transaction remain uncertain, with Yatharth publicly denying that sale discussions are underway.
