Synopsis: Asarfi Hospital jumped sharply after reporting a stellar financial performance in this quarter. The company also gave a solid outlook of its future, strengthening its margins and hitting a revenue of Rs 200 crore by FY27, which the company calls Vision 2027.
The shares of this leading healthcare solutions provider are in focus after reporting a robust Q2, along with strong expansion plans. In this article, we will dive deeper into the details of this.
With a market capitalisation of Rs 394 crore, the shares of Asarfi Hospital Ltd closed at Rs 200 per share on Friday, down 0.50 percent from its previous day’s closing price of Rs 201 per share. In the last one year, the stock has delivered a robust return of 137 percent, outperforming NIFTY 50’s return of 12 percent.
Q2 Highlights
Asarfi Hospital reported a core revenue of Rs 44.89 crore in Q2 FY26, a growth of 45 percent as compared to Rs 30.86 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 26 percent from Rs 35.68 crore.
Also, it reported an EBITDA of Rs 8.87 crore in Q2 FY26, a growth of 31 percent as compared to Rs 6.76 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 27 percent from Rs 7 crore. However, its EBITDA margins declined by 200 bps to 20 percent in Q2 FY26 YoY.
Regarding its profitability, it reported a net profit of Rs 4.2 crore in Q2 FY26, a growth of 47 percent as compared to Rs 2.85 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 34 percent from Rs 3.12 crore. However, its profit margins didn’t improve but rather stayed flat during the period.
Segment Highlights
The company operates through two segments, one through the Super Speciality Unit and the other through its Cancer Hospitality unit.
In H1 FY26, its Super Speciality Unit derived a large 28 percent revenue from the Cardiology segment itself, followed by 16 percent with Neurosciences, 12 percent with General Medicine, 8 percent with General Surgery, Orthopaedics with 7 percent, 5 percent each with Paediatrics & Neonatology, Obstetrics & Gynaecology, and Gastroenterology, and the remaining 14 percent from others.
On a KPI basis, its Average Revenue Per Occupied Bed (ARPOB) surged by 14 percent to Rs 20,247 in Q2 FY26 as compared to Rs 17,768 in Q2 FY25. It has a total capacity of 265 beds in its multispecialty unit. Also, its bed occupancy rate increased by 300 bps to 64 percent in Q2 FY26.
In H1 FY26, its Cancer Hospital Unit derived a large 54 percent revenue from the Medical Oncology segment itself, followed by 15 percent with Surgical Oncology, 18 percent with Radiation Oncology, and the remaining 12 percent from others.
On the other hand, its Average Revenue Per Occupied Bed (ARPOB) surged by a staggering 121 percent to Rs 50,614 in Q2 FY26 as compared to just Rs 22,904 in Q2 FY25. It has a total capacity of 65 beds in its cancer hospital unit. Also, it bed occupancy rate increased by a staggering 1,800 bps to 46 percent in Q2 FY26.
Management Guidance
Asarfi Hospital has laid down an ambitious Vision 2027, aiming for a revenue of Rs 200 crore (which is a growth of 72 percent from its current FY25 topline), EBITDA margins in the range of 25–27 percent, and PAT margins of 13–15 percent within the next two years.
The firm intends to increase its total bed capacity to 500 from 330 beds by expanding the superspecialty hospital capacity from 265 to 350 beds and the cancer hospital capacity from 65 to 150 beds. This expansion is intended to satisfy the increasing patient demand while sustaining high operational efficiency and service quality.
Additionally, the hospital is broadening its portfolio and investing in the growth areas of the future. To support oncology care, the hospital intends to establish a Bone Marrow Transplant unit and is open to partnering with other healthcare providers in the region.
Asarfi is building a Healthcare Management & Research Institute in Ranchi that is expected to offer courses from FY28, and a 600-bed hostel that will be ready by FY27 in the education segment. Moreover, the company is at the stage of getting approval for institutes in Legal Education and Management & Technology, thus further expanding its presence beyond healthcare services.
Competitive Advantages and Other Highlights
Asarfi Hospital has built a strong reputation in Jharkhand’s healthcare sector, serving over 30 lakh people with a team of 95+ medical professionals. It is the only cancer hospital in Dhanbad and one of just three in the entire state, giving it a major regional advantage in an underserved market. With rising healthcare demand, low competition, and growing insurance adoption in Eastern India, the hospital is well placed to capture significant growth opportunities.
The hospital also stands out for its technological leadership, being equipped with Jharkhand’s first and most advanced Linear Accelerator radiation machine – the Varian True Beam. Its infrastructure includes modern diagnostic tools, digitized patient records, and a centralized IT system for efficiency. Backed by steady financial growth, healthy margins, and strategic outsourcing of non-core operations, Asarfi Hospital continues to combine innovation, quality, and operational strength to drive sustainable expansion.
Asarfi Hospital Limited, a super-specialty hospital in Dhanbad, Jharkhand, was established in 2005 by Nayan Prakash Singh and Harendra Singh. To bring quality and affordable healthcare within the reach of the community was the primary purpose of its creation. The hospital also offers such services as a mix of treatment and prevention, i.e., vaccination, wellness, and health awareness programs.
The 330-bed hospital, Asarfi, is an NABH and NABL-accredited facility. With the help of the most advanced medical instruments and technology, Asarfi Hospital offers the best possible care through different units such as ICU, CCU, NICU, and a cardiac wing with a Phillips FD10 CATHLAB.
Written by Satyajeet Mukherjee
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