Yashoda Medicity targets break-even in 3 years, plans 600 more beds

Yashoda Group of Hospitals is entering its next phase of expansion with a focus on building a larger referral network across North India, while keeping capital deployment measured. The group is pursuing a brownfield-led strategy to acquire and upgrade secondary-care hospitals, alongside new facilities in Greater Noida and the NCR.
It is also looking at lower-capital formats such as dialysis centres and cancer day-care units. Yashoda Medicity, the group’s flagship facility, is currently operating with 625 beds, with another 600 beds planned in subsequent phases.

The group is also in discussions with the government on potential public-private partnership models. Dr. Upasana Arora, Managing Director, Yashoda Group of Hospitals, spoke to Business Today about the group’s expansion strategy, the economics of Yashoda Medicity, its approach to acquisitions and capital raising, technology investments and the growing role of international patients. Edited excerpts from the interview:
 
BT: Yashoda Medicity is a significant healthcare infrastructure investment. What is the total capital outlay for the project, how is it being funded, and what kind of revenue and occupancy trajectory are you projecting over the next 3-5 years?
 
UA: With Yashoda Medicity, our focus is on long-term, capacity-led investment in building high-quality healthcare infrastructure. The total capital outlay for the project is approximately ₹2,400 crore, including land of 12+ acres, with funding structured through a mix of internal accruals and debt through bank loan. In terms of financial trajectory, we are in the early stages of scale-up. We are projecting revenues of around ₹40 crore per month in the first year, growing to ₹60 crore in the second year and ₹80 crore in the third year. Occupancy is expected to follow a steady ramp-up as specialties stabilise and referral networks deepen across the region.

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Looking ahead, our growth will be supported by expanding our regional footprint across Uttar Pradesh, Bihar, Western UP, Uttarakhand, Haryana and more. We are also developing a new facility in Greater Noida, having 300 beds in collaboration with Bhutani Infra, alongside a Biobank and Research Centre focused on rare diseases, genetics, and personalised medicine.
 
BT: Large hospital projects often take years to become profitable. What are the unit economics of this project, and by when do you expect operational break-even and sustainable margins?
 
UA: Our unit economics are closely linked to patient volumes and operational efficiency. Key drivers for us include OPD footfall, conversion into IPD, payer mix including insurance, and the performance of our Centres of Excellence.

Our patient inflow is anchored in core specialities such as Cancer Care, Cardiac Sciences, Neurosciences, Orthopaedics, Joint Replacement and sports medicine, and Nephrology and Renal Transplant, along with our other key specialities. These segments not only drive volumes but also support stronger realisations and better clinical throughput. As these specialities stabilise and occupancy improves, operating leverage begins to reflect across the system. Based on our current projections, we expect to reach operational break-even within the next 3 years and sustainable margins in the next 5 years, with steady improvement in financial performance thereafter.
 
BT: What is the long-term growth strategy for the group from here? Are you looking at building a larger NCR network, expanding into other cities, or pursuing acquisitions?
 
UA: A significant part of our expansion will be driven through a brownfield-led approach, focused on acquiring and upgrading secondary care hospitals. This allows us to optimise capital deployment, accelerate time-to-market, and integrate these facilities into our clinical and operational framework with greater control. Geographically, our expansion is clearly defined across North, West, Regions in UP, South Delhi with a particular focus on Rajasthan, and East India. Our upcoming 300+ bedded facility in Greater Noida is a key step in this direction, supported by plan for a Biobank and Research Centre focused on rare diseases, genetics, and personalised therapies.

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Within NCR, we will also be coming up with a 150+ bedded hospital and will continue to strengthen our presence through lower capital intensity formats, including dialysis centres and cancer daycare units. These models enable access expansion and stronger referral networks without heavy capital deployment. Medical value tourism definitely remains an important factor for us. With strong clinical capabilities and a clear cost advantage, we see steady growth in international patient inflow.
 
BT: The hospital sector is seeing strong investor interest and consolidation. Is Yashoda evaluating private equity funding, strategic investors, or a possible IPO to fund future expansion?
 
UA: The hospital sector is seeing strong investor interest and consolidation, and we are closely observing these trends. However, at present, we are not evaluating private equity, strategic investors, or an IPO. Our focus remains on steady, disciplined growth driven by internal accruals and strong operational performance. From a strategic standpoint, we are in discussions with the government on potential public-private partnership models, which we believe can play an important role in expanding access while maintaining high clinical standards.
 
BT: NCR is becoming intensely competitive, with aggressive expansion by large listed hospital chains. What differentiated gap in the market is Yashoda trying to capture?
 
UA: We see this as an opportunity to differentiate through depth rather than scale alone. Our focus is on building a strong referral-driven model across North India, positioning Yashoda Medicity as a preferred Quaternary Care Destination for complex cases. This helps improve clinical utilisation and case mix, which is important from a unit economics standpoint.
 
A key differentiator for us is the “hospital within a hospital” model, where each specialty functions as a focused unit with dedicated infrastructure, clinical teams, and defined protocols. This structure enables both clinical depth and operational efficiency within the same ecosystem.

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Geographically, our focus is on strengthening presence across Uttarakhand, Uttar Pradesh, Haryana, Western UP, Delhi-NCR, and North India where there is a clear gap in access to advanced tertiary and quaternary care.
 
Our approach is centred on integration and precision. By bringing together advanced medical technologies, multidisciplinary expertise, and a seamlessly coordinated care model, we are able to improve clinical decision-making speed and overall system efficiency.
 
BT: You are investing in advanced technologies including AI-led diagnostics and robotic systems. How do you evaluate the return on these high-cost investments, and do they materially improve margins, patient outcomes, or international patient inflow?
 
UA: We have made strategic investments in advanced technologies to enhance clinical precision and patient outcomes. In radiation oncology, we have invested over ₹250 crore to build one of South Asia’s most advanced cancer care ecosystems under one roof, including Elekta Unity MR-Linac for real-time MRI-guided radiation, ETHOS with HyperSight & IDENTIFY for adaptive therapy, and EDGE with HyperArc & Exactrac Dynamic for sub-millimetre targeting of complex tumours.
 
In addition, our robotic surgery ecosystem features the da Vinci Xi robotic surgical system, Mako SmartRobotics, Medtronic O-arm and StealthStation Navigation System supported by dedicated training infrastructure and fully integrated Ots. While these are high-cost investments, we evaluate returns not just through direct financial metrics but through a combination of improved clinical outcomes, higher precision, reduced length of stay, and the ability to handle more complex cases.
 
Importantly, advanced technology also plays a key role in attracting international patients, who increasingly seek centres offering cutting-edge, precision-led treatment. While margins are not the primary driver for such investments, they do contribute meaningfully to long-term value creation through better outcomes, higher case complexity, and increased global patient trust.

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BT: Medical value tourism is increasingly important for premium hospitals. Which international markets are you targeting, and how important do you expect overseas patients to be to future revenues?
 
UA: Medical value tourism has seen steady growth over the last few years, with patients from several regions travelling to India for treatment, driven by a combination of clinical expertise, infrastructure strength, and cost advantage compared to developed markets. At Yashoda Medicity, we have actively strengthened our international patient network through more than 150 MoUs and structured medical value travel partnerships. This ecosystem helps us improve patient access, streamline referrals, and ensure continuity of care for international cases.
 
We are currently seeing strong patient inflow from South and Central Asia, including Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Bangladesh, and Myanmar. In addition, we are serving a significant number of patients from Africa and East Africa, including Kenya, Nigeria, Cameroon, Tanzania, Uganda, Sudan, and Gambia, as well as from the Middle East and West Asia, including Iraq, Iran, Oman, and the UAE.

Going forward, we expect international patients to become an increasingly important contributor to our overall case mix, particularly in high-complexity specialties. Our focus will remain on strengthening referral partnerships, improving patient experience, and building structured care pathways to support sustained growth in this segment.
 
BT: Looking ahead five years, what scale do you want Yashoda to reach in terms of revenue, bed capacity, market presence and institutional structure?
 
UA: Over the next five years, our focus is on scaling in a calibrated and sustainable manner. Currently, Yashoda Medicity is operating at full throttle with 625 beds, and with an additional 600 beds to be added in subsequent phases, we are well positioned for the next phase of growth. In terms of financial trajectory, we are targeting monthly revenues of around ₹100 crore as the organisation matures. This will be driven by improved utilisation, stronger referral networks, and expansion of our Centres of Excellence.
 
From an institutional standpoint, our objective is to establish Yashoda Medicity as a flagship referral destination across India, particularly for complex and high-acuity care. The emphasis is on building depth in clinical capability and strengthening our position within the national referral ecosystem rather than pursuing scale alone.  We see our evolution as a strong, professionally governed healthcare institution with a clear leadership position in North India. Future expansion will be guided by clinical outcomes, organisational strength, and long-term stability.