Asarfi Hospital Q2 Net Profit Jumps 45% to ₹6.1 Crore as Operating Margins Reach 15.3%

Key numbers

P/E TTM	21.97Sector 36.21
Market Cap	₹366 CrSmall Cap
Promoter Holding	61.18%Zero Pledge
RSI	50.85Neutral Zone

Key highlights

• Net profit surged by 45.2% YoY to ₹6.1 crore and climbed 41.9% on a sequential basis
• Revenue from operations grew 18% YoY to ₹53.0 crore, up from ₹44.9 crore in Q2 FY26
• Operating margins expanded to 15.3%, a significant improvement from 11.9% in the preceding quarter
• Profit before tax stood at ₹8.2 crore for the quarter, compared to ₹5.7 crore in Q1 FY27
• The company maintains a high Piotroski Score of 9, indicating strong financial health and operational efficiency

Operational Growth and Margin Expansion

Asarfi Hospital's operational performance in Q2 FY27 was marked by a steady rise in patient service revenue, which crossed the ₹50 crore threshold for the first time in a single quarter. Total income reached ₹53.7 crore, up from ₹48.1 crore in the June quarter. This growth was accompanied by effective cost management, leading to a jump in operating margins to 15.3%.

The company's focus on high-margin healthcare services and operational efficiency in its Dhanbad-based facilities has contributed to the profit before tax increasing to ₹8.2 crore from ₹5.7 crore on a sequential basis.

Financial Position and Credit Milestones

• The company reported a consolidated half-year net profit of ₹10.36 crore as of September 30, 2026
• CRISIL upgraded the company's long-term rating to 'CRISIL BBB/Stable' on October 8, 2026
• The short-term credit rating was assigned at 'CRISIL A3+' for ₹60 crore in bank debt facilities
• Total assets for the consolidated entity stood at ₹211.72 crore as of the end of the first half of FY27
• Interest coverage remains healthy with finance costs for the quarter at ₹1.27 crore

Vision 2027 and Sector Performance

The quarterly performance aligns with management's 'Vision 2027' roadmap, which targets scaling annual revenue to ₹200 crore and achieving a PAT margin of 13%-15%. Asarfi Hospital currently trades at a P/E of 21.97, which is considerably lower than the healthcare facility industry average of 67.63. The company’s PEG ratio of 0.48 suggests its valuation is well-supported by earnings growth.

Compared to the broader healthcare sector, which has seen varied results in recent cycles, Asarfi's steady 18% YoY revenue growth reflects a consistent demand for organized healthcare services in its primary markets.

Segmental Reporting and Subsidiaries

• The company operates under a single reportable segment, which is Hospital services
• Consolidated results include the financial performance of its subsidiary, Asarfi Educational Foundation
• Employee benefit expenses for the quarter reached ₹7.75 crore on a consolidated basis
• Depreciation and amortization expenses were reported at ₹3.06 crore for the quarter
• Tax expenses for the quarter stood at ₹2.15 crore, including deferred tax adjustments

What to watch next

• Scaling operational capacity toward the 500-bed target under the Vision 2027 plan
• Progress on the PAT margin target of 13%-15% by the end of FY27
• Q3 FY27 financial results announcement expected in February 2027

Asarfi Hospital · financial snapshot

Share price	₹186
Market capitalisation	₹366.00 Cr
Revenue (annual)	₹173.50 Cr
Net profit (annual)	₹16.66 Cr
Revenue (latest quarter)	₹47.53 Cr+5.06% vs previous quarter
Net profit (latest quarter)	₹4.27 Cr+8.90% vs previous quarter
P/E (TTM)	21.97×Sector 36.21×
Promoter holding	61.18%+0.01% QoQ
FII holding	0%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.