Advent International buys ₹3,150 crore stake in Yatharth Hospitals

US private equity giant Advent International has agreed to invest ₹3,150 crore in Yatharth Hospitals, taking a 24.9% stake in the North Indian healthcare provider.

The deal, which represents a massive bet on the expansion of private medical care in India, immediately triggered a dramatic stock market rally. Shares in Yatharth Hospital & Trauma Care Services surged 20% over two days, hitting an all-time high of ₹1,184 on the National Stock Exchange on Friday. The rally has pushed the Noida-based company's market capitalisation to around ₹11,163 crore.

Under the terms of the agreement, Advent will inject the ₹3,150 crore as primary capital into the business. The founding Tyagi family will remain the company’s largest shareholder and will continue to run the hospital chain alongside their professional management team.

Yatharth currently operates nine multi-speciality hospitals in North India with 2,800 active beds. It has already announced plans to expand its total capacity to 3,250 beds.

The hospital group has been growing rapidly, driven by rising demand for private healthcare. For the first quarter ending June, Yatharth reported a 51% year-on-year jump in consolidated revenue to ₹392.70 crore. The average revenue it generated per occupied bed rose by 7% to ₹34,758.

The transaction marks a significant move for Advent. While the Boston-based private equity firm is a well-established investor in the Indian pharmaceutical sector, it has largely stayed away from hospital operators since a 2012 investment in Care Hospitals.

Pankaj Patwari, Managing Director at Advent, said the investment reflects a belief that Indian healthcare is entering "a decade of structural growth" as medical access expands and the market consolidates.

Yatharth Tyagi, Whole-time Director of Yatharth Hospitals, said the partnership would bring more than just money to the chain. "Beyond capital, Advent brings deep healthcare expertise, global insights, and a strong value-creation mindset that will, we believe, help accelerate our next phase of growth," he said.

Tyagi recently told analysts on an earnings call that the hospital chain grew its operations by 37% in the 2026 financial year, and expected to easily outpace that rate of growth over the coming year.

The deal comes at a time of intense dealmaking in India’s hospital sector. Growing wealth, expanding insurance coverage, and a post-pandemic focus on health have turned local hospital networks into highly sought-after assets for global investment funds.

The transaction is now subject to customary regulatory approvals before it can close.