Yatharth Hospital, Aster DM surge up to 8%, stocks at new highs; here's why

Hospital-shares in limelight: The demand outlook for the healthcare industry continues to remain favourable due to better affordability, widening medical insurance coverage and growing awareness.

Yatharth Hospital & Trauma Care Services, Aster DM share price today

 

Shares of Yatharth Hospital & Trauma Care Services rallied 8 per cent to hit an all-time high of ₹819.85 on the BSE in Wednesday's intra-day trade amid heavy volumes. The stock price of the smallcap hospital stock surpassed its previous high of ₹819.60 touched on September 15, 2025.

 

In the past three trading days, the Yatharth Hospital & Trauma Care Services stock has surged 10 per cent after the Union health ministry announced revised rates for nearly 2,000 medical procedures under the Central Government Health Services (CGHS) scheme. These rates come into effect from October 13.

 

 

Meanwhile, share price of Aster DM Healthcare also hit a record high of ₹686, surging 4 per cent on the BSE in intra-day trade. In the past four trading days, the stock has gained 9 per cent.

 

According to media reports, Aster DM healthcare has commissioned a new 264 bed hospital in Kasargod, Kerala. This facility marks Aster's 8th facility in Kerala and incurred a capex of ₹190 crore. It caters to 31 medical specialties.

What's driving hospital stocks - Yatharth, Aster DM?

 

As per reports, the Union health ministry has revised rates for ~2000 medical procedures under the Central Government Health Services (CGHS) and is expected to come into effect from 13 October. 

 

Under these changes, a multi-dimensional rate structure has been created based on 4 different parameters (earlier the rates were the same across OPD and IPD consultation; cities and wards). Any consultation at NABH or NABL accredited healthcare organisation (HCO) would be treated at a standard base rate; for non-accredited HCOs it will be 15 per cent less than accredited hospitals and for CGHS empanelled super speciality hospitals (with more than 200 beds) it will be 15 per cent higher than the base rate. All the HCOs have to submit their acceptance of these new terms and conditions before October 13 or else they would be required to seek fresh empanelment with the CGHS.

 

Analysts at ICICI Securities believe among the listed space, private hospitals like Narayana Hrudayala, Aster DM and Healthcare Global are all multi-speciality hospitals having a portion of their bed capacities in tier-I cities and are NABH or NABL accredited. This bracket of hospitals can see price revision of 15 per cent higher than the base rate for CGHS patients and potentially increase the revenue from the government scheme patients, the brokerage firm said in its note.

 

Meanwhile, in the April to June 2025 quarter (Q1FY26), the operating margin of Aster DM improved further to 19.2 per cent driven by improvement in key parameters for the hospitals and clinics segment along with healthy improvements in margins for the Aster labs segment. Going forward, the company is expected to witness healthy revenue growth, supported by incremental operational beds, stable occupancy and improving ARPOB (Average Revenue Per Occupied Bed), according to ICRA.

 

The demand outlook for the healthcare industry continues to remain favourable due to factors such as better affordability, widening medical insurance coverage, growing awareness and under-penetration of healthcare services, is expected to benefit the company and the industry at large. Further, Kerala being one of the preferred states in India for medical value travel continues to support the company’s business prospects, the rating agency said.

 

The Indian healthcare sector is poised for steady growth driven by a substantial 11% increase in government budget allocation and a strong policy focus on infrastructure, innovation and accessibility. Key measures such as increased funding for healthcare research, and customs duty relief on life-saving drugs are set to create new opportunities for healthcare providers, pharmaceutical firms, and medical device manufacturers, Yatharth Hospital said in its FY25 annual report.

 

Additionally, initiatives to promote medical tourism, digital health, and workforce development are expected to boost sectoral growth and encourage private sector participation. Overall, these developments signal a favourable environment for operating in the Indian health sector, supporting both business expansion and improved health outcomes nationwide, the company said.