As the demand for wireless connectivity continues to soar, the fifth generation and beyond wireless networks are exploring new ways to efficiently utilize the wireless spectrum and reduce hardware costs. One such approach is the integration of sensing and communications (ISAC) paradigms to jointly access the spectrum. Recent ISAC studies have focused on upper millimeter-wave and low terahertz bands to exploit ultrawide bandwidths. At these frequencies, hybrid beamformers that employ fewer radio-frequency chains are employed to offset expensive hardware but at the cost of lower multiplexing gains. Wideband hybrid beamforming also suffers from the beam-split effect arising from the subcarrier-independent (SI) analog beamformers. To overcome these limitations, this paper introduces a spatial path index modulation (SPIM) ISAC architecture, which transmits additional information bits via modulating the spatial paths between the base station and communications users. We design the SPIM-ISAC beamformers by first estimating both radar and communications parameters by developing beam-split-aware algorithms. Then, we propose to employ a family of hybrid beamforming techniques such as hybrid, SI, and subcarrier-dependent analog-only, and beam-split-aware beamformers. Numerical experiments demonstrate that the proposed SPIM-ISAC approach exhibits significantly improved spectral efficiency performance in the presence of beam-split than that of even fully digital non-SPIM beamformers.