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Fortis Healthcare Ltd
NSE: FORTIS BSE: 532843 INE061F01013 Healthcare Healthcare Services 🔎 Screen
NIFTY 200 NIFTY 500 Midcap 50 Midcap 100 Midcap 150 Infra +1 more
₹72,110 Cr
Market Cap
67.6
P/E
3.58
PEG
13.4%
ROCE
11.2%
ROE
0.35
D/E
22.0%
OPM
-13.4%
% from 52W High
56
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

FHL was incorporated in February 1996. The company’s first healthcare facility became operational in Mohali, Punjab in 2001. It is a leading integrated healthcare service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities. Currently, the company operates its healthcare delivery services in India, Nepal, Dubai and Sri Lanka with 36 healthcare facilities with approximately 4,000 operational beds. Company controls its diagnostics business through its 57% owned subsidiary SRL Limited. It is amongst the largest private diagnostics chains. It has a presence in over 600 cities and towns, with an established strength of 415 laboratories, 8,200 direct clients and 1,400 Collection Centers.

✓ Strengths 1
  • Company has delivered good profit growth of 64.3% CAGR over last 5 years
! Concerns

No concerns data yet.

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Mixed quarter: strong 17.5% consolidated revenue growth and diagnostics margin gains, but hospital margin compression and only 3.6% PAT growth made the print weaker than the topline suggests. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹2,545 Cr
Consolidated revenue; +17.5% YoY (₹2,167 Cr in Q1FY26)
EBITDA Margin
22.3%
Consolidated operating EBITDA margin, excluding ~₹31 Cr ESOP; down ~30bps YoY from 22.6%
PAT
₹263 Cr
Before exceptional items; +3.6% YoY (₹254 Cr in Q1FY26)
Key Metric
ARPOB ₹2.71 Cr
Hospital ARPOB +2.6% YoY; occupancy 68.7% vs 69.0% YoY
What Went Right
  • Consolidated revenue grew 17.5% YoY to ₹2,545 Cr; consolidated operating EBITDA (excl. ESOP) grew 15.8% to ₹568 Cr.
  • Hospital revenue grew 19% YoY to ₹2,187 Cr, with occupied beds up 16.7% to 3,418.
  • Diagnostics gross revenue grew 10.2% to ₹407 Cr; operating EBITDA margin improved to 23.9% from 23.0% (excl. ESOP), with B2C mix improving to 53:47.
  • Focus specialties (Oncology, Neuro, Cardiac, Gastro, Ortho, Renal) grew 16.9% and contributed 62% of hospital revenue; Renal +28%, Neuro +27%, Ortho +23%.
  • International patient revenue grew 13% YoY to ₹174 Cr.
What to Watch
  • Hospital operating EBITDA margin fell 60bps YoY to 21.5%; like-for-like margin was ~22%, meaning no underlying margin expansion in mature operations.
  • Occupancy slipped to 68.7% from 69.0%, and ARPOB growth was only +2.6% — revenue growth was bed/volume-led, not pricing-led.
  • Consolidated PAT growth was just 3.6% YoY as finance costs (₹80.4 Cr vs ₹69.6 Cr), depreciation (₹121.9 Cr vs ₹101.5 Cr) and tax (₹90.4 Cr vs ₹83.8 Cr) absorbed most of the EBITDA gain.
  • Net debt rose to ₹2,233 Cr from ₹1,869 Cr a year ago; net debt/EBITDA worsened to 1.01x from 0.92x (annualized Q1 EBITDA, excluding lease liabilities).
  • International patient share of hospital revenue fell to 7.5% from 7.9%, and digital channel revenue contribution slipped to 29.2% from 29.5%.
Investor Lens
Fortis is in an expansion phase, and this quarter shows the trade-off: top-line growth of 17.5% and hospital growth of 19% are strong, but the mix is less healthy — occupied beds drove growth (+16.7%) while ARPOB rose only 2.6% and occupancy declined to 68.7%. Hospital operating margin fell to 21.5%, and the ~22% like-for-like margin means mature hospitals did not expand profitability. Diagnostics is the bright spot, with operating margin at 23.9%, but it is smaller and cannot offset hospital cost drag. The bigger concern is below EBITDA: higher finance costs, depreciation and tax left PAT up just 3.6%, while net debt rose to ₹2,233 Cr and leverage ticked up to 1.01x. The thesis now depends on rapid ramp-up of new/acquired facilities — Manesar, Yeshwanthpur and Greater Noida — and hospital margin recovery above 22%. Watch occupancy and ARPOB at those sites next quarter; if margins stay under pressure and debt keeps rising, growth will not translate into shareholder earnings.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Revenue up 17.4% but OPM down 200bps; PAT growth muted at 2.2% YoY
Revenue
Revenue grew 17.4% YoY to ₹2,545 Cr, accelerating from the prior quarter with 7.6% QoQ growth. This reflects strong underlying demand in healthcare services, with the company sustaining double-digit expansion.
Profitability
Net Profit rose only 2.2% YoY to ₹273 Cr despite strong revenue growth, as operating margin compression and higher interest/depreciation ate into gains. EPS came in at ₹3.53 versus ₹3.45 a year ago, a modest 2.3% increase.
Margins
Operating margin fell to 21% from 23% YoY, a 200 bps decline, indicating higher costs or a shift in case mix. The sequential margin also held at 23% in Q4 FY26, so the YoY drop is a key concern.
Cash Flow
No direct cash flow data provided; however, operating profit of ₹537 Cr against interest of ₹80 Cr implies strong interest coverage of ~6.7x, suggesting healthy internal cash generation.
Balance Sheet
Debt-to-equity is low at 0.35, indicating a conservative capital structure. Finance costs of ₹80 Cr are manageable relative to operating profit, but depreciation of ₹122 Cr remains elevated due to ongoing capex.
Key Risks
Margin compression (-200 bps YoY) could persist if costs outpace pricing power. Rising depreciation and interest expenses are eating into profit growth, while a high PE of 66.76 leaves little room for earnings misses.
Outlook
Sustained double-digit revenue growth suggests strong demand, but profitability is lagging due to input cost pressures and expansion-related costs. Margin recovery and disciplined cost control will be critical for earnings acceleration.
Generated by AI · Jun 2026 results · Not investment advice
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Revenue by Segment

Segment Q2FY26 Q3FY26 Trend
Diagnostic
400
EBIT 75
371
EBIT 55
Healthcare
1,974
EBIT 376
1,938
EBIT 330
Inter segment
0
EBIT 0
0
EBIT 0
Total 2,373 2,309

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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