Fortis Healthcare (FORTIS) Q1 25/26 earnings summary

Executive summary

• Completed acquisition of Shrimann Superspecialty Hospital, adding 228 beds and expanding Punjab presence, with future expansion potential to 450 beds at the site.

• Entered Operations and Maintenance Services Agreement with Gleneagles India, managing 700 beds across five hospitals and a clinic, earning a 3% net revenue service fee.

• Now operates 33 healthcare facilities with over 5,700 beds across 11 states, reflecting significant network expansion.

• Achieved consolidated revenue of INR 2,167 Cr in Q1FY26, up 16.6% year-over-year and 8% sequentially from Q4FY25.

• Significant clinical milestones, including India's first combined robot-assisted heart bypass and breast cancer surgery.

Financial highlights

• Consolidated revenue for Q1 FY2026 was INR 2,167 crore, up 16.6% year-over-year.

• Hospital business revenue grew 18.6% to INR 1,838 crore, accounting for 85% of consolidated revenue.

• Diagnostic services net revenue increased 6.3% to INR 329 crore; gross revenue up 7.54% YoY to INR 368.8 crore.

• Consolidated operating EBITDA rose 43.2% to INR 491 crore, with margin improving to 22.6% from 18.4% year-over-year.

• Profit after tax before exceptional items increased 46.2% to INR 254 crore.

Outlook and guidance

• Expecting consolidated and diagnostic margins to remain in the 22–23% range for the full year.

• Guidance maintained for a 2% margin improvement for the year, with strong Q1 performance providing positive momentum.

• Anticipate operationalizing about 50% of 900 new beds in FY2026, with further ramp-up in subsequent years.

• Ongoing bed expansion projects in Manesar, Faridabad, Noida, and FMRI expected to further boost capacity in FY26.

• O&M agreement and recent acquisitions to strengthen presence in key metro cities and Punjab.