Fortis Healthcare (FORTIS) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 and 9MFY25 saw strong revenue and profit growth, led by hospital and diagnostics segments, with consolidated revenue rising 14.8% year-over-year to INR 1,928 crores and net profit before exceptional items up 82.2% to INR 231 crores.

• Portfolio rationalization continued with divestment of Richmond Road Hospital and increased stake in Agilus Diagnostics, now a wholly owned subsidiary.

• Expanded bed capacity, launched new medical programs, and improved digital channel contribution to 29.9% of hospital revenue.

• Board approved amendments to Articles of Association and materiality policy to align with SEBI regulations.

Financial highlights

• Q3 FY25 consolidated revenue was INR 1,928 crores, up 14.8% YoY; operating EBITDA rose 32% to INR 375 crores (19.4% margin); PAT (excluding exceptionals) up 82.2% to INR 231 crores.

• 9MFY25 consolidated revenue was INR 5,776 crores, up 13.1% YoY; operating EBITDA up 30% to INR 1,152 crores (20% margin); PAT (excluding exceptionals) up 53.1% to INR 657 crores.

• Net debt as of Dec 31, 2024, was INR 644 crores; net debt/EBITDA improved to 0.41.

• Basic EPS for Q3 FY25 was ₹3.28, up from ₹1.78 in Q3 FY24.

• Diagnostic business Q3 revenue was INR 342.3 crores, up 3.5% YoY; operating EBITDA margin at 14.4%.

Outlook and guidance

• Hospital business margin guidance maintained at 20.5% for FY25; diagnostic business at 21-22%.

• ARPOB growth expected to moderate to 5-6% annually; hospital revenue growth guided at ~14% per year.

• Diagnostic business expected to return to 8-10% industry growth by Q2/Q3 FY26, mainly volume-driven.

• CapEx guidance for FY25 is INR 900 crores, focused on brownfield expansion and maintenance.

• Ongoing expansion projects to add significant bed capacity in H1FY26 and H2FY26.