Fortis Healthcare (FORTIS) Q4 24/25 earnings summary

Executive summary

• Board recommended a final dividend of INR 1 per share (10% of face value) for FY25, subject to shareholder approval, marking the third consecutive year of such payout.

• FY25 consolidated revenue rose 12.9% year-over-year to INR 7,783 crore, with operating EBITDA up 25.3% to INR 1,588 crore (20.4% margin).

• PAT before exceptional items increased 42.8% to INR 899 crore; after exceptionals, PAT was INR 809 crore.

• Major strategic developments included acquisition of the Fortis brand, expansion through brownfield and inorganic growth, and divestment of non-core assets.

• Audited financial results for FY25 were approved with an unmodified audit opinion from statutory auditors.

Financial highlights

• FY25 consolidated revenue reached INR 7,783 crore, up 12.9% year-over-year; hospital business revenue grew 14.8% to INR 6,528 crore.

• Consolidated operating EBITDA rose 25.3% to INR 1,588 crore (margin 20.4%); hospital business operating EBITDA margin improved to 20.5%.

• Reported profit after tax before exceptional items increased 42.8% to INR 899 crore; after exceptional items, PAT was INR 809 crore.

• Net debt as of March 31, 2025, stood at INR 1,694 crore; net debt/EBITDA at 0.93x (vs. 0.17x last year).

• Standalone and consolidated audited results showed strong revenue and EBITDA growth, with consolidated net profit at INR 80,938 lacs.

Outlook and guidance

• Margin expansion of 150-200 basis points expected in FY26, targeting levels near top competitors.

• Hospital revenue growth guidance for FY26 is 14-15%, with 5-6% ARPOB growth and the rest from volume, driven by bed additions and higher occupancy.

• Diagnostic business expected to deliver double-digit revenue growth and margins moving toward 25% over the next few years.

• Planned addition of ~2,000 beds from FY26 to FY29, with major expansions at Manesar, FMRI, Noida, BG Road, Faridabad, and Jalandhar.

• Management expects no material additional impact from ongoing regulatory investigations, with all known financial exposures already provided for.