Fortis Healthcare (FORTIS) Q3 25/26 earnings summary

Executive summary

• Consolidated Q3 FY26 revenues reached INR 2,265 crore, up 17.5% year-over-year, with both hospital and diagnostics segments showing strong growth despite seasonal festival impacts.

• Q3 FY26 consolidated PAT (excluding exceptional items) was INR 243 crore, up 15.6% year-over-year; PAT declined to INR 197 crore due to a one-off INR 55 crore labor code expense, partially offset by a reversal of impairment in an associate.

• Acquisition of People Tree Hospital in Bengaluru for INR 430 crore and launch of Adayu, a 36-bed mental health facility in Gurugram, expanded the network and service offerings.

• Board approved unaudited financial results for the quarter and nine months ended December 31, 2025, with no material misstatements per statutory auditor.

Financial highlights

• Nine-month FY26 consolidated revenue was INR 6,763 crore, up 17.1% year-over-year; Q3 operating EBITDA was INR 505 crore (22.3% margin), up 34.8% year-over-year.

• Net debt stood at INR 2,547 crore, with net debt/EBITDA at 1.24x as of December 31, 2025.

• Hospital ARPOB increased 4.5% year-over-year to INR 2.56 crore per annum, with occupancy stable at 67%.

• Digital channels contributed nearly 30% of hospital revenues in Q3, with digital revenue up 19% year-over-year.

• EBITDA for the quarter was INR 51,394 lacs (consolidated) and INR 11,498 lacs (standalone).

Outlook and guidance

• Management expects continued growth in revenue and margins, supported by brownfield expansions, operational improvements, and ongoing bed expansion projects in Manesar, Noida, and FMRI.

• ARPOB is expected to grow 4-5% annually over the next two years, with half from price and half from case mix.

• Brownfield expansion of 400+ beds targeted for next year, mainly at FMRI, with most CapEx already incurred.

• M&A pipeline focused on strengthening existing clusters, with Hyderabad now included as a potential cluster.

• The company is focused on operational consolidation and brand transitions, with recent acquisitions and restructuring to strengthen business.