Fortis Healthcare reported strong operational performance in Q3 FY’26, driven by sustained momentum across both hospital and diagnostic segments. Consolidated revenues reached INR2,265 crores, a 17.5% YoY growth. The hospital business saw a 19.4% revenue increase, while consolidated operating EBITDA grew 34.8% to INR505 crores, resulting in a margin expansion to 22.3%. The company also confirmed progress on inorganic growth, including the recent acquisition of the People Tree Hospital in Bengaluru.
Fortis Healthcare Limited conducted its Q3 FY’26 Earnings Conference Call on February 16, 2026, detailing robust performance across its core segments amidst seasonal festive impacts.
Q3 FY’26 Consolidated Performance
The company delivered good business performance in the quarter, marked by sustained growth momentum and margin expansion year-over-year.
- Consolidated Revenues: Stood at INR2,265 crores, marking a 17.5% growth over the corresponding period last year.
- Operating EBITDA: Increased by 34.8% to INR505 crores, translating to a margin of 22.3% in Q3 FY’26 (up from 19.4% in Q3 FY’25).
- Profit After Tax (PAT): Reported PAT was INR197 crores versus INR250 crores in Q3 FY’25. The reported decline was due to a one-off expense of INR55 crores related to New Labour Codes, offset by an impairment reversal of INR9 crores, resulting in a net exceptional loss of INR46 crores.
Hospital Business Highlights
The hospital business demonstrated strong traction during the quarter.
- Hospital Revenues: Grew 19.4% to INR1,938 crores.
- Operating EBITDA Margin: Improved from 20% in Q3 FY’25 to 21.7% in Q3 FY’26, contributing INR420 crores to EBITDA.
- Occupancy: Remained steady at 67%, with occupied beds increasing 14% to 3,189 beds.
- ARPOB (Average Revenue Per Occupied Bed): Increased 4.5% year-on-year to INR2.56 crores per annum, supported by a 52% YoY increase in robotic surgeries.
- Digital Contribution: Digital revenues accounted for approximately 30% of overall hospital revenues in Q3 FY’26.
Nine-Month Performance (FY’26)
For the 9-month period ending December 31, 2025, consolidated revenue grew 17.1% to INR6,763 crores. Operating EBITDA reached INR1,553 crores, pushing the margin up 300 basis points to 23% (from 20%). Net debt stood at INR2,547 crores, with a net debt to EBITDA of 1.24x.
Agilus Diagnostics Segment
The diagnostics arm also showed significant year-on-year improvement in profitability.
- Q3 Gross Revenue: Grew 8.3% to INR371 crores.
- Q3 Operating EBITDA Margin: Substantial jump to 23.1% from 14.4% in Q3 FY’25. EBITDA was INR86 crores (up from INR49 crores).
- Tests Conducted: 9.9 million tests performed, a 3.6% volume growth.
- Network Expansion: Total customer touch points reached 4,370 by the end of December 2025.
Strategic Expansion and Future Outlook
Dr. Ashutosh Raghuvanshi highlighted key expansion activities:
- Bed Addition: Approximately 750 operational beds added during the year so far, including the acquisition of the 125-bedded People Tree Hospital in Bengaluru for INR430 crores in January 2026.
- New Facility: Launched Adayu, a 36-bedded specialized mental health care facility in Gurugram in November 2025.
- Organic Growth Targets: Management expects organic bed addition next year to target around 400-plus beds in brownfield expansions, significantly driven by the FMRI facility expansion planned for commissioning by April.
- Debt & Equity: While debt is currently manageable, the company anticipates an equity infusion from IHH in the coming 3 to 6 months following the cooling period post-open offer, which will support future growth and potential debt reduction.
Q&A Insights on Specific Units
During the Q&A session, management addressed specific facility performance and expansion plans:
- People Tree Acquisition (Bengaluru): The facility is currently running sub-optimally but will be expanded from 125 beds to 300 beds over the next 3 to 4 years, requiring capex for equipment and infrastructure.
- Gleneagles (O&M): The O&M management for Gleneagles started in the current quarter, yielding INR5 crores in fees, though the 9-month revenue growth for that unit was negative by almost 4% due to disturbances like clinician attrition.
- Manesar Facility: Targeted to contribute INR15 crores per month revenue and is already contributing positive EBITDA, with work starting on an onco block to further boost profitability.
Looking ahead, management projected an ARPOB increase of 4% to 5% annually for the next two years, primarily driven by case mix improvement rather than just price increases.
Source: BSE
