Fortis Health.

Fortis Healthcare delivered a strong performance in FY26, with consolidated revenues reaching INR9,128 crores, marking a 17.3% year-on-year growth. Operating EBITDA increased by 31.3% to INR2,085 crores, resulting in a healthy margin of 22.8% for the full year, up from 20.4% in FY25. Consolidated profit after tax also saw a significant jump of 31.5% to INR1,064 crores, reflecting robust profitability across the business segments. For Q4 FY26, the consolidated top line was INR2,365 crores, a 17.8% growth over Q4 FY25, with operating EBITDA margins at 22.5% and PAT increasing 44.2% to INR271 crores.

The hospital business was a key driver of growth, with revenues increasing 19.1% to INR7,773 crores in FY26, contributing approximately 85% to consolidated revenues and EBITDA. Operating EBITDA margins for the hospital segment improved from 20.5% in FY25 to 22.2% in FY26. The company expanded its bed capacity by approximately 800 beds in FY26 through brownfield expansions and strategic acquisitions, including the 125-bedded People Tree Hospital and the 228-bed Shrimann Superspecialty Hospital. ARPOB increased by 3.4% to INR2.51 crores per annum, and international patient revenue grew 18.5% to INR639 crores.

The diagnostic business demonstrated steady improvement, with net revenues growing 8% to INR1,355 crores in FY26. Gross revenues for the full year stood at INR1,527 crores, and operating EBITDA margins (excluding one-off^📎s) improved to 23.2% in FY26 from 22% in FY25. In Q4 FY26, gross revenues grew 11.1% year-on-year to INR387 crores, with 10 million tests processed, a 5% volume growth. The B2C to B2B revenue ratio remained stable at 52:48 for FY26, and the company expanded its network with over 675 customer touchpoints and 20+ new laboratories, including 10 hospital lab management facilities.

The company's capital expenditure in FY26 was approximately INR700 crores, primarily focused on capacity expansion and enhancing medical infrastructure. Net debt increased to INR2,334 crores as of March 31, 2026, with a net debt-to-EBITDA ratio of 1.09x, mainly due to acquisitions and investments. For FY27, the company plans an annual capex of around INR900 crores. The Board recommended a dividend of INR1 per share for FY26, equivalent to 10% of the face value, underscoring financial strength. Strategic acquisitions and long-term leases, such as People Tree Hospital and a multi-specialty hospital in Greater Noida, were key to network expansion.

Operational efficiency and strategic investments contributed to margin expansion, with 13 facilities reporting operating EBITDA margins above 20% in FY26, up from 10 in FY25. Management expects continued margin improvement of 1.5% to 2% year-on-year for the hospital business, targeting 25% EBITDA by FY28. This will be driven by ramping up occupancy in existing large hospitals like Mulund and BG Road, improving performance of newer units (Manesar, Greater Noida, Ludhiana) that were previously incurring losses, and the brownfield expansion projects. The diagnostic business also aims for 23-24% EBITDA margins in FY27.

Fortis plans to add approximately 1,800 beds over the next four years through brownfield expansion, with over 400 beds expected in FY27, including a new tower at FMRI. The company is also focusing on specialized care segments, having launched Adayu, a 36-bedded mental health facility. IHH, the parent company, has expressed intentions to increase its stake to 50% and inject INR10,000 crores equity to support growth aspirations. The company is committed to developing its digital presence and enhancing offerings in the primary care space, while maintaining focus on tertiary and critical care.