Fortis Healthcare Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Fortis Healthcare Ltd filed with BSE on 29 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Fortis Healthcare reported consolidated FY26 revenue of INR9,128 crores, up 17.3%, with operating EBITDA margin expanding to 22.8% from 20.4% a year earlier. The hospital business grew 19.1% for the year while the diagnostics business under Agilus grew 8.5%, with Agilus FY26 EBITDA margin rising to 23.6% from 17.7%. Management discussed occupancy declines at some large hospitals linked to international patient softness and a government drug-price cap on oncology treatments under CGHS/ECHS schemes.
Numbers mentioned
Consolidated revenue: INR9,128 crores (FY26)
p. 3
“For the financial year 2026, consolidated revenues for the company stood at INR9,128 crores, a growth of 17.3% over the financial year '25.”
Ashutosh Raghuvanshi, page 3 of the filed PDF · View the filing
Hospital business revenue: INR7,773 crores (FY26)
p. 3
“Our hospital business revenue have grown 19.1% to INR7,773 crores in financial year '26”
Ashutosh Raghuvanshi, page 3 of the filed PDF · View the filing
Diagnostic business net revenue: INR1,355 crores (FY26)
p. 3
“diagnostic business net revenues were at INR1,355 crores in financial year '26, a growth of 8%”
Ashutosh Raghuvanshi, page 3 of the filed PDF · View the filing
Consolidated operating EBITDA: INR2,085 crores (FY26)
p. 3
“Our consolidated operating EBITDA increased 31.3% to INR2,085 crores, which translates into a margin of 22.8% in financial year '26 versus 20.4% in financial year '25.”
Ashutosh Raghuvanshi, page 3 of the filed PDF · View the filing
Hospital business operating EBITDA margin: 22.2% (FY26)
p. 3
“operating EBITDA margins have improved from 20.5% in financial year '25 to 22.2% in financial year '26”
Ashutosh Raghuvanshi, page 3 of the filed PDF · View the filing
Consolidated profit after tax: INR1,064 crores (FY26)
p. 3
“Our consolidated profit after tax for the year increased 31.5% to INR1,064 crores in financial year '26 compared to INR809 crores in financial year '25.”
Ashutosh Raghuvanshi, page 3 of the filed PDF · View the filing
Consolidated revenue: INR2,365 crores (Q4 FY26)
p. 4
“We reported a consolidated top line of INR2,365 crores, a growth of 17.8% over quarter 4 of financial year '25.”
Ashutosh Raghuvanshi, page 4 of the filed PDF · View the filing
Hospital business revenue: INR2,023 crores (Q4 FY26)
p. 4
“The Hospital business grew 19% to INR2,023 crores, while the Diagnostic business net revenue stood at INR341 crores in quarter 4 of financial year '26 compared to INR306 crores in quarter 4 of financial year '25.”
Ashutosh Raghuvanshi, page 4 of the filed PDF · View the filing
Consolidated operating EBITDA margin: 22.5% (Q4 FY26)
p. 4
“The consolidated operating EBITDA margins were at 22.5% versus 21.7% in Q4 of financial year '25.”
Ashutosh Raghuvanshi, page 4 of the filed PDF · View the filing
Consolidated profit after tax: INR271 crores (Q4 FY26)
p. 4
“Our consolidated profit after tax for the quarter increased 44.2% to INR271 crores.”
Ashutosh Raghuvanshi, page 4 of the filed PDF · View the filing
Net debt: INR2,334 crores (as on March 31, 2026)
p. 4
“the company's net debt stands at INR2,334 crores with a net debt-to-EBITDA of 1.09x as on March 31, 2026, as against 0.93 on March 31, 2025”
Ashutosh Raghuvanshi, page 4 of the filed PDF · View the filing
Hospital occupancy: 68% (FY26)
p. 4
“Our hospital occupancy in financial year '26 was 68% compared to 69% in financial year '25”
Ashutosh Raghuvanshi, page 4 of the filed PDF · View the filing
ARPOB: INR2.51 crores per annum (FY26)
p. 4
“Our hospital business recorded a 3.4% increase in ARPOB, reaching INR2.51 crores per annum in financial year '26.”
Ashutosh Raghuvanshi, page 4 of the filed PDF · View the filing
International patient revenue: INR639 crores (FY26)
p. 4
“Revenue from international patients grew by 18.5% during the year to reach INR639 crores, contributing 7.8% to overall hospital business revenue.”
Ashutosh Raghuvanshi, page 4 of the filed PDF · View the filing
Capital expenditure: approximately INR700 crores (FY26)
p. 5
“To highlight our capital expenditure in financial year '26 stood at approximately INR700 crores, reflecting our confidence to further scale up operations, both in terms of capacity expansion and enhancement of medical infrastructure.”
Ashutosh Raghuvanshi, page 5 of the filed PDF · View the filing
Diagnostics gross revenue: INR1,527 crores (FY26)
p. 5
“Gross revenues stood at INR1,527 crores in financial year '26 compared to INR1,407 crores in financial year '25.”
Ashutosh Raghuvanshi, page 5 of the filed PDF · View the filing
Diagnostics operating EBITDA: INR360 crores (FY26)
p. 6
“operating EBITDA rose to INR360 crores in FY26 from INR249 crores in FY25”
Anand K, page 6 of the filed PDF · View the filing
Diagnostics operating EBITDA margin: 23.6% (FY26)
p. 6
“The operating EBITDA margins stood at 23.6% in FY26 compared to 17.7% in the FY25.”
Anand K, page 6 of the filed PDF · View the filing
Tests processed: 40.8 million (FY26)
p. 6
“During the year, we conducted 40.8 million tests versus 39.2 million tests last year.”
Anand K, page 6 of the filed PDF · View the filing
Manesar revenue: INR140 crores (FY26)
p. 13
“Yes, INR140 crores is the revenue number for last financial year for Manesar.”
Vivek Goyal, page 13 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Hospital business EBITDA margin — 25% · FY28
stated firmly by Neha Manpuria
p. 8
“I know we've guided for 25% being the target by FY28”
Neha Manpuria, page 8 of the filed PDF · View the filing
Hospital business EBITDA margin improvement — 1.5% to 2% year-on-year
stated firmly by Ashutosh Raghuvanshi
p. 8
“If at all, we are more confident now that we can continue to deliver this progress every year, at least to 1.5% to 2% year-on-year.”
Ashutosh Raghuvanshi, page 8 of the filed PDF · View the filing
Hospital business revenue growth — 15% plus · FY27
stated firmly by Vivek Goyal
p. 9
“So revenue-wise, we are well poised to see on hospital side, 15% plus revenue growth.”
Vivek Goyal, page 9 of the filed PDF · View the filing
Hospital business EBITDA margin improvement — 150 basis point · FY27
stated firmly by Vivek Goyal
p. 9
“And EBITDA side, we expect another 150 basis point margin improvement for the current financial year.”
Vivek Goyal, page 9 of the filed PDF · View the filing
Diagnostics EBITDA margin — 23% to 24% · FY27
stated firmly by Anand K
p. 9
“So I think for the coming year as well, we'll be around 23% to 24% kind of EBITDA margins.”
Anand K, page 9 of the filed PDF · View the filing
Diagnostics revenue growth — double digits · FY27
stated as an aspiration by Anand K
p. 9
“And we'll definitely improve and touch about double digits this year is what we are hoping.”
Anand K, page 9 of the filed PDF · View the filing
Brownfield bed commissioning — 500-plus beds · FY27
stated firmly by Vivek Goyal
p. 14
“Next year, we are targeting around 500-plus bed expansion, commissioning of 500-plus beds on the brownfield side.”
Vivek Goyal, page 14 of the filed PDF · View the filing
Annual capex — INR900 crores · FY27-29
stated firmly by Vivek Goyal
p. 14
“As regard the capex guidance, we expect to incur around INR900 crores annually on the capex, which may include 60% towards maintenance capex and balance is the growth capex.”
Vivek Goyal, page 14 of the filed PDF · View the filing
Bed capacity addition — around 1,800 beds · next 4 years
stated firmly by Ashutosh Raghuvanshi
p. 5
“Over the next 4 years, we plan to ramp up bed capacity further through brownfield expansion by adding around 1,800 beds.”
Ashutosh Raghuvanshi, page 5 of the filed PDF · View the filing
Bed capacity addition — more than 400 beds · FY27
stated firmly by Ashutosh Raghuvanshi
p. 5
“Of these in financial year '27, we expect to add capacity of more than 400 beds with a new tower at FMRI expected to be operationalized within weeks and balanced bed addition at Noida, Manesar and Amritsar as well as FHKI Kolkata coming during the year.”
Ashutosh Raghuvanshi, page 5 of the filed PDF · View the filing
Jaipur hospital growth — around 15% plus · next financial year
stated firmly by Vivek Goyal
p. 9
“It is -- we expect the Jaipur to grow around 15% plus next financial year with EBITDA margin in the range of 13%, 14%.”
Vivek Goyal, page 9 of the filed PDF · View the filing
IHH stake in Fortis — 50%
stated as an aspiration by Vivek Goyal
p. 11
“So recently, the group CEO of IHH has given an interview where he has mentioned that there is a plan to increase their stake to 50%, and they have also mentioned some amount around INR10,000 crores fresh equity infusion in the company for meeting the growth aspirations.”
Vivek Goyal, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed the drop mainly to slower international patient growth and the onco drug price capping affecting CGHS/ECHS patients in Punjab.
Answered by Vivek Goyal
Asked by Neha Manpuria: Why has occupancy dropped at larger hospitals like FMRI, BG Road and Faridabad?
p. 7
“So occupancy drop in some of the hospital attributed towards the drop in the international business to some extent.”
Vivek Goyal, page 7 of the filed PDF · View the filing
Management reaffirmed the 25% margin target by FY28 and said they are more confident of delivering 1.5-2% margin improvement per year.
Answered by Ashutosh Raghuvanshi
Asked by Neha Manpuria: What is the margin guidance for the hospital business going forward given new capacity and doctor cost dynamics?
p. 8
“Yes. No, I think we have been very much tracking on our plans and that guidance remains absolutely intact.”
Ashutosh Raghuvanshi, page 8 of the filed PDF · View the filing
Management guided 15%+ hospital revenue growth and 150bps margin improvement, and 23-24% EBITDA margin with double-digit revenue growth for diagnostics.
Answered by Vivek Goyal
Asked by Shyam Srinivasan: What is the FY27 guidance for hospitals and diagnostics?
p. 9
“So revenue-wise, we are well poised to see on hospital side, 15% plus revenue growth. And EBITDA side, we expect another 150 basis point margin improvement for the current financial year.”
Vivek Goyal, page 9 of the filed PDF · View the filing
Management said the focus is on improving profitability first and that a demerger is not being considered currently.
Answered by Vivek Goyal
Asked by Amey Chalke: Is there any plan to demerge the diagnostics business from hospitals?
p. 10
“And I think this is not the right time to do any sort of value locking at this point.”
Vivek Goyal, page 10 of the filed PDF · View the filing
Management said there is no clarity on removal of the onco price cap, but domestic growth is offsetting the international dip.
Answered by Vivek Goyal
Asked by Tausif Shaikh: What is the outlook for the CGHS/international business given recent turbulence?
p. 11
“Having said that, the domestic business growth has more or less taken care of what we have lost in the international business.”
Vivek Goyal, page 11 of the filed PDF · View the filing
Management referenced IHH's CEO comments about a plan to raise the stake to 50% with a large equity infusion but gave no specific timeline.
Answered by Vivek Goyal
Asked by Damayanti Kerai: Is there an update on IHH increasing its stake in Fortis?
p. 12
“No. As of today, there is no specific time line I can give you, but it will happen over a period of time as and when the companies need the capital.”
Vivek Goyal, page 12 of the filed PDF · View the filing
Management cited occupancy ramp-up in units like BG Road and Mulund, new units turning profitable, brownfield expansion, and integration of recent acquisitions as margin levers.
Answered by Vivek Goyal
Asked by Tushar Manudhane: What will drive further EBITDA margin improvement given most large hospitals are already at high occupancy?
p. 12
“So there is a scope in the existing big hospitals where we can increase the occupancy.”
Vivek Goyal, page 12 of the filed PDF · View the filing
Management attributed it to higher international patient markup revenue recorded at gross ARPOB level plus new technology and oncology day-care business.
Answered by Vivek Goyal
Asked by Aman Goyal: What is driving the sharp ARPOB growth at FMRI and FEHI?
p. 13
“So international business generally includes markup and that lead to the higher ARPOB when we see at the gross level.”
Vivek Goyal, page 13 of the filed PDF · View the filing
Management said cash breakeven typically happens at 18-24 months, followed by roughly another year to reach 18-20% EBITDA for greenfield hospitals, while brownfield ramps up faster.
Answered by Ashutosh Raghuvanshi
Asked by Sanjay Shah: What is the typical maturation cycle for a hospital from loss-making to mature EBITDA margin?
p. 15
“Yes. So typically, the cash breakeven happens at 18 to 24 months. And then after that, it takes about maybe a year to get to about 18%, 20% EBITDA.”
Ashutosh Raghuvanshi, page 15 of the filed PDF · View the filing
Management said they understand the importance of the space but will not collaborate with such platforms, preferring to develop their own digital presence.
Answered by Ashutosh Raghuvanshi
Asked by Atul Minocha: Will Fortis collaborate with online consultation platforms to capture preventive-care patient flow?
p. 16
“I already said that we do realize the importance of that space, but collaborating with these platforms is not an option we will consider.”
Ashutosh Raghuvanshi, page 16 of the filed PDF · View the filing
Risks flagged
Onco drug price capping under CGHS/ECHS reducing revenue and occupancy in Punjab-region hospitals
p. 7
“Another reason for the occupancy drop in some of our hospital in North side, Punjab side is because of the medical onco drug capping that has also led to a drop in the revenue and occupancy to some extent.”
Vivek Goyal, page 7 of the filed PDF · View the filing
Decline in international patient business affecting occupancy at large hospitals
p. 7
“If you see our international business growth in this quarter is around 11%, while for a year, it has grown around 18% to 20%.”
Vivek Goyal, page 7 of the filed PDF · View the filing
Intense competition in the Bangalore/BG Road market suppressing occupancy
p. 10
“Secondly, there is an intense competition around that region. And in that region, generally, the occupancy level remained low, around 63%, 64%, but we are at 55%.”
Vivek Goyal, page 10 of the filed PDF · View the filing
Lack of clarity on regulatory resolution of the CGHS/ECHS drug price cap
p. 8
“Very difficult, Shyam, to give any time line for this because government CGHS and ECHS has already issued a circular towards that.”
Vivek Goyal, page 8 of the filed PDF · View the filing
Delay in Shalimar Bagh expansion due to approval-related issues
p. 14
“One is the Shalimar Bagh, which is the big extension, where we are expecting some approval related issues to be sorted out.”
Vivek Goyal, page 14 of the filed PDF · View the filing
Increasing competition from PE-backed hospital platforms and associated valuation concerns
p. 15
“There are concerns about the valuations, etcetera, being driven by these transactions.”
Ashutosh Raghuvanshi, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.