By: IPP Bureau
Last updated : August 07, 2026 10:06 am
The hospital business remained the key growth driver, with revenue rising 19 per cent year-on-year to Rs. 2,187 crore
Fortis Healthcare Ltd. reported a strong start to FY27, posting a 17.5 per cent year-on-year increase in consolidated revenue to Rs. 2,545 crore for the quarter ended June 30, 2026, driven by robust growth in its hospital and diagnostics businesses, recent acquisitions and continued expansion across key markets.
The company's operating EBITDA rose 15.8 per cent to Rs. 568 crore, excluding ESOP expenses, while profit after tax increased 2.3 per cent to Rs. 273 crore. Operating EBITDA margin stood at 22.3 per cent, compared with 22.6 per cent in the corresponding quarter last year.
The hospital business remained the key growth driver, with revenue rising 19 per cent year-on-year to Rs. 2,187 crore. Operating EBITDA for the segment increased 15.9 per cent to Rs. 471 crore, while occupancy remained stable at 69 per cent.
Average Revenue Per Occupied Bed (ARPOB) improved to Rs. 2.71 crore annually from Rs. 2.64 crore a year earlier, supported by a 16.7 per cent increase in occupied beds.
The company said the quarterly performance benefited from recently acquired hospitals in Punjab and Bengaluru, along with a leased facility in Delhi NCR. Excluding these new facilities, hospital operating EBITDA margins remained broadly in line with the previous year at 22 per cent.
Fortis also announced its entry into Odisha through an operations and management agreement for a 300-bed greenfield multi-specialty hospital in Cuttack. The company said it will continue to pursue similar asset-light growth opportunities, including operations and management contracts, healthcare service agreements and lease arrangements, particularly in key clusters such as Delhi NCR.
As part of its broader expansion strategy, Fortis plans to add around 1,800 beds over the next four to five years through brownfield projects while continuing to evaluate inorganic growth opportunities in markets such as Bengaluru and other strategic locations.
The company expects the expanded network to support revenue growth in line with market expansion and gradually improve operating EBITDA margins to the mid-twenties over the coming years.
The diagnostics business also delivered healthy growth, with revenue increasing 10.2 per cent to Rs. 407 crore and operating EBITDA rising 14.9 per cent to Rs. 97 crore. EBITDA margin improved to 23.9 per cent. During the quarter, Agilus Diagnostics expanded its customer touchpoint network to 4,493 locations and processed approximately 10.46 million tests, compared with 10.13 million tests in the year-ago period. Revenue from preventive diagnostics grew 27 per cent, while specialised diagnostics revenue increased 13 per cent.
As of June 30, 2026, Fortis reported a net debt of Rs. 2,233 crore, with a net debt-to-EBITDA ratio of 1.01 times and a net debt-to-equity ratio of 0.21 times.
Dr. Ashutosh Raghuvanshi, Managing Director and CEO, Fortis Healthcare, said, “Building on the momentum of the previous year, we have made a positive start to the financial year, delivering a steady Q1 performance across both our hospital and diagnostics businesses. We recently entered into an O&M agreement for a 300-bedded greenfield multi-specialty hospital to be developed in Cuttack. This marks Fortis Healthcare's entry into Odisha, further expanding our presence in growth markets.
He further added: Our recent acquisitions in our focus geographies are ramping up well. We also continued to invest in our medical infrastructure by expanding our robotic systems across key facilities, reinforcing our commitment to clinical excellence and technology led care.”