Fortis Healthcare, one of India's largest integrated healthcare service providers, has reported a significant increase in revenue. The company saw its consolidated revenue grow by 17.3% to Rs. 2,331cr in Q2FY26, driven by growth in its healthcare and diagnostics businesses.
Business Performance
The hospital business, which accounts for 85% of the total revenue, increased by 19.3% to Rs. 1,974cr. This growth was led by a 13.0% increase in occupied beds. The diagnostic business also saw a 7.1% increase in revenue to Rs. 357cr.
Financial Highlights
The average revenue per operating bed (ARPOB) increased to Rs. 2.51cr in Q2FY26 from Rs. 2.37cr in Q2FY25. EBITDA increased by 29.2% to Rs. 579cr, while the margin expanded by 230bps to 24.8%. The reported PAT increased by 70.3% to Rs. 329cr due to higher topline growth, a favorable mix, and improving utilization.
Future Outlook
Fortis is targeting an EBITDA margin of 25% in the hospital business for the next couple of years. The international patients segment is also expected to remain strong. Based on these positive trends, the rating has been upgraded to BUY from HOLD, with a revised target price of Rs. 1,030.
Investment Advice
Remember, this is a perspective, not a prediction. Do your own research before making any investment decisions.
- Consolidated revenue: Rs. 2,331cr
- Hospital business revenue: Rs. 1,974cr
- Diagnostic business revenue: Rs. 357cr
- EBITDA: Rs. 579cr
- Margin: 24.8%
- Reported PAT: Rs. 329cr