Fortis Healthcare Reports 2% Increase in Q1 Profit; Hospital Revenue Up 19% Due to Higher Bed Occupancy

Fortis Healthcare Ltd announced a consolidated net profit of ₹266.4 crore for the first quarter of fiscal year 2027, marking a 2.3% increase from ₹260.3 crore during the same period last year.

The company’s operating revenue rose by 17.5% year-over-year to ₹2,545 crore in Q1 FY27, compared to ₹2,166.7 crore in Q1 FY26.

Financial Performance Highlights

Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 9.5% to ₹537.1 crore from ₹490.7 crore in the previous year’s quarter. The EBITDA margin declined slightly to 21.1% from 22.6%.

Hospital Segment Growth

The hospital segment reported revenue growth of 19% year-over-year, generating ₹2,187 crore in Q1 FY27. The operating EBITDA margin for this segment was 21.5%, down marginally from 22.1% in the prior year’s corresponding quarter.

Growth in the hospital business was driven by a moderate rise in average revenue per occupied bed (ARPOB) alongside a 16.7% increase in occupied beds relative to Q1 FY26.

This performance included contributions from recent acquisitions, notably new hospital facilities in Punjab and Bengaluru, and a leased hospital in the Delhi-NCR region.

Excluding these newly included facilities, the hospital business’s operating EBITDA margins on a like-for-like basis remained stable at 22%, similar to Q1 FY26.

Expansion Initiatives

In Q1 FY27, Fortis Healthcare entered Odisha by signing an operations and management agreement for a greenfield 300-bed multi-specialty hospital to be built in Cuttack.

The company intends to explore further ventures involving operations and management contracts, healthcare service agreements, and direct lease models.

Priority will be given to expanding in densely populated areas such as Delhi-NCR to strengthen the company’s market presence.

Future Growth and Outlook

Fortis Healthcare’s ongoing brownfield expansion plans anticipate adding approximately 1,800 beds over the next four to five years.

The company expects its consolidated business, comprising hospital and diagnostics segments, to grow revenue at a pace consistent with market trends during this timeframe.

An increase in bed capacity, improved operating leverage, and a strong medical program mix are projected to enhance operating EBITDA margins gradually to the mid-twenties percentile in upcoming years.

Financial Position

As of June 30, 2026, the company’s net debt was ₹2,233 crore, with a net debt to EBITDA ratio of 1.01 times based on annualized Q1 EBITDA, up from 0.92 times a year prior.

The net debt to equity ratio stood at 0.21 times, slightly increased from 0.20 times in the previous year.

Diagnostics Division Performance

In the diagnostics division, Fortis’s subsidiary Agilus expanded its network by increasing its customer touch points to 4,493 as of June 30, 2026.

Agilus conducted approximately 10.46 million tests in Q1 FY27, compared to 10.13 million tests during Q1 FY26.

The preventive portfolio revenue grew by 27%, while the specialized portfolio revenue rose by 13% year-over-year.

Leadership Commentary

Dr. Ashutosh Raghuvanshi, MD and CEO of Fortis Healthcare, highlighted that the company began the year with steady performances across hospitals and diagnostics.

He noted the strategic entry into Odisha through the new hospital project in Cuttack and indicated that recent acquisitions in key regions are progressing positively.

Investments in medical infrastructure, such as expanding robotic systems at key centers, continue to demonstrate the company’s commitment to clinical excellence and technology-driven care.

Dr. Raghuvanshi also mentioned the diagnostics segment’s revenue growth and improved EBITDA margins compared to last year’s quarter.

He emphasized Fortis Healthcare’s focus on delivering sustained growth supported by expansion initiatives, strategic plans, and operational efficiency throughout the rest of the financial year.

Stock Market Update

On the stock market, Fortis Healthcare shares ended trading at ₹935.00 on the BSE, up by ₹9.40 or 1.02%.

Key Takeaways

  • Consolidated net profit rose 2.3% to ₹266.4 crore in Q1 FY27.
  • Operating revenue increased 17.5% year-over-year to ₹2,545 crore.
  • Hospital revenue grew 19% driven by higher bed occupancy and ARPOB.
  • Ongoing expansions include a new hospital project in Odisha and acquisitions in Punjab, Bengaluru, and Delhi-NCR.
  • Diagnostics division saw a 27% rise in preventive portfolio revenue and 13% in specialized portfolio.
  • Net debt slightly increased, maintaining healthy leverage ratios.
  • Focus remains on clinical excellence, technology, and strategic growth initiatives.