This article first appeared on GuruFocus .
Release Date: November 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Fortis Healthcare Ltd ( BOM:532843 ) reported a consolidated top-line growth of 17.3% year-over-year, reaching INR 2,331 crores.
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The hospital business revenue increased by 19.3%, contributing 85% to the consolidated revenue.
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Consolidated operating EBITDA rose by 28%, with margins improving to 23.9% from 21.9% in the previous year.
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The company successfully added 550 operational beds in the first half of FY26, enhancing capacity.
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Revenue from international medical travel grew by 26%, contributing 8.1% to the total revenue.
Negative Points
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Net debt increased to INR 2,219 crores, primarily due to acquisitions, raising the net debt to EBITDA ratio to 0.96x.
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Extreme weather conditions in Northern India, particularly in Punjab, caused disruptions in patient flow.
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The Greater Noida facility, under a new lease agreement, incurs a monthly rental charge impacting profitability.
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Occupancy rates, while improved, are expected to remain between 70% and 75%, indicating limited room for further growth without additional capacity.
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The diagnostic business saw only a 2% increase in test volumes, indicating potential challenges in volume growth.
Q & A Highlights
Q: Were any Fortis hospitals impacted by the extreme weather conditions in northern India during the quarter? A: Yes, there was some disruption in our Ludhiana and Mohali facilities due to flooding in Punjab. However, the hospitals continued to function normally, although patient flow was impacted for about a week. Overall, the results remained satisfactory. - Dr. Rahutosh Chahuvanshi, Managing Director and CEO
Q: Can you explain the impact of the recent long-term lease agreement for the Greater Noida facility on the P&L? A: The lease agreement will result in a P&L charge of approximately INR 2.3 crore per month. The facility, which has a 200-bed capacity, is generating around INR 10 crore in revenue per month and is expected to ramp up quickly. - Vivek Goir, CFO
Q: What is the expected margin trajectory for the diagnostics business going forward? A: We expect the margins to be around 23-24% for the whole year, consistent with our previous guidance. - Anand, CEO of Agilus Diagnostics
Q: Does the Gleneagles ONM agreement include the Mumbai facility? A: Currently, the Mumbai facility is not included in the agreement, but we are looking forward to potentially including it in the future. - Dr. Rahutosh Chahuvanshi, Managing Director and CEO
Q: What is the current stake in Agilus post the recent acquisition, and are there plans to increase it to 100%? A: Our current stake in Agilus is 89%. We are comfortable with this stake, but if an opportunity arises, we may consider increasing it, supported by our balance sheet and potential future fundraising plans. - Vivek Goir, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
