Fortis Healthcare's Q1FY27 Revenue Hits ₹2545 Crore, Profit Marginally Up
Fortis Healthcare's Q1FY27 revenue increased by 17% to ₹2545 crore, with a 2.3% rise in profit after tax.
Fortis Healthcare has reported robust financial results for the first quarter of fiscal year 2027, with consolidated revenue reaching ₹2545 crore, marking a 17% increase compared to the same period last year. The company's profit after tax showed a modest rise of 2.3%, amounting to ₹273 crore.
Strong Performance in Hospital and Diagnostics Sectors
The hospital business of Fortis contributed significantly to this growth, generating ₹2187 crore in revenue, a 19% year-on-year increase. This improvement was driven by a moderate rise in Average Revenue Per Occupied Bed (ARPOB) and a 16.7% increase in bed occupancy. The operating EBITDA for the hospital segment rose by 15.9% to ₹471 crore.
Fortis's diagnostics division also performed well, with a 10.2% revenue increase to ₹407 crore. The operating EBITDA for this segment grew by 14.9%, reaching ₹97 crore.
Strategic Expansion and Future Plans
During the quarter, Fortis Healthcare entered into an Operations and Management (O&M) agreement for a 300-bed greenfield multi-specialty hospital in Cuttack, marking its entry into the Odisha market. This move aligns with the company's strategy to expand its presence in key areas like Delhi NCR through various agreements, including O&M contracts and direct leases.
Looking ahead, Fortis plans to enhance its capacity by adding approximately 1800 beds over the next four to five years, focusing on brownfield expansions to meet the increasing demand for advanced healthcare services in India. The company anticipates that these expansions, combined with a robust medical program mix, will gradually improve its operating EBITDA margins to the mid-twenties.
Leadership's Outlook
Dr. Ashutosh Raghuvanshi, Managing Director and CEO of Fortis Healthcare, expressed optimism about the company's future, citing a positive start to the financial year and steady performance across both hospital and diagnostics operations. He highlighted the strategic importance of the new hospital in Odisha and the ongoing investments in medical infrastructure, including the expansion of robotic systems across key facilities.