Rekha Jhunjhunwala Backed Healthcare Company Announces Q4 FY26 Profit Jumps 44.2% to Rs 271 Crore, Board Recommends Rs 1 Dividend

On Friday, shares of Fortis Healthcare Ltd closed 0.56 per cent lower at Rs 961.90 per share from its previous closing of Rs 967.30 per share. The stock touched an Intraday high of Rs 975, rising nearly 0.8 per cent from the previous close. The stock’s 52-week high is Rs 1,104.30 per share and its 52-week low is Rs 667.20 per share.

Fortis Healthcare Ltd announced its audited consolidated financial results for the quarter and financial year ended March 31, 2026, reporting strong growth across revenue, EBITDA and profit. The board of directors also recommended a Dividend of Rs 1 per share, equivalent to 10 per cent of the face value.

For Q4 FY26, consolidated revenue stood at Rs 2,365 crore, up 17.8 per cent year-on-year from Rs 2,007 crore in Q4 FY25. Operating EBITDA rose 22.2 per cent to Rs 531 crore compared to Rs 435 crore in the year-ago quarter, while operating EBITDA margins improved to 22.5 per cent from 21.7 per cent.

Profit before Tax before exceptional items increased 16.1 per cent to Rs 337 crore against Rs 290 crore in Q4 FY25. Profit after tax surged 44.2 per cent to Rs 271 crore from Rs 188 crore a year earlier. Profit after tax after minority interest and share in associates climbed 44.6 per cent to Rs 266 crore.

The company said Q4 FY26 PAT included an exceptional loss of Rs 12.5 crore primarily related to impairment in an associate company. In comparison, Q4 FY25 PAT included an exceptional loss of Rs 53.6 crore linked to impairment of investment in an associate company and impairment of assets in a subsidiary company.

For the full FY26 financial year, consolidated revenue rose 17.3 per cent to Rs 9,128 crore from Rs 7,783 crore in FY25. Operating EBITDA increased 31.3 per cent to Rs 2,085 crore, while operating EBITDA margins expanded to 22.8 per cent from 20.4 per cent.

FY26 profit before tax before exceptional items grew 26.6 per cent to Rs 1,388 crore from Rs 1,096 crore in FY25. Profit after tax increased 31.5 per cent to Rs 1,064 crore from Rs 809 crore. Profit after tax after minority interest and share in associates rose 34.6 per cent to Rs 1,042 crore.

The company noted that FY26 PAT included an exceptional loss of Rs 55.2 crore recorded in Q3 FY26 due to the one-time impact of new labour codes, partially offset by reversal of impairment in an associate company of Rs 33 crore, resulting in a net exceptional loss of Rs 22.2 crore. FY25 PAT included a net exceptional loss of Rs 89.3 crore.

Fortis Healthcare Ltd said its net debt as of March 31, 2026 stood at Rs 2,334 crore with net debt to EBITDA at 1.09x compared to 0.93x a year ago. Net debt to equity stood at 0.23x versus 0.18x in FY25. The increase in debt was mainly due to acquisitions including People Tree Hospital in Yeshwanthpur, Bengaluru, and Shrimann Hospital in Jalandhar, Punjab.

The hospital business continued to drive growth. Hospital segment revenue rose 19 per cent year-on-year to Rs 2,023 crore in Q4 FY26, while FY26 hospital revenue increased 19.1 per cent to Rs 7,773 crore. Operating EBITDA margins for the hospital business stood at 22.1 per cent in Q4 FY26 and 22.2 per cent in FY26.

The diagnostics business also posted healthy growth. Q4 FY26 diagnostics revenue increased 11.1 per cent to Rs 387 crore, while FY26 revenue rose 8.5 per cent to Rs 1,527 crore. Diagnostics operating EBITDA jumped 35.9 per cent in Q4 FY26 and 44.7 per cent in FY26. EBITDA margins improved sharply to 22 per cent in Q4 FY26 and 23.6 per cent in FY26.

Operationally, occupied beds increased 15 per cent in FY26 and 17 per cent in Q4 FY26 compared to the previous year. Average revenue per occupied bed improved to Rs 2.51 crore annually in FY26 from Rs 2.42 crore in FY25. Occupancy remained stable at 68 per cent in FY26.

The company said key procedure volumes in focus specialties such as radiation therapy and robotic surgeries increased 19 per cent and 66 per cent year-on-year respectively during FY26. The top six specialties including cardiac, orthopedics, neurology, gastroenterology, oncology and renal sciences contributed around 62 per cent of overall revenues and grew 18.9 per cent over FY25.

International patient revenue rose 18.5 per cent to Rs 639 crore in FY26 from Rs 539 crore in FY25, contributing 7.8 per cent to overall hospital business revenue.

During the year, Fortis Healthcare Ltd added key medical equipment including five soft tissue surgical robots, two MRI machines, four cath labs and one PET CT machine. The company also highlighted progress in ESG initiatives related to energy optimization, reduced carbon emissions, water conservation and lower plastic waste generation.

In diagnostics, Agilus conducted around 40.8 million tests in FY26 compared to 39.2 million tests in FY25. Customer touch points expanded to 4,445 as of March 31, 2026. Revenue from preventive healthcare portfolios grew 21 per cent and contribution to overall diagnostics revenue increased to 13 per cent from 11 per cent.

Commenting on the results, Managing Director and CEO Dr Ashutosh Raghuvanshi said the company witnessed steady business performance during Q4 FY26 and maintained investment momentum in medical technology, clinical programs and network expansion. He added that Fortis Healthcare Ltd added around 500 beds through acquisitions and long-term lease arrangements in Bengaluru, Jalandhar and Greater Noida.

The company currently operates 36 healthcare facilities across 12 states with around 6,100 operational beds and more than 400 diagnostics labs.

The company has a market cap of over Rs 72,619 crore. The stock price has surged over 237.04 per cent in the last 3 years. The stock has also delivered around 44.2 per cent returns from its 52-week low of Rs 667.20 per share.

Disclaimer: The article is for informational purposes only and not investment advice.

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