Fortis Healthcare (NSE: FORTIS, BSE: 532843) has announced a significant development in its subsidiary's acquisition of valuable trademarks. Agilus Diagnostics Limited, a subsidiary of Fortis Healthcare, has successfully purchased the 'SRL' trademarks for ₹8.00 crore through a court-sanctioned auction conducted by the Delhi High Court.

Auction Details

The acquisition of the 'SRL' trademarks is the result of a complex legal process involving multiple parties:

• The trademarks were originally owned by RHC Holding Private Limited, which had granted a non-exclusive license to Agilus Diagnostics Limited and Agilus Pathlabs Private Limited.
• The trademarks were later attached and made available to the Delhi High Court for satisfying a decree in favor of Daiichi Sankyo Company Limited.
• A public auction was conducted under the supervision of a Joint Registrar (Judicial) of the Delhi High Court.
• Agilus Diagnostics Limited emerged as the successful bidder with a bid of ₹8.00 crore.

Legal Background

The sale of the 'SRL' trademarks is part of a larger legal dispute:

• An arbitral award passed by a Singapore tribunal in 2016 in favor of Daiichi Sankyo Company Limited against 20 respondents, including RHC Holding Private Limited.
• The Supreme Court of India, in a judgment dated September 22, 2022, ruled that all properties of the erstwhile promoters of Fortis Healthcare would be available to the Delhi High Court for satisfying the decree.
• The Delhi High Court, acting as the executing court, ordered the sale of the 'SRL' trademarks through a public auction.

Financial Implications

Fortis Healthcare has stated that there are no financial implications due to compensation or penalties arising from the sale of the 'SRL' trademarks. The company's disclosure emphasizes that the ₹8.00 crore payment for the trademarks was made by its subsidiary, Agilus Diagnostics Limited.

Conclusion

This acquisition marks a significant step for Agilus Diagnostics Limited and, by extension, Fortis Healthcare. The 'SRL' trademarks, which were previously licensed to Agilus, are now fully owned by the company. This move is likely to strengthen Agilus's position in the diagnostics sector and provide more control over its branding and intellectual property.

Fortis Healthcare continues to navigate the complex legal landscape resulting from past ownership disputes while focusing on strengthening its core businesses and subsidiaries.

Fortis Healthcare , a leading healthcare provider in India, has announced ambitious expansion plans and strong financial performance, signaling a robust growth trajectory for the company.

Expansion Plans

Fortis Healthcare is set to significantly increase its capacity by adding 900 beds in the coming year. This expansion is part of the company's strategy to meet growing healthcare demands and strengthen its market position.

Financial Targets

The company has set an optimistic revenue growth target of 14-15% for the fiscal year 2026 (FY26). This projection reflects Fortis Healthcare's confidence in its growth strategy and market opportunities.

Strong Hospital Segment Performance

Fortis Healthcare's hospital segment has demonstrated impressive growth:

• 14% year-over-year revenue growth in Q4 FY25
• Improved occupancy rates
• Increased Average Revenue Per Occupied Bed (ARPOB)

These metrics indicate a strong demand for Fortis Healthcare's hospital services and effective operational management.

Diagnostics Segment Rebranding

The company's diagnostics segment has undergone a rebranding, now operating under the name 'Agilus'. Management expects this segment to show stronger performance from FY26 onwards, potentially contributing to the overall growth targets.

Analyst Outlook

Based on the company's expansion plans and improved performance, analysts maintain an 'Outperform' rating on Fortis Healthcare's stock. This positive outlook suggests confidence in the company's growth strategy and execution capabilities.

Fortis Healthcare's combination of capacity expansion, strong hospital segment performance, and the rebranding of its diagnostics division positions the company for potential growth in the coming years. As the healthcare sector continues to evolve, Fortis appears to be taking strategic steps to capitalize on market opportunities and enhance its service offerings.