Fortis Healthcare Limited, one of India's leading integrated healthcare delivery service providers, has announced strong financial results for the first quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

Fortis Healthcare reported consolidated revenues of INR 2,167.00 crore for Q1 FY26, marking a substantial 16.6% increase from INR 1,859.00 crore in the same quarter last year. The company's operating EBITDA saw an impressive surge of 43.2%, reaching INR 491.00 crore compared to INR 343.00 crore in Q1 FY25. The operating EBITDA margin expanded to 22.6% from 18.4% year-over-year, indicating improved operational efficiency.

The company's profit after tax (PAT) after minority interest and share in associates grew by 56.8% to INR 260.00 crore, up from INR 166.00 crore in the corresponding quarter of the previous year. Consequently, earnings per share (EPS) improved to INR 3.45 from INR 2.20.

Hospital Business Performance

The hospital business, a key driver of Fortis Healthcare's growth, reported revenues of INR 1,838.00 crore, an 18.6% increase from INR 1,549.00 crore in Q1 FY25. The segment's operating EBITDA stood at INR 406.00 crore, up 41.4% year-over-year, with the operating EBITDA margin improving to 22.1% from 18.5%.

Key performance indicators for the hospital business showed positive trends:

• Occupancy increased to 69% from 67% in Q1 FY25
• Average Revenue Per Occupied Bed (ARPOB) rose by 10.2% to INR 2.65 crore per annum
• International patient revenues grew by 21% to INR 154.00 crore, contributing 7.9% to overall hospital business revenues

Diagnostics Business Growth

Fortis Healthcare's diagnostics arm, Agilus, also demonstrated strong performance. The segment's gross revenues grew by 7.4% to INR 368.80 crore in Q1 FY26. Operating EBITDA margin (based on gross revenues) improved significantly to 23.0% from 16.1% in Q1 FY25.

During the quarter, Agilus conducted 10.13 million tests, representing a 5.8% increase from the 9.57 million tests in Q1 FY25. The company continued its network expansion, adding over 160 new customer touchpoints.

Strategic Developments

Fortis Healthcare announced two significant strategic moves during the quarter:

1. The company entered into an Operation and Maintenance Services agreement with Gleneagles India, expanding its footprint in key metro cities. Under this agreement, Fortis will manage operations of approximately 700 beds across five hospitals and a clinic within the Gleneagles India network.

2. Fortis consummated the acquisition of Shrimann Superspecialty Hospital in Jalandhar, Punjab, adding 228 beds to its network and strengthening its presence in the Punjab region to approximately 1,000 beds.

Management Commentary

Dr. Ashutosh Raghuvanshi, MD and CEO of Fortis Healthcare, commented on the results, stating, "We have witnessed a healthy start to the financial year, as demonstrated in our Q1 earnings for both hospital and diagnostic businesses. The recently executed O&M services agreement with Gleneagles India expands our geographic footprint and provides an opportunity to leverage our combined strengths to optimize operations and enhance efficiencies."

He further added, "In the diagnostics business, we have witnessed a strong recovery in both revenues and EBITDA margins, which is reflective of the brand building initiatives undertaken over the last few quarters. We expect this growth momentum to continue going forward."

The robust Q1 FY26 results underscore Fortis Healthcare's strong market position and effective growth strategies in both its hospital and diagnostics segments. With strategic expansions and operational improvements, the company appears well-positioned for continued growth in the Indian healthcare sector.

Fortis Healthcare Limited , a prominent player in the Indian healthcare sector, has achieved a significant milestone in its corporate restructuring efforts. The company recently received approval from the National Company Law Tribunals (NCLTs) of New Delhi and Chandigarh for a composite scheme of arrangement involving three of its wholly-owned subsidiaries.

Key Highlights of the Restructuring Scheme

• The scheme involves International Hospital Limited, Fortis Hospitals Limited, and Fortis Hospotel Limited.
• NCLT New Delhi approved the scheme on May 9, while NCLT Chandigarh approved it on July 30.
• The appointed date for the scheme is April 1, 2023.
• The restructuring aims to streamline the company's complex corporate structure and enhance operational efficiency.

Financial Overview of Involved Subsidiaries

The three subsidiaries involved in the restructuring operate in the healthcare sector and have a combined paid-up capital of INR 9,708.01 million and a total turnover of INR 50,298.26 million.

Rationale and Impact

The primary objective of this restructuring is to rationalize Fortis Healthcare's complex corporate group structure. This move is expected to:

• Foster commercial expediency
• Reduce administrative, operational, and financial inefficiencies
• Streamline operations across the group

Next Steps and Implementation

The scheme will become effective once the certified copy of the Chandigarh NCLT order is filed with the Registrar of Companies. Importantly, this restructuring will not impact the shareholding pattern of Fortis Healthcare Limited, the listed entity.

The arrangement includes specific share exchange ratios between the entities involved, ensuring a smooth transition in the corporate structure.

Fortis Healthcare's move to simplify its corporate structure is a strategic step towards improving overall operational efficiency. As the healthcare sector continues to evolve, such corporate restructuring efforts may position the company to better navigate future challenges and opportunities in the Indian healthcare landscape.