/** blogpostTitle: Fortis Healthcare FY26: Hospitals lead, diagnostics margins rebound blogpostSlug: fortis-fy26 blogpostCoverImageDescription: An ultra realistic corporate dashboard scene showing two side by side trend charts for a healthcare company: one chart displays annual revenue rising from about 6,300 to 9,100 in four steps, and another line shows operating margin expanding from about 17.5% to 22.8%. In the foreground, a clean table style panel shows segment split with hospitals near 7,800 and diagnostics near 1,500, plus a small gauge for net debt around 2,334 and net debt to EBITDA around 1.09x. Neutral office lighting, modern financial aesthetic, no logos and no readable text. blogpostShortTitle: Fortis FY26 growth with margin expansion */

Fortis Healthcare FY26: Hospitals lead, diagnostics margins rebound

Fortis Healthcare closed FY26 with a clear message: growth and profitability improved together, led by the hospitals portfolio, with Agilus Diagnostics contributing a stronger margin profile than in the prior year. For FY26, consolidated revenue rose to INR 9,128 crore, up 17.3% year on year. Operating EBITDA increased 31.3% to INR 2,085 crore and operating margin expanded to 22.8% from 20.4% in FY25. Reported profit after tax was INR 1,064 crore, up 31.5%.

Q4 FY26 extended that trend. Consolidated revenue was INR 2,365 crore, up 17.8% versus Q4 FY25, with operating EBITDA of INR 531 crore at 22.5% margin. Reported PAT for the quarter was INR 271 crore, up 44.2%. The Board recommended a dividend of INR 1 per share, subject to shareholder approval.

Hospitals drove growth, even with steady occupancy

Hospitals remain the center of gravity for Fortis. Management said the hospital business now contributes about 85% to overall revenues. In FY26, hospital revenue grew 19.1% to INR 7,773 crore. Operating EBITDA rose to INR 1,724 crore and operating EBITDA margin improved to 22.2% from 20.5%.

Operationally, occupancy for the year was 68% versus 69% in FY25, but the business still expanded because the occupied bed base increased. Occupied beds rose 15.2% to 3,270 in FY26 from 2,838 in FY25. ARPOB improved 3.4% to INR 2.51 crore per annum.

The mix remained anchored in higher acuity specialties. The top six specialties, Cardiac, Orthopedics, Neurology, Gastroenterology, Oncology and Renal Sciences, grew 18.9% over FY25 and contributed about 62% to hospital revenues. International patient revenue grew 18.5% to INR 639 crore, and contributed 7.8% to hospital revenue.

A notable quality indicator in the presentation was the shift in margin distribution across the network. In FY26, 13 facilities delivered operating EBITDA margins above 20%, contributing 76.2% of hospital revenue, compared to 10 facilities contributing 73.2% in FY25.

Diagnostics: margins improved meaningfully, with one-off adjustments disclosed

Agilus Diagnostics reported FY26 gross revenue of INR 1,527 crore, up 8.5% versus FY25. Operating EBITDA increased to INR 360 crore from INR 249 crore, and operating EBITDA margin (on gross revenue) expanded to 23.6% from 17.7%.

The company also disclosed that certain periods had one-off impacts, primarily from brand fee provision written back and rebranding related costs in the prior year. Excluding one-offs, diagnostics operating EBITDA margin was stated at 23.2% for FY26 and 20.1% for Q4 FY26.

On operating metrics, Agilus processed about 40.8 million tests in FY26 versus 39.2 million tests in FY25. Customer touchpoints reached 4,445 as of March 31, 2026. The preventive portfolio grew 21% and increased its revenue contribution to 13% from 11% in FY25.

Financial summary and balance sheet position

Fortis ended FY26 with net debt of INR 2,334 crore, and net debt to EBITDA of 1.09x (basis Q4 annualized EBITDA). Debt increased versus March 31, 2025, primarily due to acquisitions including People Tree Hospital and Shrimann Hospital and other investments.

Capacity, clusters, and expansion execution

FY26 was also marked by expansion activity. Fortis acquired the 125-bedded People Tree Hospital in Yeshwanthpur, Bengaluru in Jan 2026 for INR 430 crore through a 100% acquisition of TMI Healthcare Pvt. Ltd., along with land and building and an adjacent land parcel, with stated future expansion potential to over 300 beds. The company also consummated the acquisition of Shrimann Hospital in Jalandhar (228 beds) and entered into a 15-year long-term lease for a ~200-bedded hospital in Greater Noida.

Management also reiterated a plan to add around 1,800 beds through brownfield expansion from FY27 to FY30, excluding any future inorganic growth. On the call, the company highlighted that a key deferment in the expansion schedule related to Shalimar Bagh due to approval related issues.

Alongside beds, Fortis continued investment in clinical infrastructure. The presentation highlighted commissioning of high-end medical equipment including soft tissue surgical robots, MRI machines, cath labs and PET CTs. Management stated FY26 capex was about INR 700 crore.

Risks discussed on the call

Two operational headwinds were discussed in the Q and A. First, management indicated that occupancy softness in some large hospitals was partly linked to international patient growth moderating in Q4. Second, management spoke about CGHS and ECHS drug price capping in oncology, particularly affecting regions with higher government payer mix. They stated that Fortis stopped taking certain patients where drug margins became uneconomic, or asked patients to procure drugs externally.

The company also flagged a performance improvement agenda for the BG Road unit in Bengaluru, where occupancy was described as suboptimal amid intense competition.

Takeaways

Fortis Healthcare delivered a high quality FY26 outcome: strong revenue growth, sharper margin profile, and continued scale-up in hospitals with a meaningful rebound in diagnostics profitability. The call also showed management staying focused on cluster expansion, bed additions and technology-led clinical programs, while acknowledging near-term volatility drivers like payer pricing actions and international patient trends. The FY27 guidance shared in the call frames the next phase as sustained growth with incremental margin improvement, supported by brownfield ramp-ups and ongoing operational levers.