Fortis Healthcare Limited Q2 revenue up 17%, owner profit down 3%

Fortis Healthcare Limited reported consolidated revenue from operations of Rs 2,734.83 crore for the quarter ended September 30, 2026, up 17% year on year, while profit attributable to owners fell 3% to Rs 312.38 crore from Rs 321.92 crore as the exceptional gain was lower than a year earlier.

Why did Fortis Healthcare revenue grow in Q2?

Fortis Healthcare grew revenue through both healthcare and diagnostics in the quarter ended September 30, 2026. Healthcare sales and services increased 19% year on year to Rs 2,340.24 crore from Rs 1,973.82 crore, while diagnostics sales and services rose 12% to Rs 448.22 crore from Rs 399.63 crore. Healthcare remained the larger segment, contributing about five times diagnostics segment sales before inter-segment eliminations.

Gross sales and services rose to Rs 2,788.46 crore from Rs 2,373.45 crore, while inter-segment sales increased to Rs 53.63 crore from Rs 42.01 crore. After eliminating inter-segment sales, revenue from operations rose by Rs 403.39 crore from Rs 2,331.44 crore. Revenue was also higher than Rs 2,545.03 crore in the quarter ended June 30, 2026.

For the six months ended September 30, 2026, Fortis Healthcare reported revenue from operations of Rs 5,279.86 crore, compared with Rs 4,498.16 crore in the corresponding period of 2025. Healthcare sales for the half year were Rs 4,526.91 crore, up from Rs 3,811.65 crore, and diagnostics sales were Rs 854.76 crore, up from Rs 768.45 crore.

Why did Fortis Healthcare owner profit decline despite higher revenue?

Fortis Healthcare's profit attributable to owners declined because the exceptional gain dropped more than the increase in profit before exceptional items. The September 2026 quarter included an exceptional gain of Rs 2.98 crore from reversal of impairment on an investment in an associate company, compared with Rs 23.53 crore in the September 2025 quarter.

Profit before tax rose to Rs 432.31 crore from Rs 425.40 crore, but tax expense increased to Rs 111.84 crore from Rs 96.58 crore. Net profit for the period consequently declined to Rs 320.47 crore from Rs 328.82 crore. Of the current-quarter profit, Rs 8.09 crore was attributable to non-controlling interests, versus Rs 6.90 crore in the prior-year quarter.

Basic and diluted earnings per share were Rs 4.14 for the September 2026 quarter, down from Rs 4.26 a year earlier but above Rs 3.53 in the June 2026 quarter. For the six months ended September 30, 2026, profit attributable to owners was Rs 578.77 crore, compared with Rs 582.20 crore a year earlier, while total comprehensive income attributable to owners was Rs 586.95 crore against Rs 588.02 crore.

How did Fortis Healthcare operating profit and costs change?

Fortis Healthcare reported earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 629.90 crore in the September 2026 quarter, up from Rs 578.91 crore a year earlier. The company defines EBITDA as including other income while excluding depreciation and amortisation, finance costs, exceptional items, tax expense, and the share of profit or loss of associates and joint ventures.

The reported operating profit margin was 23.01%, compared with 24.04% in the September 2025 quarter, and net profit margin was 11.61%, compared with 13.11%. Total segment profit before interest and tax increased to Rs 494.86 crore from Rs 450.49 crore. Healthcare segment profit rose to Rs 409.33 crore from Rs 375.66 crore, while diagnostics segment profit increased to Rs 85.53 crore from Rs 74.83 crore.

Employee benefits expense rose 29% to Rs 408.97 crore from Rs 316.62 crore. Professional and consultation fees to doctors increased 19% to Rs 586.23 crore, other expenses rose 22% to Rs 520.29 crore, and purchases of medical consumables and drugs increased 10% to Rs 600.79 crore. Finance costs were Rs 78.30 crore, compared with Rs 74.88 crore a year earlier.

What changed in Fortis Healthcare's balance sheet?

Fortis Healthcare's trade receivables increased to Rs 1,322.95 crore at September 30, 2026 from Rs 1,043.76 crore at March 31, 2026. The cash-flow statement recorded an increase in trade and other receivables of Rs 338.79 crore for the six months ended September 30, 2026, compared with an increase of Rs 226.67 crore in the prior-year period. The allowance for doubtful receivables to average receivables ratio was 4.41% for the half year, against 2.60% a year earlier.

Total assets increased to Rs 16,414.70 crore from Rs 15,966.23 crore at March 31, 2026. Total equity rose to Rs 10,762.15 crore from Rs 10,168.51 crore, including Rs 10,478.36 crore attributable to owners. Total liabilities declined to Rs 5,652.55 crore from Rs 5,797.72 crore, although current liabilities increased to Rs 2,397.33 crore from Rs 2,115.00 crore.

Non-current borrowings fell to Rs 1,961.14 crore from Rs 2,401.16 crore, while current borrowings increased to Rs 563.50 crore from Rs 471.49 crore. The debt-equity ratio was 0.29 at September 30, 2026, compared with 0.33 a year earlier and 0.34 at March 31, 2026. Cash and cash equivalents on the balance sheet were Rs 149.93 crore, while bank overdrafts and cash-credit facilities were Rs 204.06 crore.

What do Fortis Healthcare's six-month cash flows show?

Fortis Healthcare generated net cash from operating activities of Rs 752.42 crore in the six months ended September 30, 2026, compared with Rs 675.97 crore a year earlier. Cash generated from operations rose to Rs 889.17 crore from Rs 809.84 crore, and net income taxes paid were Rs 136.75 crore compared with Rs 133.87 crore in the prior-year period.

Investing activities used Rs 478.03 crore, lower than the Rs 986.48 crore used in the corresponding 2025 period. Payments for property, plant and equipment and intangible assets were Rs 375.84 crore, while loans or advances granted under an operations and maintenance arrangement were Rs 89.89 crore. The prior-year investing outflow included Rs 460.49 crore of business-acquisition payments and Rs 9.99 crore for assets in business combinations.

Financing activities used Rs 656.15 crore, compared with an inflow of Rs 246.01 crore a year earlier. Fortis Healthcare repaid Rs 503.46 crore of long-term borrowings, received Rs 7.59 crore from long-term borrowings, paid dividends of Rs 79.29 crore, and paid interest of Rs 80.58 crore. Net cash and cash equivalents under the cash-flow statement were negative Rs 54.13 crore at September 30, 2026, after deducting overdrafts and cash-credit facilities.

Conclusion

Fortis Healthcare increased September-quarter revenue by 17%, led by 19% growth in healthcare sales and 12% growth in diagnostics sales, while EBITDA increased to Rs 629.90 crore. Owner-attributable profit nevertheless fell 3% because the exceptional gain declined by Rs 20.55 crore year on year and tax expense increased by Rs 15.26 crore.

The next results will show whether trade receivables, which rose to Rs 1,322.95 crore at September 30, 2026, continue to affect working capital and cash conversion. Fortis Healthcare also disclosed that the Delhi High Court ordered the appointment of a forensic auditor on August 31, 2026 to examine specified transactions involving the company and RHT Health Trust.