Fortis Q2 revenue rises 17.3% as reported PAT falls 2.5%

Fortis Healthcare Limited reported Q2 FY27 consolidated revenue of Rs 2,735 crore, up 17.3% year on year, while reported profit after tax fell 2.5% to Rs 320 crore as exceptional gains declined to Rs 3 crore from Rs 24 crore in Q2 FY26.

What were Fortis Q2 FY27 consolidated results?

Fortis reported a 17.3% year-on-year rise in consolidated revenue to Rs 2,735 crore in Q2 FY27, from Rs 2,331 crore in Q2 FY26. Profit before tax before exceptional items increased 6.8% to Rs 429 crore from Rs 402 crore. The company reported unaudited results for the quarter and half year ended September 30, 2026.

Reported profit after tax, or PAT, was Rs 320 crore in Q2 FY27, against Rs 329 crore a year earlier. PAT after minority interest and share in associates was Rs 312 crore, down 3.0% from Rs 322 crore. Earnings per share were Rs 4.14, compared with Rs 4.26 in Q2 FY26, while the PAT margin moved to 11.7% from 14.1%.

Why did Fortis profit fall despite higher revenue?

Fortis reported lower PAT because the exceptional gain recorded in Q2 FY27 was Rs 3 crore, against Rs 24 crore in Q2 FY26, even as profit before tax before exceptional items increased by Rs 27 crore. The company said the exceptional gain primarily related to reversal of impairment in an associate company. Since reported PAT includes this gain, the reduction affected the comparison of headline profit.

The effect is also visible in margins: consolidated PAT margin declined by 2.4 percentage points to 11.7% in Q2 FY27 from 14.1% in Q2 FY26. The Rs 9 crore decrease in PAT contrasted with the Rs 404 crore increase in revenue. Fortis separately reported profit before tax before exceptional items, which rose from Rs 402 crore to Rs 429 crore.

For the first half, Fortis recorded Rs 13 crore of exceptional gains in H1 FY27, compared with Rs 36 crore in H1 FY26. H1 PAT was consequently Rs 593 crore, down 0.4% from Rs 596 crore, despite a 5.8% increase in profit before tax before exceptional items to Rs 783 crore. The respective H1 PAT margins were 11.2% and 13.2%.

How did Fortis hospital and diagnostics businesses compare?

Fortis hospital business grew faster than its diagnostics business by revenue in Q2 FY27, with hospital revenue increasing 18.6% to Rs 2,340 crore and diagnostics gross revenue rising 12.2% to Rs 448 crore. Hospital revenue was compared with Rs 1,974 crore in Q2 FY26, while diagnostics gross revenue was compared with Rs 400 crore.

Hospital PAT fell 1.1% to Rs 284 crore from Rs 287 crore, and its PAT margin declined to 12.1% from 14.5%. The hospital business included Rs 3 crore of exceptional gain in Q2 FY27, versus Rs 24 crore in Q2 FY26, primarily from reversal of impairment in an associate company.

Diagnostics recorded the opposite profit direction: PAT increased 15.8% to Rs 68 crore from Rs 59 crore, and PAT margin improved to 15.2% from 14.8%. Its stated Rs 448 crore quarterly revenue is on a gross basis. Fortis said consolidated financials use diagnostics revenue net of intercompany eliminations, with net diagnostics revenue at Rs 394 crore in Q2 FY27, compared with Rs 357 crore in Q2 FY26.

What do Fortis first-half results show?

Fortis generated H1 FY27 consolidated revenue of Rs 5,280 crore, up 17.4% from Rs 4,498 crore in H1 FY26. Profit before tax before exceptional items rose 5.8% to Rs 783 crore from Rs 740 crore. PAT was Rs 593 crore, Rs 3 crore below the prior-year Rs 596 crore, while PAT after minority interest and share in associates declined 0.6% to Rs 579 crore.

The hospital business contributed Rs 4,527 crore of H1 FY27 revenue, up 18.8% from Rs 3,812 crore. Its PAT declined 1.8% to Rs 502 crore and the PAT margin was 11.1%, compared with 13.4% in H1 FY26. The H1 FY27 hospital result included Rs 13 crore of exceptional gain, whereas the corresponding prior period included Rs 36 crore.

Diagnostics gross revenue for H1 FY27 was Rs 855 crore, up 11.2% from Rs 768 crore, and its PAT grew 21.1% to Rs 123 crore from Rs 101 crore. Diagnostics PAT margin increased to 14.4% from 13.2%. On the net revenue basis used in consolidated accounts, diagnostics revenue was Rs 752 crore in H1 FY27, compared with Rs 686 crore in H1 FY26.

Conclusion

Fortis produced double-digit revenue growth in Q2 FY27 and H1 FY27, led by hospital revenue of Rs 2,340 crore in the quarter and supported by diagnostics gross revenue of Rs 448 crore. The movement in reported profit differed from operating revenue growth because the prior-year periods included larger impairment-reversal gains, while diagnostics delivered higher PAT and margin.

What to watch next is Fortis's disclosed network expansion. Its recently acquired 110-bed Suguna Hospital in Bengaluru has potential to expand to about 150 beds, while the 400-plus-bed Ashok Vihar, New Delhi facility is expected to commence operations in three to four years, subject to approvals, with beds to be operationalised in phases.