Fortis Healthcare

“So, in few quarters, definitely we look at mid-teens growth. And then from there, probably we will target to be back to industry growth.”

“So, our margin guidance more or less remains intact, though the challenges which we highlighted in the last call remain.”

“So, we expect end of the current financial year, the EBITDA margin should be flattish, and future financial year, we would not like to comment on the margin in the present circumstances.”

“If there is no impact, of course we will be meeting those FY'29 margin guidance which we have given.”

“That is the reason we are expecting that by Financial Year 2030, our two major brownfield expansion in Mohali and Shalimar Bagh should be completed.”

“The radiation oncology facility over here is likely to be commissioned by February of the calendar year, so in the fourth quarter.”

“We also expanded our network with gross addition of approximately 300 customer touch points, further strengthening our presence across key markets and emerging micro markets.”

“During the period, there has been a gross addition of over 500 customer touch points across our network, enhancing accessibility and strengthening our market presence.”

“Yes. Actually, it is around 600 beds. 100 beds is we have acquired through this Bangalore acquisition, and balance is brownfield expansion, which is mainly coming from FMRI expansion, And Noida that we have added.”

“So, for example, this hospital will serve more to the immediate community, whereas some hospital like the People Tree, which we had acquired a little earlier, will become a larger hospital and will have about 350 beds along with all the facilities.”

“So, Neha, we have complete visibility on these and we have timelines in which we will be able to deliver these beds. And this scales down to about like next three to four years.”

“The Hospital business recorded a revenue growth of 18.6%, with revenues reaching INR 2,340 crores, while the Diagnostics business reported gross revenues of INR 448 crores, reflecting an increase of 12.2% over INR 400 crores in the corresponding quarter last year.”

“During the quarter, our key specialties, including renal sciences, neuro sciences, and orthopedics recorded a year-on-year revenue growth of 27%, 28%, and 30%, respectively.”

“Our revenue from international business grew 12.4% compared to Q2 of Financial Year '26 to reach INR 190 crores and contributed approximately 8% to the overall revenues in Q2 Financial Year '27, on similar lines as Q2 of Financial Year '26.”

“Within the portfolio, revenue from wellness and specialized testing in Q2 Financial Year '27 grew by 28% and 14%, respectively, compared to the corresponding previous period last year.”

“The business also recorded a favorable shift in its customer mix, with the contribution from the B2C segment increasing to 54% from 52% in the corresponding previous quarter.”

“During the quarter, patient volume grew by 5.8% year-on-year and 9.9% quarter-on-quarter, demonstrating the strength of our network, brand, and customer engagement initiatives.”

“Operationally, we processed 11.39 million tests during the quarter compared to 10.62 million tests in the corresponding period last year, representing a growth of 7.2%.”

“So, I am sure that with these initiatives, our volume growth will definitely be sort of improving from now on.”

“So, volume growth in IP is around 13%, compared with the corresponding quarter previous year.”

“The number of occupied beds increased by 9% to 3,616 from 3,318 in Q2 of Financial Year '26.”

“Our consolidated operating EBITDA pre-ESOP expense grew by 19.2% over Q2 of Financial Year '26 to INR 663 crores, with operating EBITDA margins improving to 24.2% in Q2 of Financial Year '27 from 23.9% in the corresponding quarter last year.”

“The Hospital business reported operating EBITDA of INR 545 crores, with margins improving to 23.3% from 22.9% on Quarter 2 of Financial Year '26.”

“During the quarter, 15 of our hospital facilities reported operating EBITDA margin exceeding 20%, collectively accounting for about 84% of the Hospital business revenues.”

“Operating EBITDA pre-ESOP expenses stood at INR 118 crore compared to INR 104 crore in Q2 FY '26, with operating EBITDA margins at 26.2% for the quarter.”

“Operating EBITDA pre-ESOP expenses stood at INR 215 crore compared to INR 189 crore in the corresponding period last year, while operating EBITDA margins improved to 25.1% from 24.6% in H1 FY '26.”

“On the balance sheet front, the company's net debt stands at INR 2,188 crore, with a healthy net debt-to-EBITDA of 0.87x as on September 30, 2026, as against 0.96x on September 30, 2025.”

“If we able to acquire more, then this debt number may go up and down little bit, but if we return to a steady state, this debt we will be able to repay in two years’ time actually.”

“We are generating decent cash flow to support this type of CAPEX, plus there will be room for further acquisitions through internal accruals.”

“And as Vivek was mentioning earlier, the balance sheet being good, for our current expansion, we are well capitalized and we have the ability to do all those expansions from within the internal accruals and some bit of debt.”

“Having said that, our parent IHH has expressed very openly that it wants to increase its stake to above 50%. At the current market price, this could provide us with additional capital of INR 10,000 crore over time.”

“It also depends on Fortis, because as and when we have a requirement of fresh capital, then only we will be approaching them for it.”

“So, I think capital is not a constraint here. I think the constraint is getting the right opportunity at the right price.”

“Recently, we completed the acquisition of the 110-bedded Suguna Hospital in Bangalore, taking our hospital bed capacity in the region to approximately 1,000 beds. The facility has potential to expand to 150 beds.”

“In addition, we entered into a long-term healthcare services agreement for a 400-bedded greenfield super specialty hospital to be developed in Ashok Vihar, New Delhi, by Seth Sunder Lal Jain Charitable Eye Hospital Society.”

“we are also making very good progress in our other focus clusters such as Mumbai, Kolkata, and Hyderabad, evaluating strategic M&A opportunities including build-to-suit sale and build-to-suit lease models.”

“So, with all that, I think we are not looking at the moment for any further acquisitions, but there are certain brownfield expansions that are not part of what we have mentioned, but those we are planning at the moment.”

“So, this is INR 270 crore which we have paid for acquiring this, including land and building, plus there will be stamp duty cost.”

“We have not had any major attritions at the moment in FMRI, and I think we have sufficiently ring-fenced our clinical workforce”

“The cluster you have particularly pointed out about Punjab, there we are actually facing a capacity constraint.”

“Court had originally indicated that this audit should be completed in six months' time.”

“Of course, it will be a negative impact on the profitability. The drugs generally contribute around one-third of the oncology revenue, and not all drugs are part of this, and there are certain packages also.”

“And a circular has been issued which will be effective in November, and we are expecting some more turmoil may be coming.”

“We reported consolidated revenues of INR 2,735 crores for the quarter, registering a growth of 17.3% over Quarter 2 of Financial Year '26.”

“Our consolidated profit after tax excluding gains from exceptional items increased by 4% to INR 317 crore in the current quarter compared to INR 305 crores in the corresponding previous period.”

“During the first half of the financial year, our consolidated revenue stood at INR 5,280 crores, representing a growth of 17.4% over H1 of Financial Year '26.”

“ARPP also grew by 6.8% to INR 2.1 lakh compared to INR 1.96 lakh in Q2 of Financial Year '26.”

“Digital revenues contributed 29.5% to the overall hospital revenue in Q2, which is similar to the corresponding previous period.”