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Informist, Monday, Feb. 16, 2026

 

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--Added 750 new beds in Apr-Dec
--Hospitals ops' occupancy rate 67% Oct-Dec, flat on year
--To expand acquired hospital People Tree to 300 beds from 125
--Plan to add 400 new beds in existing hospitals FY27
--Expect margin improvement on brownfield expansion in FY27
--Current revenue, margins growth to continue for next 2 yrs
--CONTEXT:Fortis Health Oct-Dec revenue growth 17% YoY, EBITDA margin 22.3%
--See 4-5% rise in average revenue per occupied bed next 2 yrs
--Price hikes, case mix to improve average revenue per bed
--To acquire hospitals in existing cluster, including Hyderabad
--Parent IHH Healthcare helping co on AI deployment in ops
 

 

By Adhithya Aji and Narayana Krishna 

MUMBAI – Fortis Healthcare Ltd. expects 4-5% rise in average revenue per occupied bed over the next two years, driven by price hikes and a favourable product mix -- primarily the oncology business and international patient business. The contribution from price hikes is seen at 2.5% and that from product mix the remaining, according to the company's management. The healthcare services provider's average revenue per occupied bed per annum was INR 25.6 million, up 4.5% from the corresponding period of the previous year.

  

The company's consolidated net profit for the December quarter was INR 1.94 billion, down nearly 22% on year. The top line of the company rose 17% on year to INR 22.65 billion. The company incurred a one-time cost of INR 551.8 million on the implementation of the labour codes. The tax outgo for the quarter was INR 682.8 million, up over 172% on year. The net profit also included a one-time income of INR 93.5 million. Excluding the exceptional items, the bottom line of the company would be INR 2.4 billion. 

 

Fortis Healthcare expects the brownfield expansion in Bengaluru to add over 300 beds to the company's portfolio. In January, the company acquired People Tree hospital at Yeshwantpur in Bengaluru having a capacity of 125 beds for INR 4.30 billion. The capacity expansion would require some investments, the company said. "The investment in the first phase is not very huge, but at the same time, we are also going to start the expansion work for creating further beds so that the capacity can be taken to 300 beds," said Ashutosh Raghuvanshi, chief executive officer and managing director of the company in the conference call with analysts.

 

The company is also optimistic about the growth trajectory in 2026-27 (Apr-Mar). "We feel there is still scope for margin improvement, especially with the brownfield expansion," Raghuvanshi said. Across hospitals, Fortis Healthcare is targeting an addition of 400 beds in FY27. A majority of this will be contributed by Fortis Memorial Research Institute coming up at Gurugram in Haryana, as the expansion is taking place at a steady pace, the company said. As of Dec. 31, the company had added 750 new beds.

 

The hospital operations occupancy rate for the December quarter was 67%, flat from the previous year. The company plans to acquire more hospital facilities in its existing clusters. "We want to strengthen and deepen our presence in the existing cluster. We feel we have a very strong brand equity in whichever cluster we present, we are there," the management said. The company sees Hyderabad as a new cluster but they are mindful of the intense competition, the management said.

 

The company said its parent company, IHH Healthcare Berhad, has expressed willingness to increase their stake in Fortis Healthcare. "So in all probability there will be good infusion by IHH and that will be used for either debt reduction or for growth," the management said. Fortis Healthcare is also planning to use artificial intelligence applications for its operations as the technology can be used in many cases. The management said it has sought the help of the parent company, which uses advanced AI technology to deploy AI software for services.

 

At 1446 IST, shares of Fortis Healthcare were down 0.6% at INR 911.20 on the National Stock Exchange.  End     

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

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