Analyst Concall
Fortis Health sees hospitals ops' FY27 revenue growing 15%
This story was originally published at 13:34 IST on 25 May 2026
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--Fortis Health: Will add capacity of over 400 beds in FY27
--CONTEXT: Comments by Fortis Health's mgmt in post-earnings analyst call
--Fortis Health: Diagnostics ops to see EBITDA margin of around 23-24% FY27
--Fortis Health: No specific timeline for parent co IHH to hike stake in co
--Fortis Health: Some new hospitals have started contributing positively to fincl
--Fortis Health: To gradually develop digital presence via phone application
By Ruchira Kagita and Anand JC
MUMBAI/NEW DELHI - Fortis Healthcare Ltd. Monday said it expects revenues of its hospital business growing 15% on year in 2026-27 (Apr-Mar), slower than the 19% growth registered in FY26. The management expects revenue of its diagnostics business to grow in double-digit in FY27. However, it did not specify the range. In FY26, the top line of its diagnostics business improved almost 9% on year.
Fortis Healthcare's management expects its diagnostics business' earnings before interest, taxes, depreciation, and amortisation margin to be around 23-24% in FY27, compared to 23.6% in FY26. The EBITDA margin of its hospitals business is expected to improve by 150 basis points from 22.2% in FY26.
Brownfield expansion plans are seen supporting the improvement in margin, a top executive told analysts in a post-earnings conference call. The new acquisitions will also slowly start contributing to growth from this fiscal, the management said.
On the occupancy front, the top brass of Fortis Healthcare said that the decline in FY26 was primarily due to a reduction in the international business, particularly in its key unit, the Fortis Memorial Research Institute in Gurugram, Haryana. In Punjab, the capping of medical oncology drugs led to some decline in occupancy, the management said. In FY26, the overall hospitals' occupancy level stood at 69%, as against 68% in FY25.
The hospital network aims to add 173 beds in FY28 now, much lower than the 465 guided for earlier. This divergence is mainly due to delays in expansion plans at the Shalimar Bagh facility, the management clarified. More
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