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Informist, Sunday, Aug. 2, 2026

By Gunjan Rajput

NEW DELHI – Fortis Healthcare Ltd. is expected to report healthy year-on-year growth in consolidated net profit and revenues for the June quarter, driven by a strong performance in its hospitals business, steady growth in diagnostics, higher bed capacity, and improvement in the average revenue per occupied bed.
 

The company is expected to report a consolidated net profit of INR 2.85 billion for the quarter, up over 15% from the year-ago period, according to the average of estimates from eight brokerages. The company's revenue for the quarter is expected to rise over 16% on year to INR 25.21 billion. Sequentially, the net profit and revenues are expected to rise over 2% and nearly 7%, respectively.
 

The highest estimate for the net profit is INR 3.02 billion from Axis Securities Ltd. while the lowest is INR 2.62 billion from Motilal Oswal Financial Services Ltd. For revenue, the highest estimate is INR 25.74 billion from ICICI Securities Ltd. while the lowest is INR 24.87 billion from Elara Securities (India) Pvt. Ltd.

The hospitals business is expected to remain the key driver of growth for the company during the quarter, with brokerages forecasting revenue growth of 17-20% year-on-year. This is supported by higher operational beds, ramp-up of recently added hospitals, and improvement in occupancy. The average revenue per occupied bed is also expected to grow around 2%, according to Motilal Oswal, boosting revenue growth. Axis Securities expects the average revenue per occupied bed to be around INR 72,600.

Fortis Healthcare's diagnostics revenue is expected to grow 10-12% year-on-year, according to the brokerages. This is supported by higher test volumes, better realisations, and a favourable test mix. "International patient volume would recover as the tensions in the Middle East have eased," Axis Securities said in its report.

The company's earnings before interest, tax, depreciation, and amortisation are expected to increase nearly 16% on year to INR 5.67 billion. The highest estimate for the EBITDA is INR 5.89 billion from ICICI Securities, while the lowest estimate is INR 5.44 billion from Motilal Oswal.

Brokerages expect the company's EBITDA margin to remain largely stable in the 21.5-22.9% range, compared with 22.6% a year ago. Motilal Oswal expects the margin to be 21.6% while SMIFS Ltd. pegs it at 22.3%. ICICI Securities expects the margin to improve to 22.9%, supported by healthy profitability across the hospitals and diagnostics businesses.

Brokerages expect the hospitals business EBITDA margin to be in the 21.5-22.5% range in the June quarter. Nuvama Wealth Management Ltd. expects the EBITDA margin to decline to 21.5% due to higher employee stock option expenses while ICICI Securities expects it to be 22.5%. In the year-ago quarter, the company had reported a 22.1% EBITDA margin in its hospitals business.

For the diagnostics business, Nuvama forecasts the EBITDA margin to be around 26%, supported by operating leverage and an improved test mix, while ICICI Securities expects the EBITDA margin at 25%. Fortis Healthcare had reported an EBITDA margin of 25.8% in the diagnostic business in the year-ago quarter.

The performance of key network hospitals, progress on brownfield bed expansion, and equity infusion by promoter IHH Healthcare Berhad will be key factors to look out for when the company announces its earnings.

Fortis Healthcare is set to release its June quarter financial results Thursday. Friday, shares of the company had ended at INR 945 on the National Stock Exchange, down 0.4% from Thursday. The stock is down nearly 3% since the company reported its March quarter results. Of the 10 brokerage reports on the company available with Informist, eight have a "buy" call on the stock with an average target price of INR 1,107. This is over 17% higher than the current market price. One brokerage has a "hold" recommendation on the stock with a target price of INR 990. One brokerage says "sell" with the target price at INR 1,004.

The following are the June quarter earnings estimates for Fortis Healthcare from eight brokerages, in INR billion, in descending order of the estimate of net profit:

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Edited by Himanshi Gupta

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