Fortis Healthcare is demonstrating robust financial performance and pursuing an ambitious expansion strategy, positioning the company for continued growth in the Indian healthcare market. The company reported a consolidated revenue of INR 2,331.00 crores for the second quarter of fiscal year 2026, a 17.3% year-over-year increase, driven by both its hospital and diagnostics businesses.
According to Vivek Goyal, CFO of Fortis Healthcare, the hospital business achieved 19% revenue growth compared to the previous year, contributing to the overall consolidated growth of 17.5%. “We are in the growth phase and expect this momentum to continue,” Goyal stated. This growth is being fueled by a combination of organic expansion, strategic acquisitions, and the ramp-up of existing facilities.
Margin Improvement and Operational Efficiency
Fortis Healthcare is also focused on improving its profitability. The company’s operating EBITDA increased by 28% to INR 556.00 crores in Q2 FY26, with EBITDA margins expanding to 23.9% from 21.9% in the prior year period. Goyal highlighted that brownfield expansions and the improved performance of previously underperforming hospitals, such as Escorts and CG Road in Bangalore, are key drivers of this margin expansion. The Manesar facility has also reached breakeven EBITDA and is now contributing positively to overall margins.
Looking ahead, the company anticipates further margin improvements. Hospital EBITDA is currently around 22%, while diagnostics margins are in the 23-24% range. Fortis Healthcare expects hospital margins to reach 24-25% in the medium term, with continued growth in the diagnostics segment, which saw an 8.3% revenue increase.
Strategic Expansion and Capacity Growth
A significant component of Fortis Healthcare’s growth strategy involves expanding its hospital network and increasing bed capacity. The company is actively pursuing both acquisitions and brownfield expansions. Occupancy rates are currently at 67%, and the company expects to reach 70% occupancy within the next year, driven by the integration of recently acquired assets and the launch of its mental health business, Adayu. While Adayu and new acquisitions require time to fully ramp up, they represent a strategic investment in expanding the company’s service offerings.
In Bangalore, Fortis Healthcare is undertaking a substantial expansion project, aiming to increase bed capacity from 900 to 1,500. This will involve aligning the recently acquired People Tree Hospital with Fortis standards and constructing a new oncology block. Goyal noted that hospitals in Bangalore are already achieving EBITDA margins exceeding 20%, indicating strong potential for further growth in this market.
Growth Drivers and Future Outlook
The company attributes its top-line growth of 19.4% to a diversified set of factors. Approximately 4% of the growth is attributable to acquisitions, 10% to brownfield expansions, and the remaining portion to organic ramp-up and the increasing demand for specialized care, particularly in oncology. Price increases account for a relatively small portion of the growth, approximately 2-2.5%.
Fortis Healthcare’s flagship FMRI hospital is also poised to contribute to future growth. The new block at FMRI is currently operating near 80% occupancy and is expected to generate significant revenue and EBITDA in the coming quarters. While the company refrained from providing specific guidance on future growth rates, Goyal indicated that they anticipate similar levels of growth to continue, supported by ongoing brownfield expansions and the contribution from FMRI.
The company’s performance underscores a positive trajectory for Fortis Healthcare, demonstrating its ability to capitalize on the growing demand for quality healthcare services in India. The combination of organic growth, strategic acquisitions, and a focus on operational efficiency positions the company for sustained success in a competitive market.
