Fortis Healthcare Q3 results: Profit falls 21.8%; revenue up 17.5%

Hospital chain reports ₹193.7 crore net profit in Q3 FY26 amid one-time expense; hospital and diagnostics segments post revenue growth and margin expansion

Gurugram-based hospital chain Fortis Healthcare posted a 21.8 per cent decline year-on-year in its consolidated net profit for the third quarter of the financial year (Q3FY26) at ₹193.7 crore. However, revenue from operations went up by 17.5 per cent to ₹2,265 crore.

 

The decline in profit can be attributed to a one-time exceptional expense of ₹55.2 crore pertaining to the new labour codes. However, this was partly offset by a ₹9.4 crore gain from the reversal of impairment in an associate company. As a result, the net exceptional impact on profit was ₹45.9 crore for the quarter.

 

On a sequential basis, the company’s profit fell by 39.8 per cent, with revenue from operations also declining by 2.8 per cent.

 

 

The results were announced after market hours. Fortis shares on Friday declined by 1.22 per cent, ending the day’s trade at ₹916.9 per share on the BSE.

 

Ashutosh Raghuvanshi, managing director and chief executive officer, Fortis Healthcare, stated, “We have witnessed healthy growth in our hospitals business across all key specialties, notably Renal Sciences and Orthopedics. Our acquisition in Bengaluru enables us to strengthen our presence in this market from approximately 900 beds across seven facilities, with a potential to scale up to over 1,500 beds in the future. We continue to progress on our brownfield expansion plans and are evaluating further inorganic opportunities in our existing clusters. The sustained recovery in our diagnostics business is encouraging and we expect this to progressively improve.”

 

The hospital business reported that revenues rose by 19.4 per cent year-on-year to ₹1,938 crore in Q3 FY26, compared with ₹1,623 crore a year earlier. Operating Ebitda increased 28.9 per cent to ₹420 crore, while margins expanded to 21.7 per cent from 20 per cent.

 

For the nine months ended FY26, hospital revenues grew 19.1 per cent to ₹5,749 crore, with operating Ebitda up 32.1 per cent to ₹1,278 crore and margins improving to 22.2 per cent.

 

The growth was driven primarily by a 14 per cent increase in occupied beds during the quarter. Capacity expansion also contributed, with the company acquiring the 125-bedded People Tree Hospital in Yeshwanthpur, Bengaluru, in January 2026 for ₹430 crore. The acquisition included the underlying land and an adjacent parcel, enabling future expansion to over 300 beds. In November 2025, the company also launched ‘Adayu’, a 36-bedded specialised mental healthcare facility in Gurugram.

 

Operational metrics in the hospital business remained stable, with occupancy at 67 per cent in Q3 FY26, while average revenue per occupied bed (ARPOB) improved to ₹2.56 crore per annum from ₹2.45 crore a year earlier. Average length of stay (ALOS) edged up marginally to 4.29 days.

 

The diagnostics business posted moderate revenue growth but sharp margin expansion. Revenues rose 8.3 per cent year-on-year to ₹371 crore in Q3 FY26, while operating Ebitda surged 73.5 per cent to ₹86 crore, lifting margins to 23.1 per cent from 14.4 per cent a year ago.

 

For the nine-month period, diagnostics revenues increased 7.7 per cent to ₹1,139 crore, with operating Ebitda rising 48.6 per cent to ₹275 crore and margins expanding to 24.1 per cent.

 

Test volumes increased to 9.94 million tests in Q3 FY26 from 9.59 million a year earlier. The company continued to expand its diagnostics network, taking total customer touchpoints to 4,370 as of December 31, 2025. The share of the preventive portfolio in diagnostics revenues rose to 12 per cent, while the specialised portfolio increased to 35 per cent, reflecting a shift towards higher-value tests.

 

Diagnostics revenues are reported on a gross basis, with consolidated financials reflecting revenues net of inter-company eliminations. On this basis, net diagnostics revenues stood at ₹327 crore in Q3 FY26, compared with ₹305 crore in Q3 FY25. Excluding one-off rebranding expenses, operating Ebitda margins were 21.3 per cent for Q3 FY25 and 21.4 per cent for the nine months ended FY25.