Fortis Healthcare Q4 profit drops 7% on rise in quarterly expenses

The hospital chain's revenue rose 12.4% to Rs 2,007 crore in Q4 FY25 driven by hospital and diagnostics segments, but higher expenses and impairments hit net profit

Delhi-headquartered hospital chain Fortis Healthcare on Tuesday reported a 7.4 per cent year-on-year (Y-o-Y) fall in consolidated net profit for the March quarter of financial year 2024–25 (Q4 FY25) at Rs 188.02 crore, down from Rs 203.14 crore in the same period last year.

 

The decline in net profit was attributed to a 13.6 per cent Y-o-Y rise in total expenses, which stood at Rs 1,741.52 crore, up from Rs 1,531.76 crore. The company also cited impairments on investments in an associate firm and assets in a subsidiary, according to its regulatory filing.

 

Revenue from operations rose to Rs 2,007 crore in Q4 FY25, marking a 12.4 per cent increase from Rs 1,786 crore in Q4 FY24.

 

 

Consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 14.3 per cent Y-o-Y to Rs 435 crore, with the EBITDA margin at 21.7 per cent, up from 21.3 per cent in the year-ago period.

 

The increase in revenue was driven by strong performances in both the hospital and diagnostics businesses. 

 

The hospital business posted a 14.2 per cent Y-o-Y revenue increase in Q4 FY25, supported by growth in average revenue per occupied bed (ARPOB) and improved occupancy. ARPOB rose 8.4 per cent Y-o-Y to Rs 2.51 crore, while occupancy levels reached 69 per cent, compared to 66 per cent in Q4 FY24. Key specialties such as oncology and neurosciences reported revenue growth of 25 per cent and 19 per cent, respectively.

 

International patient revenue grew 17 per cent Y-o-Y to Rs 145 crore in the quarter, contributing 8.1 per cent to overall hospital revenue, compared to 7.9 per cent in the same quarter last year.

 

The diagnostics business reported subdued revenue growth of 3.5 per cent Y-o-Y, reaching Rs 306 crore.

 

“This comes after the company consolidated its stake in Agilus Diagnostics to 89.2 per cent by acquiring 31.52 per cent from private equity investors,” Fortis stated in its investor presentation.

 

Commenting on the company’s future plans, Ashutosh Raghuvanshi, managing director and chief executive officer, said Fortis will continue to actively pursue inorganic growth opportunities in its focus geographic clusters.

 

“Notable developments during the year included the successful acquisition of the ‘Fortis’ brand and trademarks, and our foray into Jalandhar through the signing of definitive agreements in February 2025 to acquire Shrimann Superspecialty Hospital,” he said.

 

This acquisition will increase Fortis’s capacity in Punjab from approximately 800 beds across four facilities to over 1,000 beds. In addition to Jalandhar, the company plans to add around 993 beds through brownfield projects at Manesar, Gurugram, Noida, Bengaluru (BG Road), and Faridabad.

 

The company announced its results post market hours. On Tuesday, Fortis Healthcare shares closed 0.81 per cent lower at Rs 679.70 on the Bombay Stock Exchange (BSE).