The company plans to add 1,976 beds between FY26 and FY29, with the majority of the expansion coming through brownfield projects. These brownfield additions are expected to reach break-even within six months of becoming operational.
FY26 hospital business outlook
– Revenue growth is estimated at 14–15%
– Margin expansion of 150–200 basis points expected
– Growth to be supported by a 5–6% rise in ARPOBs (Average Revenue Per Occupied Bed)
Diagnostics segment guidance
– Double-digit revenue growth expected in FY26
– Margins expected to be in the mid-20% range
– FY26 EBITDA margin (on net revenue) could touch 23%, with potential to reach 25% in the following years
Global brokerage firm Nomura has maintained a ‘Buy’ rating on Fortis Healthcare, with a price target of ₹700 per share.
The revenue growth guidance of 14-15% is ahead of current estimate of 12% year-on-year.
Company guidance implies FY26F Hospital segment EBITDA margin at 22.0%-22.5%, compared to estimates of 21.9%.
Nuvama Institutional Equities has retained a ‘Buy’ rating, and raised its price target to ₹770 from ₹730 earlier.
The brokerage believes Fortis is among select few players on a margin ascent trajectory over next few years, backed by 60% brownfield expansion at hospitals operating at high occupancy levels.
Nuvama said that hospital’s margin uptick and Agilus recovery will be key going forward. “We note the litigation risk and high debt levels; however, management’s assurance of continued bed addition plans is positive,” it said.
Fortis Healthcare shares are currently trading 7.82% higher on Thursday at ₹725. The stock has gained over 9% in the last one month.
