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

Gurugram-based hospital chain Fortis Healthcare saw a 21.8 per cent year-on-year decline in its consolidated net profit in the third quarter of the financial year (FY3Q26) at ₹193.7 crore. However, revenue from operations rose 17.5 per cent to ₹2,265 crore.

The decline in profits can be attributed to a one-time exceptional expense of ₹55.2 crore related to new labor laws. However, this was partially offset by a gain of ₹9.4 crore from reversal of impairment in a subsidiary. As a result, the net exceptional impact on profit in the quarter was ₹45.9 crore.

On a sequential basis, the company’s profits fell by 39.8 percent, while revenue from operations fell by 2.8 percent.

The results were announced after Sunday time. Fortis shares ended the day’s trading at £916.9 per share on BSE, down 1.22 per cent on Friday.

Ashutosh Raghuvanshi, Managing Director and Chief Executive Officer, Fortis Healthcare, said: “We have witnessed healthy growth in our hospital business across all core specialties, particularly Kidney Sciences and Orthopaedics. Our acquisition in Bengaluru allows us to strengthen our presence in this market from around 900 beds across seven sites, with the potential to expand to over 1,500 beds in the future. We continue to move forward with our brownfield expansion plans and are exploring new inorganic opportunities. The sustained recovery in our diagnostics business is encouraging and increasingly “We expect him to recover.”

The hospital business reported revenues rose 19.4 per cent year-on-year to ₹1,938 crore in the third quarter of the financial year, compared to ₹1,623 crore in the previous year. Operating EBITDA rose 28.9 per cent to ₹420 billion, while margins improved from 20 per cent to 21.7 per cent.

In the nine months ended FY26, hospital revenues rose 19.1 per cent to ₹5,749 billion; operating EBITDA rose 32.1 per cent to ₹1,278 billion and margins also improved to 22.2 per cent.

The growth was driven primarily by a 14 percent increase in occupied beds in the quarter. Capacity expansion was also contributed by the company’s acquisition of the 125-bed People Tree Hospital in Yeshwanthpur, Bengaluru, in January 2026 for ₹430 crore. The purchase included the underlying land and an adjacent parcel and would allow for future expansion to over 300 beds. The company also launched ‘Adayu’, a 36-bed dedicated mental health facility in Gurugram in November 2025.

Operational metrics in the hospital business showed occupancy remained stable at 67 per cent in Q3 FY26, while average revenue per bed occupied (ARPOB) rose to ₹2.56 crore annually from ₹2.45 crore in the previous year. Average length of stay (ALOS) increased marginally to 4.29 days.

While the diagnostics business achieved moderate revenue growth, there was a sharp increase in margin. Revenues rose 8.3 per cent year-on-year to ₹371 billion in Q3 FY26, while operating Ebitda rose 73.5 per cent to ₹86 billion and margins improved to 23.1 per cent from 14.4 per cent in the previous year.

Diagnostic revenues rose 7.7 per cent to ₹1,139 billion in the nine-month period, while operating EBITDA rose 48.6 per cent to ₹275 billion and margins rose 24.1 per cent.

Testing volumes increased to 9.94 million tests in Q3 FY26 from 9.59 million tests in the previous year. The company continues to expand its diagnostic network, bringing total customer touchpoints to 4,370 as of December 31, 2025. The preventive portfolio’s share of diagnostic revenues increased to 12 percent, while the special portfolio’s share increased to 35 percent; This reflects the trend towards higher value tests.

Diagnostic revenues are reported on a gross basis; The consolidated financial statements reflect revenues, net of intercompany eliminations. On this basis, net diagnostic revenues stood at ₹327 crore in Q3 FY26 while it stood at ₹305 crore in Q3 FY25. Excluding one-time rebranding expenses, operating EBITDA margins were 21.3 percent in the third quarter of FY25 and 21.4 percent for the nine months ending FY25.