Fortis Healthcare Ltd Management Discussions

3Robotic Surgeries include Cardiac, Urology, Oncology, Gynae, Ortho and General Surgery

Our dedication to delivering high-quality care starts with our people. Over the past year, we have focused on building the right capabilities to address the evolving healthcare needs of our patients. Through strategic recruitment and targeted talent development initiatives, we aim to strengthen our position as a preferred destination for world-class healthcare professionals.

In an era where technological innovation is transforming the healthcare landscape, Fortis remains at the forefront of clinical advancement by investing in advanced technologies. The acquisition and integration of state-of-the-art platforms, such as Gamma Knife, Robotics, MR-LINAC, Biplane Cath Lab, etc., have enabled our clinical teams to deliver precision-driven treatments.

Our pursuit of digital transformation is ongoing, as we strive to harness the power of technology to drive innovation and efficiency across all facets of our operations. We have successfully implemented Electronic Medical Records (EMR) Outpatient Module across 15 of our facilities and inpatient module at Fortis Manesar, which supports seamless patient care and contributes to operational efficiency. We have also upgraded our digital platforms, including the myFortis mobile app, website, and CRM module, to better serve our patients and enhance their experience.

Fortis has expanded its capacity by adding ~200 beds to our existing infrastructures. This also included the commissioning of Fortis Manesar facility. Fortis Manesar, a 350-bedded facility, commenced its operations in September 2024, offering an entire spectrum of clinical services, including all the key specialties and latest state-of-the-art medical equipment. This expansion not only allows us to accommodate more patients but also reaffirms our commitment to providing accessible and high-quality healthcare services to our communities.

As part of Companys inorganic growth strategy, Fortis through its wholly owned subsidiary signed definitive agreements in February 2025 for the acquisition of Shrimann Superspecialty Hospital in Jalandhar, Punjab that will add 228 beds to its network. This acquisition also provides us with the opportunity to further expand by adding another 200 beds on the acquired adjacent land parcel, taking the total to over 450 beds at the location. As a part of our Portfolio rationalization strategy, we have divested business operations of the Richmond Road facility, Bangalore in December 2024.

Recently, in April 2025, the Company has also successfully acquired the Fortis brand and trademarks, for a consideration of Rs.200 crores. Fortis has also consolidated its stake in its diagnostics business through the acquisition of a 31.52% equity holding from three private equity investors (NJBIF, Resurgence and IFC) in Agilus Diagnostics. Following this acquisition, Fortis now holds 89.20% in Agilus Diagnostics, up from 57.68% previously.

Fortis has undertaken a comprehensive approach to ESG, focusing on optimizing energy consumption, water usage, and bio-medical waste management. This multifaceted approach ensures a holistic strategy for environmental sustainability. This program has yielded impressive results, achieving a group-level reduction of 6.53% in per occupied bed electricity consumption in the FY25 as compared to FY24.

In conclusion, this year has been marked by significant progress and achievements, underscoring Fortiss commitment to excellence, innovation and patient- centered care. As we embark on the next phase of our journey, we remain steadfast in our dedication to delivering exceptional healthcare services and driving sustainable growth for the benefit of our patients, stakeholders and communities.

ii. Business Strategy

At Fortis, driven by our core values of (i) Patient Centricity, (ii) Innovation, (iii) Teamwork, (iv) Integrity, and (v) Ownership, we are dedicated to delivering exceptional healthcare services while continuously evolving to meet the dynamic needs of our patients and communities. Our strategic approach is founded on 6 key pillars, each designed to promote sustainable growth and enhance patient outcomes:

Clinical Excellence:

At Fortis, clinical excellence and quality care are our highest priorities. We are committed to ensuring patient safety, clinical outcomes, and upscaling our services by investing in (i) Clinical Talent, (ii) Infrastructure, and (iii) Technology. Despite the competitive demand for clinical talent, we actively engage top clinicians, bringing unparalleled expertise and dedication to patient care. Our focus on comprehensive training and development of clinical staff ensures a culture of continuous improvement.

Our hospitals, equipped with world-class infrastructure, supports complex procedures and foster optimal conditions for patient recovery. Additionally, ongoing investments in medical technology and facility upgrades enhance care quality, improve outcomes, and attract top talent.

By further strengthening our Centers of Excellence (CoEs) and adhering to rigorous quality standards, we continue to expand our range of healthcare services. We are committed to maintaining our reputation as a trusted provider of superior healthcare through continuous improvement and innovation.

Enhance Occupancy:

To enhance our market share and occupancy rates, we are focused on expanding our patient base and increasing the utilization of our available capacity. This is expected to be achieved through targeted marketing campaigns aimed at up-country markets, strengthening physician networks, enhancing corporate engagements, and implementing patient outreach initiatives to enhance patient engagement. We would also explore new domestic and international markets, forming strategic partnerships and engaging with local communities to position ourselves as the provider of choice for high end-quality healthcare.

Our growth strategy is balanced, emphasizing both the optimization of existing resources and the investment in new capacity where necessary. In regions with available capacity, the goal is to maximize occupancy by ensuring efficient resource utilization, while in areas facing capacity constraints, we will strategically invest in expanding capacity to unlock further growth potential in those regions. Through these efforts, we aim to drive sustainable growth and solidify our position in our existing healthcare markets.

High Performance Team:

Our focus is on equipping employees with the necessary skills and knowledge to excel in their roles and contribute to the organizations growth. Looking ahead, we plan to continuously invest in leadership development programs to ensure a steady pipeline of skilled leaders who will drive the organizations success in the future. First batch of Fortis Future Operational Leadership Development Program (being co-run with TISS, Mumbai) completed their one-year long management program.

Cost Optimisation:

Efficient resource utilization and cost management are essential to our long-term success. We will continue to focus on identifying opportunities to enhance operational efficiencies, streamline processes, and leverage technology to reduce administrative burdens and optimize resource allocation. By implementing cost-effective practices across all aspects of our operations, we aim to ensure sustainable profitability while upholding our commitment to affordability and accessibility. Additionally, in parallel with exploring new opportunities, we will continue to drive improvements in CBU compliance and inventory optimization.

Growth & Expansion:

To meet the increasing demand for healthcare services, we are prioritising the expansion of our capacity through targeted investments in infrastructure. Our focus is on acquiring high-quality assets that align with our regional cluster strategy, ensuring they offer significant value. This strategy encompasses both the addition of new facilities and the enhancement of existing ones. In FY25-26, we plan to increase our capacity by approximately 1,000 beds, which includes the addition of 228 beds at our new hospital in Jalandhar. We will also focus on substantial capacity expansion at our larger facilities, including FMRI, Faridabad, and Noida. As part of our inorganic growth strategy, we are actively exploring acquisition opportunities in key geographic clusters such as NCR, Maharashtra, Bengaluru, Punjab, and Kolkata.

iii. Digital Initiatives

We continue to harness technology to enhance patient outcomes, streamline operations, and foster sustainable growth. In FY25, our digital revenue across the network reached over Rs.2,000 Cr, reflecting the significant strides we have made in our digital transformation journey.

A key milestone in this journey has been the successful rollout of the Electronic Medical Records (EMR) Outpatient Module in 12 additional facilities, bringing the total to 15 units across our network and inpatient module at Fortis Manesar. This transformation is revolutionizing how patient data is captured, managed, and accessed, empowering our clinicians with real-time insights. This leads to seamless care coordination, enhanced patient safety, and improved clinical outcomes. Building on this success, we are now preparing to implement the EMR Inpatient (IP) Module, which will further streamline and enhance the management of patient data throughout the entire care continuum.

Alongside this, we have upgraded our digital platforms, including the myFortis mobile app, website, and CRM module, to better serve our patients and enhance their experience. These enhancements demonstrate our commitment to patient-centric care, making it easier for individuals to manage their healthcare needs and engage with our services.

By continuing to drive innovation, improve efficiency, and uphold the highest standards of data security, we aim to redefine the healthcare experience, ensuring superior, patient-focused care today and in the future.

iv. Medical Strategy and Operations Group (MSOG)

At Fortis, we continue to strive towards providing the best in clinical services and patient care. Our stringent medical processes and protocols are designed to deliver superior clinical outcomes and enhance patient satisfaction. Highly talented and respected clinicians are ably supported with reliable and sophisticated medical technology and globally accredited hospitals for delivering superior results.

• Clinical Governance:

It is a system which makes a healthcare organization accountable and enables systems to be in place for delivering safe and high-quality patient care while continuously improving services. Organizational and clinical leadership, including oversight by a designated senior clinician ensures appropriate feedback mechanism and effective functioning of systems. The Fortis Clinical Governance framework enables Senior Clinicians to come together, collaborate, share global best practices, and thereby pursue Evidence Based Medicine.

The Fortis Medical Council (FMC), as the apex medical body comprises of senior eminent clinicians; provides guidance to the executive on medical matters. At Specialty Councils, some of the brightest clinicians interact with each other as domain experts in particular specialty. Here, they share advancements taking place in their respective areas towards strengthening of Medical Programs. It is a forum where clinicians can collaborate and harness their expertise. Together, they provide direction to respective specialty and augment medical programs.

• Quality and Patient Safety:

Patient Safety indicators can assess the performance of healthcare services while representing opportunities for improvement in the delivery of care. Fortis has been tracking Quality and Patient safety indicators across its network hospitals since 2013 through centrally designed Clinical Excellence Scorecard (CESC).

• Antimicrobial Stewardship (AMS) program:

Antimicrobial resistance has been identified as a global emergency. Although it is a natural feature of bacterial evolution, the misuse and overuse of antimicrobials increases potential for resistance. We were among the first to institutionalize Antimicrobial Stewardship (AMS) program. Improving antibiotic prescription and their use is critical to effectively treat infections, protect patients from antibiotic misuse, and in combating antibiotic resistance. Fortis is running a coordinated AMS program to address the increasing challenge of anti-microbial resistance.

Key initiatives include:

• Antibiograms (an overall profile of antimicrobial susceptibility to antibiotics) are prepared for each hospital and shared with clinicians for their reference, encouraging them towards rational use of antimicrobials. Thereby enabling efforts to reduce anti-microbial resistance especially for multidrug-resistant organisms.

• Annual review of Unit antibiotic policy.

• Monitor and evaluate use of restricted antibiotics.

• Ensure justification for use of restricted antibiotics.

• Compliance with surgical prophylaxis ensuring appropriate choice of antibiotics and adherence to timing/type/dose.

Drug Resistance Index (DRI) is a single, composite measure or index, reflecting the relationship between antimicrobial resistance and antimicrobial consumption. As a monitoring tool, the Drug Resistance Index (DRI) can assess the effectiveness of the Antimicrobial Stewardship (AMS) program. For the past 9 years, Fortis has been calculating its own Drug Resistance Index, using it as a monitoring and analysis tool for antimicrobial consumption at our hospitals

Our Patient Experience teams at hospital regularly interact with patients to ensure care which is respectful and responsive to individual patient preferences, needs and values. Based on unsolicited patient feedback, Net Promoter Score (NPS) is calculated, monitored and evaluated for identifying improvement opportunities.

• Clinical Outcomes:

These are the globally agreed upon, evidence based measurable changes in health, function or quality of life that result from patient care. By tracking, measuring, and evaluating such outcomes, we can promote transparency and informed decision making by patients.

In India, Fortis has been a pioneer and at the fore front of this global initiative. We were among the first private healthcare service delivery chains to measure and report outcomes for various clinical procedures.

As part of Working Group at International Consortium for Health Outcomes Monitoring (ICHOM) Fortis was instrumental in developing Coronary Artery Disease (CAD) Standard Set, thereby promoting evidence- based medicine. Subsequently, as part of ICHOM Steering Committee, we were able to expand implementation across geographies.

At present, Fortis reports and monitors multiple clinical outcomes including: Coronary Artery Disease [Coronary Artery Bypass Graft (CABG), Percutaneous Transluminal Coronary Angioplasty (PTCA)], Kidney Transplant, Endoscopic Retrograde Cholangio pancreatography (ERCP), Radiation Oncology, Laparoscopic Cholecystectomy (URL: https://www.fortishealthcare.com/clinical-outcomes- at-fortis- healthcare).

Outcome measures can also be reported by patients and their families. Measures of treatment outcomes from the patients perspective are called Patient- reported Outcome Measures (PROMs). A Patient- reported Outcome (PRO) is any report of the status of a patients health condition that comes directly from the patient, without interpretation of the patients response by a clinician or anyone else. At Fortis, it is our constant endeavour to understand whether health care services and procedures are making a difference to patients health status and quality of life. Using PROM tools and questionnaires, our Patient Experience teams continue to engage with patients, post-discharge, to learn more about their quality of life, daily functioning, symptoms, and other aspects of well-being.

#Includes clinical outcome from those Fortis hospitals whose data is published on FHL website; doesnt represent all Fortis hospitals across India

References:

*US National Registry Data 2013

** Cleveland Clinic Outcomes Report 2014

Non-risk adjusted

#Includes clinical outcome from those Fortis hospitals whose data is published on FHL website; doesnt represent all Fortis hospitals across India

References:

1 STS Annual Report 2019

* Cleveland Clinic Outcomes Report 2014

** Texas Heart Institute 2014

• Nursing:

Nursing makes up the largest workforce in a hospital. They are integral to patient care and play a crucial role in improving quality of services. Extensive induction programs and trainings help nurses develop their skills and knowledge.

Nursing attrition is a significant problem impacting all healthcare organizations and patient care due to factors like burnout, inadequate staffing, and lack of career growth opportunities. High attrition rates can lead to shortages of nursing staff, which can negatively impact the quality of patient care and safety. Over the past year, continued efforts have resulted in reducing Nursing attrition across network hospitals. The Fortis Future Operational Leadership Development Program was aimed at providing a career growth path for Nurses and encourage them for leadership roles. The program has been received well with several nurses successfully completing the course and moving forward towards taking up greater responsibilities in operations/administration.

• Electronic Medical Records (EMR):

An Electronic Medical Record (EMR) is a digital collection of health-related information of an individual that can be created, gathered, managed, and consulted by authorized clinicians and care provider staff within a health care organization.

In a phased manner Fortis is implementing EMR application in OP and IP departments. This would enable interoperability across its network hospitals; automate access to information and streamline clinicians workflow. Timely access to patient data would further improve clinician decision making and delivery of patient care.

• Medical Technology and Infrastructure:

In addition to human resources, technology continues to play a pivotal role in the functioning of a successful hospital. As science and medicine evolve, innovation and technology play a crucial role in sustaining lives. We continue to upgrade and expand our infrastructure while making significant investments in state-of-the-art medical equipment such as Biplane Cath-labs and 3T MRI among others.

Fortis Memorial Research Institute, Gurgaon, is among the first hospitals to have MR-LINAC and Gamma Knife installed under one roof. The MR Linac machine combines two technologies - a powerful 1.5 Tesla MRI unit with a linear accelerator - to precisely locate tumours, tailor the shape of X-ray beams in real time, and accurately deliver doses of radiation to tumours.

A Gamma Knife uses precise beams of gamma rays to treat an area of disease (lesion) or growth (tumour). It is most often used for brain. The beams of gamma radiation send a very intense dose of radiation to a small area without a need to make an incision.

• Clinical Research:

At Fortis, we carry out Interventional Trials, Real World Evidence studies, Investigator Initiated Studies, Academic Research projects & large Public Health Research studies. Research sites are governed by their Ethics Committees registered with Central Drugs Standard Control Organisation (CDSCO); National Accreditation Board for Hospitals & Healthcare Providers (NABH) & Department of Health Research (DHR). Key initiatives have been:

• CAR-T Cell Therapy: The trial is assessing the efficacy of DRL-1801 through the Overall Response Rate (ORR) in patients with Relapsed and Refractory Multiple Myeloma (RRMM). CAR-T Cell Therapy is a cutting-edge treatment that modifies a patients T-cells to target and destroy cancer cells, offering potential for patients who have exhausted other treatment options.

• Fortis hosted the Biomedical National Research Conference 2025 at Fortis Escorts Heart Institute, Okhla, Delhi. The event served as a platform for knowledge sharing, providing valuable insights into the methodologies of medical research, maintaining ethical standards, and understanding the complexities of publication.

• Comprehensive Online Database for Antimicrobial Resistance (CODAR), a Data Source Integrating Microbiology Laboratory Data, Antimicrobial Treatment, and Longitudinal Clinical Outcomes for Hospitalised Patients- A Global Multi-Centre Hospital-Based Pilot Study.

• Accreditations:

Four Fortis Hospitals are accredited by Joint Commission International (JCI) while 25 hospitals have been accredited/certified by NABH.

B. About Agilus Diagnostics Limited ["Agilus"] (Fortiss diagnostics business subsidiary)

i. Key Business Highlights

For the financial year 2024-25, Agilus reported revenues of Rs.1,407 Crore compared to Rs.1,372 Crore reported during the Financial Year 2023-

24. Reported EBITDA for the year is Rs.274 crore, compared to Rs.229 crore in FY24. EBITDA margins are 19% and 17%, respectively. The Company operating EBITDA before one off expenses (primarily rebranding costs and provisioning related to certain government business) for the year stood at Rs.309 Crore, representing a margin of 22.0% compared to a margin of 19.6% during the previous financial year.

The business served a total ~16.3 million patients during the year, compared to 16.4 million during FY24. Through these patients (Accessions), it undertook 39.2 million tests during the year compared to 38.8 million tests performed in FY24.

In an endeavor to go closer to the customer and provide services at their doorstep, we have increased our total number of touchpoints to over 4,100. Our B2C:B2B mix is 52:48 in FY25 compared to 51:49 in FY24. The business continued to have a well-diversified geographical mix with no overdependence on any region, allowing it to capitalize on the pan-India network optimally. Regional FY 2024-25 revenue contributions were 31% from the North, 21% from the West, 31% from the South, 13% from East, and 3% from International. Our preventive portfolio also went up by 13% in FY25 compared to previous financial year, contributing 11% to overall revenues, up from 10% in FY24. From a product standpoint, the revenue contributions are 34% from specialised testing, 55% from routine tests, and 11% from our wellness portfolio

ii. Training and Development

Agilus remains committed to training and development, offering tailored competency enhancement programs for employees. Our curriculum includes a blend of technical, skills and behavioural training sessions facilitated by internal SMEs and external experts. In FY 2024-25 we clocked ~6,400 man-days conducted over 1,418 training hours, reaching 23,000+ participants count.

By leveraging platforms like MedGurukul and TechTalk, we shared technical expertise across the specialities. We conducted specific soft skills session based on identified training needs for different set of employees and leveraged Agilus LMS to help employees go through compliance training through interactive eLearning modules.

Agilus facilitated targeted upskilling training interventions for its Sales Team (Agilus Consultative Selling Skills), Phlebotomists (Agilus Phlebotomy Essentials) and customer facing staff including phlebotomists (F.A.C.E. & Patient Centric Upselling). Agilus organised an experiential outbound leadership development program (G.R.A.C.E.) around A.C.E. framework for its leadership team. Our competency framework, supported by intense research, aims to drive a performance-driven culture focused on collaboration, ownership, teamwork, and innovation.

iii. Retail Network Expansion: Strengthening

Accessibility & Growth

At Agilus, our unwavering commitment to expanding our retail network continues to enhance accessibility to high-quality diagnostic services across India. By leveraging strategic collaborations, geographic diversification, and an Omni channel approach, we have reinforced our presence in both metro cities and emerging markets, ensuring a seamless experience for our customers.

Over the past year, we have accelerated our outreach by adding customer touchpoints and expanding our direct client base, further deepening our engagement with healthcare providers and communities. Today, our network comprises 400+ labs, 4,100+ customer touchpoints, 14,200+ Direct Points and a robust presence in over 30+ states and union territories.

Navigating industry dynamics, including brand transitions and evolving consumer expectations, we have sustained our growth momentum through innovative below-the-line (BTL) initiatives, hyperlocal marketing, and strengthened partnerships with residential welfare associations (RWAs). Looking ahead, we remain focused on expanding into underserved regions, enhancing digital integrations, and fostering strategic alliances to build a more connected and resilient diagnostic ecosystem.

iv. International Business

The International Operations of the Company comprise state-of-the-art labs in Dubai (100% Subsidiary), Nepal (50:50 Joint Venture) in Kathmandu and Biratnagar. Agiluss international network consists of 800+ direct clients spread across the SAARC region, Sub-Saharan Africa, Southeast Asia, CIS, Gulf, and the Middle East. These centres send samples in a temperature-controlled environment to Agilus Diagnostics Reference labs in India, which process the samples and provide reports in real-time using Agilus Diagnostics efficient and highly acclaimed and awarded IT system and robust logistics network. Alongside laboratory services, the Company also assists its international clients and partners in the planning and implementation of laboratory management services, with complete IT support through its indigenously developed lab management software - CLIMS.

We will continue our focus on growing our business in Asia Pacific, the Middle East, CIS, and Africa through network expansion.

v. Brand & Marketing Initiatives - FY2024-25

FY2024-25 was a transformative year for Agilus Diagnostics as we continued the rebranding journey of our 29-year-old legacy brand. The name Agilus— derived from Agility and Trust—reflects innovation, enhanced customer experience, and credibility. The brand revamp introduced a new logo and color scheme, with blue symbolizing trust and loyalty, and a forward chevron in red, yellow, and green representing our commitment to staying ahead.

We strategically leveraged key sports events such as the Indian Premier League (IPL) 2024 and the ICC Champions Trophy for our brand and marketing initiatives, coupled with onboarding reputed actors from the Indian film industry to further bolster our brand image.

In parallel with our branding efforts, we made significant strides in digital transformation. A new and improved customer mobile app and website were launched, designed with a simpler, more intuitive interface to enhance user experience. Over the year, the website attracted 38 lakh unique visitors, while the mobile app saw 3 lakh new installs, with an active monthly user base of 2.1 lakh customers. Our hyperlocal SEO strategy further strengthened the digital presence of Agilus centers, increasing online leads and walk-ins.

Customer Experience (loyalty program and app development)

Club Agilus is the first-ever consumer loyalty program in the diagnostics industry. This year we undertook several initiatives to increase its awareness and to grow its customer base. Offering a zero-fee membership, the program allows customers to earn and redeem reward points on transactions, enrollments, profile completions, surveys, and other engagement activities. These points can be used for discounts and privileges at Agilus centers and partner establishments. With 34 lakh customers already enrolled, we plan to expand and promote the program further in FY2025-26.

Agilus Diagnostics is a research-driven organization committed to pioneering advancements in diagnostic medicine. To maintain its leadership in the field, the company engages extensively with key stakeholders, particularly physicians. Over the past year, Agilus collaborated with more than 11,000 specialists and super-specialists through 240 Continuing Medical Education (CME) sessions, Round Table Meets (RTMs), and scientific conferences.

Raising public awareness about critical health conditions remains a core focus. This year, Agilus implemented numerous targeted campaigns, including initiatives for World Doctors Day, Diwali, New Year wellness, Mothers Day, World Heart Day, World Diabetes Day, World Hypertension Day, World IBD Awareness, World Thalassemia Awareness, World Digestive Health Awareness, Monsoon Dengue Prevention, Allergy Awareness, and Breast Cancer Awareness. These programs are designed to educate healthcare professionals and the public on disease prevention and early detection.

To further strengthen its commitment to preventive healthcare, Agilus Diagnostics introduced the Complete Care Packages, offering a wide range of diagnostic services tailored to address diverse health concerns, facilitating early detection and proactive healthcare management. The SMART reports integrate advanced diagnostics with personalized recommendations, providing actionable insights into diet, lifestyle modifications, and risk factors, empowering patients and physicians with data-driven health strategies for improved clinical outcomes.

New Test and Technology

This year, Agilus significantly expanded its diagnostic offerings with over 40 new specialized tests, including advanced panels for oncology, infectious diseases, hematology, and allergen screening. Notable additions include the Cancer Hotspot 50 Genes Panel, STAT Dx Comprehensive Respiratory Panel, STAT Dx Gastrointestinal Pathogen Panel, STAT Dx Meningitis-Encephalitis Panel, Human Interleukin 2 Receptor Assay, Lymphoma NGS Panel, Leukemia Genetic Panel, Hemophagocytic Lymphohistiocytosis (HLH) Panel, Minimal Residual Disease Detection via NGS, and Comprehensive Infectious Disease Panel by NGS. The introduction of Gut Microbiome Analysis and specialized allergy panels for the Indian population further strengthens Agilus position in precision diagnostics.

Technological innovation remains at the forefront, with the launch of the Genexus Integrated Sequencer, a next-generation sequencing (NGS) system that delivers rapid, high-accuracy genetic test results. The introduction of 3-Day Oncogenomics marks a significant breakthrough in oncology diagnostics, offering three-day turnaround times for genomic profiling of myeloid malignancies. The Oncomine Myeloid Panel (DNA & RNA) significantly reduces wait times compared to industry norms, where similar analyses often take two to three weeks. Additionally, the Oncomine Precision Assay provides liquid biopsy results within two days, expediting clinical decisionmaking and improving patient care.

Strategic collaborations continue to enhance diagnostic capabilities. A partnership with Lucence, a global leader in molecular diagnostics, has strengthened Agilus capabilities in cancer detection, treatment selection, and disease monitoring. Through this collaboration, Agilus introduced the Liquid Hallmark Test, a non-invasive NGS-based assay offering critical therapeutic insights when traditional biopsies are insufficient. The Rapid Tissue Mark Test further enables the detection of over 50 DNA/ RNA genomic alterations, including Microsatellite Instability (MSI), in FFPE tissue samples.

As the first commercial lab to offer advanced diagnostics, Agilus introduced the Claudin 18.2 Test, a Ventana-approved companion diagnostic test for Zolbetuximab, crucial for targeted treatment

of gastric and gastroesophageal junction (GEJ) adenocarcinomas. Claudin 18.2 expression is observed in up to 70% of gastric cancers and 60% of pancreatic adenocarcinomas, making it a promising target for precision medicine. The company also introduced RhD Genotyping via Cell- Free DNA (cfDNA), a non-invasive prenatal test for determining fetal RhD status in pregnancies involving Rh-negative mothers, thereby reducing the need for unnecessary interventions. Other notable additions include Component Resolved Diagnosis (CRD) Allergy Testing, which allows precise identification of IgE-mediated allergies, and Gut Microbiome Testing, a comprehensive analysis of gut microbial diversity, providing insights into digestion, immunity, metabolism, and overall well-being.

Agilus commitment to public health extends to its partnership with the Indian Menopausal Society, aimed at transforming cervical cancer screening through co-testing (HPV + Liquid-Based Cytology [LBC]). This initiative enhances early detection, improves health outcomes, and raises awareness about the importance of routine screening, particularly among menopausal-age women. Additionally, Agilus is collaborating on a research initiative to publish a national dataset establishing the clinical significance of co-testing in cervical cancer prevention.

Through these pioneering developments, Agilus Diagnostics continues to drive innovation in precision medicine, preventive healthcare, and genomic diagnostics, reinforcing its commitment to improving healthcare accessibility and patient outcomes.

vi. Patient Care & Experience (Cust Exp)

Over the past years, weve introduced several initiatives to improve the patient experience, from User-friendly Consumer App, Seamless online booking, Health Trends, 24*7 BOT support to Tele Consultations for guidance. These efforts are aimed at reducing stress and offering more accessible care to our patient.

In addition to delivering accurate and timely results, we prioritise patient care by enhancing both efficiency and empathy. Last year, we introduced a new CRM system that gives us a complete view of each patients journey, allowing us to respond more quickly and efficiently. This reduction in response time helps alleviate patient anxiety, as concerns are addressed promptly, making patients feel more at ease. Our teams are regularly trained to provide support and comfort at every step.

We have a robust service recovery process in place. All patient feedback is recorded, and we make it a priority to reach out to each patient Every detail of the experience is heard and captured, followed by a Root Cause Analysis and the implementation of corrective actions to address any concerns. Once the patients issue is resolved to their satisfaction, we take additional steps to develop preventive measures— such as automation and process improvements—to reduce error rates and continuously enhance the patient journey.

vii. Driving Innovation & Operational Excellence in Agilus via Technology

At Agilus, technology remains the cornerstone of our mission to provide accurate, population- scale, efficient, and accessible diagnostic solutions. In FY 2024-25, we continued to invest in cutting- edge solutions, automation, and Technology/ Digital transformation to enhance patient care and operational efficiency. As Indias leading diagnostic laboratory, we are embarking on an ambitious multiyear Technology Transformation Program designed to establish us as the nations premier healthcare partner.

Advanced Diagnostic Technologies

This year, we modernized our state-of-the-art Genesys platform to continue delivery of next- generation sequencing (NGS) in our Genomics Division, completed evaluation of a centralized- intelligent Radiology Software to be rolled out in the upcoming fiscal ensuring faster & precision reporting by eliminating any manual intervention.

Automation & Laboratory Network Expansion

To strengthen our nationwide diagnostic network, we rolled out SDWAN across 200+ labs, matured our CLIMS API offerings for frictionless integration with B2B aggregators. These initiatives have enhanced efficiency, minimized human error including reconciliation challenges, and increased scalability to meet the growing demand for diagnostic services.

Seamless Patient Experience through Digital Solutions

In our continued commitment to patient-centric care, we continue to our mobile app and web platforms, enabling seamless booking, real-time test tracking, and instant report access.

viii. Research and Development

In FY 2024-2025, Agilus Diagnostics expanded its focus on diagnostic advancements, process efficiency, high-end technologies, and emerging areas such as Genomics. The major objective was to enhance the esoteric test menu to cater to Pan India requests. Six new tests targeting seasonal infections and a broad range of bacterial detection and identification were introduced.

The advanced genomics portfolio was further expanded with new multi-disorder panels. Point- of-care technology for emergency diagnostics was successfully implemented, offering rapid and cost-effective syndromic panels for respiratory, neurological, and gastrointestinal infections. Following successful deployment at the Goregaon Reference Lab, this technology was also installed at a key location in Gurgaon.

During the year, Agilus established a technology transfer agreement to bring advanced testing capabilities in-house, enhancing offerings for wellness clients and clinical research service requirements. Two contract evaluation requests for new technologies were successfully concluded, along with a research collaboration with an academic institution.

The R&D division is progressing toward registration as an Evaluation Center for Medical Devices and Diagnostics under regulatory authorities. Marketing campaign support was provided for the High-Risk HPV test launch on International Womens Day and for a new molecular TB test planned for World TB Day.

Additionally, clinician engagement through academic discourses and round-table meetings focusing on advancements in molecular diagnosis continued throughout the year.

ix. Academic Achievements

Agilus Diagnostic Ltd is the first diagnostic laboratory to offer a one-year Fellowship program to doctors in India that imparts applied knowledge of molecular pathology in cancers, genetic disorders and infectious diseases under the aegis of Maharashtra University of Hsealth Sciences (MUHS), Nashik. Our innovative learning platform Agilus MedGurukul for upskilling of doctors and technologists conducted 15 training sessions and 2 CMEs. At the IHH Quality Summit Bharat 2024 or the first time a dedicated Laboratory Track session was held. This was organised by Agilus doctors. Participants included IHH lab partners from Malaysia (Premier Integrated Labs), Singapore (Parkway Laboratories), Turkiye (Acibadem Labmed), Gleneagles Hospitals in India and Hong Kong. The event covered important topics, including innovations shaping modern laboratories, breakthroughs in infectious disease diagnosis, the rise of emerging pathogens, advancements beyond lipid profiling, and digital pathology. In FY 2024-25 there were 2 issues of Pulse, Agilus medical case reports journal. Our doctors also contributed to Fortis Clinical Connect. Agilus doctors participated in national conferences and published more than 28 scientific research papers in indexed peer-reviewed journals. rch papers in indexed peer-reviewed journals.

C. Financial and Operational Performance of the Company - Consolidated Performance, Hospitals and Diagnostics business Performance and KPIs

For the financial year 2024-2025, the Company reported a consolidated revenue from operations of Rs.1,183 Crores compared to Rs.6,893 Crores reported for FY 2023-24. Revenue from Hospital business stood at Rs.6,528 Crores compared to Rs.5,686 Crores reported during the corresponding year. Agilus Diagnostics, the diagnostic business of the company, reported gross revenues of Rs.1,407 Crores compared to Rs.1,372 Crores in the previous financial year. Considering elimination of inter-company revenue (within the group), net revenue of Agilus was at Rs.1,255 Crores compared to Rs.1,207 Crores in FY 2023-24.

(*Total consolidated income is net of inter-co elimination and includes other income of Rs. 66.9 Crores in FY2024-25 and Rs. 38.3 Crores in FY2023-24)

(**Hospital Business includes P&L of international entities also)

The consolidated EBITDA of the Company stood at Rs.1,655 Crores compared to Rs.1,306 Crores for the previous corresponding year. EBITDA margin of the Company stood at 21.3% in FY 2024-25 versus 18.9% reported in FY 2023-24. Hospital business EBITDA for FY 2024-25 was at Rs.1,381 Crores compared to Rs.1,077 Crores reported for FY 2023-24. EBITDA margin of the hospital business stood at 21.1% in FY 2024-25 versus 18.9% in FY 2023-24.

The diagnostic business of the Company reported EBITDA of Rs.274 Crores compared to Rs.229 Crores reported in the previous corresponding year. EBITDA margin of the diagnostic business stood at 19.5% (basis gross revenue) compared to 16.7% for the year FY 2023-24.

Consolidated Profit after tax for FY 2024-25 stood at Rs.809 Crores compared to Rs.645 Crores reported in the previous financial year. PAT includes an exceptional loss of Rs.89.3 Crores in FY 2024-25 primarily pertaining to impairment movement in an associate Company and impairment of assets in a subsidiary company, offset by gain of Rs.23.5 Cr related to the divestment of the Richmond Road, Bangalore facility in December 2024 and Rs.16.0 Crores in FY2023-24 which pertains to the reversal of impairment in an associate company and profit related to the divestment of Chennai facilities.

With respect to the balance sheet, the Companys net debt stood at Rs.1,694 Crores as on March 31, 2025 versus Rs.264 Crores as of March 31, 2024 (net debt to equity of 0.18x vs 0.03x, respectively). Gross debt of the Company stood at Rs.2,196 Crores as on March 31, 2025 versus Rs.859 Crores as of March 31, 2024. Net Debt to EBITDA stood at 0.93x for the year FY2024-25 compared to 0.17x for FY2023-24 (basis Q4 annualized EBITDA).

The company successfully raised Rs. 1,550 crores through the issuance of Non-Convertible Debentures (NCDs), leading to an increase in Net Debt to EBITDA. Leveraging these funds, along with internal accruals, the Company consolidated its stake in Agilus Diagnostics Ltd. to 89.20% by acquiring 31.52% from Private Equity investors. The company also declared a dividend of Rs.1 per share, subject to shareholders approval.

(**Hospital Business includes P&L of international entities also)

As we reflect on another successful year, our commitment to building a high-performance organization remains at the core of everything we do in Human Resources. In todays dynamic and competitive landscape, the key to sustained success lies in empowering the most valuable asset - Our People.

This year, our focus has been on fostering a culture of excellence, collaboration, and continuous growth. We have made significant strides in aligning our HR practices with the organizations overall strategic goals, ensuring that our workforce is not only skilled and motivated but also engaged and invested in the companys vision.

Weve embraced a holistic approach that combines talent acquisition, employee development, performance management, and employee well-being. By providing our employees with the right tools, opportunities for advancement, and a supportive environment, we have built a strong foundation for a high-performance culture that drives results, innovation, and engagement. Efficacy of effectiveness of our initiatives is evident through the facts that -

a. Overall Annualized Attrition further improved by 2% in absolute terms, majorly owing to 5% improvement for Nursing category. Both are best outcomes of last 5 years.

b. We continued to fortify our Fortis Apprentice Program, one of the biggest skill development programs in the Healthcare space. We now have a concurrent pipeline of approximately 2000 apprentices across our network of markets.

c. This year, we strengthened our commitment to leadership development by investing across all levels of the organization - from the C-suite to senior and mid-level leaders. Our leaders participated in executive education programs offered by globally renowned academic institutions, gaining fresh perspectives and strategic insights aligned with the evolving healthcare landscape. Our hospital & functional heads attended our group level, IGLOBE Program which equips current and future hospital leaders with the skills, mindset, and agility required to lead in a dynamic, patient-centred environment.

d. Our leaders collectively completed over 30,000 hours of online learning this year, reflecting a strong shift toward digital capability building and a culture of continuous development. Through access to premium digital content and curated learning experiences, we empowered leaders to learn anytime, anywhere. These initiatives reflect our belief that leadership at every level is key to driving organizational excellence and sustaining long-term impact.

e. Our HCM platform which was commissioned last year has been stabilised and is now a strong source of data- based decision making. We are making good progress on integrations across HIS, EPR and My Fortis applications for delivering well automated workflows.

f. Collaboration as a Catalyst for Employee Well-being and Excellence in Care - As an organization, we fully recognize that collaboration is foundational to healthcare excellence, operational efficiency & employee wellbeing and our people development strategies are intentionally designed to foster this across teams. In 2024 we launched a large-scale training initiative to build collaborative skills and mindsets across the organization. This effort reached over 8000 employees, ensuring that our teams are better equipped to support each other and deliver coordinated, compassionate care. This investment reflects our commitment to building a culture where collaboration drives both people and performance

g. Expanding Access to Holistic Well-being Support - Rooted in our belief that well-being extends beyond physical health, we remain committed to supporting the mental and financial wellness of our employees. To help individuals be their best selves-both personally and professionally - we expanded access to expert-led resources through a digital first approach. Offering employees on-demand support, including mental health sessions, financial guidance, and expert lectures, all tailored to the unique realities of working in healthcare.

Fortis Healthcare Limited operates in a competitive business environment and is exposed to a broad range of risks and uncertainties that may impact the Companys strategic and financial goals. These risks—such as operational, regulatory, human resources, and financial—are inherent and are characteristic of any business including that of healthcare. The Company places strong emphasis on the continuous identification and mitigation of business risks and fosters a culture of risk awareness across the organization. While risks cannot be entirely eliminated, appropriate measures are in place to mitigate significant risks.

At Fortis Healthcare Limited, the internal control system has been designed to correspond to the size and complexity of the operations and the incremental changes made. The management believes that internal controls are the prerequisite for effective governance and efficient execution of business plans within a framework of checks and balances. Management is committed to ensuring an effective internal controls environment, commensurate with the size and complexity of the business, which assures compliance with internal policies, applicable laws and regulations, ensures reliability and accuracy of records, promotes operational efficiency, protects resources and assets, helps to prevent and detect fraud, errors and irregularities and overall minimises the risks.

The Company has a well-established internal controls framework comprising a set of policies, procedures and systems, instrumental in enhancing the efficiency and effectiveness of business operations, reducing risks and costs, and improving decision-making and accountability. The financial controls are evaluated for operating effectiveness through managements ongoing monitoring and review process.

An independent and empowered Internal Audit Function with support from highly skilled resources (including external audit firms) carries out risk-based internal audits of the Companys operations. Chief Internal Audit & Risk Officer directly reports functionally to the Audit Committee and administratively to the Managing Director & CEO of the Company. Key internal audit findings are presented to the Audit Committee at its quarterly meetings.

Except for the historical information contained herein, statements in this discussion which contain words or phrases such as will, would, indicating, expected to etc., and similar expressions or variations of such expressions may constitute forward-looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, our ability to successfully implement our strategy, future business plans, our growth and expansion in business, the impact of any acquisitions, our financial capabilities, technological implementation and changes, the actual growth in demand for our products and services, cash flow projections, our exposure to market risks as well as other general risks applicable to the business or industry. The Company undertakes no obligation to update forward looking statements to reflect events or circumstances after the date thereof. These discussions and analysis should be read in conjunction with the Companys financial statements included herein Sand the notes thereto.

References

• Investment Opportunities in Indias Healthcare Sector, NITI Aayog

• IBEF report on Healthcare Sector, November 2024

• IRDA Annual Report - 2023-24

• Jefferies Equity Research Report, January 2025

• CRISIL Report, August 2024

• CRISIL Report on Diagnostics Industry, October 2024

• Ministry of Health and Family Welfare

• Market Research, Equity and Other Reports, Web Articles, Press & Media Reports and Others.