SECTION I
Indian Healthcare Sector A. Overview
Indias healthcare industry has emerged as a key contributor to the countrys economic development. The industry spans a wide range of sectors, including hospitals, medical devices, clinical trials, telemedicine, medical tourism, health insurance, and medical equipment, reflecting its broad economic footprint.
The sectors expansion is underpinned by strong economic and demographic fundamentals, including population growth, a rising middle class, ageing demographics, increasing prevalence of lifestyle diseases, and greater adoption of technology. Growing participation from both public and private stakeholders has further strengthened its role within the broader economic framework.
With the population projected to exceed 1.5 billion by 2030, alongside rising income levels and increasing digital adoption, the sector presents significant opportunities for innovation and capacity expansion. However, structural challenges persist, particularly in ensuring equitable access to affordable healthcare.
Infrastructure gaps, regional disparities, and a shortage of skilled professionals continue to weigh on the sectors growth potential.
Government-led investments in healthcare infrastructure and increased spending, along with improvements in insurance coverage and service quality, are helping address these gaps and support ongoing sectoral development.
Looking ahead, continued advancements in medical technology and a growing emphasis on preventive care and wellness are expected to drive further evolution of the industry. The sectors resilience and ongoing reforms are likely to sustain momentum and create long-term opportunities for investors, stakeholders, and healthcare professionals.
B. Current Landscape and Key Highlights
Healthcare has emerged as one of Indias largest sectors, contributing significantly to revenue generation, employment, and the countrys overall growth. The industry is expanding at a strong pace, driven by improving coverage and services, along with rising expenditure from both public and private participants. The increase in healthcare demand is fueled by a combination of economic and demographic factors.
Indias healthcare industry encompasses a wide range of segments, including hospitals, medical devices and equipment, pharmaceuticals, health insurance, clinical trials, telemedicine, and medical tourism. The sector has maintained strong growth momentum and is projected to reach US$ 638 billion by 2025, growing at a CAGR of ~22% during 2016–2025. This growth is being driven by ongoing innovation across as hospitals, pharmaceuticals, and diagnostics.
In the Union Budget for 2026-27, the government has allocated INR 1,06,530 crore to the Ministry of Health and Family Welfare (MoHFW) to strengthen healthcare infrastructure, delivery, and accessibility - a 10% increase from last year EHR adoption in India at ~35-40% signals strong untapped potential, with initiatives like the Ayushman Bharat Digital Mission set to accelerate a scalable digital healthcare ecosystem.
Indias health-tech sector is projected to reach US$50 billion by 2033, driven by increasing adoption of Al, automation, and digital health platforms.
The artificial intelligence (Al) in Healthcare Market is expected to grow from US$ 14.6 Billion in 2023 to US$ 102.7 Billion by 2028.
Telemedicine is an emerging and fast-growing segment in India. Virtual care services, comprising teleconsultation, telepathology, teleradiology, and e-pharmacy, are gaining significant traction across the country.
(Source: IBEF, Praxis Global Alliance & Ministry of Health and Family Welfare)
Key Highlights:
Rising life expectancy with evolving health profile
Indias healthcare landscape has improved significantly, with life expectancy rising from 49.7 years in 1973 to 70.3 years in 2023, supported by better maternal and child health outcomes and improved access to care. However, the burden of non-communicable diseases (NCDs)-including cardiovascular diseases, diabetes, obesity, and cancers-is increasing, accounting for ~57% of deaths in 2021-23 and projected to reach ~74% by 2030.
(Source: Press Information Bureau, Government of India; Praxis Global Alliance)
Rise in Health Insurance Coverage
Health insurance is gaining importance in India, driven by rising medical costs, increasing disease burden, and greater awareness. However, low penetration continues to limit access to affordable healthcare, particularly for lower-income groups. With expanding digital channels, tailored products, and supportive government initiatives, adoption is expected to grow steadily, improving affordability and access.
Medical Tourism
India is emerging as a key hub for medical value travel and clinical research, driven by affordable, high-quality care, advanced technology, and skilled professionals. The medical tourism market, valued at US$ 7.69 billion in CY24, is projected to reach US$ 14.31 billion by CY29 (Source: IBEF), supported by rising demand for complex treatments, improving infrastructure, and increased participation from NRIs and global patients.
Emerging Healthcare Delivery Models
The healthcare delivery landscape is evolving with the rise of digital health platforms, home healthcare services, and e-pharmacies. Supported by increasing digital adoption and connectivity, these models are expanding healthcare reach and improving overall efficiency across the system
Strengtheninghealthcaredeliveryinfrastructure
The Indian healthcare services sector has evolved significantly, supported by improved infrastructure and government focus through higher Union Budget allocations toward healthcare, including infrastructure development, disease control programs, and improved access to essential medicines. Expansion of hospitals, clinics, and diagnostic centers continues to meet rising demand, particularly in tier 2 and tier 3 cities.
Healthcare Workforce Expansion
The Union Budget 2026-27 focuses on strengthening Indias healthcare ecosystem by targeting the training of 100,000 allied health professionals over the next five years. In addition, private hospitals are expected to add over 4,000 beds in FY26, backed by investments of US$ 1.34 billion, reflecting continued capacity expansion and sectoral growth. Since 2014,
MBBS and nursing seats have more than doubled, and postgraduate and super-speciality seats have increased by 100%.
(Source: IBEF, Ministry of Health and Family Welfare)
Expansion of Telemedicine Services
Telemedicine is experiencing strong growth, supported by increasing adoption of digital platforms by healthcare providers for remote consultations and medical services. The market is projected to reach US$ 5.4 billion by 2025.
(Source: IBEF)
Indian healthcare delivery market poised for robust growth
The Indian healthcare delivery market, comprising hospitals and clinics, was valued at approximately INR 7 trillion in FY25. The healthcare delivery industry is projected to register a healthy 10–12% CAGR during FY25–FY30, driven by strong structural factors, improving affordability and robust underlying fundamentals. Within the overall market, the inpatient department is expected to account for over 70% (in value terms), while the remaining share is contributed by the outpatient segment. Key specialties such as critical care, oncology, neurology, and orthopedics, which witnessed a surge in demand post-pandemic, are expected to maintain their growth momentum. (Source: CRISIL)
C. Government Policies and Key Initiatives
Strengthening Indias healthcare ecosystem remains a key priority for the Government of India, as reflected in the Union Budget 2026–27 through increased the allocations and policy support. Key focus areas include expanding healthcare infrastructure, particularly in underserved regions, enhancing workforce capacity, and improving access to diagnostics. In addition, continued emphasis on research and innovation, along with support under national programs such as the National Health Mission and the Ayushman Bharat Digital Mission, is driving improvements in healthcare delivery and accessibility. These initiatives collectively aim to address evolving healthcare needs and support the sectors long-term growth, efficiency,
Key Highlights:
The Union Budget 2026–27 allocates ~INR 1,06,530 Crore to the Ministry of Health and Family Welfare, reflectinga ~10% YoY increase and reaffirming
Governments continued focus on healthcare. The Budget allocated to the Department of Health Research has been increased to INR 4,821 Crore (23% increase from 2025–26 revised estimates), underscoring a strong push towards innovation, research, and advanced medical capabilities. A targeted INR 980 Crore outlay over three years has been proposed to strengthen the healthcare workforce, with plans to develop nearly 1 lakh allied health professionals and train 1.5 lakh geriatric caregivers, addressing evolving demographic and care needs.
Funding for the National AIDS and STD Control Programme has been enhanced to INR 3,477 Crore (~31% increase from 2025–26 revised estimates), aimed at strengthening blood infrastructure and public health delivery systems.
Healthcare infrastructure remains a key priority, with INR 4,770 Crore allocated to Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (~68% y-o-y increase from 2025–26 revised estimates), driving expansion of critical care capacity, diagnostics, and district-level health systems. Under Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), including new AIIMS, allocation stands at INR 11,307 Crore, supporting capacity expansion, operationalisation of institutions, and upgradation of government medical colleges.
To improve affordability, the Budget proposes customs duty exemptions on 17 life-saving drugs and additional relief on treatments for rare diseases, significantly reducing patient cost burden. The Budget also prioritizes mental and emergency care, with plans for upgrading key institutions, establishing a NIMHANS in North India, and expanding 24?7 trauma and emergency care centres across district hospitals.
In October 2025, the Ministry of Health and Family Welfare revised CGHS package rates effective October 13, 2025, aimed at rationalising hospital tariffs and improving standardisation and transparency in healthcare pricing across empanelled facilities. Following this revision, the Ex-Servicemen Contributory Health Scheme (ECHS) aligned its treatment rates with the updated CGHS structure, thereby standardising reimbursement rates and ensuring uniformity across empanelled hospitals.
D. Key Growth Drivers of the Indian Healthcare Industry
Key growth drivers of the Indian healthcare industry include infrastructure and workforce gaps, demographic shifts, and rising income levels. Expanding insurance penetration and medical tourism continue to strengthen sectoral growth.
Key Growth Drivers
a. Inadequate Healthcare Infrastructure: India has 16 hospital beds per 10,000 people which is substantially below the global average of 33 hospital beds per 10,000 people. Urban centres continue to account for a disproportionately high concentration of healthcare infrastructure, resulting in an uneven distribution across the country. This skewed distribution leads to significant disparities in access to healthcare services, particularly in non-metropolitan regions, where bed density remains lower at around 14 beds per 10,000 population. Additionally, with only ~6% of hospitals accredited versus over 70% in many global systems, there is substantial scope to strengthen quality standardization and transparency. (Source: Crisil, Praxis Global Alliance)
b. Limited Availability of Quality Healthcare Services: India continues to face a shortage of skilled healthcare professionals, with approximately 10 physicians and 26 nurses and midwifery personnel per 10,000 population, compared to the global median of around 17 physicians and 37 nursing personnel per 10,000 population. This indicates a significant gap in the availability of qualified medical workforce to meet healthcare demand. (Source: Crisil, IBEF)
134 c. Demographics: Indias evolving demographic profile is reshaping health outcomes and increasing demand for age-specific healthcare services, thereby creating opportunities for innovation in the sector. With approximately 13% of the population projected to be above 60 years of age by 2030, the need for long-term care and chronic disease management is expected to emerge as a key growth driver. This shift will require greater adoption of technology-enabled solutions and more advanced, integrated care strategies. (Source: Crisil)
d. Rising Income Levels Improving Healthcare
Affordability: While healthcare is an essential and a non-discretionary expense, affordability of quality healthcare services continues to remain a key constraint, given that nearly 83% of households in India had an annual income of less than INR 200,000 in fiscal 2012. In this context, growth in household and disposable incomes is critical to driving demand for healthcare delivery services in India. The share of households in the INR 150,000–200,000 income bracket increased to 40% in fiscal 2024, reflecting a growing segment of the population with improved affordabilityand enhanced access to quality healthcare services. (Source: Crisil)
e. Growing Health Insurance Penetration: Low health insurance penetration remains a significant on the growth of the healthcare delivery sector in
India, as affordability of quality healthcare services continues to be a concern for lower-income groups. However, insurance coverage has risen from 35% in FY2019 to 41% in FY2024, supported by the expansion of the middle-income population and increased adoption of employer-sponsored health plans. This gradual transition from out-of-pocket expenditure to insurance-driven payment mechanisms is supporting hospital sector growth by easing financial constraints and stimulating demand for elective procedures. (Source: Crisil, IRDA)
f. Significant opportunity from medical tourism: India has established itself as a prominent destination for medical tourism, supported by well-developed healthcare infrastructure, experienced medical professionals, and relatively affordable treatment costs. The countrys medical tourism market was estimated at approximately US$ 7.69 billion in CY2024 and is expected to expand to US$ 14.31 billion by CY2029. The sector is further supported by enabling government policies, including the provision of 100% foreign direct investment in the AYUSH segment for wellness and medical tourism. In addition, in 2025, the Ministry of AYUSH introduced the Central Sector Scheme for Promotion of International Cooperation (IC Scheme) aimed at strengthening exports, enhancing global outreach, and promoting research and international partnerships in AYUSH systems. (Source: IBEF)
E. Key Challenges
The healthcare industry in the country continues to face certain challenges, including, among others, increasing regulatory oversight, heightened competition, evolving payer dynamics, and the availability of clinical talent. a. Rising healthcare costs have led to increased regulatory scrutiny, which has taken, and may continue to take, the form of measures such as margin capping and tariff controls across both the hospital and diagnostics segments. Such measures could impact service offerings, revenue mix, and other operational parameters.
b. The increasing share of insurance and institutional payors continues to necessitate a sustained focus on revenue cycle management to effectively address reimbursement complexities, longer payment cycles, and collection efficiencies, while maintaining financial sustainability. c. Supported by strong growth fundamentals, the healthcare delivery sector has attracted significant investments from private and foreign investors, as well as large Indian conglomerates, resulting in the establishment of a growing number of healthcare service providers at both regional and pan-India levels. Consequently, increasing competitive intensity has the potential to impact financial and operational performance. d. The availability of qualified clinical talent continues to remain a critical challenge. Addressing this issue is essential to maintaining high standards of patient care and ensuring the long-term sustainability of healthcare systems.
F. Digital Transformation
Indias healthcare sector is witnessing accelerated digital transformation, driven by the increasing adoption of advanced technologies and continued support from government and private stakeholders. Telemedicine has emerged as a key component of this transformation, encompassing teleconsultation, telepathology, teleradiology, and e-pharmacy services.
Its adoption has accelerated significantly, with major hospitals integrating virtual care into their service offerings and expanding reach through public-private partnerships.
The increasing use of technologies such as artificial intelligence, cloud computing, electronic health records, robotics, wearable devices, and 5G-enabled infrastructure is further strengthening digital capabilities. These innovations are improving clinical outcomes, enabling real-time data access, and supporting efficient resource planning and patient management.
Government initiatives continue and enabling a more connected to drive digital adoption, with the Ayushman Bharat Digital Mission allocated a budget of INR 350 Crore in Union Budget 2026–27 enabling interoperable digital health infrastructure including EHRs, telemedicine platforms, and integrated hospital systems.
In parallel, Indias MedTech sector is witnessing strong growth, supported by initiatives such as the Production Linked Incentive (PLI) Scheme and the development of medical devices parks, attracting investments and strengthening domestic capabilities.
Overall, digital transformation is reshaping healthcare delivery in India by improving access, enhancing operational efficiency, and technology-driven ecosystem.
Key Technology Transformation Trends
AI, ML and Advanced Analytics: Growing adoption of Al and machine learning is enabling data-driven clinical decision-making, early diagnosis, predictive analytics, and personalized treatment planning. These technologies are also improving operational efficiency through better patient triaging, scheduling, and resource optimization, while supporting preventive care and population health management.
Integrated Digital Health Systems: Deployment of Electronic Health Records (EHR), Radiology Information Systems (RIS) and Clinical Decision Support Systems (CDSS) is enhancing data management, diagnostics, and care coordination. Increased use of cloud computing and big data analytics is enabling real-time access to patient information, improving clinical outcomes and supporting informed decision-making across healthcare providers.
Telemedicine and Virtual Care: Teleconsultations and digital health platforms are becoming mainstream, improving accessibility and convenience for patients, particularly in remote and underserved areas. The rapid adoption of virtual care models continues to reshape healthcare delivery and expand reach.
Advanced Medical Technologies and Robotics: Robotic-assisted surgeries and 3D printing are improving precision, enabling minimally invasive procedures, and supporting customized treatment solutions. These technologies are enhancing clinical outcomes while improving operational efficiency and reducing human error
Wearables, Remote Monitoring and Connected Care: Increasing use of wearable devices and connected sensors is enabling continuous monitoring of patient vitals, early detection of health risks, and improved chronic disease management. Integration with digital platforms is facilitating a shift towards proactive and preventive care.
Emerging Technologies and Digital Ecosystem Expansion: Technologies such as blockchain are being explored to enhance data security, interoperability, and patient privacy, while the growth of e-pharmacies and digital platforms is expanding access to healthcare services. Collectively, these advancements are accelerating the transitiontowardsamoreconnected,efficient,and patient-centric healthcare ecosystem.
F. Indian Diagnostic Sector
The diagnostics sector remains a critical part of the healthcare ecosystem, supporting early disease detection, treatment planning and ongoing health monitoring. In India, the diagnostics market was estimated at INR 860–870 billion in FY24 and is projected to grow to Rs 1,275–1,375 billion by FY28, implying a 10–12% CAGR over FY24–28.
Source: Crisil
The industry is primarily divided into pathology, which accounts for ~56–58% of the market, and radiology, which contributes to ~42–44%. Pathology remains the larger segment because of its role in routine and preventive testing, while radiology is gaining share as imaging demand rises across chronic and critical care. Preventive and wellness diagnostics are also increasing their share of the market, supported by higher health awareness, chronic disease screening and growing consumer adoption of bundled health packages. (Source: Crisil, Axis Capital) The market remains fragmented, with standalone centres accounting for ~40%, hospital labs ~40%, and organized chains ~20% of the market in FY24. Organized players have steadily gained share, up from around 15% in FY20, driven by scale, quality, broader test menus, home collection and digital report access. Demand is still urban-led, with urban centres contributing 76% of industry revenue and rural areas 24%, despite rural India accounting for nearly 70% of the population. (Source: Crisil, Axis Capital) Even as growth remains healthy, the industry continues to face pricing pressure, rising competition and regulatory watchpoints. Over the last few years, growth has been largely volume-led, with stable to modest pricing. This has improved affordability and supported wider access, particularly as larger players expand into smaller cities and underserved markets.
(Source: Crisil, Axis Capital)
Emerging Trends in the Diagnostics Sector
The sector is seeing a clear shift toward a more organized, technology-enabled and consumer-oriented model. Key trends include:
Rising Preventive and Wellness Testing
Growth in this segment is running ahead of the overall industry, with estimates of 16–18% CAGR over FY24-28E. The preventive and wellness segment grew from ~8% of the market in FY18 to ~11% in FY24, and is expected to reach ~15% by FY28. Organized chains have materially increased the contribution of package-led and wellness revenues in recent years.
Shift Toward Organized Chains
Organized and chain-based players increased their market share from about 15% in FY20 to about 20% in FY24, while standalone share has declined. Consolidation is being driven by acquisitions, regional expansion and the superior scalability of organized formats. Larger chains are better positioned on quality, turnaround time, digital access and test menu breadth.
Expansion Beyond Metros
Rural India contributes only 24% of diagnostics revenue, indicating a large underpenetrated opportunity. Tier-2/3/4 towns are becoming a key growth focus for organized players through franchise models, B2B tie-ups and acquisitions. East and Northeast India, with a market share of ~20–21% in FY24, is expected to grow faster than the national average and reach 21–22% share by FY28.
Technology and Digital Adoption
Home collection, online reports, tele-radiology and digital booking are becoming standard features of the organized diagnostics model. Hub-and-spoke networks continue to support
-led scale and efficiency, models. in pricing frameworks, accreditation
AI and automation are increasingly being used turnaround to improve efficiency, times, particularly in pathology and imaging workflows.
Growth in Specialty and Advanced Testing and operating dynamics in the
Genomics and specialized diagnostics are emerging as important growth categories, with industry growth expected at mid-teen rates over the next few years. Radiology is also expected to grow strongly, at around 12% over FY24–28, supported by chronic disease burden, imaging demand and under penetration of advanced modalities.
(Source: Crisil, Axis Capital)
G. Future Outlook
Indias healthcare sector continues to exhibit strong growth momentum, supported by favourable demographic trends, rising income levels, increasing insurance penetration, and sustained investments from both public and private stakeholders. digital integration, and
Structural gaps in infrastructure and workforce, coupled with the rising burden of non-communicable diseases, are driving the need for capacity expansion, improved accessibility, and enhanced quality of care across the country. Concurrently, policy support and targeted government initiatives are strengthening healthcare infrastructure, improving affordability, and fostering innovation within the ecosystem. towards The sector is also witnessing a significant digitalisation, with increasing adoption of technologies such as artificial intelligence, telemedicine, electronic health records, and advanced diagnostics. These developments are transforming care delivery models by improving efficiency, enabling data-driven decision-making, and enhancing patient outcomes. In addition, the expansion of healthcare services into Tier II and Tier III cities is gaining momentum, addressing critical infrastructure gaps in these regions. Large hospital chains are strengthening their presence through both organic growth and acquisitions, while regional players continue to scale up operations. This expansion is improving access to quality healthcare in underserved areas and contributing to a more balanced and inclusive healthcare landscape.
Within this evolving environment, the regulatory and payor landscape continues to mature, with ongoing refinements standards, and reimbursement mechanisms. Measures such as price caps, standardised treatment protocols, and evolving compliance requirements are expected to enhance transparency and consistency; however, they may also place some pressure on pricing flexibility to medium term. The increasing share of insurance and institutional payors is improving affordability and access; however, it also necessitates continued focus on efficient revenue cycle management to address complexities around reimbursements, timelines, and collections.
The diagnostics segment is expected to remain a key growth driver, supported by rising healthcare awareness, increased adoption of preventive and wellness testing, and continued expansion into underpenetrated markets. The shift toward organised, technology-enabled chains is likely to accelerate, alongside expansion into Tier II, Tier III, and rural regions. Additionally, growing demand for specialty and advanced diagnostics, including genomics and high-end imaging, will further expand the market.
Improvements in efficiency, mix are expected to support sustainable growth over the medium to long term.
Overall, the Indian healthcare industry is witnessing a phase of sustained expansion, underpinned by structural demand drivers, policy support, and technological advancements, positioning it as a critical pillar of the countrys economic and social development.
SECTION II
A. About Fortis Healthcare limited
Fortis Healthcare is one of the largest healthcare services providers in India with 36 hospitals (including JVs and O&M facilities), ~6,100 operational beds (including O&M beds) and over 400 diagnostics centres as of 31st March 2026. The company offers a full spectrum of integrated healthcare services ranging from clinics to quaternary care facilities and a wide range of ancillary services.
The Fortis Group employs over 28,000 people (including Agilus, JVs and O&M facilities) who share IHHs vision of becoming the Indias most trusted healthcare network. We draw strength and synergies from our partnership with our parent company IHH Healthcare to deliver world-class patient care and clinical excellence.
i. Hospital Business
Revenue from Hospital business stood at INR 7,773 Crores for FY 2025-26 compared to INR 6,528 Crores reported during the corresponding previous year. resulting in a 19.1% year-on-year (YoY) growth. Hospital business revenues contributed 85% to the total consolidated revenue in FY 2025-26 as compared to 84% in FY 2024-25. Hospital business EBITDA for FY 2025-26 was at INR 1,742 Crores compared to INR 1,381 Crores reported for FY 2024-25. EBITDA margin of the hospital business stood at 22.4% in FY 2025-26 versus 21.1% in FY 2024-25.
The growth in the hospital business was driven by a
15.2% increase in occupied beds, which rose to 3,270 in FY 2025-26 compared to 2,838 in FY 2024-25. Occupancy for FY 2025-26 stood at 68% compared to 69% in FY 2024-25. ARPOB increased by 3.4% to INR 2.51 Crores in FY 2025-26 from INR 2.42 Crores in FY 2024-25. The Companys focus specialties comprising oncology, gastroenterology, neurosciences, renal sciences, orthopaedics and cardiac sciences grew 19% YoY and contributed 62% to the total hospital revenues, similar to FY 2024-25. Despite an increasingly competitive and dynamic healthcare landscape, the Company remained focused on elevating clinical outcomes, accelerating digital transformation and enhancing patient experience. Our Centers of Excellence including Cardiac Sciences, Orthopedics, Oncology, Neurosciences, Gastroenterology and Renal Sciences continued to drive high-quality, specialized care while setting new benchmarks in clinical innovation, procedural expertise and research-led advancements.
Fortis continues to accelerate its technology-led transformation by investing in next-generation medical platforms that enhance diagnostic precision, strengthen surgical capabilities, and elevate overall patient care. The Company augmented its medical infrastructure by commissioning several high- end medical equipment systems, including soft-tissue surgical robots, MRI machines, Cath labs, and a PET-CT, among others. Together, these advancements underscore our commitment to integrating cutting-edge solutions across specialties and shaping a smarter, safer and more clinical care ecosystem. This year, Fortis expanded its robotic capabilities by adding four new robotic systems, raising the total to 19 robots across the group. This expansion enables superior accuracy, improved clinical outcomes, and faster patient recovery across its healthcare facilities. In parallel, the organization has steadily advanced its digital transformation agenda, with EMR implementation completed across 23 units for the Outpatient (OP) module and across three facilities for the Inpatient (IP) module to date.
During the year, the Company accelerated its focus on network growth and expansion through a combination of brownfield initiatives and acquisitions. As part of its inorganic growth strategy, the Company made significant initiatives, adding ~500 beds to its network. In January 2026, the Company, through its wholly owned subsidiary, consummated the acquisition of the and
125-bedded People Tree Hospital in Yeshwanthpur, Bengaluru, along with an adjacent land parcel, enabling future expansion to over 300 beds, for a consideration of INR 430 crores. In September 2025, the Company entered into a 15-year lease agreement with RR Lifesciences for a ~200-bedded multi-specialty hospital in Greater Noida, with potential to expand to ~250 beds. The facility was previously managed by Fortis under an Operations & Management (O&M) arrangement. In July 2025, through its wholly owned subsidiary, the Company consummated the acquisition of the 228-bedded Shrimann Superspecialty Hospital in Jalandhar, along with an adjacent land parcel, for INR 462 crores. Further, in November 2025, the Company launched ‘Adayu, a 36-bedded specialized mental healthcare facility in Gurugram, reflecting its focus on emerging care segments. During the year, the Company also expanded capacity across its existing network by adding ~250 beds through brownfield expansion primarily in Manesar, Noida, and Faridabad. In addition, in July 2025, the Company entered into an Operation and Maintenance Services agreement with Gleneagles Healthcare India Private Limited to manage ~700 beds across five hospitals and a clinic within the
Gleneagles India network. The arrangement expanded Fortis footprint in key metro cities. In August 2025, the Company also entered into a collaboration agreement for the operations and management of a 550-bedded greenfield super-specialty hospital to be developed in
Lucknow by the Ekana Group.
Northern TK Venture Pte Limited, an indirect wholly owned subsidiary of IHH Berhad, concluded the open offer to shareholders of the Company on 10 November 2025.
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 3.7% in per occupied bed energy consumption in the FY 2025-26 as compared to FY 2024-25.
Reflecting on the achievements of FY 2025-26, the Company is pleased with the progress made across clinical excellence, operational efficiency, transformation. A continued focus on growth, quality care, and adoption of advanced technologies has further strengthened its position as a leading healthcare provider. Looking ahead, the Company remains committed to expanding its network, broadening service offerings, and enhancing the patient experience across all touchpoints. With a clear strategic vision, it will continue to innovate, scale responsibly, and deliver high-quality healthcare, while creating sustainable value for patients, stakeholders, and the communities it serves.
ii. Business Strategy
Driven by core values of
(i) Patient Centricity,
(ii) Innovation,
(iii) Teamwork,
(iv) Integrity, and
(v) Ownership, Fortis is dedicated to delivering exceptional healthcare services while continuously evolving to meet the dynamic needs of our patients and communities. Fortis strategic approach is founded on 6 key pillars, each designed to promote sustainable growth and enhance patient outcomes:
i) Network & Capacity Expansion
ii) Revenue Expansion
iii) Operational Excellence
iv) Clinical Excellence
v) Building Workforce Capability
vi) Digital & Future ready Technology
Network & Capacity Expansion:
Fortis remains focused on strengthening its national footprint through a balanced approach to network and cluster expansion. Its strategy prioritizes deepening presence in existing high-potential markets including Delhi-NCR, Mumbai, Bangalore, Punjab, Hyderabad and Kolkata, while selectively entering new catchments that align with long-term growth priorities. Over the next four years, Fortis aims to expand its national footprint from ~6,100 beds (including JVs and O&M facilities) to more than 7,900 beds, driven by brownfield expansion.
Expansion will be driven through a combination of optimizing existing hospital capacity and augmenting bed strength via both brownfield enhancements and select greenfield developments. Major expansion projects are currently underway at FMRI, Shalimar Bagh, Amritsar and Mohali, with phased completion expected over the next few years.
Revenue Expansion:
Fortis continued to advance a disciplined and diversified revenue expansion strategy focused on broadening patient reach, deepening engagement across key segments and channel mix. The organization leveraged a balanced mix of retail demand generation, institutional partnerships, digital channels and international patient programs to drive incremental growth across domestic and overseas markets. Strategic emphasis on digital enablement and brand visibility supported scalable patient acquisition, reflected in ~19% growth in digital revenue during the year. International patient program also continued to gain traction, contributing to an 19% increase in international revenues and further strengthening premium revenue diversification. In parallel improvement in case mix and realization contributed to approximately 3.4% growth in ARPOB. Collectively, these levers enhanced revenue momentum, improved mix and reinforced Fortis leadership position in delivering high-quality, patient-centric care across multiple geographies.
Operational Excellence:
Fortis strengthened its operational excellence agenda by advancing a scalable, cost-efficient and digitally enabled operating model. Enterprise-wide standardization, upgraded systems and centralised coordination enhanced consistency, standardization and governance across the network, while improvements in revenue cycle management, operational tracking and throughput discipline supported service efficiency.
Clinical Excellence:
Clinical excellence remains central to Fortis organizational strategy, shaping its approach to patient safety, quality outcomes, and service advancement transparency, across the network. Fortis efforts are anchored in four strategic pillars:
(i) specialty-led care,
(ii) digital clinical infrastructure,
(iii) clinical governance and standardization, and
(iv) patient safety and outcomes, which together drive consistent, high-quality clinical performance. Fortis continues to invest in distinguished clinical talent, ensuring access to leading specialists. Patient safety remains a core priority for Fortis, supported by rigorous monitoring, evidence-based protocols, and outcome tracking across units. Fortis continued to drive improvement in clinical outcomes through sustained focus on quality standards, multidisciplinary care and continuous clinical review mechanism. Fortis publicly discloses and continuously monitors clinical outcome across key procedures and specialties including CABG, PTCA, kidney transplant, radiation oncology, ERCP and laparoscopic cholecystectomy, reinforcing transparency and accountability in patient care.
Building Workforce Capability:
Emphasis remained on developing a strong talent pipeline, enhancing employee experience and deepening organizational capabilities, supported by digital HR enablement and structured learning frameworks. Employee engagement was actively monitored through regular engagement surveys and eNPS tracking, enabling data-driven actions to improve experience, retention and productivity across the network.
Workforce wellbeing remained a priority, with initiatives designed to support physical and mental health. Underpinning these efforts was a strong HR governance framework, characterized by robust internal controls, strengthened data systems and improved compliance oversight. Together, these initiatives enabled the organization to attract, retain and nurture critical talent.
Digital and Future ready Technology:
Fortis continued to accelerate its digital transformation journey, strengtheningStaff technology implemented. capabilities to and enhance care delivery, operational efficiency, patient experience.
Ongoing investments in EMR adoption, AI-enabled clinical tools, enterprise data platforms, and workflow automation improved care consistency, decision-making, and organizational agility. Technology-led enhancements across scheduling, analytics, and infrastructure modernization further strengthened efficiency, resilience. In parallel, Fortis reinforced its IT security and cybersecurity framework, strengthening data protection, system reliability, and access governance to ensure secure and resilient digital operations across the network.
iii. 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.
Clinical Governance:
During the reporting year, the organization strengthened its clinical governance framework to ensure the highest standards of care delivery. A robust governance structure, including specialty councils, continued to oversee clinical performance, policy implementation, and regulatory compliance. Key policies and clinical protocols were reviewed and updated in alignment with current evidence-based practices and statutory requirements.
Risk management remained a priority, with an enhanced incident reporting system promoting transparency and timely resolution of clinical concerns. Regular audits and internal reviews were conducted to ensure adherence to established standards. Fortis maintained compliance with accreditation requirements and demonstrated continuous improvement in governance practices.
Quality and Patient Safety:
Quality and Patient Safety continued to be central to organizational priorities. Several quality improvement initiatives were implemented, focusing on reducing hospital-acquired infections, medication errors, and patient falls. Standardized safety protocols and checklists were reinforced across all departments. Patient safety indicators were closely monitored, and trends were analysed to guide targeted interventions.
Root cause analyses were conducted for all significant incidents, ensuring that corrective and preventive measures were effectively participated in regular training sessions to promote a culture of safety, accountability, and continuous learning.
Key quality indicators monitored across Fortis hospitals include:
1. Catheter Associated Urinary Tract Infection (CAUTI)
2. Central Line Associated Blood-stream Infection (CLABSI)
3. Ventilator Associated Pneumonia (VAP)
4. Surgical Site Infection Superficial 30 Days
5. Surgical Site Infection Deep 30 Days
6. Surgical Site Infection Deep 90 Days
7. Healthcare Acquired Pressure Ulcer (HAPU)
8. Return to Operation Theatre
9. Return to ICU 10. Return to ER
11. Venous Thromboembolism (VTE) 12. Needle Stick Injury (NSI) 13. Patient Falls 14. Medication Errors
Antimicrobial Stewardship (AMS) program:
The Antimicrobial Stewardship (AMS) program remained instrumental in promoting the rational use of antibiotics and combating antimicrobial resistance. A well represented AMS committee actively monitored antimicrobial prescribing patterns and provided guidance to clinicians.
Interventions such as prospective audit and feedback, formulary restrictions, and clinical guidelines contributed to improved prescribing practices. Regular awareness sessions and training programs were conducted for healthcare professionals. These efforts resulted in a measurable reduction in inappropriate antibiotic usage and improved patient outcomes. Fortis is running a coordinated AMS program to address the increasing challenge of anti-microbial resistance.
Fortis Healthcare was amongst the first institutions in India to partner with Center for Disease Dynamics, Economics & Policy (One Health Trust, formerly the Center for Disease Dynamics, Economics & Policy) towards collecting data on antimicrobial resistance and establishing trends. The Drug Resistance Index (DRI) is a novel composite measure to evaluate the relationship between antimicrobial resistance and antimicrobial usage in clinical practice. The DRI expresses the antibiotic resistance and antibiotic use relationship on a scale from 0-1. A value of 1 means that infections are untreatable with any of the antibiotics used in the given setting. A value of 0 means all isolates included in the calculation were susceptible and treatable. Values in between express overall susceptibility of infections, adjusted for local prescribing practices.
| Fortis Hospital Code | Total DRI | ||||||||
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
| A | 0.54 | 0.54 | 0.68 | 0.47 | 0.73 | 0.55 | 0.67 | 0.71 | |
| B | 0.51 | 0.45 | 0.49 | 0.47 | 0.42 | 0.47 | 0.36 | 0.44 | 0.47 |
| C | 0.4 | 0.51 | 0.48 | 0.47 | 0.45 | 0.48 | 0.48 | 0.39 | 0.41 |
| D | 0.6 | 0.59 | 0.59 | 0.49 | 0.4 | 0.35 | 0.4 | 0.45 | 0.33 |
| E | 0.6 | 0.69 | 0.5 | 0.6 | 0.22 | 0.63 | 0.28 | ||
| F | 0.4 | 0.47 | 0.48 | 0.48 | 0.54 | 0.5 | 0.48 | 0.39 | 0.41 |
| G | 0.63 | 0.54 | |||||||
| H | 0.38 | 0.38 | 0.34 | 0.38 | |||||
| I | 0.37 | 0.46 | 0.4 | 0.47 | 0.43 | 0.5 | 0.46 | 0.55 | 0.56 |
| J | 0.6 | 0.53 | 0.58 | 0.58 | 0.59 | 0.54 | 0.63 | 0.62 | 0.57 |
| K | NA | NA | NA | 0.58 | 0.6 | 0.56 | 0.58 | 0.46 | |
| L | 0.22 | 0.26 | 0.35 | 0.37 | |||||
| M | 0.57 | 0.46 | 0.55 | 0.55 | 0.54 | 0.52 | 0.58 | 0.52 | 0.51 |
| N | 0.63 | 0.64 | 0.55 | 0.63 | 0.67 | 0.57 | 0.6 | 0.61 | 0.61 |
| O | 0.48 | 0.5 | 0.59 | 0.59 | 0.62 | 0.51 | 0.3 | 0.57 | 0.5 |
| P | 0.49 | 0.49 | 0.44 | 0.29 | 0.36 | 0.37 | 0.44 | 0.37 | |
| Q | 0.54 | 0.57 | 0.62 | 0.62 | 0.54 | 0.54 | 0.46 | 0.37 | 0.47 |
| R | 0.48 | 0.07 | |||||||
| Fortis Hospital Code | Total DRI | ||||||||
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
| S | 0.5 | 0.39 | 0.62 | 0.53 | 0.18 | 0.11 | 0.62 | 0.64 | 0.58 |
| T | 0.37 | 0.38 | 0.4 | 0.39 | 0.48 | 0.44 | 0.43 | ||
| U | 0.53 | 0.39 | 0.42 | 0.44 | 0.43 | 0.44 | 0.51 | 0.56 | 0.57 |
| V | 0.63 | 0.58 | 0.6 | 0.66 | 0.71 | 0.66 | 0.69 | 0.7 | 0.68 |
• Patient Experience:
Enhancing patient experience remained a key focus area. Patient feedback was systematically collected electronically through direct communication channels. Overall satisfaction levels showed positive trends, reflecting improvements in service delivery and patient engagement.
Efforts were madeto strengthen communication between healthcare providers and patients, ensuring clarity, empathy, and responsiveness. Initiatives such as patient education programs, streamlined admission and discharge processes, and improved support services contributed to a more patient-centric environment. Complaints were addressed promptly, and learnings were integrated into service improvement strategies.
• Clinical Outcomes:
The organization demonstrated strong clinical outcomes across key performance indicators. Continuous monitoring of key outcomes enabled data-driven decision-making.
Outcomes of major clinical procedures were benchmarked against international standards, with results indicating consistent performance and areas of excellence. Focused interventions and adherence to clinical pathways contributed to improved patient outcomes and reduced variability in care delivery.
| PERCUTANEOUS TRANSLUMINAL | 2025 | 2024 | 2023 | 2022 | Benchmark |
| CORONARY ANGIOPLASTY (PTCA) | |||||
| Emergency CABG for failed procedure | 0.03% | 0.04% | 0.04% | 0.04% | 1.2% * |
| Vascular complication at puncture site requiring intervention | 0.11% | 0.06% | 0.04% | 0.05% | 1.1% * |
| Acute vessel occlusion requiring emergency re-intervention | 0.13% | 0.30% | 0.23% | 0.12% | -- |
| Post procedure neurological stroke | 0.05% | 0.10% | 0.12% | 0.04% | 0.284 % ** |
| Post procedure Renal failure requiring hemodialysis | 0.28% | 0.24% | 0.13% | 0.35% | -- |
| Any Bleeding event requiring transfusion/intervention (within 72 hrs.) | 0.23% | 0.35% | 0.17% | 0.30% | 4.0 % * |
| Delayed vascular complication at puncture site | 0.01% | 0.01% | 0.02% | 0.01% | -- |
| Readmission with acute Myocardial Infarction within 30 days | 0.05% | 0.04% | 0.06% | 0.08% | -- |
| Mortality during same hospital admission | 1.72% | 1.99% | 1.81% | 1.98% | 1.7 % * |
# 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
| CORONARY ARTERY BYPASS GRAFT (CABG) | 2025 | 2024 | 2023 | 2022 | Benchmark |
| Use of left Internal Thoracic Artery graft | 89.77% | 86.07% | 86.36% | 85.81% | 74.20% * |
| Need for Bail out Intra-Aortic Balloon Pump (IABP) | 2.15% | 1.70% | 0.98% | 1.87% | -- |
| Perioperative Myocardial Infarction | 0.20% | 0.32% | 0.07% | 0.37% | 0.96 % ** |
| Post procedure neurological stroke | 0.12% | 0.41% | 0.20% | 0.33% | 1.30 % |
| Need of Re-exploration surgery | 2.30% | 2.73% | 2.02% | 1.91% | 3.90 % |
| Deep sternal wound infection | 0.02% | 0.06% | 0% | 0.20% | 0.30 % |
| Predicted mortality (using EuroScore II) % | 2.69% | 3.01% | 2.71% | 2.42% | - |
| Mortality during same hospital admission | 2.42% | 1.91% | 1.77% | 1.77% | - |
Nursing:
The nursing workforce played a vital role in delivering high-quality patient care. Adequate staffing levels and skill mix were maintained to meet patient needs effectively. Ongoing professional development programs ensured that nursing staff remained competent and up to date with the latest clinical practices.
Nursing-led initiatives contributed significantly to quality improvement and patient safety efforts.
Emphasis was placed on compassionate care, patient advocacy, and adherence to best practices.
At Fortis, career path for nurses is diverse, flexible, and full of growth opportunities – from bedside care to leadership roles in general and nursing administration. The Fortis Future Operational Leadership Development Program provides a structured and systematic framework for developing internal talent in operations by strengthening competencies & capabilities for future operational leadership roles across Fortis Network.
Medical IT: in The year saw significant consolidating and strengthening the organizations medical IT infrastructure. Implementation of OP Electronic Medical Record system was extended to cover 23 Fortis hospitals while new features and functionalities were added to IP EMR to enhance clinical documentation and support data-driven decision-making. Data security and patient confidentiality were maintained through robust cybersecurity measures and compliance with regulatory and industry standards. Roll out of new enterprise PACS software was initiated to drive synergy and efficiency in Radiology and
Imaging services, while Enterprise Asset Management Software was rolled out to units to improve asset and equipment utilization monitoring.
Clinical Research:
Clinical research activities expanded during the year, reflectingthe organizations commitment to advancing medical knowledge and improving patient care. Several research studies and clinical trials were initiated and completed across various specialties.
The organization actively collaborated with research partners to promote innovation and knowledge sharing. Findings from research activities were disseminated through publications and conference presentations.
Fortis Healthcare Research Foundation (FHRF) is now recognized as a Scientific and Industrial Research Organization (SIRO) by the Department of Scientific and Industrial Research (DSIR), Government of India.
All research activities adhered to strict ethical standards, with oversight from the institutional ethics committee ensuring patient safety, confidentiality, and informed consent.
Accreditations:
Fortis Hospital, Gurugram, has secured the prestigious Joint Commission International (JCI) re-accreditation for the second time. The assessment was conducted under the 8th edition revised format, which allows only two outcomes - ‘Met or ‘Not Met - with no provision for ‘Partially Met. Out of 1,073 measurable criteria, Fortis Hospital, Gurugram achieved an outstanding 98% compliance rate.
Fortis Hospital, Mohali, has secured the prestigious Joint Commission International (JCI) re-accreditation for the Sixth consecutive time. The hospital underwent comprehensive evaluation, conducted under the 8th edition revised format, encompassing 1,125 measurable elements spanning across all services and departments, and achieved a 97.15% compliance score.
Four Fortis Hospitals are accredited by Joint Commission International (JCI) while 34 hospitals have been accredited/certified . by NABH
| Fortis Accreditations | JCI | NABH HCO/ SHCO | NABH Entry Level | NABH Blood Bank | NABH Nursing Excellence | NABL | Ethics Committee | Digital | Total Accreditations |
| 4 | 30 | 4 | 12 | 21 | 22 | 14 | 8 | 115 |
B. About Agilus Diagnostics Limited [“Agilus”] (Fortis diagnostics business subsidiary)
i. Key Business Highlights
In an evolving diagnostics landscape, Agilus Diagnostics has demonstrated agility and intent. FY 2025-26 was a year of focused effort strengthening our brand following rebranding initiatives, expanding access through home collections and digital geographic presence, channels, and reinforcing patient-centric care while upholding the highest safety standards.
For FY 2025-26, Agilus reported revenues of INR 1,527 Crores, compared to INR 1,407 Crores in in FY 2024-25, reflecting a growth of 8.5%. The EBITDA increased to INR 393 Crores in FY 2025-26 from INR 274 Crores in in FY 2024-25, with margins expanding to 25.8% in FY 2025-26 from 19.5% in FY 2024-25, underscoring the benefits of operating leverage, process optimization, and early gains from brand stabilization efforts.
During the year, we served over 16.8 million patients in FY 2025-26, up from 16.3 million in the previous year, and conducted 40.8 million tests in FY 2025-26 compared to 39.2 million tests in FY 2024-25. To strengthen accessibility, we continued to expand our physical and digital footprint, reaching 4,445 touchpoints across the country. This growth was complemented by technology-led enhancements in phlebotomy, sample logistics, and consumer interfaces, enabling a consistent and reliable patient experience.
Our B2C:B2B mix remained stable at 52:48, reflecting a balanced business model.
Agilus maintained a diversified minimizing regional concentration risks and enabling optimal utilization of its pan-India network. Revenue contributions for FY 2025-26 were 30% from the North, 20% from the West, 33% from the South, 13% from the East, and 4% from international markets, reinforcing resilience and reach across markets.
Preventive healthcare remained a significant focus area, with the preventive portfolio growing
21% year-on-year, reflecting increased consumer awareness and targeted product interventions. From a product standpoint, revenue contributions in FY 2025-26 comprised 34% from specialized testing, 53% from routine testing, and 13% from wellness offerings, supporting a diversified and future-oriented portfolio.
Together, these outcomes reflect a year of sustained effort stabilizing and strengthening the Agilus brand, investing in technology and infrastructure, and building scalable capabilities to support our long-term vision of accessible, high-quality diagnostics.
ii. Key Initiatives
During the year, we significantly accelerated our outreach by deepening engagement with healthcare providers, channel partners, and local communities. We added 675+ new customer touchpoints along with 1900+ direct clients. Our network spans 400+ labs, 4,400+ customer touchpoints, 15000+ direct points, with a widespread presence across 27 states and 6 union territories.
Amid evolving industry dynamics including changing consumer expectations along with ongoing brand evolution we sustained growth momentum through focused below the line (BTL) initiatives, hyperlocal activation programs, and strengthened collaborations with Residential Welfare Associations (RWAs) and community stakeholders.
Looking ahead, Agilus remains firmly focused on expanding into underserved and high potential regions, accelerating digital and omni channel integrations, and building strategic alliances to create a more accessible, scalable, and resilient diagnostic ecosystem across India.
At Agilus Diagnostics, the past year marked a pivotal moment in our evolution.
Three years ago, we transitioned from SRL Diagnostics to Agilus Diagnostics. However, due to legal constraints, we were unable to fully leverage the considerable trust and equity associated with our legacy brand. With the lifting of these restrictions during the year, we moved with clarity and conviction to address one of the most critical strategic priorities before us unifying our brand.
We shifted our communication from a functional, category-led narrative to a brand-led articulation: “Jo kal tak SRL Diagnostics tha, wo aaj Agilus Diagnostics hai.” This was a deliberate and necessary step to bridge the past and the present to ensure that the trust built over decades seamlessly transitions to our current identity.
Our focus was not on incremental messaging, but on decisive brand consolidation. We aligned every consumer touchpoint to communicate a single, unambiguous idea: that Agilus Diagnostics carries forward the same credibility, expertise, and trust that defined SRL Diagnostics.
We continued our association with Anil Kapoor, whose familiarity and credibility helped anchor this transition in the minds of consumers. More importantly, we adopted a fully integrated, omnichannel approach spanning physical, digital, and contextual platforms to ensure both scale and consistency in how this message was delivered.
iii. Driving Innovation & Operational Excellence in Agilus via Technology Geospatial Phlebo Assignment Launched:
Introduced polygon-based phlebo assignment in the Customer Care Portal, eliminating manual pincode mapping. This has expanded Agilus Home Collection coverage and significantly improved allocation accuracy and operational efficiency.
Group Booking Feature (Workhub & Pulse): Launched group booking across Workhub and Pulse, enabling seamless tracking and automated phlebo incentive calculation. This replaces a fully manual Finance process that previously took several days each month.
Find Nearby Labs (Consumer App): Enabled “Nearby Labs” discovery in the consumer app, allowing users to locate Agilus labs and submit leads bringing app capabilities in line with the website and improving lead generation.
Tests by Disease Category (Website):
Reorganized test listings under disease-based categories (e.g., Thyroid, Fever, Diabetes) to improve discoverability and drive higher conversion rates.
Website CMS (In Progress): Building a CMS to empower the marketing team to independently manage website content including banners, landing pages, and static pages (About Us, T&C, Privacy Policy, FAQs) reducing dependency on engineering. Banner management module currently underway.
Universal Barcode (Phlebo Workhub):
Advanced the Universal Barcode initiative, enabling phlebos to scan vacutainers during collection with real-time sync to CLIMS. This improves sample traceability and helps identify TAT bottlenecks.
Consumer Website Redesign (In Progress): Revamping the consumer website to enhance UI/UX, modernize design, and improve conversion rates ensuring alignment with current industry benchmarks.
iv. Research and Development
In FY 2025-2026, Agilus Diagnostics continued its focus on augmenting advanced diagnostic services with Digital & AI technologies and cutting-edge Genomic technologies. R&D activities were focussed on exploring new tie-ups for clinical trials, contract evaluation services and co-marketing projects. During this financial year, feasibility for total 16 esoteric clinical trial studies was assessed, with successful execution of one clinical research study. Research proposals for innovative miRNA-based biomarkers for prognosis of Cancer and for screening of Chronic endometriosis were conceptualized and presented.
Efforts for registration of R&D division as an
Evaluation Centre for Medical Devices and Diagnostics under The Central Drugs Standard Control Organisation (CDSCO) were continued. As per recommendation, process for NABL 17025 accreditation for this activity was also initiated. As part of our clinician engagement program, a collaborative study with Shalby Hospital, Ahmedabad has been conceptualized to evaluate the performance and clinical utility of advanced molecular diagnostics and multi-pathogen panels for the differential diagnosis of Prosthetic
Joint Infections. In parallel, a targeted marketing campaign focused on increasing awareness of cervical cancer screening through self-collected vaginal swabs for HR-HPV testing has been successfully concluded. We have also established a strategic tie-up with the Government of Gujarat for the diagnosis of multi-drug resistant tuberculosis using the First-Line Line Probe Assay (LPA) test. Additionally, the R&D team has supported the development of a safe and efficient workflow to effectively manage high-volume testing demands.
v. Brand & Marketing Initiatives – FY2025-26
In parallel with our branding initiatives, we continued to accelerate our digital transformation journey by further enhancing our website and mobile app to deliver a more seamless, intuitive, and user-friendly experience. Over the year, the website attracted 2.6 million unique visitors, while the mobile app recorded 730,000 new installs and maintained a strong active monthly user base of 130,000 customers.
To strengthen customer engagement and drive more personalized interactions, we also integrated a marketing automation tool across both the website and mobile app. This enabled real-time communication, targeted campaigns, and improved customer journey tracking resulting in higher engagement, better conversion rates, and more effective lead nurturing. Additionally, our hyperlocal SEO strategy continued to enhance the digital visibility of Agilus centers, driving increased online leads and walk-in traffic.
vi. Training and Development
Agilus remains committed to training and development, offering tailored competency enhancement programs for employees. FY 2025-26 we clocked ~7530 man-days conducted over 787 training hours, reaching 30,419 participants count. By leveraging platforms like MedGurukul and TechTalk, we shared technical expertise across the specialties. We conducted specific soft skills sessions based on identified training needs for different sets of employees. We conducted Corporate Effectiveness series of training sessions covering various behavioural, culture related and overall professional effectiveness aspects.
We leveraged Agilus LMS to help employees go through compliance training through interactive eLearning modules. Agilus also executed an extensive learning drive for the ABAC Policy e-module, with over 95% employee participation.
Agilus facilitated targeted upskilling training interventions for its Sales Team (Agilus Consultative Selling Skills), Sales Team Managers (Supervisor to Superwiser Workshop), Phlebotomists (Agilus Phlebotomy Essentials) and customer facing staff including phlebotomists (F.A.C.E. & Patient Centric Upselling).
Integration of NAPS and NATS:
As part of our commitment to skill development under National Apprenticeship Promotion Scheme (NAPS) and National Apprenticeship Training Scheme (NATS):
Medical Scholarships: Supported 194 deserving MBBS students with scholarships ranging from 50,000 to 1 lakh, based on merit (85%+ in board exams) and need (family income below 3 lakh). This initiative also includes mentorship sessions by Agilus doctors.
Apprenticeship Program: Trained and placed over 450 apprentices across various healthcare roles, providing practical, on-the-job learning to enhance employability and bridge the skill gap in the sector.
Agilus continues to leverage its LMS portal to provide accessible training while empowering communities through skill development, healthcare education, and mentorship.
vii. Quality Assurance & Compliances
Agilus Diagnostics Quality Assurance System is designed in alignment with applicable national and international standards, including NABL, CAP, CLSI, and other relevant regulatory frameworks, to ensure the highest standards of diagnostic testing. The system comprehensively addresses all phases of laboratory operations, covering pre examination, examination, and post examination processes.
The Quality Assurance (QA) function operates independently, with a clear mandate to ensure compliance with safety requirements, training standards, regulatory obligations, and accreditation norms. The QA framework follows a three tier audit model, comprising:
Strategic
First party audits conducted internally by the QA team Second party audits conducted by customers such as clinical trial sponsors and referral laboratories feature enhancements
Third party audits conducted by accreditation and certification bodies, including NABL and CAP
During FY 2025–26, the Company successfully sustained accreditation across its laboratory network, with all accredited laboratories transitioned to ISO 15189:2022 standards.
This transition reinforces Agilus Diagnostics commitment to globally benchmarked laboratory practices.
The Company also ensured continuity of key management system certifications, including ISO
9001:2015 (Quality Management System) and ISO 27001:2022 (Information Security Management System), standard through scheduled audits conducted by certification bodies.
The QA team facilitated multiple clinical trial audits at the Global Reference Laboratory in Mumbai and ensured the timely completion of test method verifications across Agilus Diagnostics laboratories, supporting expansion of test portfolios and scientific rigor.
Training and capability development remained a priority, with extensive training programs conducted on ISO 15189:2022 requirements. The QA team also extended technical support to international laboratories, including locations in Nepal and Dubai, for accreditation and compliance readiness.
During the year, the Company successfully ensured the renewal of College of American Pathologists (CAP) accreditation for its Global Reference Laboratory in Mumbai and one of its international laboratories in Dubai, further strengthening its global quality credentials.
viii. Application Innovation & Digital Transformation
We drove a wave of modernization across our core application landscape. The successful migration of critical databases and the SAP environment to Red Hat Linux, alongside the implementation of the UniversalBar Code and theAgilus InterfaceModule, has unlocked new levels of efficiency. initiatives, including the CC Portal Migration, Partner Onboarding, API Modernization, and the establishment of a Disaster Recovery (DR) site in Kochi, have enhanced our business continuity posture. Significant the CLIMS platform and the Enterprise Data Warehouse have empowered users with richer insights. With planning already underway for Role-Based Access Control (RBAC), a revamped CRM supplemented with a round-the-clock helpdesk, a Smart Report Generator, an Enterprise Resource Planning (ERP) migration, and comprehensive CLIMS modernization, our innovation pipeline is robust and strategically aligned for the future.
ix. Patient Care and Safety
Patient care and safety drive how we operate every day. We drive & demonstrate Quality of care through consistent operational outcomes like - speed, reliability, and patient feedback. Patient experience is managed through a KPI-led framework tracking NPS, Patient TAT, Average Speed of Answer, Call Abandonment, First Call Resolution, and IVR CSAT. Key FY 2025–26 metrics include NPS at 82, TAT improved by 5%, ASA at 2 Secs, FCR at 93%, and IVR CSAT at 97%. Digital adoption also strengthened access and convenience, with 24*7 Chatbot support & availability of reports & health trends on our App / Website. Service recovery remains a key differentiator, with 99% SLA adherence within 2 hours and >90% patient satisfaction post-resolution. Additional highlights include Google rating at 4.4 PAN India, sample rejection rate at 0.2%, and >1K quality audits with 95% compliance.
We are driving multiple initiatives to strengthen these metrics, including TAT improvement programs, transparency initiatives (Universal Barcode), and digital experience enhancements -
Voice BOT assisted support. These efforts, along with regular audits and staff training, help us continuously improve service quality while keeping patient safety front and center.
x. Academic Achievement
Agilus Diagnostics advanced continuous medical education and scientific engagement during the year through its MedGurukul platform, delivering
14 continuing medical education (CME) sessions for doctors and technologists. These programmes reached 1,748 participants and comprised 14 hours of structured learning, accounting for 2,148 training man-hours. During FY 2025–26, Agilus Diagnostics received several recognitions across national and regional platforms. These included Best Diagnostic Chain of the Year – National and Best Pathology Lab of the Year (Dr. Phadke Labs, Goregaon) at the Economic Times Healthcare Summit 2025. The organisation was also recognised for Outstanding Work in Liquid Biopsy Development (2025) at the 2nd Precision Med India Conclave & Awards by Voice of Healthcare. Additionally, Agilus Diagnostics Dr. Phadke Labs was awarded Best Diagnostic Lab Chain of the Year – West at the Diagnostics Innovation and Excellence Awards 2026, presented by Voice of Healthcare.
C. Financial and Operational Performance of the Company – Consolidated Performance, Hospitals and Diagnostics business Performance and KPIs
For the financial year 2025-26, the Company reported a consolidated revenue from operations of INR 9,128 Crores compared to INR 7,783 Crores reported for FY 2024-25. Revenue from Hospital business stood at INR 7,773 Crores in FY 2025-26 compared to INR 6,528 Crores reported during the corresponding previous year. Agilus Diagnostics, the diagnostic business of the company, reported gross revenues of INR 1,527 Crores in FY 2025-26 compared to
INR 1,407 Crores in the previous financial year.
Considering elimination of inter-company revenue (within the group), net revenue of Agilus was at INR 1,355 Crores in FY 2025-26 compared to INR 1,255 Crores in FY 2024-25.
| Revenue ( Crores) | FY 2024-25 | FY 2025-26 | % Change |
| Total Consolidated Income* | 7,850 | 9,179 | 16.9% |
| Revenues from operations | 7,783 | 9,128 | 17.3% |
| Hospital Business** | 6,528 | 7,773 | 19.1% |
| Diagnostic Business (Gross) | 1,407 | 1,527 | 8.5% |
| Diagnostic Business (Net) | 1,255 | 1,355 | 8.0% |
(*Total consolidated income is net of inter-co elimination and includes other income of INR 50.7 Crores in FY2025-26 and INR 66.9 Crores in FY2024-25) (**Hospital Business includes P&L of international entities also)
The consolidated EBITDA of the Company stood at INR 2,136 Crores in FY 2025-26 compared to INR 1,655 Crores for the previous corresponding year. EBITDA margin of the Company stood at 23.4% in FY 2025-26 versus 21.3% reported in FY 2024-25. Hospital business EBITDA for FY 2025-26 was at INR 1,742 Crores compared to INR 1,381 Crores reported for FY 2024-25. EBITDA margin of the hospital business stood at 22.4% in FY 2025-26 versus 21.1% in FY 2024-25. The diagnostic business of the Company reported EBITDA of INR 393 Crores in FY 2025-26 compared to INR 274 Crores reported in the previous corresponding year. The EBITDA margin of the diagnostic business stood at 25.8% (basis gross revenue) in FY 2025-26 compared to 19.5% for the year FY 2025-26.
Consolidated profit before exceptional items and tax increased by 26.6% to INR 1,388 crores in FY 2025–26 from INR 1,096 crores in FY 2024–25.
Consolidated Profit after tax for FY 2025-26 stood at INR 1,064 Crores compared to the PAT of INR 809 Crores in FY 2024-25. PAT for FY 2025–26 includes a net exceptional loss of INR 22.2 Crores. This was primarily due to one-time impact of new Labour Codes amounting to INR 55.2 Crores, offset by a reversal of impairment of investment in an associate company, i.e., Lanka Hospitals amounting to INR 33.0 Crores. In comparison, PAT for FY 2024–25 includes a net exceptional loss of INR 89.3 Crores. This was primarily pertaining to impairment of investments in Lanka Hospitals and impairment of assets at the Ludhiana hospital totalling INR 113.7 Crores, offset by gain of INR
23.5 Crores related to the divestment of the Richmond Road, Bangalore facility in December 2024.
With respect to the balance sheet, the Companys net debt stood at INR 2,334 Crores as on March 31, 2026 versus INR 1,694 Crores as of March 31, 2025 (net debt to equity of 0.23x vs 0.18x, respectively). Gross debt of the Company stood at INR 2,872 Crores as on March 31, 2026 versus INR 2,196 Crores as of March 31, 2025. Net Debt to EBITDA stood at 1.09x for the year FY2025-26 compared to 0.93x for FY2024-25 (basis Q4 annualized EBITDA). The increase in debt during the year was primarily due to the acquisition of the People Tree Hospital in Yeshwanthpur, Bengaluru and Shrimann Hospital in Jalandhar, Punjab, amongst other investments. The company also declared a dividend of INR 1 per share, subject to shareholders approval.
| EBITDA ( Crores) | FY 2024-25 | FY 2025-26 | % Change |
| Consolidated EBITDA | 1,655 | 2,136 | 29.1% |
| EBITDA Margin | 21.3% | 23.4% | |
| Hospital Business** | 1,381 | 1,742 | 26.2% |
| EBITDA Margin | 21.1% | 22.4% | |
| Diagnostic Business | 274 | 393 | 43.5% |
| EBITDA Margin (basis gross revenue) | 19.5% | 25.8% |
(**Hospital Business includes P&L of international entities also)
| Key Performance Indicators (Hospitals) | FY 2024-25 | FY 2025-26 | Key Performance Indicators (Diagnostics) | FY 2024-25 | FY 2025-26 |
| Occupancy | 69% | 68% | No of Accessions (in | 16.3 | 16.8 |
| Average revenue per occupied bed ( Crores) | 2.42 | 2.51 | Million) | ||
| Average length of stay (days) | 4.19 | 4.21 | Average real. per accession () | 858 | 900 |
| OPD Footfalls (in Million) | 2.91 | 3.29 | Tests performed (in Million) | 39.2 | 40.8 |
| IPD Discharges (in Million) | 0.27 | 0.30 | Average real. per test () | 358 | 370 |
D. Human Resources
This year, we continued to build on our strong foundation by aligning our people strategy closely with business growth, network expansion, and evolving care delivery models. Our focus remained on fostering a culture of excellence, collaboration, and continuous learning, while strengthening leadership depth and frontline capabilities across the organization.
Driving Outcomes Through People Excellence
Our continued investments in talent and culture are reflected in sustained improvements across key people metrics: Overall Annualized Attrition remained at historically low levels and best in peer class, with continued stability in Nursing attrition, reflectingthe strength of our engagement and retention interventions The Fortis Apprentice Program continued to scale as one of the largest skill-building platforms in the healthcare sector, with a strong and sustainable frontline talent pipeline across markets, hospitals, functions and roles.
Strengthened internal talent pipelines enabled smoother staffing of new and expanding facilities, while improving workforce productivity Our eNPS saw sharp rise, reinforcing the trust of employees in Fortis leadership. in the These outcomes are particularly significant context of a highly competitive healthcare talent market marked by persistent shortages in skilled clinical resources.
Enabling Growth Through Workforce Readiness
FY 2025–26 was marked by continued expansion across the Fortis network, including capacity additions, specialty scale-ups, and integration of new facilities. The HR function played a pivotal role in enabling this growth through: Agile workforce planning and rapid talent deployment Strengthening leadership benches across hospitals and functions Enhancing operational workforce models aligned to acuity and occupancy trends Our focus remained on ensuring that every unit is equipped with the right talent mix to deliver high-quality, patient-centric care.
Capability Building for a Changing Healthcare Landscape
With rapid advancements in medical technologies, digital health, and specialty care, building future-ready capabilities and balancing all this with employee wellbeing, remained a core priority.
We deployed a comprehensive digital learning framework to support capability building for a changing healthcare landscape, covering emerging technologies, evolving fields, patient care, safety, sustainability, and new healthcare practices. We also strengthened capabilities aligned to emerging care areas such as lifestyle diseases, chronic care management, and multidisciplinary treatment approaches.
Through our Psychological First Aid initiative, we are driving a more resilient and psychologically safe workplace - enabled by trained wellness officers, compassionate leadership, and a digital app providing seamless access to mental health support.
Rewards, Recognition & Long-Term value
In line with our philosophy of aligning employee success with organizational growth, the Company undertook study for benchmarking compensation across key tracks and adopted some practices in our total rewards approach to focus on: Market competitiveness Pay-for-performance differentiation
Recognition of critical skills and contributions These initiatives reinforce long-term engagement and ownership mindset across key talent segments.
Leadership Development & Talent Management
We continued to strengthen our leadership pipeline across levels: Expansion of leadership development initiatives, including flagship programs such as IElevate, to build agile and patient-centric leaders Cultivating a diverse, high-potential pool of operational leaders through flagship Future Operational Leadership Program which nurtures underleveraged segment of nursing & technician talent, -translating potential into tangible outcomes as candidates transition into key operational roles.
Continued success of structured programs for young leaders and campus hires Structured development pathways for young talent, enabling seamless transition into business-critical roles Our talent management approach ensures a strong internal pipeline, enabling continuity and scalability as the organization grows.
E. Risks and Concerns
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.
F. Internal Control Systems and their Adequacy
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 and operational efficiency, 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.
FORWARD LOOKING STATEMENT
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
IBEF report on Healthcare Sector, November 2025 IRDA Annual Report - 2024-25 Ministry of Health and Family Welfare CRISIL Report, March 2026 Axis Capital Report, June 2025 Praxis Global Alliance – Report United Nations Population Fund Report Press Information Bureau Market Research, Equity and Other Reports, Web Articles, Press & Media Reports and Others
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