Fortis Healthcare’s Q1 Profit Rises 10% to ₹152 Crore

7 Aug 2025 , 03:48 PM

Fortis Healthcare reported a sharp 56.6% year-on-year rise in net profit, clocking ₹260 crore for the quarter ended June 30, 2025, compared to ₹166 crore in the same period last year.

Revenue from operations jumped 16.5% to ₹2,166 crore. This is up from ₹1,859 crore a year earlier. Operating performance remained strong with EBITDA rising 43% year-on-year to ₹490.4 crore. The EBITDA margin expanded to 22.6%, from 18.4% a year ago. This was driven by higher volumes in complex and high-value procedures and efficiency in hospital operations.

The company’s core hospital business posted revenues of ₹1,838 crore, up 18.6% year-on-year, showing robust patient traction and improved case mix. ARPOB (Average Revenue Per Occupied Bed) increased during the quarter.

Bed occupancy grew 7.8%, helping push topline growth. The hospital segment’s operating EBITDA margin stood at 22.1%. This is compared to 18.5% in Q1FY25. This suggested an improved cost control and higher contribution from tertiary care services.

International patient revenue rose 21% year-on-year to ₹154 crore. It is contributing 7.9% to hospital business revenue. This is slightly up from 7.8% a year earlier, showing growing confidence in Fortis’ medical tourism portfolio.

Key surgical procedures saw double-digit growth, with:

• Robotic surgeries up 75% YoY
• Radiation therapies rising 53%
• Orthopaedic surgeries growing by 22%

In a strategic move to strengthen its pan-India footprint, Fortis signed an O&M agreement with Gleneagles India in July 2025. The deal will see Fortis manage operations for nearly 700 beds across five hospitals and a clinic, further expanding its presence in metro cities.

On the diagnostics front, gross revenue grew 7.4% YoY to ₹368.8 crore, while EBITDA margin expanded to 23.0%, up from 16.1% in Q1FY25. Adjusted for one-off items, margins rose from 18.7%, indicating improved profitability from core diagnostics operations.

Agilus Diagnostics, the diagnostics arm of Fortis, reported steady volume growth, with total tests conducted during the quarter rising to 10.13 million from 9.57 million in the same period last year. The preventive portfolio also showed traction, growing 8.4% YoY.

However, the company’s net debt increased to ₹1,869 crore as of June 30, 2025. Net debt to EBITDA ratio rose to 0.92x from 0.22x a year ago. Net debt to equity also rose to 0.20x from 0.04x.

The increase was largely attributed to the company’s acquisition of a 31.5% private equity stake in Agilus Diagnostics and the purchase of the ‘Fortis’ brand rights.

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