Fortis Healthcare Limited was incorporated in February 1996, with its first healthcare facility becoming operational in Mohali, Punjab in 2001. The company has evolved into a leading integrated healthcare service provider in India. Fortis Healthcare Limited is a leading integrated healthcare services provider in India and is one of the largest healthcare organizations in the country with 27 healthcare facilities, 4300 operational beds and 400 diagnostics centers (including JVs).
Currently, the company operates its healthcare delivery services in India, Nepal, Dubai and Sri Lanka with 36 healthcare facilities with approximately 4,000 operational beds. Fortis Healthcare Limited is an Indian for-profit private hospital network headquartered in Gurgaon, with the Fortis Memorial Research Institute (FMRI) in Gurgaon serving as the headquarters.
The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities. The hospital business forms the core of Fortis Healthcare's operations, offering comprehensive medical services across multiple specialties. Some of the specialities include cardiac sciences, cosmetology, dental sciences, dermatology, oncology, orthopaedic, radiology, pulmonology, urology, and ophthalmology, among others.
The hospital segment has shown remarkable growth in recent years. The hospital business contributed to the performance, with revenues up 14.8% to ₹6,528 crore and EBITDA up 26.6% to ₹1,339 crore, leading to margins of 20.5%. In FY25, the company's hospital business contributed 84 per cent to consolidated revenue compared to 82 per cent in FY24.
The company controls its diagnostics business through its 57% owned subsidiary SRL Limited, which is amongst the largest private diagnostics chains. It has a presence in over 600 cities and towns, with an established strength of 415 laboratories, 8,200 direct clients and 1,400 Collection Centers.
The diagnostics segment has also demonstrated steady growth. The diagnostic business also saw a steady increase, with FY25 revenue rising to ₹1,255 crore from ₹1,207 crore in FY24. Leveraging these funds, along with internal accruals, the company consolidated its stake in Agilus Diagnostics to 89.20% by acquiring 31.52% from private equity investors as on January 2025.
Sales rose 12.91% to Rs 7782.75 crore in the year ended March 2025 as against Rs 6892.92 crore during the previous year ended March 2024. For the full year, net profit rose 29.28% to Rs 774.21 crore in the year ended March 2025 as against Rs 598.88 crore during the previous year ended March 2024.
Key financial metrics for FY25:
- Revenue: ₹7,782.75 crore (up 12.91% YoY)
- Net Profit: ₹774.21 crore (up 29.28% YoY)
- EBITDA: ₹1,588 crore (up 25.3% YoY)
- EBITDA Margin: 20.4% (improved from 18.4% in FY24)
Sales rose 12.39% to Rs 2007.20 crore in the quarter ended March 2025 as against Rs 1785.88 crore during the previous quarter ended March 2024. Net profit of Fortis Healthcare rose 2.89% to Rs 183.89 crore in the quarter ended March 2025 as against Rs 178.73 crore during the previous quarter ended March 2024.
Mkt Cap: 60,929 Crore (up 74.8% in 1 year) As of recent trading sessions, the company's market capitalization reflects its strong position in the healthcare sector.
Stock is trading at 6.83 times its book value, indicating investor confidence in the company's growth prospects. The PE and PB ratio of Fortis Healthcare stands at 65.10 and 6.54 respectively as on 06 May 2025.
In a significant strategic move, the company acquired the perpetual rights to the 'Fortis' brand for ₹200 crore. This acquisition strengthens the company's brand positioning and provides long-term strategic value.
The Board also recommended a dividend of ₹1 per share (10% of face value) for FY25. This reflects the company's commitment to returning value to shareholders.
The company's net debt as of 31st December 2024 stood at Rs 644 crore with a Net Debt to EBITDA of 0.41x as compared to the 0.45x as on 31st December 2023. Net debt to equity was at 0.07x as compared with 0.06x as on 31st December 2023.
Fortis announced that it is making good progress on its plan to add nearly 700 beds this fiscal year across key facilities, including Faridabad, Anandpur, Shalimar Bagh, and Noida. The company is focused on expanding its capacity to meet growing demand for healthcare services.
"Leveraging our robust balance sheet, we will actively pursue further inorganic growth opportunities in our focus geographic clusters," stated the management. This indicates the company's commitment to strategic acquisitions and expansion.
Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare stated, 'We have our positive momentum in Q3 with the hospital business contributing approximately 84% to our consolidated revenue and 87% to our consolidated EBITDA.'
93.33% of analysts recommend a 'BUY' rating for Fortis Healthcare Ltd. Average target price of ₹770.67, suggesting positive sentiment among research analysts regarding the company's future prospects.
The company's strong performance is driven by its diversified healthcare portfolio, strategic geographic presence, and focus on specialty care. Revenue from focus specialities comprising Oncology, Neurosciences, Cardiac Sciences, Gastroenterology, Orthopaedics and Renal Sciences grew 16 per cent Y-o-Y and contributed 62 per cent to overall hospital business revenues.
Fortis Healthcare's combination of hospital and diagnostic services, along with its strategic expansion plans and strong financial performance, positions it well for continued growth in India's evolving healthcare landscape. The company's focus on specialty care, expansion of bed capacity, and strategic acquisitions demonstrate its commitment to maintaining its leadership position in the Indian healthcare sector.
