Fortis Healthcare Ltd Q1 FY27 Earnings Analysis

- Hospital business revenue expected to grow over 15% in the current financial year (FY27) on an organic basis, excluding acquisitions (Page 12). - Diagnostic business revenue growth targeted around 8.5% in FY26 and aiming to improve to double-digit growth in the next year, with about 5% volume growth and 30% value growth expected (Page 8). - Revenue growth is expected to be primarily driven by volume (approx. 70%) and partly by price/mix (approx. 30%) in the diagnostic segment (Page 8). - Focus specialties such as Oncology, Neurosciences, Cardiac Sciences, Gastroenterology, Orthopedics, and Renal Sciences grew 18.9% in FY26 and contribute 62% to overall hospital revenue, underpinning growth (Page 4). - Addition of approx. 800 beds through brownfield expansion and acquisitions expected to support volume growth (Page 4). - Brownfield expansion with 500+ beds commissioning targeted next year, supporting scale and margin expansion (Page 14). - Steady improvement and consistent execution to sustain high-quality growth (Page 6).

- Hospital business: Expecting 15%+ revenue growth and 150 bps EBITDA margin improvement in FY27. - Operating EBITDA margin target for hospitals is 25% by FY28, with annual margin expansion of 1.5%-2%. - Diagnostic business EBITDA margin forecasted at 23%-24% for the coming year, with revenue growing toward double digits. - Revenue growth guidance for FY27 is organic, excluding acquisitions, which will add further. - New brownfield expansions and ramp-up of existing hospitals (e.g., FMRI, Shalimar Bagh) expected to drive margin improvements. - Acquisitions made last year will add to EBITDA beyond organic growth. - Profit after tax grew 31.5% in FY26 to INR1,064 crores, reflecting strong earnings momentum. - Continued focus on clinical quality, patient satisfaction, and operational efficiencies supports sustainable profit growth.

- In FY26, Fortis Healthcare's capex was approximately INR 700 crores, focused on capacity expansion and enhancement of medical infrastructure. - Over the next 4 years, the company plans to add around 1,800 beds through brownfield expansion. - For FY27, expected to add more than 400 beds including a new tower at FMRI (to be operationalized within weeks) and additions at Noida, Manesar, Amritsar, and FHKI Kolkata. - Annual capex guidance from FY27 to FY29 is around INR 900 crores, with about 60% for maintenance and the rest for growth. - Specific brownfield expansions include new towers at Mohali, Shalimar Bagh, and Amritsar, with some delays in Shalimar Bagh due to approval issues. - No specific timeline for strategic investments or capital infusion into associate companies, but it will occur as needed.

- No specific timeline announced for new investments or capital raising as of now. - Parent company IHH plans to increase its stake to 50% and has indicated a potential fresh equity infusion of around INR10,000 crores to support growth aspirations. - Capital infusion from IHH will happen as and when the company requires growth capital. - Net debt increased primarily due to acquisitions and investments, currently at INR2,334 crores with a net debt-to-EBITDA ratio of 1.09x as of March 31, 2026. - The company expects to incur around INR900 crores annually on capex (60% maintenance, 40% growth). - Management remains open to capital raising but no active fundraising is mentioned during this period.

The transcript does not explicitly mention details about the current or expected order book or pending orders for Fortis Healthcare Limited. However, some relevant points regarding capacity expansion and growth plans include: - Ongoing brownfield expansions with new towers in Mohali, Shalimar Bagh, and Amritsar expected over the next 2.5 to 3 years. - Brownfield capacity of about 100 beds pending commissioning in Bangalore, awaiting occupancy improvement. - Planned brownfield addition of around 500-plus beds and capex guidance of approximately INR 900 crores annually (60% maintenance, 40% growth). - Deferment of approximately 300 beds' addition from FY28 to FY29, mainly due to approval delays at Shalimar Bagh. - FMRI tower expansion to be operational soon with phased bed roll-out based on occupancy ramp-up. No direct mention of order book values or pending orders in financial or operational terms.