Fortis Health. Q3 FY26 Earnings Analysis

- Hospital business expects sustained revenue growth with H1 FY26 growth at ~18-19%, and similar momentum anticipated in H2 despite seasonal fluctuations. - Anticipated 5-6% ARPOB (Average Revenue Per Occupied Bed) growth in H2 driven by mix changes like robotic surgeries and day care procedures; price hikes expected around 1-1.5%. - Bed additions planned: around 400-plus beds organically in the current and next fiscal year, including 225 beds from FMRI and 70 beds in Kolkata. - Diagnostics business revenue grew 7.3% in Q2 FY26, with expectations to continue positive growth momentum supported by new labs and expanded services. - International patient business growing at 26% YoY, constituting ~8% of total business, with continued double-digit absolute growth expected. - Expansion and inorganic opportunities remain under disciplined evaluation for growth leveraging a healthy balance sheet.

- Hospital EBITDA margin target is around 25%, with current levels near 23%, indicating potential margin improvement in the next 2 years (Page 12). - Operational leverage and efficiency gains from higher occupancy and bed ramp-up expected to continue driving EBITDA margin expansion (Page 12). - ARPOB (Average Revenue per Occupied Bed) expected to grow around 5-6% in H2, driven by volume growth and higher mix of day care and robotic surgeries (Page 9). - Bed additions of approximately 300-400 beds planned for next fiscal year, supporting revenue growth (Page 12). - Diagnostics business revenues growing steadily (~7.3% growth in Q2), with expanding services and improved operating EBITDA margin (Page 5). - Overall revenue growth momentum expected to sustain in second half, with some seasonal fluctuations but strong Q4 outlook (Page 8). - Potential upside to margin guidance due to better-than-expected operational performance in H1 (Page 9). In summary: Sustained revenue growth with improving margins and operational efficiencies indicate positive outlook for earnings, operating profits, and EPS over the next 1-2 years.

- Fortis Healthcare is actively adding bed capacity, with about 400-plus beds added organically in the current year and a similar addition (300-400 beds range) expected in FY 2027. - Major bed additions next year include 225 beds at FMRI and approximately 70 beds in Kolkata, along with ramp-up at Manesar and Bangalore facilities. - They are open to greenfield hospital projects; current greenfield hospitals include FMRI Mohali, Ludhiana, Noida, and Shalimar Bagh. Future greenfield opportunities will be evaluated as appropriate. - The company is pursuing brownfield expansions and inorganic growth opportunities, such as acquisitions (e.g., Shrimann Super speciality Hospital in Jalandhar). - The integration and simplification of organizational structure and ongoing digital system rollouts (e.g., EMR, patient and doctor apps) represent strategic investments to improve operational efficiency. - They signed a 15-year lease for a 200-bed hospital in Greater Noida and are managing a 550-bed greenfield hospital in Lucknow via O&M agreement.

- The document does not mention any current or planned fundraising through debt or equity. - It states the net debt as of September 30, 2025, is INR 2,219 crores with a net debt-to-EBITDA ratio of 0.96x. - The company highlights a healthy balance sheet with the capacity to absorb more acquisitions or expansions. - No explicit plans for new debt or equity fundraising are discussed in the provided pages. - Focus is on organic and inorganic growth through acquisitions and expansions funded by existing resources.

The transcript from Fortis Healthcare Limited's Investors/Analysts meet dated November 12, 2025, does not explicitly mention any details on the current or expected order book or pending orders. The discussion mainly focuses on hospital operations, bed additions, legal and financial updates, government receivables, acquisitions, and growth plans. No specific information regarding current or expected order book or pending orders is provided in the document.