Fortis Healthcare posted a 17.3% top-line surge in its second quarter, pushing consolidated revenue to ₹2,734.83 crore on the back of heavier patient footfalls and higher billing per bed. But profitability told a different story. Consolidated net profit fell 3% to ₹312.38 crore for the September quarter, down from ₹321.96 crore a year earlier, according to the company's regulatory filing.
Earnings before interest, taxes, depreciation, and amortization rose 12% to ₹623.19 crore from ₹556.33 crore. Yet operating profitability took a hit. Operating EBITDA margins compressed by 110 basis points to 22.8%, down from 23.9% in the corresponding period of the previous fiscal. Higher operational overheads blunted the impact of robust patient intake across major metros.
The hospital network drove the bulk of cash generation. Segment revenue jumped 18.6% to ₹2,340 crore from ₹1,974 crore. Operating profit for the hospital vertical stayed flat at ₹284 crore against ₹287 crore last year, reflecting wage and cost pressures. Yet core operational metrics strengthened across wards. Occupancy rates edged up to 72% from 71%, while average revenue per patient expanded 7% to ₹2.1 lakh compared to ₹1.96 lakh in the prior-year period.
Pathology and scanning operations delivered cleaner earnings leverage. Revenue from the diagnostics arm rose 12.2% to ₹448 crore from ₹400 crore. Segment profit jumped 15.8% to ₹68 crore from ₹59 crore, benefiting from test mix rationalization and higher-margin specialized assays.
| Metric | Q2 FY Current | Q2 FY Previous | YoY Change (%) |
|---|---|---|---|
| Revenue | ₹2,734.83 cr | ₹2,331.44 cr | +17.3% |
| EBITDA | ₹623.19 cr | ₹556.33 cr | +12.0% |
| EBITDA Margin | 22.8% | 23.9% | -110 bps |
| Net Profit | ₹312.38 cr | ₹321.96 cr | -3.0% |
| Hospital Revenue | ₹2,340 cr | ₹1,974 cr | +18.6% |
Shares of Fortis Healthcare closed the previous trading session up 3.7% at ₹819.80 ahead of the post-market earnings disclosure. The stock has clawed back 7.3% over the past month. Still, broader headwinds linger. The counter remains down 14.3% over the trailing six months and has surrendered 9% over the calendar year.
Market participants now turn their focus to bed expansion timelines and cost-containment measures across regional clusters as management seeks to defend margins through the remainder of the fiscal year.
| Diagnostics Revenue | ₹448 cr | ₹400 cr | +12.2% |
| Occupancy | 72% | 71% | +100 bps |
| Revenue Per Patient | ₹2.10 lakh | ₹1.96 lakh | +7.1% |