Delhi-headquartered hospital chain Fortis Healthcare reported a 3% year-on-year decline in consolidated net profit for Q2FY27, with net profit falling to ₹312.4 crore from ₹321.9 crore in the same period last year. According to the latest regulatory filing, the company demonstrated strong revenue growth driven by its core hospital and diagnostics businesses, with revenue from operations rising 17.3% to ₹2,735 crore from ₹2,331 crore in Q2FY26. The decline in profit was primarily attributed to a lower exceptional gain of ₹3 crore in Q2FY27 compared to ₹24 crore in Q2FY26 due to a reversal of impairment in an associate company. Additionally, EBITDA increased 12% to ₹623.2 crore from ₹556.3 crore a year ago, though EBITDA margin contracted to 22.8% from 23.9% in the year-ago quarter.
Despite profit challenges, Fortis demonstrated robust operational performance with revenue from operations rising 17% to ₹2,734.83 crore in Q2FY27, up from ₹2,331.44 crore in Q2FY26. The hospital business posted strong growth with revenue increasing 18.6% year-on-year to ₹2,340 crore, supported by improved occupancy rates of 72% compared to 71% in Q2FY26. The company's occupied bed count increased to 3,616 beds from 3,318 beds in the previous year, representing a 9% growth. Revenue growth was led by a 7% increase in average revenue per in-patient and a 9% rise in occupied beds, with the B2C share improving to 54% from 52% in the year-ago period. However, the PAT margin for the hospital segment fell to 12.1% from 14.5% in the previous year.
The company's operating expenses, including employee benefits, drug procurement, and finance costs, rose 18.5% year-on-year to ₹2,318.27 crore in Q2FY27 from ₹1,955.83 crore in the same quarter last year. Tax expenses also increased significantly to ₹111.84 crore from ₹96.58 crore in the same quarter last year. Additionally, Fortis recorded a lower exceptional gain of ₹3 crore in Q2FY27 compared to ₹24 crore in Q2FY26 due to a reversal of impairment in an associate company.
Key specialties including oncology, cardiac and renal sciences reported revenue growth of 16.7% and contributed 60% to overall hospital business revenue. As reported by CNBC TV18, international patient revenue grew 12.4% to ₹190 crore in Q2FY27 against ₹169 crore in Q2FY26. The diagnostics business also showed strong performance with gross revenues increasing by 12.2% to ₹448 crore, with the PAT margin improving to 15.2% from 14.8% in Q2 FY26. The business saw an increase in the B2C revenue share and conducted approximately 11.39 million tests during the quarter, with the diagnostics network expanding to 4,551 customer touchpoints as of September 30, 2026. Revenue from preventive and specialized portfolios grew 28% and 14% respectively during the quarter.
The company announced significant expansion plans through strategic acquisitions and new agreements. Fortis entered into definitive agreements with Seth Sunder Lal Jain Charitable Eye Hospital to provide healthcare services at a 400-plus-bed super-specialty hospital in Ashok Vihar, New Delhi, expected to commence operations in 3-4 years with beds operationalized in phases. Separately, through its wholly owned subsidiary International Hospitals, the company recently acquired Suguna Hospital, a 110-bed facility in Bengaluru's Rajajinagar with potential to expand to around 150 beds. The company's net debt stood at ₹2,188 crore with a net debt to EBITDA ratio of 0.87x, reflecting improvement from 0.96x a year ago. Commenting on the results, Fortis MD and CEO Ashutosh Raghuvanshi stated the company maintained growth trajectory across hospital and diagnostics businesses, with the acquisitions strengthening presence in Bengaluru and Delhi NCR clusters. Fortis Healthcare shares closed at ₹819.80 on November 5, rising ₹29.15 or 3.69% ahead of earnings announcements.
