Fortis Healthcare First Take: 4QFY26; Healthy delivery on back of revenue strength

Research evidence excerpt

Fortis Healthcare First Take: 4QFY26; Healthy delivery on back of revenue strength

Bansi Desai, CFA AC Asia Pacific Equity Research

(91 22) 6157 3581 24 May 2026 J P M O R G A N

bansi.desai@jpmorgan.com

Investment Thesis, Valuation and Risks

Fortis Healthcare (Overweight; Price Target: Rs1,150.00)

Investment Thesis

Fortis is a large pan-India listed hospital chain with a ~4,500-bed capacity and presence in

large metro cities. The company’s hospital EBITDA has doubled in the last three years,

largely driven by improved operations under the new management team led by Dr.

Raghuvanshi. Fortis plans to add ~2,000 beds in FY26-28 with a higher share of brownfield

beds, which should drive healthy top-line growth without creating a drag on margins.

Agilus’s performance, which has been lackluster historically, significantly improved in

9MFY26 driven by improved brand visibility and recent investments in infrastructure and

cost optimization measures. We believe Fortis’s margin improvement story has further legs

as it looks to add brownfield beds, turnaround laggard assets, and achieve operating

leverage in both the businesses. OW.

Valuation

We value Fortis Healthcare based on a SOTP, primarily using EV/EBITDA for the hospital

business. Our Mar-27 PT of Rs1,150 comprises: 1) the hospital business at a 28x Mar-28E

EV/EBITDA , a ~10-15% discount to Max Healthcare’s target multiple due to lower

profitability and return ratios and ongoing legal issues; and 2) the diagnostics business at

25x Mar-28E EV/EBITDA, a ~5% discount to the average 1yr forward consensus multiple

for Dr. Lal Path Labs (Not Covered).

Valuation summary -SOTP

EV/EBITDA

EBITDA Value (Rs MM)

Multiple (x)

Hospitals 27,995 28 783,853

Agilus (89.2% stake) 4,803 25 107,110

Total Enterprise Value 890,963