Fortis Health: Hospital growth momentum remains strong with diagnostics catching up

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Fortis Health: Hospital growth momentum remains strong with diagnostics catching up

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Fortis Health

Hospital growth momentum remains

strong with diagnostics catching up

Reiterate Rating: NEUTRAL | PO: 975.00 INR | Price: 970.35 INR

Inline quarter with positive growth momentum 25 May 2026 Corrected

Fortis reported a largely inline quarter with consol adj EBITDA Rs5.2bn. The growth Equity

momentum in hospitals (19% YoY) was better than expected despite impact on

international patients (10% YoY vs. ~20+% in 9M) as well as onco business in Punjab

Key Changescluster due to higher discounts by CGHS on chemo drugs. We also witnessed meaningful

recovery in diagnostic segment with 11% YoY growth vs. 7% in 9MFY26. We believe the (Rs) Previous Current

brownfield bed addition as well as full contribution from recent hospital acquisitions Price Obj. 940.00 975.00

should support hospital revenue momentum with FORH reiterating FY28 margin target 2027E EPS 17.20 18.19

of 25%. However, we believe the earnings traction is priced-in at current valuations as 2028E EPS 23.86 24.32

the stock is trading at a premium to the LT average of the sector valuation; hence, we 2029E EPS NA 29.31

reiterate Neutral with a higher PO of Rs975 (vs. 940 previously) on the back of reduction

in net debt from FY26 to FY27. Estimate changes in Exhibit 7. Neha Manpuria >>

Research Analyst

BofAS India

+91 22 6632 8307Gauging the risks in the stock neha.manpuria@bofa.com

We highlight the following upside and downside risks to our assumption on the stock: a)

Charul Agrawal >>

Faster ramp-up of brownfield beds: FORH is adding 500+beds in FY27 including the 200 Research Analyst

bed new tower in FMRI with guide of 100 bed being commissioned this year but scope BofAS India +91 22 6632 8255