Fortis Healthcare Ltd
Fortis Healthcare Ltd
Healthcare F&OFHL was incorporated in February 1996. The company’s first healthcare facility became operational in Mohali, Punjab in 2001. It is a leading integrated healthcare service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities. Currently, the company operates its healthcare delivery services in India, Nepal, Dubai and Sri Lanka with 36 healthcare facilities with approximately 4,000 operational beds. [1] Company controls its diagnostics business through its 57% owned subsidiary SRL Limited. It is amongst the largest private diagnostics chains. It has a presence in over 600 cities and towns, with an established strength of 415 laboratories, 8,200 direct clients and 1,400 Collection Centers. [2]
Fortis Healthcare shows strong profit growth of 64% CAGR over 5 years and robust analyst support with 76% buy ratings, but the stock trades at a steep PE of 68x and 7.31x book value with a modest ROE of only 10% over 3 years, making the risk-reward less compelling at current levels.
Key Fundamentals
MidcapHospitalsHealthcare ServicesTechnical Indicators
Key Insights
Strengths
1- Company has delivered good profit growth of 64.4% CAGR over last 5 years
Weaknesses
2- Stock is trading at 7.44 times its book value
- Company has a low return on equity of 9.88% over last 3 years.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoFortis Healthcare shows strong profit growth of 64% CAGR over 5 years and robust analyst support with 76% buy ratings, but the stock trades at a steep PE of 68x and 7.31x book value with a modest ROE of only 10% over 3 years, making the risk-reward less compelling at current levels.
- Exceptional compounded profit growth of 64% CAGR over the last 5 years demonstrates strong earnings momentum
- 76.47% of analysts (13 out of 17) have a buy rating, reflecting broad institutional confidence
- TTM sales growth of 17% indicates healthy topline expansion in the healthcare segment
- Stock CAGR of 46% over 3 years shows sustained investor interest and price appreciation
- TTM profit growth of 26% outpacing revenue growth of 17% signals improving operating leverage and margins
- ROE has improved from 5% over 10 years to 11% in the last year, showing a clear upward trajectory
- Market cap of Rs 72,174 crore provides institutional-grade liquidity and index inclusion benefits
- Compounded sales CAGR of 18% over 5 years reflects consistent demand growth in the hospital business
- PE ratio of 68x is extremely expensive relative to healthcare sector median of ~35-40x, leaving limited margin of safety
- Price-to-book of 7.31x is elevated, meaning investors pay a hefty premium over tangible asset value
- 3-year average ROE of only 10% is modest for a stock trading at such premium valuations
- Dividend yield of just 0.1% offers virtually no income cushion during market corrections
- Only 5.88% sell ratings but 17.65% hold ratings suggest some analysts see limited upside from current levels
- 10-year compounded sales CAGR of only 8% reveals historically uneven topline growth before the recent acceleration
- 10-year ROE average of just 5% indicates the company struggled with capital efficiency for extended periods
- At 68x earnings, any deceleration in the 26% TTM profit growth could trigger sharp de-rating
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Tax demand slashed 47% Jun 17
Fortis subsidiary's tax demand for AY 2024-25 reduced from ₹117.04 Cr to ₹61.48 Cr by Income Tax Authority, saving approximately ₹55.56 Cr.
- ₹17.55 Cr block trade on NSE Jun 16
Approximately 180,476 shares traded at ₹972.20 per share in a single block deal worth ₹17.55 Cr, indicating institutional portfolio activity.
- Q4FY26 earnings call released May 25
Fortis released the audio recording of its Q4FY26 and full-year FY26 earnings call covering audited standalone and consolidated financial results.
TL;DR: Fortis Healthcare faces no notable headwinds in recent news flow. The positive resolution of a subsidiary's tax demand, nearly halved to ₹61.48 Cr, removes a minor financial overhang. Institutional block trade activity and routine earnings disclosures suggest stable investor engagement. The near-term trend appears steady with no emerging risks flagged.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,643 | 1,657 | 1,770 | 1,680 | 1,786 | 1,859 | 1,988 | 1,928 | 2,007 | 2,167 | 2,331 | 2,265 | 2,365 |
| Expenses | 1,372 | 1,386 | 1,440 | 1,396 | 1,405 | 1,516 | 1,554 | 1,553 | 1,572 | 1,676 | 1,775 | 1,759 | 1,832 |
| Operating Profit | 271 | 272 | 330 | 284 | 381 | 343 | 435 | 375 | 435 | 491 | 556 | 506 | 532 |
| OPM % | 16% | 16% | 19% | 17% | 21% | 18% | 22% | 19% | 22% | 23% | 24% | 22% | 23% |
| Other Income | 26 | 10 | 18 | 19 | 17 | 14 | -42 | 47 | -29 | 31 | 50 | -34 | -2 |
| Interest | 32 | 31 | 32 | 33 | 35 | 35 | 36 | 45 | 68 | 70 | 75 | 86 | 84 |
| Depreciation | 82 | 79 | 84 | 87 | 92 | 91 | 95 | 97 | 102 | 101 | 106 | 120 | 122 |
| PBT | 183 | 171 | 233 | 183 | 271 | 230 | 261 | 279 | 237 | 351 | 425 | 266 | 324 |
| Tax % | 25% | 27% | 21% | 27% | 25% | 24% | 26% | 9% | 21% | 24% | 23% | 26% | 16% |
| Net Profit | 138 | 124 | 184 | 134 | 203 | 174 | 193 | 254 | 188 | 267 | 329 | 197 | 271 |
| EPS in Rs | 1.76 | 1.48 | 2.3 | 1.78 | 2.37 | 2.2 | 2.34 | 3.28 | 2.44 | 3.45 | 4.26 | 2.57 | 3.52 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 3,966 | 4,199 | 4,574 | 4,561 | 4,469 | 4,632 | 4,030 | 5,718 | 6,298 | 6,893 | 7,783 | 9,128 |
| Expenses | 3,857 | 4,106 | 4,220 | 4,287 | 4,238 | 4,022 | 3,626 | 4,649 | 5,196 | 5,625 | 6,195 | 7,043 |
| Operating Profit | 109 | 92 | 354 | 274 | 231 | 610 | 404 | 1,069 | 1,101 | 1,268 | 1,588 | 2,085 |
| OPM % | 3% | 2% | 8% | 6% | 5% | 13% | 10% | 19% | 17% | 18% | 20% | 23% |
| Other Income | 92 | 299 | 649 | -689 | 228 | 126 | 95 | 367 | 157 | 64 | -11 | 45 |
| Interest | 152 | 133 | 229 | 258 | 337 | 205 | 166 | 147 | 129 | 131 | 184 | 314 |
| Depreciation | 235 | 225 | 222 | 239 | 233 | 292 | 291 | 301 | 316 | 342 | 386 | 449 |
| PBT | -185 | 34 | 552 | -912 | -110 | 239 | 43 | 988 | 814 | 858 | 1,007 | 1,366 |
| Tax % | 2% | -24% | 13% | 2% | 103% | 62% | 230% | 20% | 22% | 25% | 20% | 22% |
| Net Profit | -130 | 42 | 479 | -934 | -224 | 91 | -56 | 790 | 633 | 645 | 809 | 1,064 |
| EPS in Rs | -3.1 | 0.4 | 8.14 | -19.46 | -3.96 | 0.77 | -1.45 | 7.35 | 7.8 | 7.93 | 10.26 | 13.8 |
| Div. Payout % | -1% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 13% | 13% | 10% | 7% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 463 | 463 | 518 | 519 | 755 | 755 | 755 | 755 | 755 | 755 | 755 | 755 |
| Reserves | 3,585 | 3,998 | 4,626 | 3,543 | 5,846 | 5,906 | 5,365 | 5,423 | 6,487 | 6,908 | 8,162 | 9,141 |
| Borrowings | 1,784 | 1,513 | 2,217 | 1,962 | 2,010 | 1,594 | 1,531 | 1,255 | 926 | 1,155 | 2,475 | 3,473 |
| Other Liabilities | 1,760 | 1,257 | 2,227 | 2,455 | 2,875 | 2,781 | 3,216 | 4,082 | 3,921 | 4,153 | 1,985 | 2,598 |
| Total Liabilities | 7,592 | 7,232 | 9,588 | 8,479 | 11,486 | 11,036 | 10,866 | 11,516 | 12,089 | 12,971 | 13,377 | 15,966 |
| Fixed Assets | 4,218 | 3,642 | 5,419 | 4,992 | 8,477 | 8,802 | 8,799 | 9,416 | 9,426 | 9,874 | 10,424 | 12,232 |
| CWIP | 228 | 226 | 268 | 226 | 450 | 204 | 165 | 193 | 228 | 542 | 407 | 432 |
| Investments | 1,464 | 1,452 | 1,878 | 1,732 | 270 | 175 | 186 | 104 | 210 | 230 | 169 | 243 |
| Other Assets | 1,682 | 1,913 | 2,023 | 1,529 | 2,290 | 1,856 | 1,716 | 1,803 | 2,225 | 2,326 | 2,378 | 3,059 |
| Total Assets | 7,592 | 7,232 | 9,588 | 8,479 | 11,486 | 11,036 | 10,866 | 11,516 | 12,089 | 12,971 | 13,377 | 15,966 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 24 | 195 | 966 | 493 | -179 | 172 | 485 | 865 | 822 | 1,100 | 1,424 | 1,601 |
| Investing | 213 | 122 | -1,001 | -333 | -3,279 | 63 | -131 | -501 | -372 | -889 | -780 | -1,538 |
| Financing | -304 | -354 | 259 | -672 | 4,257 | -862 | -143 | -517 | -471 | -86 | -714 | 164 |
| Net Cash Flow | -66 | -37 | 225 | -513 | 799 | -627 | 212 | -153 | -21 | 125 | -70 | 227 |
| Free Cash Flow | -181 | -162 | 689 | 437 | -261 | 35 | 274 | 750 | 367 | 172 | 591 | 673 |
| CFO/OP | 131 | 354 | 304 | 187 | 30 | 84 | 108 | 101 | 100 | 104 | 97 | 90 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 38 | 39 | 38 | 38 | 44 | 36 | 41 | 33 | 34 | 33 | 37 | 42 |
| Inventory Days | 25 | 23 | 23 | 24 | 22 | 30 | 29 | 33 | 31 | 24 | 23 | 24 |
| Days Payable | 207 | 218 | 215 | 279 | 296 | 226 | 205 | 178 | 179 | 164 | 161 | 165 |
| Cash Conversion Cycle | -144 | -156 | -155 | -217 | -230 | -161 | -135 | -112 | -115 | -107 | -101 | -99 |
| Working Capital Days | -71 | -69 | -87 | -113 | -234 | -150 | -56 | -35 | -22 | -124 | -30 | -34 |
| ROCE % | 0% | 3% | 11% | 3% | 6% | 4% | 2% | 10% | 10% | 10% | 12% | 13% |
Documents
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Company Information
FHL was incorporated in February 1996. The company’s first healthcare facility became operational in Mohali, Punjab in 2001. It is a leading integrated healthcare service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities. Currently, the company operates its healthcare delivery services in India, Nepal, Dubai and Sri Lanka with 36 healthcare facilities with approximately 4,000 operational beds. [1] Company controls its diagnostics business through its 57% owned subsidiary SRL Limited. It is amongst the largest private diagnostics chains. It has a presence in over 600 cities and towns, with an established strength of 415 laboratories, 8,200 direct clients and 1,400 Collection Centers. [2]