Fortis Healthcare
Fortis Healthcare
Healthcare Services F&OKey Fundamentals
MidcapHospitalsHealthcare ServicesTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
1- Company has delivered good profit growth of 64.3% CAGR over last 5 years
Weaknesses
2- Stock is trading at 5.99 times its book value
- Company has a low return on equity of 9.87% over last 3 years.
Growth Rate
AI Analysis — Bull vs Bear
Fortis Healthcare has a market capitalisation of about ₹64,764 crore. Revenue is growing at 18% (TTM) and profit compounded at 64% annually over 5 years, though profit growth has slowed to 27% over 3 years and 16% TTM. The stock trades at a P/E of 62 and a P/B of 6.7, while ROE is modest at 10-11%. Share price performance has turned negative over the past year (-10%) after a 35% CAGR over 3 years.
- Net profit has compounded at 64% CAGR over the last 5 years and 60% over 10 years. This reflects a substantial earnings recovery and turnaround.
- Revenue growth is speeding up. TTM sales growth of 18% is higher than the 3-year sales CAGR of 13%, which points to healthy demand and capacity additions coming online.
- ROE has improved steadily, from a 10-year average of 5% to a 5-year average of 9%, a 3-year average of 10%, and 11% last year. Capital efficiency is getting better.
- Over 3 years, profit grew at a 27% CAGR against a 13% sales CAGR. Profit growing about twice as fast as revenue suggests operating leverage and margin expansion.
- The stock has returned a 35% CAGR over 3 years, 26% over 5 years and 17% over 10 years. That is a strong long-term record of creating value for shareholders.
- 5-year sales CAGR of 18% is well above the 10-year sales CAGR of 8%. The business now appears to be on a structurally higher growth path than in its earlier years.
- The 10% share price fall over the past year, while TTM sales grew 18% and profit grew 16%, has brought valuation multiples down somewhat compared with earnings.
- A P/E of 62 means an earnings yield of only about 1.6%. The stock needs sustained high earnings growth to justify this valuation.
- A P/B of 6.7 (about 6.39 by another measure) is a steep premium for a business earning ROE of about 11%. The gap between valuation and returns is large.
- 3-year average ROE of 9.87% is low for a premium-valued company. It may be near or below the cost of equity for Indian equities.
- Profit growth is slowing, from a 64% CAGR over 5 years to 27% over 3 years and 16% TTM. At 16% growth, the P/E of 62 implies a PEG ratio of about 3.9.
- TTM profit growth of 16% is behind TTM sales growth of 18%. This may point to margin pressure from new-facility ramp-up costs, staffing or depreciation.
- The stock has fallen 10% over the past year despite double-digit growth in revenue and profit. This suggests the market is lowering its valuation multiple.
- Over the long term, sales grew at only 8% CAGR and ROE averaged 5% over 10 years. The high 5-year profit CAGR partly reflects recovery from a depressed earnings base.
- A dividend yield of 0.11% gives almost no income support. Returns depend almost entirely on the share price going up.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Forensic audit over legacy promoter dispute Sep 15
A Delhi HC order dated Aug 31 directed a six-month forensic audit tied to Daiichi Sankyo's ₹5,300 cr claim, which has grown from the ₹2,562 cr award of Apr 2016. The audit covers the ₹4,000 cr IHH-NTK deal and the ₹4,666 cr RHT acquisition, and shares fell 2% on Aug 31.
- Liability scenarios hinge on audit Sep 25
In a severe scenario (10% probability), exposure is estimated at ₹3,100-9,200 cr, and a moderate scenario (30% probability) puts it at ₹400-1,600 cr. The final audit report is expected around May-June 2027, so the overhang will last months.
- NTK loses Tokyo case vs Daiichi Sep 11
On Sep 10, the Tokyo District Court dismissed all of IHH unit NTK's claims against Daiichi Sankyo and ordered NTK to bear the full litigation costs. NTK appealed to the Tokyo High Court on Sep 24.
- 400+ bed Delhi hospital deal Sep 16
Fortis signed a 29-year asset-light services agreement with SLJ Society for a 400+ bed hospital in Ashok Vihar, which includes a ₹567 cr loan facility paid in tranches over 3-4 years. This takes Fortis's Delhi-NCR footprint past 3,400 beds, and the stock rose 2.94% to ₹895.85.
- Strong Q1FY27 operating growth Sep 25
Q1FY27 revenue rose 17.5% YoY to ₹2,545 cr and operating EBITDA grew 15.8% to ₹568 cr. PAT rose only 2.3% to ₹273 cr.
- Prabhudas Lilladher upgrades to Accumulate Sep 7
PL upgraded the stock to Accumulate with a ₹2,320 target, expecting a 20% EBITDA CAGR over FY26-28E, while Motilal Oswal kept Buy with a ₹1,130 target. Hospital margins expanded 530 bps over FY23-26 to 22.2%.
- IHH plans 51% stake, 10,000 beds Sep 27
IHH plans to raise its stake from about 31% to 51% and expand capacity to 10,000 beds by 2031. IHH says the audit order places no limit on further capital infusion.
- CRISIL reaffirms AA+/Stable Sep 25
CRISIL reaffirmed Fortis at AA+/Stable and A1+, saying the court order does not affect its debt ratings. Management says capex, bed expansion and M&A plans are not affected.
- SC lets audit proceed, curbs observations Sep 27
On Sep 25, the Supreme Court disposed of Fortis's SLP and allowed the audit, but said the HC's observations were 'tentative' and must not influence the independent auditor. No liability, penalty or fine has been imposed on Fortis, and Daiichi bears the audit costs.
- Fortis files SLP against HC order Sep 16
Fortis filed a Special Leave Petition on Sep 16, after initial reports on Sep 2, challenging the Aug 31 order. It argued that it was a 'complete stranger' to the dispute and represents 2.5 lakh public shareholders.
- Heavy investor outreach on legal overhang Sep 15
Fortis released its Sep 4 investor call transcript, held a Jefferies roadshow in London on Sep 14-15, and hosted an analyst meeting on Sep 21. The aim is to reassure investors about the audit.
TL;DR: Fortis's operations remain strong, with 17.5% revenue growth in Q1FY27, margins expanding to 22.2%, an asset-light 400+ bed Delhi expansion, and IHH committed to a 51% stake and 10,000 beds. The main risk is the Daiichi Sankyo forensic audit linked to a ₹5,300 cr claim, which the Supreme Court declined to halt, though it said the HC's adverse observations were only tentative and no liability has been imposed. Legal sentiment improved slightly after the SC clarification, but NTK's Tokyo loss adds noise. The stock is likely to trade with a legal-risk discount until the audit report around May-June 2027, while earnings delivery and IHH's stake increase are the main catalysts.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,657 | 1,770 | 1,680 | 1,786 | 1,859 | 1,988 | 1,928 | 2,007 | 2,167 | 2,331 | 2,265 | 2,365 | 2,545 |
| Expenses | 1,386 | 1,440 | 1,396 | 1,405 | 1,516 | 1,554 | 1,553 | 1,572 | 1,676 | 1,775 | 1,759 | 1,832 | 2,008 |
| Operating Profit | 272 | 330 | 284 | 381 | 343 | 435 | 375 | 435 | 491 | 556 | 506 | 532 | 537 |
| OPM % | 16% | 19% | 17% | 21% | 18% | 22% | 19% | 22% | 23% | 24% | 22% | 23% | 21% |
| Other Income | 10 | 18 | 19 | 17 | 14 | -42 | 47 | -29 | 31 | 50 | -34 | -2 | 28 |
| Interest | 31 | 32 | 33 | 35 | 35 | 36 | 45 | 68 | 70 | 75 | 86 | 84 | 80 |
| Depreciation | 79 | 84 | 87 | 92 | 91 | 95 | 97 | 102 | 101 | 106 | 120 | 122 | 122 |
| PBT | 171 | 233 | 183 | 271 | 230 | 261 | 279 | 237 | 351 | 425 | 266 | 324 | 363 |
| Tax % | 27% | 21% | 27% | 25% | 24% | 26% | 9% | 21% | 24% | 23% | 26% | 16% | 25% |
| Net Profit | 124 | 184 | 134 | 203 | 174 | 193 | 254 | 188 | 267 | 329 | 197 | 271 | 273 |
| EPS in Rs | 1.48 | 2.3 | 1.78 | 2.37 | 2.2 | 2.34 | 3.28 | 2.44 | 3.45 | 4.26 | 2.57 | 3.52 | 3.53 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 9,506 |
| 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 | 7,375 |
| Operating Profit | 109 | 92 | 354 | 274 | 231 | 610 | 404 | 1,069 | 1,101 | 1,268 | 1,588 | 2,085 | 2,131 |
| OPM % | 2.8% | 2.2% | 8% | 6% | 5% | 13% | 10% | 19% | 17% | 18% | 20% | 23% | 22% |
| Other Income | 92 | 299 | 649 | -689 | 228 | 126 | 95 | 367 | 157 | 64 | -11 | 45 | 42 |
| Interest | 152 | 133 | 229 | 258 | 337 | 205 | 166 | 147 | 129 | 131 | 184 | 314 | 325 |
| Depreciation | 235 | 225 | 222 | 239 | 233 | 292 | 291 | 301 | 316 | 342 | 386 | 449 | 470 |
| PBT | -185 | 34 | 552 | -912 | -110 | 239 | 43 | 988 | 814 | 858 | 1,007 | 1,366 | 1,378 |
| 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 | 1,070 |
| 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 | 13.88 |
| Div. Payout % | -1% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 13% | 13% | 10% | 7% | — |
Balance Sheet
| Particulars | 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 | 2,465 |
| Total Liabilities | 7,592 | 7,232 | 9,588 | 8,479 | 11,486 | 11,036 | 10,866 | 11,516 | 12,089 | 12,971 | 13,377 | 15,833 |
| Fixed Assets | 4,218 | 3,642 | 5,419 | 4,992 | 8,477 | 8,802 | 8,799 | 9,416 | 9,426 | 9,874 | 10,424 | 12,230 |
| CWIP | 228 | 226 | 268 | 226 | 450 | 204 | 165 | 193 | 228 | 542 | 407 | 434 |
| 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 | 2,926 |
| Total Assets | 7,592 | 7,232 | 9,588 | 8,479 | 11,486 | 11,036 | 10,866 | 11,516 | 12,089 | 12,971 | 13,377 | 15,833 |
Cash Flow
| Particulars | 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 | -1,537 |
| 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 | 228 |
| 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
| Particulars | 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% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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63 extracted metrics + investor summaries across FY12–FY27.
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]
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