Target: ₹1,038
CMP: ₹932.85
Fortis has delivered a strong performance in 9M-FY26, supported by structural growth momentum in the healthcare industry. Consolidated revenue and EBITDA margins stood at ₹6,763 crore and 22.9 per cent, respectively, registering a robust 17.1 per cent growth, primarily driven by the hospital segment, which reported 19.1 per cent growth. average occupancy at 69 per cent and ARPOB at ₹70,500.
Following the rebranding of its diagnostics business from SRL to Agilus Diagnostics, the division reported revenue growth of 7.7 per cent to ₹1,139 crore. Operating EBITDA increased to ₹275 crore from ₹185 crore, resulting in margin expansion to 24.1 per cent (vs 17.5 per cent). The business conducted 30.7 million tests (vs 29.6 million last year), supported by the addition of 550+ customer touch-points and network expansion.
Fortis continues to execute its cluster-based growth strategy, adding about 750 operational beds YTD through acquisitions and leases. The ₹430-crore acquisition of People Tree Hospitals provides an immediate 125-bed presence in a key Bengaluru micro-market. The launch of specialised facilities such as Adayu (mental health) enhances clinical depth and strengthens Fortis’ positioning in high-demand urban clusters. Further, the company has announced 3,200+ beds over the next three years.
Fortis is currently trading at 27x/23x EV/EBITDA for FY27E/FY28E. We recommend a Buy with a target price of ₹1,038, implying an upside of about 10 per cent from the CMP.
Published on March 2, 2026
