Fortis Healthcare (FORH IN) – Q3FY26 Result Update – Strong growth across segments – BUY
Published on 17 Feb 2026
Fortis Healthcare (FORH) reported another strong quarter with EBITDA of Rs5.1bn in Q3FY26, up 35% YoY. Though hospital margin has improved by 550bps bps YoY over FY23-9MFY26 to 23%, we see further scope for improvement aided by 1) improving case and payor mix, 2) cost rationalization initiatives and ramp-up of Manesar and Greater Noida unit, and 3) new brownfield bed additions. Additionally, we expect margin to expand further, driven by the recent acquisition of Shrimann Hospital and the O&M agreement with Gleneagles.
Our FY27E and FY28E EBITDA broadly remain unchanged. We expect FORH to clock 20% EBITDA CAGR over FY26-28E. At CMP, the stock is trading at 24x EV/EBITDA on FY28E, adjusted for Agilus stake. Maintain ‘BUY’ rating with revised TP of Rs 1,050/ share; valuing at 27x EV/EBIDTA on FY28E
