Fortis Healthcare (FORH IN) – Q4FY26 Result Update – Another strong quarter – BUY
Published on 25 May 2026
Fortis Healthcare (FORH) reported another strong quarter with EBITDA of Rs5.3bn in Q4FY26, up 22% YoY. Though hospital margin has improved by 530bps over FY23-FY26 to 22.2%, 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 People Tree Hospital, Shrimann Hospital and the O&M agreement with Gleneagles. Our FY27E and FY28E EBITDA broadly remain unchanged. We expect FORH to clock 21% EBITDA CAGR over FY26-28E. At CMP, the stock is trading at 25.5x EV/EBITDA on FY28E, adjusted for Agilus stake. Maintain ‘BUY’ rating with revised TP of Rs 1,120/ share; valuing at 30x EV/EBIDTA for hospital segment on FY28E.
