Profit before tax (PBT) climbed 52.5% YoY to Rs 279.99 crore in Q3 FY25.

Operating EBITDA stood at Rs 375 crore, registering the growth of 32% as compared with Rs 284 crore in Q3 FY24. Operating EBITDA margin stood at 19.4% in Q3 FY25 as against 16.9% in Q3 FY24.

In Q3 FY25, revenue from hospital business grew 16.8% to Rs 1,623 crore as compared with Rs 1,389.5 crore in Q3 FY24. The growth in revenue for the quarter was driven by a 9.9% increase in average revenue per occupied bed (ARPOB) and a growth of 6.2% in occupied beds compared to Q3FY24.

The company’s hospital business occupancy rate stood at 67% in Q3 FY25 as against 64% in Q3 FY24. ARPOB stood at Rs 2.45 crore in Q3 FY25, up 9.9% from Rs 2.23 crore in Q3 FY24 and average length of stay (ALOS) declined to 4.20 days in Q3 FY25 from 4.32 days in Q3 FY24.

International Patient revenues grew 17% to Rs 132 crore in Q3 FY25 as against Rs 113 crore in Q3 FY24. The business contributed 7.7% to overall hospital business revenues, similar the corresponding previous period.

Key surgical procedure volumes performed across some of our focus specialties such as Neuro Sciences and Robotic Surgeries increased by 23% and 77% YoY.

Revenues from digital channels, website, mobile application and digital campaigns witnessed a 36.2% YoY growth. Digital revenues contributed 29.9% to overall hospital revenues versus 25.7% in Q3FY24

In Q3FY25 diagnostic business net revenue were at Rs 305.2 crore compared with Rs 290.2 crore in Q3FY24. Operating margins stood at 16.2% for the period as against 11.4% in the corresponding previous period. Excluding one offs, the operating EBITDA margins stood at 23.9% versus 20.8% in Q3 FY24.

In Q3 FY25, Agilus conducted around 10.29 million tests as compared with approximately 9.85 million tests conducted in Q3 FY24.

In December 2024, the company successfully raised Rs 1,550 crore through the issuance of non-convertible debentures (NCDs). Leveraging these funds, along with internal accruals, the company consolidated its stake in Agilus Diagnostics to 89.20% by acquiring 31.52% from private equity investors as on January 2025.

The company’s net debt as of 31 st December 2024 stood at Rs 644 crore with a Net Debt to EBITDA of 0.41x as compared to the 0.45x as on 31 st December 2023 (basis Q3 annualized EBITDA). Net debt to equity was at 0.07x as compared with 0.06x as on 31 st December 2023.

Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare stated, “We have our positive momentum in Q3 with the hospital business contributing approximately 84% to our consolidated revenue and 87% to our consolidated EBITDA. As part of the Company’s portfolio rationalization strategy, we divested business operations of Richmond Road Hospital, Bangalore in December 2024.

Revenue from focus specialties comprising Oncology, Neurosciences, Cardiac Sciences, Gastroenterology, Orthopedics and Renal Sciences contributed 62% to overall hospital business revenues. Among our key specialties, Oncology grew by a strong 30% led by growth of 44% in Hematology and Bone Marrow Transplant, compared to the same period last year.

On the diagnostics business, we consolidated our stake by acquiring 31.5% stake from the PE investors, with the Company now holding 89.2% shareholding in Agilus. The diagnostics business performance continues to recover, with an EBITDA margin (excluding one offs) of 21.3%, compared to 18.3% in Q3FY24. However, the business is still impacted by rebranding expenses which we expect will taper off towards the end of the fiscal.”

Fortis Healthcare is a leading integrated healthcare delivery service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities. Currently, the company operates 27 healthcare facilities (including JVs and O&M facilities). The company's network comprises approximately 4,700 operational beds.

The counter shed 0.90% to settle at Rs 645.20 on Friday, 7 February 2025.