Fortis Doubles Down on Core Markets with Expansion, Diagnostics Surge

Fortis Healthcare has expanded its capacity in NCR, Mumbai, and Punjab after the brand acquisition. Diagnostics arm Agilus sees improved margins as digital systems scale.

Fortis Healthcare is shifting focus to expansion across core geographies after acquiring perpetual rights to its brand name for INR 200 crore. 

The healthcare provider is pursuing both greenfield and brownfield opportunities in the National Capital Region (NCR), Mumbai, and Bengaluru, while also integrating its newly acquired Shrimann Superspecialty Hospital in Jalandhar into its Punjab network.

“We are looking at both greenfield and acquisition opportunities in NCR, Mumbai, and Bengaluru,” said Dr Ashutosh Raghuvanshi, Managing Director and CEO of Fortis Healthcare. “These are not new markets for us, but we are exploring options to deepen our presence, whether through developer partnerships or the acquisition of operational hospitals that align with our strategy.”

With brownfield expansions in progress, Fortis expects to reach around 2,000 beds in Punjab. The company is also preparing to commission two new towers at its Noida and Faridabad facilities, adding around 200 beds in early FY26. A third tower at the FMRI hospital in Gurugram is also expected to be completed by the end of the current financial year.

Fortis is not currently planning to raise capital, with Dr Raghuvanshi stating, “We continue to assess opportunities that offer value and fit well within our existing clusters. Any decision to raise funds will depend on the scale and relevance of the acquisition.”

Agilus Diagnostics, the company’s diagnostics business, is expected to grow steadily following a brand transition. It recorded a revenue increase of 4% to INR 1,255 crore in FY25. Operating EBITDA rose to INR 249 crore, with margins improving to 19.8% from 17.3% in the previous year. Adjusted for one-time rebranding costs, margins stood at 24.6%. 

The unit conducted 39.2 million tests, with preventive diagnostics contributing 11% of revenue. The number of customer touchpoints increased to 4,171.

“We expect diagnostics to show double-digit growth in the coming year,” said Dr Raghuvanshi. “The new brand is now better established, and we are focused on improving operational efficiency and network scale.”

Fortis continues to invest in digital systems. Its electronic medical records (EMR) system is live for outpatients in 14 hospitals, with inpatient integration underway. A patient app for bookings and records is linked to the EMR system. “Digital channels now account for nearly 30% of our patient inflow. We expect that share to increase over time as our EMR platform scales across locations,” Dr Raghuvanshi added.

In FY25, Fortis reported a 25.3% rise in operating EBITDA to INR 1,588 crore, with margins increasing to 20.4%. Total revenue grew 12.9% to INR 7,783 crore. Net profit rose 29.3% to INR 774 crore. For Q4, revenue stood at INR 2,007 crore, with EBITDA at INR 435 crore. A dividend of INR 1 per share was recommended.

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