The decline in profits can be attributed to a one-time exceptional expense of ₹55.2 crore related to the new labor laws. However, this was partially offset by a gain of ₹9.4 crore from the reversal of impairment at an associated company. As a result, the net exceptional impact on earnings stood at ₹45.9 crore for the quarter.
On a sequential basis, the company’s profit fell 39.8 percent, while revenue from operations also fell 2.8 percent.
The results were announced after market hours. Fortis shares fell 1.22 per cent on Friday to end the day’s trading at ₹916.9 per share on the BSE.
Ashutosh Raghuvanshi, managing director and chief executive officer of Fortis Healthcare, said: “We have witnessed healthy growth in our hospital operations across all major specialties, particularly renal sciences and orthopedics. Our acquisition in Bengaluru enables us to strengthen our presence in this market from approximately 900 beds across seven facilities, with the potential to scale up to over 1,500 beds in the future. We continue to move forward with our expansion plans and are evaluating further inorganic capabilities in our existing clusters The continued recovery in our diagnostics business is encouraging and we expect this to improve gradually.”
The hospital business reported revenues rose 19.4 per cent year-on-year to ₹1,938 crore in Q3 FY26, compared to ₹1,623 crore a year earlier. Operating Ebitda rose 28.9 per cent to ₹420 crore, while margins increased from 20 per cent to 21.7 per cent.
For the nine months ended FY26, hospital revenues rose 19.1 per cent to ₹5,749 crore, with operating Ebitda rising 32.1 per cent to ₹1,278 crore and margins improving to 22.2 per cent.
Growth was primarily driven by a 14 percent increase in the number of occupied beds during the quarter. Capacity expansion also contributed, with the company acquiring the 125-bed People Tree Hospital in Yeshwanthpur, Bengaluru, for ₹430 crore in January 2026. The purchase included the underlying land and an adjacent plot, allowing for future expansion to more than 300 beds. In November 2025, the company also launched ‘Adayu’, a 36-bed specialized mental health facility in Gurugram.
Operating numbers in the hospital sector remained stable, with occupancy at 67 per cent in Q3 FY26, while average revenue per occupied bed (ARPOB) improved to ₹2.56 crore per annum, compared to ₹2.45 crore a year earlier. The average length of stay (ALOS) increased marginally to 4.29 days.
The diagnostics activities achieved moderate revenue growth, but sharp margin expansion. Revenues rose 8.3 per cent year-on-year to ₹371 crore in Q3 FY26, while operating Ebitda rose 73.5 per cent to ₹86 crore, pushing margins up to 23.1 per cent from 14.4 per cent a year ago.
During the nine-month period, diagnostics revenue rose 7.7 per cent to ₹1,139 crore, with operating Ebitda rising 48.6 per cent to ₹275 crore and margins expanding to 24.1 per cent.
Testing volume rose to 9.94 million tests in the third quarter of FY26 from 9.59 million a year earlier. The company continued to expand its diagnostics network, bringing the total number of customer touchpoints to 4,370 as of December 31, 2025. The preventive portfolio’s share of diagnostics revenue increased to 12 percent, while the specialty portfolio increased to 35 percent, reflecting a shift to higher value tests.
Diagnostics revenues are reported on a gross basis, with the consolidated financials reflecting revenues net of intercompany eliminations. On this basis, net diagnostics revenues stood at ₹327 crore in Q3 FY26, compared to ₹305 crore in Q3 FY25. Excluding one-off rebranding costs, operating Ebitda margins were 21.3 percent for the third quarter of FY25 and 21.4 percent for the nine months ended FY25.
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