Fortis Healthcare Limited (FORTIS) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Fortis Healthcare Limited Q4 F526 Earnings Conference Call. As a reminder, all participant lines will be able to listen only more, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anurag Kalra, Head of Invest Relations. Thank you, and over to you, Mr. Kalra.

Thank you, Renju. Very good morning and good afternoon, ladies and gentlemen. And thank you indeed for taking the time to join us on our quarter for FY26 and FY26 earnings call. The call is being chaired by our MD and CEO, Dr. Ashutosh Raghavanshi. With him, we have our chief financial officer, Mr. Vivek Goyal. From Agilis, we have the CEO, Mr. Anand, and the CFO, Mr. Shethiwari. We will start the call with some opening remarks on the performance by Dr. Aghwansi, post which Anand will take you to certain key highlights of the diagnostics business, and then we can open the floor for question and answers. Over to Dr. Aghwansi.

Thank you, Anurag. Good morning and good afternoon, everyone. Thank you for taking the time to join us on our Q4 Financial Year 26 and Financial Year 26 earnings call today. To begin with, I am pleased to inform you that our board has recommended a dividend of IMR1 per share, which is equivalent to 10% of the face value, for the fourth consecutive year, subject to the approval of shareholders. This underscores the continued strength of the company's fundamentals and earning trajectory. We witnessed a steady performance across both the hospitals and the diagnostic business, enabling us to conclude the financial year on a healthy note. Coming to the financial performance of the company, I shall comment on the year as a whole and then move on to quarter four. For the financial year 2026, consolidated revenues for the company stood at INR 9,128 crores, a growth of 17.3% over the financial year 25. Our hospital business revenue have grown 19.1% to INR 7,773 crore in financial year 26, while diagnostic business net revenues were at INR 1,355 crore in financial year 26, a growth of 8%. Our consolidated operating EBITDA increased 31.3% to INR 2,085 crores, which translates into a margin of 22.8% in financial year 26 versus 20.4% in financial year 25. For the hospital business, operating EBITDA margins have improved from 20.5% in financial year 25 to 22.2% in financial year 26. The hospital business now contributes approximately 85% to our consolidated revenues and our consolidated EBITDA. Our consolidated profit after tax for the year increased 31.5% to INR 1,064 crore in financial year 26, compared to INR 809 crore in financial year 25. Now, on the performance for the quarter, we reported a consolidated top line of INR 2,365 crore, a growth of 17.8% over a quarter four of financial year 25. The hospital business grew 19% to INR 2,023 crores, while the diagnostic business net revenue stood at INR 341 crores in quarter 4 of financial year 26 compared to INR 306 crores in quarter 4 of financial year 25. The consolidated operating EBITDA margins were at 22.5% versus 21.7% in Q4 of financial year 25. Operating EBITDA for the hospital business in Q4 financial year 26 grew to 19.9%, INR446 crores, with a margin of 22.1%. Compared to operating EBITDA of INR 372 crores in quarter 4 of financial year 25. Our consolidated profit after tax for the quarter increased 44.2% to INR 271 crores. Coming to the balance sheet side, the company's net debt stands at INR 2334 crores with a net debt to EBITDA of 1.09x as on March 31, 2026, as against 0.93 on March 31, 2025. The increase in debt was primarily due to acquisition undertaken during the year, amongst other investments which we made. Let me now briefly touch upon the hospital business. Our hospital occupancy in financial year 26 was 68% compared to 69% in financial year 25. However, the number of occupied beds increased by 15% from 3,270 beds in financial year 26 up to 2,838 beds in financial year 25. Our hospital business recorded a 3.4% increase in ARCOP, reaching INR 2.51 crores per annum in financial year 26. Key procedure volumes across four focus specialties, such as radiation therapy, robotic surgeries, witnessed steady growth during the year, increasing by 19% and 66% respectively. Revenue from focused specialties comprising oncology, neurosciences, cardiac sciences, gastroenterology, orthopedics, and renal sciences grew 18.9% and contributed 62% to overall hospital business revenue. Revenue from international patients grew by 18.5% during the year to reach 639 crores, contributing 7.8% to overall hospital business revenue. In financial year 26, 13 of our facilities reported operating EBITDA margin above 20% collectively, contributing 76% of the hospital revenue. In comparison, in financial aid 25, we had 10 of our facilities with operating EBITDA margin of 20%, contributing 73% of the hospital revenues. This clearly reflects the growing strength of the business and the result of various initiatives and investments we have undertaken over the past few years. The year gone by has also been marked by significant progress and strategic development across the company, including the addition of approximately 800 beds to our network through a combination of brownfield expansion and inorganic acquisitions. In January 2026, the company acquired a 125-bedded people-free hospital in Yershwanpur, Bangalore, along with an adjacent land parcel enabling future expansion to over 300 beds. In September 25, the company strengthened its NCR presence with a long-term lease arrangement for a 200-bedded multi-speciality hospital in Greater Noida. In July 2025, the company consummated the acquisition of 228-bedded Sriman Superspecialty Hospital in Jalandhar, along with an adjacent land parcel, enabling future expansion to over 450 beds. As you can see, all these acquisitions or arrangements are focused on our key growth clusters and will further enable us to leverage our existing strength and position in these geographies. Let me also briefly teach the touch upon focus emerging care segment. In November 2025, the company launched Adayu, a 36-bedded specialized mental health care facility in Gurgram. We believe that mental health will increasingly demand more care and dedicated infrastructure, distinct from the multi-speciality hospital space, enhanced Saphore through Adayu. During the year, the company also expanded capacity across its existing network by adding approximately 250 beds through brownfield expansion, primarily in Manesar, Noida, and Fareed Abad. Over the next four years, we plan to ramp up bed capacity further through brownfield expansion by adding around 1,800 beds. Of these, in financial year 27, we expect to add capacity of more than 400 beds. With the new tower at fMRI expected to be operationalized within weeks and balanced bed addition at Noida, Manesar, and Amritsar, as well as FHKI Kolkata coming during the year. In financial year 26, the company further augmented its medical infrastructure by commissioning several high-end equipment, which included, amongst others, soft tissue surgical robots, MRI machines, cath labs, and PET-CT. This reaffirms our commitment to offering advanced treatment options and delivering physician-based care across our network. To highlight, our capital expenditure in Financial Year 26 stood at approximately INR 700 floors, reflecting our confidence to further scale-up operations, both in terms of capacity expansion and enhancement of medical infrastructure. Turning to our diagnostic business, we witnessed a steady improvement in top line and margins for financial year 26. Gross revenues stood at INR $1,527 crores in financial year 26 compared to INR $1,407 crore in financial year 25. Operating EBITDA margins excluding one-off stood at 23.2% in financial year 26 as compared to 22% in financial year 25. For the quarter, gross revenues stood at INR 387 crores compared to 348 crores in quarter 4 of financial year 25. The operating EBITDA margin excluding the one-off stood at 20.1% in quarter 4 of financial year 26, as against 23.4% in quarter 4 of financial year 25. I will let Anand take you through further details on the diagnostic business. With this, I conclude my remarks. Our business remains well-positioned to sustain this momentum, supported by strategic initiatives and investments that we believe will drive long-term growth and further strengthen our position in the healthcare sector. Thank you, and I will hand over to Vistar Anand for his comments now.

Thank you, Dr. Akhwenshi. Good morning, everyone, and thank you for joining us today. On behalf of Agilus Diagnostics, I am pleased to welcome you all for our Q426 and FY26 results conference call. During the quarter, Agilus reported gross revenues of INR 387 crores compared to INR 348 crores in Q4 of 25, reflecting 11.1% year-on-year growth. Operating EBITDA stood at INR 85 crores in Q4 of FY26 compared to INR 63 crores in the corresponding quarters last year, resulting in operating EBITDA margin of 22% in Q4 of FY26 versus 18% in Q4 of FY25. We processed around 10 million tests in Q4 of FY26 versus 9.5 million tests in Q4 of FY25, reflecting a 5% volume growth, supported by the gross additions of our 125 customer touchpoints, with the B2C-B2B ratio fixed at 53 to 47. For the full year ending March 26, revenue stood at INR 1527 crores, up by 8.5% from INR 1407 crores last year, while operating EBITDA rose to INR 360 crores in FY26 from INR 249 crores in FY25. Operating EBITDA margins stood at 23.6% in FY26, compared to 17.7% in FY25. During the year, we conducted 40.8 million tests versus 39.2 million tests last year. The B2C to B2B revenue ratio remained stable at 52.48 in the FY26, reflecting balanced traction across both the channels. We expanded our network with gross additions of over 675 customer touchpoints and gross addition of 20-plus laboratories, Thank you. In FY26 versus 11% during the last year, reinforcing its position as a key long-term growth driver. During the year, we expanded our portfolio with 50-plus new tests across oncology, molecular diagnostics, prenatal care, immunology, infectious diseases, gastroenterology, and neuro-oncology, strengthening our advanced diagnostic capabilities. We also advanced our genomic capabilities with the operationalization of the Illumina NovaSik-X at our Global Reference Laboratory in Mumbai. During the quarter, we enabled routine clinical use of the platform. We also completed validations across key areas, including hereditary cancer panels, whole exome sequencing, carrier screening, and genetic disorder panels. Our continued investments in automation, digital tracking, and workflow optimization have enhanced efficiency, improved turnaround times, and elevated the overall customer experience. We rolled out geospatial phlebotomist assignments and strengthened nearby labs' visibility to drive better organic traffic. We further enhanced the website with disease-wise test categories and a real-time loyalty points ledger while enabling automated follow-ups to improve part conversion. Overall, the FY26 revenues and performance reflects a steady year-on-year improvement in both revenue and profitability, supported by disciplined execution, network expansion, and operational enhancements. We remain committed to delivering consistent and high-quality growth.

Thank you, and over to you. Thank you, Anand. Ladies and gentlemen, we shall now open the floor for question and answers. Can I please request the moderator to begin?

Thank you. Based on the annual data that we have...

Ms. Manpuri, I'm sorry for interrupting. We cannot hear you. Can you speak a little louder?

Yeah, sorry about that. Is this better now?

Yes, please go ahead.

Okay, sorry about that. So, based on the hospital-wise information that we have given, you know, for the larger hospitals, it seems like we've seen occupancy dropping in a lot of our larger hospitals like, you know, FMRI, BG Road, you know, Faridabad, etc. You know, I think Faridabad Institute indicated that it's because of the expansion, but how should we think of occupancy improvement, particularly in the larger hospitals as we go ahead? That's my first question.

Yeah, hi, Nihal Vivek this side. So, occupancy drop in some of the hospital is attributed towards, you know, the drop in the international business to some extent. If you see our international business growth in this quarter is around 11%, while, you know, for a year it has grown around 18-20%.

So, that is the main reason for occupancy drop.

Another reason for the copency drop in some of our hospital in, you know, north side, Punjab side, is because of the Medico-Onco drug capping. That has also led to drop in the revenue and occupancy to some of them.

How much impact would this, you know, discontinuation of Onco treatment have on our revenue? Is there a number that we have? And in your view, do you think, you know, there is a possibility that this gets resolved and therefore that business comes back?

So, Neha, most of the drop is coming where, you know, we have larger share of ECHS and CGHS business, mostly in Punjab region, okay, where the share of ECHS and CGHS business is higher, and as you know, the drug prices are capped at, you know, 30% to the MRP, so that has led to some of the drugs where we are not earning that type of margin. We have stopped, you know, taking those patients, and we have asked patients to take drugs from either CGHL stores or, you know, procure from the market, and that has led to drop in some business. I don't have immediate number of the drop, but most of the drop is coming in that region.

Understood. Okay. And my second question is, you know, given that we are seeing, you know, new capacity come in both in Gurgaon, you know, and in Noida also you've seen, you know, any comment that you could make in terms of, you know, doctor attrition or doctor cost in these markets, how we should think about that given these are both crucial markets, you know, for Fortis?

Yeah, so as far as Dr. Gossa confirmed, there has been a slight increase, as you would notice when you go through the details, but we don't expect anything further to happen because I think we have already, you know, taken the necessary steps in this direction. You know, minimum number of moments we can expect in terms of senior clinicians. We are not expecting any major changes. As far as occupancy with the enhanced bed capacity in the region is concerned, I don't think it is a concern because currently all these hospitals are operating at very high occupancy figures. FMRI, for instance, occupancy is almost close to 90%. On some of the days, it is up to 95%, which is almost unmanageable. So luckily, we are having the new beds getting commissioned over the next week or so. So we don't expect that there will be any lag in absorption

of this new capacity which we are creating.

And we are fairly comfortable in terms of our clinician pool as well.

Okay. And sorry, one last question, if I may, Dr. Aghwanji. What is your view on margins for next year in the hospital business? I know we've guided for 25%, you know, being the target by FY28, but how should we think about margin expansion given the fact that, you know, there is new capacity, wild brownfield that's coming in, As well as this doctor dynamic that you've mentioned.

Yeah, no, I think we have been very much tracking on our plans and that guidance remains absolutely intact. If at all, we are more confident now that we can continue to deliver this progress every year, at least to one and a half to 2% year on year.

Understood. Thank you so much.

Thank you. Next question comes from the line of Shyam Seginwasan with Goldman Sachs. Please go ahead.

Good morning. Thank you for taking my question. Just on the technical point on this discontinuation of some of the CGHF's business side, why were they getting counted in occupancies in the first place? Because they could be daycare, right? Chemo's. So, but business I understand, but not necessarily occupancy, right? Right.

No, sometimes what happens, some of the relative business also will lose, isn't it? If we are not able to, so that is having an impact and that is resulted into some sort of occupancy pressure in some of the units. But most of the occupancy drop is attributed in the larger unit which Neha has pointed out, like FMR and all, is because of the international business.

Understood. And when do you think this gets resolved, this CGHS issue, or how does this pan out now? What happens next?

It is very difficult to give any timeline for this because the government has already issued a circular quote toward that. So, investors have given their representation. I don't know how it will go forward. But having said that, we are moving on alternate business opportunities, and as Dr. Govansyaj mentioned, most of our hospitals are operating at a very high occupancy level, and this drug price is having a negative impact on the revenue, but not on the margin to some extent, because margin-wise, we are quite okay.

Understood. So, that brings to my second question. Just an overall guidance, Dr. Agoenshi Vivek on fiscal 27 for hospitals and maybe for Anand on just on diagnostics business as well.

Yeah, so like Dr. Agoenshi mentioned for hospital business,

you are talking revenue-wise? Yes, yes, both. All what you can give us. Yeah.

So, the venue-wise, we are well-posed to see on hospital side 15% plus revenue growth, and EBITDA side, we expect another 150% margin improvement for the current financial year. And for diagnostic, Anand, if you want to.

So, Sham, for diagnostics, as we had guided earlier, you know, this year we said that we'll be around 22% to 23% in terms of EBITDA. So, we are there. So, I think for the coming year as well, we'll be around 23% to 24% kind of EBITDA margins. But we are making further investments into new centers and all this year. In terms of revenue, I think from where we were, we have improved quite well, and we've come to about 8.5% now. And we will definitely improve and touch about double digits.

Sorry, if I can squeeze in the last question, Anand. So many of your peers have talked about better volume development. Some of them have raised their volume guidance as well. So anything to kind of double click on your revenue? How does that double digit split out into, say, mix and volume?

So this year we are seeing roughly about 5 plus 3 kind of volume to value relationship. So 5% growth in volume. So, we expect that next year it would be, you know, similar about 70% coming from volume and 30%.

Thank you and all the best. Thank you.

Thank you. Next question comes from the line of Amit Chakai with GM Financial PCOI.

Yeah, thank you so much for taking my question and congrats to the management of good numbers. So, first question was on top 10 hospitals. First half of the question already answered on the larger hospital. But if you look at the smaller hospitals which have done well, particularly Fehi and Jaitur, they have been doing well for the last two, three quarters. What is going right here? And also, is this growth a profitable one or is it a margin saving in the low teens only for these hospitals? Thank you.

Yeah, so FEHI has improved a lot. If you see the EBITDA margin has improved and we expect there is a further scope of improvement in the EBITDA margin in FEHI because of, you know, the operational efficiency and new facilities which we are, you know, putting in FEHI and new clinical talent team which we have put there. As regard to Jaipur is concerned, Jaipur has also shown last year very good progress. We expect Jaipur to grow around 15% less next financial year with EBITDA margin in the range of 13-14%. Sure.

And the second question I have on the FMR tower expansion, you mentioned in the opening demand that the tower is likely to get open in coming weeks. So, do you expect the entire capacity to start in one go? And also, what is the current capacity utilization of FMR?

So, FMRI, the Capacitual Dyson is quite healthy. We are operating at around 85-90% occupancy level. We are actually facing bad shortage. We expect to operationalize this new tower in a week time. Our initial plan is to operationalize in a phase manner. We don't want to open all the beds immediately because it is having impact on the cost also. And as we move on the occupancy ramp-up curve, we will open the further beds. In the current financial year, our target, our plan is to open around 100 beds. But if the occupancy ramp-up fast, we can open all the beds also.

And considering once this entire tower is fully operationalized, FMRI is already operating at healthy margins. So is there a scope for further margin improvement on account of this ground field expansion?

Yes, yes, of course. As I mentioned in my earlier calls, this ground field expansion, our experience is quite good. We are able to ramp up the capacity quite fast, and with the economio scale, we are able to ramp up the margin also. This we have seen in our Faridabad unit where we added 50 beds last year. We have also seen the same phenomena in our Noida hospital where we have added around 100 beds last year. So, we expect a similar and rather better thing in FMI.

Sure. This last question if I can squeeze in, on the diagnostic business, the business has started doing well in terms of growth as well as margins. Is there any thought on the de-merger front, on the diagnostic side, and just keeping the hospital business as a standalone business going ahead?

Yeah, currently our focus is more on, you know, improving the profitability margin. The business has started showing good result and, you know, getting full potential out of the business. So, we'll continue to strengthen the business performance, and I think this is not the right time to do any sort of value-looking at this point. And once the business mature and start performing as per the market, as per competition, then I think we can look for some alternatives.

Sure. Thank you so much, Azir Chandri.

Thank you.

Next question comes from the line of Tossif with BNP Paripas Exchange Research. Please go by it.

Good morning, and thanks for the opportunity. On your BG Road list, we have seen the occupancy levels dipping to 55%. While earlier, you highlighted that some of the occupancy tip is mainly because of international patients and on co-capping. But I guess Bangalore market does not have these dynamics. Any colors of the same could be helpful on the Bangalore market and BG Road? So, BG Road is one of the unit on our target where, you know, the occupancy level is low. And there, you know, we have, we have expansion in pipeline, brownfield expansion in pipeline. So, this unit, you know, the occupancy level, level is low because one, we are not taking a lot of garment business here. So, it is more of a, you know, the TPA and cash business. Secondly, there is an intense competition around that region, and in that region, generally, you know, the occupancy level remains low, around 63-64%, but we are at 55%, so our immediate endeavor is to bring it above 60% level, and operationalize on the enhanced base, and then, you know, look forward to increasing the occupancy level there. So, I think currently on occupancy front, this unit is performing sub-optimal and this is on our radar for the improvement. Okay, that's helpful. Can you provide us the revenue contribution from 800 new bets we have added this year, a breakup between acquired asset and brownfield expansion, that would be helpful. Yeah, so if we take out for the current quarter, if we, the revenue, reported revenue for the hospital business is 2000 crore, as if we, the net revenue, if we take out the new unit, which is, you know, the TMI, people tree, basically, Adayu and Jalandhar, then it will be 1928 crore. So, there is very little revenue contribution, actually. Also, last one, if I can ask, what is the revenue and a bit of glenegals for the foliars? So, glenegals, we don't have full number right now.

So, they are trending around 70 per month.

Yeah, we don't have number for glenegals right now

because it is not getting consolidated with us.

So, we don't track that way. Okay, that's helpful.

Thank you. Next question comes from the line of Kami and TKI with HSBC. Please go ahead.

Hi. Thank you for the opportunity. My first question is on your CGHF and international patient business where some of the issues have created some turbulence. So, you mentioned about working on some risk mitigation strategies, and in the CGH's part, I just wanted to understand, while we don't know whether the Onco price cap will be removed or not, but considering the price in that part of the portfolio, how do you see this business moving in, say, 27, 28, in terms of growth?

Yeah, so, first on the ANCOA side, as I mentioned, there is no clarity, first of all, with us. However, you know, CGHS and ECHS has gone ahead in increasing the prices for almost all the specality. The full impact of that has still not

come because the super specality category which they have created, the registration is in progress, and there is a lot of clarity which is needed on the billing side.

Having said so, this is an important prayer for us, and we are in the growth space, so we want to explore maximum out of this business. As we have international business is concerned, we are tracking well, we are broadening our market base, We are concentrating more on Africa and other countries, you know, to mitigate this international business dip, which we have witnessed in the last quarter. Having said that, the domestic business growth has more or less taken care of the, you know, what we have lost in the international business.

Okay, so in international business, till, say, travel situation is kind of normalized, maybe we will see similar trends, and at the same time, the domestic goods should be taking care of any laws happening on the international business side.

Yes, yes, this is what we are seeing, correct.

Okay, my second question is, earlier we discussed about your parents, IHS, increasing stake in the company, etc., or investing more. So, any update or any timeline to look there?

Yeah, so recently, the group CEO of IHH has given an interview where he has mentioned that there is a plan to increase their stake to 50% and they have also mentioned some amount around 10,000 crore tax equity in prison in the company for meeting the growth aspiration. So, whatever we are hearing from IHH, I think India is a focused market for them and they want to increase their footprint in India through Fortis only. And that is the plan. And I think as and when we need the capital, they are with us and that will be happening as we need the growth capital.

Okay, good to hear, but we don't have any specific timeline, right, when these investments can come in?

No, as of today, there is no specific timeline I can give you, but it will happen over a period of time as and when the companies meet the capital.

Oh, okay. Thank you. I'll get back in the queue.

Thank you. Next question comes from the line of Tushar Manutani with Mutlal Oswar Financial Services Limited. Please go ahead.

Yes, thanks for the opportunity, sir. Sir, firstly on the number of doctors that got added in FY26 on the organic basis, if I exclude the acquisition-led addition of doctors, if you could share the number.

I don't think, Tushar, we have that number offhand. This is an ongoing thing. We don't really track it that way. But I don't have that number.

No, sir, we take it offhand.

Yeah, we can take it offhand.

Sure. So, secondly, for your guidance for the revenue growth in FY27, the growth is all organic basis or are you including certain acquisitions which you think are sort of close to completion?

No, that guidance is for ongoing basis. We have not considered any acquisition there, and the acquisition will be over and over there.

Understood. And just to little dig deeper into EBITDA margin guidance, as I see the hospitals which are 20% plus sort of a margin are already running at 70% plus sort of an occupancy. And probably addition of beds will definitely drive the EBITDA given the strong scale up of the additional beds. But purely from a margin point of view, just wanted to understand what will drive the EBITDA margin.

I think it is a very important question to deliberate on. You have rightly said that some of the hospitals are already operating at a decent occupancy level, but there are large hospitals which are not operating at that level. Like we have discussed about BG Road, Mulan is operating at around 65% plus, and that can also be ramped up to 70% type of occupancy. There is a scope in the existing big hospitals where, you know, we can increase the occupancy. The second lever is some of the new units where we were incurring losses in the last financial year, like Manish, Greater Noida, and Lugiana too. These units have started contributing positively. And looking at the current trend, we feel that these units will start handsomely in the EBITDA margin size. So, these units, which are on the lower part of the pyramid, these units will move up further. So, that is another lever which we are looking for. And thirdly, as you rightly mentioned, about the brownfield expansion which we have done, that will lead to, you know, margin improvement. And last but not the least, the acquisition which we have done last year, that process of integration was on. And as we complete that process, we hope those units will also start contributing in the overall pie of the revenue as well as the data. So, all put together, along with, you know, our focus on optimizing the cost and, you know, optimize our operation, I think we are quite confident in the guidance which Dr. Ghosnthi just has given to you, Matt.

Got it, sir. Thanks a lot for the deliberate answer. And just lastly, to understand, or maybe I missed in the initial remarks of the earlier conversation, in terms of timeline for this Glynagel's transaction.

Yeah, so actually we can't give timeline for this. This is under deliberation. We will come back to you people because if this happens, it will be required majority of minority approval. So we will come back to you as and when we are ready with the proposal. It is under deliberation and evaluation stage right now.

Sure, sir. This is helpful. Thanks a lot for addressing my question.

Thank you. The next question comes from the line of Aman Goyal with IIFL Capital. Please go ahead.

Yeah, thank you. Thank you for taking my question and congratulations on a great set of numbers. Sir, my first question is related to the Manesur facility. Can you please throw some color on what is the revenue run rate and the KPIs for Manesur? And is there any effect on the FMRI units from Manesur facility?

Not really. Manesur is doing quite well in terms of revenue. It is exceeding our expectation also, whatever number we have taken over this unit. So revenue-wide is doing quite well, and it is having a rather positive impact on the fMRI unit because doctor has got larger base to operate with, and it is having perfect synergy with our fMRI unit. And as I mentioned earlier, last year, there was an EBITDA loss over this unit because it is a new unit for us. It has already breakeven. It has started contributing to the EBITDA. And we hope that this unit should do well in the current financial year for us.

So how much revenue did Manesha reported in FY26? Thanks.

Yeah, 140 crores is the revenue number for last financial year for money, sir. And the occupancy-wise? It is around 48%, but it is quite deceptive because during the year, we have opened up new bets also. We are opening bets as we are moving on the occupancy radar.

And sir, my question is on the flagship unit. Since we have witnessed some occupancy due to the international business and all, but there is a huge ARPOP growth for FMRI. What is the driver for this ARPOP growth? Year-on-year basis, I am saying, let's say, in fMRI, we have reported 4.7 CR, RPOP versus 4.2, and it's a significant jump. Similarly, in CE, almost 3 crore from 2.4 crore.

Yeah, one vision for FMRI RPOP increase is, you know, the international business itself, because if you see in a year, we have grown by 20%, and international business, this RPOP is on the gross basis. So international business generally include markup, and that leads to, you know, the higher RPOP when we see at the gross level. So, that is one reason for the RPOP increase in this business. Plus, we have added a lot of new technology in this unit, like MR Linux was started in this unit, Gamma Knight was started. This unit is having very good onco-business, and with onco-business, there is a lot of daycare business come, and all these factors lead to RPOP increase in this hospital. Only the last quarter only, you know, there was dip in the international business, which was, you know, when you see year-on-year number, it is looking all right.

And sir, my next question is on the Bangalore cluster. Since you mentioned this call, the Bangalore has a very high competition market. And what is the driver to introduce new hospital Like, we recently added Peopletree. I think margin is under 10% for that hospital. So, what is the main motivation behind adding new hospital in a market where the competition is already at an intense level?

Yeah, so there are micro markets within, you know, any large city, and this is a new micro market. And also, at the same time, this micro market is not as highly competitive as the one in BG Road. BG Road, you know, our boundary wall is shared by another large, major hospital of the city. So, whereas here, there is a large drainage area, which is grossly underserved at the moment. So, we believe that there is a huge opportunity here. This area is also seeing a lot of large residential developments of iron coming as well. So, this is a more futuristic opportunity. And in a city like Bangalore, you know, multiple positioning is very important because if you don't have a cluster and you don't have that kind of presence, then you are not in the competition. So, you have to have a network in order to be a significant player over there.

Okay, understood. Sir, my last question is on the bed expansion plan. So, we have moved some beds from FI 28 to 29 now. So, any particular reason? And what is the CapEx guidance for FI 27 to 29?

Yeah, so only FMRI unit has been moved to the 27th financial year. It was supposed to be starting in the last quarter of the last financial year. So, we are moving quite well in our brownfield expansion program. Next year, we are targeting around 500 plus bad expansion, you know, commissioning of 500 plus bads on the brownfield side. As regard to the capex guidance, we expect to incur around 900 crore annually on the capex, which may include 60% towards maintenance capex and balances the growth capex.

My question was basically, in this January PPT, we have dedicated 465 beds for Fi28. Now in the latest PPT, we are guiding 173 beds. So that 300 bed deviation is largely now in Fi29. So which facilities are they? I mean, the defer of 300 beds.

It is mainly Salimar Bagh, if I can mention. One is the Salimar Bagh, which is the big extension, and we are expecting some approval-related issue to be sorted out. And once it is sorted out, we will move fast on this extension. So, Salimar Bagh, definitely there is a delay in the extension.

Yeah, thank you, sir. Thank you for tuning in to my questions.

Thank you.

A reminder to all the participants, starting with my press star, and want to ask a question. Next question comes from the line of Sanjay Shah, with KSA shares and securities fiber limit. Please come back.

Good morning, gentlemen. Thanks for the opportunity. My question was regarding Indian hospitals.

Mr. Shah, sorry for interrupting. After interrupting, can you speak a little louder? Sure, sure.

Sir, Indian hospital sector is seeing aggressive expansion by large players. How do management view increasing PE-backed competition and asset-like models? And how differentiates 40s, most today among others?

I think, Sajid, the main differentiator is going to be the clinical quality outcome patient satisfaction. And we continue to remain focused on it. As far as the PE-backed platforms are concerned, I think that's a future opportunity for the, you know, legacy players who are, you know, the kind of strategic in the market, and this would give future opportunities for us. There are concerns about the valuations, etc., being driven by these transactions, but that, I think, will be something which market will take care of over a period of time.

That's great. Sir, what is the normal maturation cycle for a hospital to move from loss making to EBITDA to mature 20% plus EBITDA?

Yeah, so typically, you know, the cash break even happens at 18 to 24 months, and then after that, it takes about maybe a year to get to about 18-20% of it.

So, that is for brownfield or greenfield? No, that's for greenfield. Yeah, and about brownfield, sir?

Brownfield will depend on the already existing operation. So, for example, in most of our brownfields, the capacity absorption was immediate because that is just an hospital becoming larger. So, it drives in economy of scale, and the profitability of the hospital becomes better immediately.

Thank you, sir. Very helpful. Thank you very much.

Thank you.

Next question comes from the line of Justin George, an individual investor. Please, Gavet.

Thank you for the opportunity. Our major brownfield expansion like a tower, FMRI, Noida, and Chalimar Park is over. How many beds starting in DG Road and Moolah? Or is there any other new tower, new brownfield expansion tower coming in any other hospital?

Yeah, so, Mr. George, we are having new towers coming up in Mohali and Shalimar Bagh, which will take about two and a half, three years near about. These are large expansions, and also in Amritsa, so these three large ones are going to come. There is some brownfield capacity in Bangalore, which we are yet to commission, but as discussed earlier, the occupancy levels currently are lower, so we are waiting for that to improve before we add more capacity. We have about 100 beds more over there. Mulund, we have already built a new capacity a few years back, and that is well absorbed now. We are currently at about 65% occupancy levels over there. So, there is a possibility of adding another tower in Mulund facility, which we are in the process of planning. So, these are some of the areas where we are looking to expand further. It's a brownfield in the same building, yeah. The building is already constructed. Once the occupancy numbers improve, we will commission over it.

All right. Thank you, sir. Thank you. A reminder to all the participants that I'm a press star and want to ask a question. Next question comes on the line of Atul Minocha, an individual minister. Please go ahead.

Hello, thanks, everyone, and my question is more towards Dr. Goveshy, like, you know, the stated strategy is, like, we will be moving towards the preventive healthcare and future approaches, and what I have, you know, in my individual capacity observed is, like, there are a lot of online, you know, players who are going in that category, and I know, you know, if I say, Uh, likely, you know, they're kind of eating their, eating their lunch. So like, uh, you know, there are many players, you know, what, uh, you know, being online consultations and everything. So what is going to be a strategy to be available at the places where your customer is, uh, while, you know, I do understand you have, uh, you know, we have our own digital platform, you know, my, what they have, uh, but, uh, the

Yeah, so you are right that there are a lot of platforms which are providing this primary consultations, but those primary consultations don't really always lead necessarily to hospitalization and the channels are not well formed. We do understand the importance of that space, but our whole operation is primarily focused on tertiary, quaternary, and critical care. So, with those facilities will always be provided in hospital. So, this doesn't form a very large segment of patient, but it is very important for the patient. We understand that. So we will gradually develop our digital presence with our app, which you are already aware of. We will enhance those offerings and increase our presence in the primary space. But that is not a focus area right now because it is a business where you are giving. So, we will be very mindful of this and gradually keep on enhancing our digital presence through our app and other.

My question is, if I add to it, like, you know, are there opportunities to kind of collaborate with this platform on the preventive side and, you know, also to kind of explore the presently opportunity coming out of, you know, these, you know, engagements? And we go ultimately, you know, when you're available at a customer touch point, there's no interaction. You know, there might be some measures which might ultimately provide some patient revenue or the tertiary health care this might be required. Because if you're not present on the customer side itself, you know, these routes where they're happening, these customer routing, you know, they're happening, you might not be aware in this situation. And, you know, what my experience has been, you know, my personal experience is we are kind of, you know, lagging on the IT side of the things, you know, a platform, the app, app usage, and other aspects also in patient learning. So, you know, that whole digital experience and capturing converting from preventative to tertiary and those damages, I think, are important.

Yeah, I already said that, you know, we do realize the importance of that space, but collaborating with these platforms is not an option we will consider. We have had experiences earlier on. We believe that that is dilutive to our presence, and so we are not at the moment looking to go on that direction. But we do understand the importance of this, and we will continue to develop our platform, which requires a lot of improvement.

Perfect. Thank you. I appreciate it.

Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of question and answer session. I now hand the comments over to Andra Al-Khalra for closing comments.

Thank you, Ranju. Ladies and gentlemen, thank you for your time today. If there are any follow-up queries or clarifications, me and my colleague Amit are available. Please do feel free to reach out to us over phone or email. Thank you very much again and have a good day.

Thank you. On behalf of Fortis Healthcare Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.