Fortis Healthcare’s revenue surges by 12.2% to INR 1,859 Crore in Q1 FY25

New Delhi: Fortis Healthcare’s consolidated revenues increased by 12.2% year-on-year to INR 1,859 crore for Q1 FY25, compared to INR 1,657 crore in Q1 FY24. The company reported an operating EBITDA of INR 343 crore, up 25.5% from INR 273 crore in the same quarter last year, reflecting a margin of 18.4%.

The hospital business, which is a significant contributor to Fortis’s performance, saw revenues grow by 14.4% to INR 1,549 crore, with an operating EBITDA of INR 287 crore, a 39.0% increase compared to the previous year. The hospital segment’s operating margin stood at 18.5%, highlighting the business’s strong performance.

The hospital’s occupancy rate improved to 67% in Q1 FY25 from 64% in Q1 FY24. The Average Revenue Per Occupied Bed (ARPOB) increased by 9.7% to INR 65,924 per day, contributing significantly to the revenue growth. Fortis’s top medical specialties, including Oncology, Gastroenterology, Neurosciences, Renal Sciences, Orthopedics, and Cardiac Sciences, collectively grew by 15.7% year-on-year. 

Notably, the number of surgical procedures in Neurosciences increased by 23%, and robotic surgeries rose by 59%. Revenues from medical travel grew by 11% to INR 127 crore, representing 8% of the total hospital revenues. Digital revenue channels, including the website and mobile app, saw a 52.3% year-on-year growth, contributing 29.9% to the hospital’s total revenues. Key facilities such as Mulund, Anandpur, BG Road, and Shalimar Bagh recorded growth rates of 24%, 23%, 23%, and 22% respectively, reflecting strong performance across the board.

The diagnostics segment reported gross revenues of INR 343.5 crore for Q1 FY25, slightly up from INR 342.7 crore in the same period last year. Despite challenges from a recent rebranding exercise, the operating EBITDA margin improved to 16.1%, compared to the trailing quarter’s 14.0%. The company conducted approximately 9.92 million tests in Q1 FY25, with a focus on expanding its preventive portfolio, which grew by 13% year-on-year.

Ravi Rajagopal, Chairman, Board of Directors, Fortis Healthcare stated, “The mainstay of our performance continues to be the hospital business which presently contributes approx. 84% to our consolidated EBITDA. We are progressing well on our plans to add capacity of close to 700 beds in this fiscal year across our key facilities including Faridabad, Anandpur, Shalimar Bagh and Noida and will also be shortly commissioning the 350 bed Manesar facility which we acquired in FY24.”

“In addition, given the Company’s strong Balance Sheet, we continue to evaluate inorganic growth opportunities in our key focus clusters. The diagnostics business performance is lower than the corresponding previous quarter, largely due to the impact of brand change but has witnessed signs of early improvement versus the trailing quarter. The new brand is being well accepted and gaining prominence; placing the business in a better position to further scale up its performance.”

Dr. Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare stated, “The hospital business continues to show an upward momentum with Operating EBITDA margins expanding 330 bps at 18.5% versus Q1 FY24, a growth of 39%. This was primarily led by an increase in occupancy from 64% in Q1 FY24 to 67% in Q1 FY25 and a higher ARPOB. Most of our key facilities have performed well noticeably Mulund, Anandpur, BG Road and Shalimar Bagh. Amongst our focus specialties Neuro Sciences and Oncology have grown a robust 23% and 22% respectively versus the corresponding previous period.”

“We have strengthened our clinical talent in the medical specialties of Cardiac Sciences, Neurology and Orthopaedics in the quarter and have also commissioned South Asia’s first Gamma Knife Espirit radiosurgery equipment for neurosurgical treatment at FMRI. On the diagnostics business while revenues remain muted, Operating EBITDA margins are better than the trailing quarter showing signs of a gradual recovery which we expect to continue through FY25,” he added.