Fortis Healthcare reports modest profit increase in the first quarter, as higher sales are overshadowed by rising operating costs and narrower margins, with expansion plans underway to bolster future performance.
Fortis Healthcare reported a modest rise in first-quarter profit as stronger sales were tempered by softer margins, underscoring how higher operating costs continued to pressure earnings even as demand held firm. According to its exchange filing and subsequent reports, consolidated net profit for the quarter ended June came in at about ₹266 crore, up only slightly from a year earlier, while revenue grew at a healthy double-digit pace.
The company’s top line was lifted by strength in both its hospital and diagnostics businesses. Business Standard reported revenue growth of 16.6% to roughly ₹2,167 crore, while NDTV Profit’s report on the filing put the figure at ₹2,545 crore. Earnings before interest, tax, depreciation and amortisation also increased, but at a slower pace than revenue, causing the EBITDA margin to narrow from the prior year. That gap suggests Fortis is still dealing with cost inflation even as patient volumes and business activity remain robust.
The latest quarter follows a stronger comparison period a year earlier, when Fortis posted a much sharper rise in profit and margin expansion, according to Business Standard and ICICI Direct. In the current quarter, however, the company was unable to convert all of its revenue growth into proportional profit growth. Kotak Neo said expenses rose faster than revenue, helping explain the squeeze on profitability despite the higher sales base.
Fortis has also been expanding its footprint. NDTV Profit reported that the company acquired Shrimann Superspecialty Hospital in Jalandhar, strengthening its position in Punjab, while the company has previously said it plans to add about 700 beds across key facilities during the fiscal year. Investors will now be watching whether those additions translate into better operating leverage in the coming quarters as new capacity matures and cost pressures ease.
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