Fortis Healthcare has received another vote of confidence from HSBC, which has maintained its ‘Buy’ rating on the stock and set a target price of ₹1,175 per share.
At the current market price of around ₹942, the target implies an upside of nearly 25%.
The brokerage’s optimism rests on three factors:
- Continued backing from promoter IHH Healthcare
- Earnings growth visibility through FY29
- Potential capital infusion from IHH
HSBC said such a move could act as a re-rating trigger for the stock.
With a market value of about ₹71,276 crore, Fortis trades at nearly 66 times earnings. The stock’s 52-week range stands between ₹702 and ₹1,104.30.
Profit seen doubling by FY29
HSBC expects Profit After Tax (PAT) to double between FY26 and FY29.
The forecast is based on:
- New capacity coming on stream
- Higher occupancy across hospitals
- Steady improvement in operating margins
The brokerage views Fortis as one of the stronger long-term growth stories in India’s private healthcare sector.
FY26 earnings
Fortis reported consolidated revenue of ₹9,128 crore in FY26. Revenue rose 17.3% from a year earlier.
Operating EBITDA climbed 31.3% to ₹2,085 crore. Margins improved to 22.8%, up from 20.4% in FY25.
Profit after tax stood at ₹1,064 crore. That marked a 31.5% increase over the previous year.
The board has recommended a dividend of ₹1 per share for FY26.
Q4 performance
Revenue for the March quarter came in at ₹2,365 crore, up 17.8% year-on-year.
Operating EBITDA rose 22.2% to ₹531 crore. Margin improved to 22.5%, compared with 21.7% in the same quarter last year.
Quarterly PAT increased 44.2% to ₹271 crore.
Business segments performed as follows:
- Hospital business: Revenue of ₹2,023 crore, up 19%
- Agilus diagnostics: Gross revenue of ₹387 crore, up 11.1%
Expansion plans
Fortis added about 500 beds during FY26.
The additions came through:
- Acquisition of People Tree Hospital in Bengaluru
- Acquisition of Shrimann Hospital in Jalandhar
- A long-term lease for a facility in Greater Noida
The company plans to add another 1,800 beds between FY27 and FY30.
It expects bed capacity to grow at a 6.5% CAGR through FY31.
Specialty businesses drive growth
Six key specialties posted growth of 18.9% in FY26 and contributed about 62% of hospital revenue.
These segments include:
- Cardiac
- Oncology
- Orthopedics
- Neurology
- Gastroenterology
- Renal Sciences
TL;DR:
HSBC has retained its Buy rating on Fortis Healthcare and set a target price of ₹1,175. The brokerage expects profit to double by FY29, supported by higher occupancy, margin gains and fresh capacity additions.
AI summary:
- HSBC maintained a Buy rating on Fortis Healthcare.
- Target price of ₹1,175 implies nearly 25% upside.
- PAT could double between FY26 and FY29.
- FY26 revenue rose 17.3% to ₹9,128 crore.
- Fortis plans to add 1,800 beds between FY27 and FY30.
