Fortis Health. Q2 FY27 Results (NSE: FORTIS)
Signal: Margin expansion
The read
The operating trajectory remains positive: revenue grew 13.9% YoY and operating margin expanded 176bps to 23.68%, but PAT growth was limited to 3.9% because employee costs rose 29.2% and reported earnings continued to include 9,150 lakh of other income plus a 706 lakh exceptional gain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹519.41 Cr | +13.9% | +6.1% |
| Net profit | ₹129.91 Cr | +3.9% | |
| EPS | ₹1.72 | +4.2% | |
| EBIT margin | 23.68% |
P&L walk
Standalone revenue increased 13.9% YoY and operating margin expanded 176bps to 23.68%, but PAT grew only 3.9% because other income was 9,150 lakh and the 706 lakh exceptional gain supported reported profit.
Key positives
- Revenue from operations reached 51,941 lakh, up 13.9% YoY and 6.1% QoQ, sustaining the hospital platform's growth trajectory.
- Operating profit margin expanded 176bps YoY to 23.68% and 244bps QoQ, reversing the prior consolidated margin contraction seen in Q1FY27.
- Finance costs declined 11.8% YoY to 4,471 lakh, while interest service coverage improved to 4.80x from 3.80x.
- Operating cash flow increased to 16,907 lakh in H1FY27 from 2,489 lakh in H1FY26.
Key concerns
- PAT grew only 3.9% YoY to 12,991 lakh despite 13.9% revenue growth, with employee costs rising 29.2% YoY to 7,771 lakh.
- Other income of 9,150 lakh was nearly 63% of profit before tax of 14,591 lakh, leaving reported PAT materially exposed to non-operating income.
- Trade receivables increased to 30,794 lakh from 23,980 lakh at March 31, 2026, requiring monitoring as revenue expands.
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