Fortis Healthcare Ltd reported a modest increase in first-quarter earnings, as strong revenue growth across its healthcare business was partly offset by softer operating margins.
The hospital operator posted a consolidated net profit of Rs 266.4 crore for the quarter ended June, up 2% from Rs 260.4 crore a year earlier. Revenue from operations rose 17% year-on-year to Rs 2,545 crore, compared with Rs 2,167 crore in the corresponding period last year, according to an exchange filing on Thursday.
Operating performance remained resilient, with earnings before interest, tax, depreciation and amortisation increasing 9.4% to Rs 537.4 crore, from Rs 491.1 crore a year ago. However, the Ebitda margin narrowed to 21.1% from 22.7%, indicating higher operating costs despite healthy topline growth.
The quarter reflected continued demand for healthcare services, helping Fortis deliver double-digit revenue growth. However, the slower pace of Ebitda expansion relative to revenue weighed on profitability, resulting in margin compression.
While earnings growth remained muted, the company's ability to sustain revenue momentum reflects company's steady patient volumes and business expansion during the quarter. Investors are likely to monitor whether Fortis can improve operating leverage in the coming quarters as new capacities mature and cost pressures ease.
The stock will remain in focus when trading resumes, with market participants assessing the impact of softer margins against the company's robust revenue performance and stable earnings trajectory.
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