Thank you, Alaric. A very good morning, good afternoon, ladies and gentlemen.

Welcome to Fortis Healthcare's Quarter 3 FY '26 Earnings Call. The call is being led by our MD and CEO, Dr.

Ashutosh Raghuvanshi. With him, we have our Chief Financial Officer, Mr.

Vivek Goyal. From Agilus Diagnostics, Mr.

Anand, the CEO, joins us. Along with him, we have Mr.

Akshay Tiwari, the CFO. We will start with some opening comments by Dr.

Raghuvanshi, post which Anand will take you through the highlights of the diagnostics business, and then we can open the floor for questions and answers. Over to Dr.

Raghuvanshi. Sir?

Thank you, Anurag. Good morning, everyone, and thank you for taking the time to join us on our Q3 Financial Year '26 earning call today.

I wish you all a Happy New Year and hope all of you are doing well. I shall dive right into the quarterly results and my thoughts on the business performance and way forward.

Our business performance in Q3 has been good considering the seasonal impact of festivals in some of our key geographies. Both our hospitals and diagnostic businesses witnessed a sustained growth momentum and delivered margin expansion compared to the corresponding quarter last year.

For the quarter, our consolidated revenues were at INR 2,265 crores, registering a growth of 17.5% over the corresponding previous period. Our hospital business revenues grew 19.4% to INR 1,938 crores, while the diagnostic business net revenue reported a growth of 7.3% to INR 327 crores.

Our consolidated operating EBITDA increased 34.8% to INR 505 crores, which translates into a margin of 22.3 crores— 22.3% in Quarter 3 Financial Year '26 versus 19.4% in Quarter 3 of Financial Year '25. The hospital business operating EBITDA margin has improved from 20% in Quarter 3 of '25 to 21.7% in Quarter 3 of Financial Year '26 with an EBITDA of INR 420 crores.

Our consolidated profit before tax before exceptional item for the quarter increased 21.9% to INR 312 crores. Reported PAT stood at INR 197 crore versus 250 crore in Quarter 3 of '25.

The decline in PAT was primarily due to the one-off expense for the quarter, INR 55 crore pertaining to new labor codes, offset by reversal of impairment in an associate company amounting to INR 9 crores. This resulted in net exceptional loss of INR 46 crores.

Coming to the 9-month performance of Financial Year '26, our consolidated revenue stood at INR 6,763 crores, registering a growth of 17.1% versus 9 months of Financial Year '25. Operating EBITDA increased to INR 1,553 crores, reflecting a robust 300 basis point improvement to 23% compared to 20% in the corresponding previous period.

Hospital business revenue for 9 months grew 19.1% to INR 5,749 crores, while the operating margin improved from 22.2— from 20% to 22.2% in the corresponding previous period. On the balance sheet front, the company's net debt stands at INR 2,547 crores with a net debt to EBITDA of 1.24x as on December 31st, 2025 as due to the fundraise as to part-finance the acquisition of PE stake in Agilus Diagnostic by the company, acquisition of Fortis brand and trademark, and acquisition of Shrimann Hospital, Jalandhar.

I'm pleased to announce that we continue to progress well on our cluster-based inorganic growth strategy. To that effect, in January 2026, we acquired the 125-bedded People Tree Hospital in Yeshwanthpur, Bengaluru, for INR 430 crores.

This was done through a 100% acquisition of TMI Healthcare Limited Private Limited, along with the underlying land, building, and an adjacent land parcel that enables future expansion to over 300 beds within the same location. With growing awareness on mental health, in November 2025, the company launched Adayu, a 36-bedded specialized mental health care facility located in Gurugram.

This facility offers evidence-based treatment through a multidisciplinary approach to deliver comprehensive, compassionate, and world-class care. Our bed expansion plans are progressing well.

During the year so far, we have added approximately 750 operational beds, including the Bengaluru acquisition and the Adayu facility. The bed addition also accounts for our Jalandhar acquisition, Greater Noida lease facility, and expansion in our existing facilities, including Manesar, Noida, and Faridabad.

A bit of flavor on the hospital business. Our hospital occupancy in Q3 Financial Year '26 remains steady at 67% compared to the same period last year.

However, the number of occupied beds increased 14% to 3,189 beds in Q3 from 2,790 beds in Q3 of Financial Year '25. Our hospital business recorded a 4.5% increase in ARPOB, reaching INR 2.56 crores per annum.

The growth in ARPOB was supported by increased share of complex cases, reflected in, for instance, a 52% year-on-year increase in robotic surgeries. Just to provide all of you a perspective of the hospital business for 9 months of Financial Year '26, in 13 of our facilities, we have reported operating EBITDA above 20% during this period.

These 13 facilities together contribute 77% of the hospital revenues. In comparison, in '25, we had 10 of our facilities with operating EBITDA margin above 20% and contributing 73% of the hospital revenue.

Revenues from digital channels, viz., the website, mobile application, and digital campaigns, witnessed a 19% year-on-year growth. Digital revenues contributed approximately 30% to overall hospital revenues in Q3 of Financial Year '26.

Coming to the diagnostic business front, we continue to witness year-on-year improvement in top line and margins. Gross revenue grew 8.3% to INR 371 crores from INR 342 crores in Q3 of Financial Year '25.

Operating EBITDA margins gross revenue stood at 23.1% versus 14.4% in Q3 of Financial Year '25. On a like-for-like basis, excluding one-offs, the operating EBITDA margins stood at 21.3% in Q3 of Financial Year '25, as against 23.1% in Q3 of Financial Year '26.

As part of our ongoing network expansion strategy, the total number of new customer touchpoints has reached 4,370 as of December 31st, 2025. The revenue contribution from preventive portfolio has increased to 12% in Q3 from 10% in Q3 of '25, while the contribution from specialized portfolio has increased to 35% from 33% in the corresponding previous quarter.

We believe our diagnostic business is further positioned to scale its revenue while sustaining healthy margins. With this, I conclude my remarks.

Our business remains on track to maintain this growth trajectory. We continue to make strong progress across our strategic growth levers, which we expect will drive sustainable growth and further strengthen our positions in the healthcare sector.

With that, I hand over to Anand for his comments.

Thank you, Dr. Raghuvanshi.

Good morning, everyone, and thank you for joining us today. On behalf of Agilus Diagnostics, I'm pleased to welcome you all to our Q3 '26 results conference call.

During the quarter, Agilus reported gross revenues of INR 371 crores, compared to INR 342 crores in the Q3 of FY '25, reflecting an 8.3% year-on-year growth. Operating EBITDA stood at INR 86 crores, a substantial improvement from INR 49 crores last year, with margins at 23.1%, compared to 14.4% in Q3 of '25.

We conducted 9.9 million tests during the quarter, up from 9.6 million in the same quarter last year, reflecting 3.6% volume growth. Our B2C/B2B mix stood at 52 to 48, indicating balanced traction across both the channels.

We also strengthened our network through gross additions of over 175 customer touchpoints, further improving accessibility across markets. For the 9-months period ending December '25, revenue stood at INR 1,139 crores, up by 7.7% from INR 1,058 crores last year, while operating EBITDA rose to INR 275 crores from INR 185 crores.

EBITDA margins improved to 24.1% from 17.5% in the same period last year. During the 9-month period, we conducted 30.7 million tests against 29.6 million tests last year, supported by gross additions of 550+ customer touchpoints across our network.

We also expanded our network footprint meaningfully, adding eight stat labs and nine HLMs, strengthening accessibility and coverage across both focus cities and emerging micromarkets. Growth across geographies and product lines remains well-distributed, with routine, specialized, and wellness portfolios all contributing to the momentum.

Our preventive health and wellness portfolio continues to perform well, contributing around 12% to the overall mix, supported by growing customer adoption of preventive panels and corporate wellness offerings. The segment remains an important long-term growth driver, aided by the rising health awareness across the markets.

This quarter, we strengthened our test portfolio with the introduction of CNS Biopsy with reflex to IHC, enhancing our capability and capacity in neuro-oncology diagnostics; the RA Extended Panel, offering a more comprehensive assessment for autoimmune disorders; and the Acute Leukemia Panel, which supports faster and more targeted classification of hematological malignancies. Our continued investments in automation, digital tracking, and workflow optimization have strengthened efficiency, turnaround times, and customer experience, alongside steady expansion in our specialized and genomics offerings.

Additionally, we also installed the Illumina NovaSeq X at our global reference laboratory in Mumbai, significantly scaling our NGS capabilities in genomics and proteomics. This enables high-throughput sequencing across oncology, infectious diseases, reproductive health, and rare disease diagnostics.

Overall, the Q3 reflects a notable year-on-year improvement in both growth and profitability, supported by disciplined execution, network expansion, and operational enhancements. We remain positive about the opportunities ahead and remain committed to delivering consistent high-quality growth.

Thank you, and over to Anurag.

Thank you, Anand. Ladies and gentlemen, we shall now open the floor for question and answers.

May I please request the moderator to begin?

Thank you, sir.

Thanks for taking my question. The first question is on the People Tree acquisition in Bangalore.

How should we think about this facility? Because it's just an 190-bed facility.

I think it's not fully ramped up now. How should we think about three years in this facility, and it moving to, let's say, mid-20s margin?

Would it require additional investment to get to that mid-20% margin?

Yes, Neha. This facility, as Vivek had said earlier, is running sub-optimally at the moment.

It needs to be brought to Fortis standards. It would require some investment in that regard.

The investment in the first phase is not very huge. At the same time, we are also going to start the expansion work for creating further beds so that the capacity can be taken to 300 beds.

That would entail some capex both in medical equipment as well as the civil infrastructure. Over the next 3 to 4 years, we should see this as a high-end 300-bedded superspeciality hospital with all the modalities of treatment available.

Mr. Raghuvanshi— Dr.

Raghuvanshi, the 300 bed that you're talking about, currently it's at 190 beds and then you have the adjacent land which allows you to add more capacity. Essentially, we'll build out that new capacity in the adjacent land.

Is that how we get to this 300 number?

That's right. We will be starting the construction pretty soon.

Okay. In terms of doctors, etc., hiring doctors because Bangalore is another market which we're seeing a fair bit of capacity coming on board.

How do you think we are positioned to get let's say a full-fledged doctor team for a multispecialty hospital that we plan?

I think we are very positive about it. I think Fortis carries a good brand and it attracts physicians from in all different regions and I don't see any challenge in that regard.

Our experience of another hospital which we had opened in Nagarbhavi and ramping it up, though that was also about 100-bedded hospital, and that is, by the way, currently doing EBITDAs close to upwards of 25%. We are pretty confident that we can attract good clinical talent in this micro-market.

Understood. My second question is on the expansion.

If I were to strip out all the acquisitions we've done including Noida, from the 750, I think the organic bed addition this year has been closer to about, 250 odd beds, 250, 300 beds. What would this number be next year?

Other than the 200 beds in FMRI, what would be the other large expansions that we should look at in fiscal '27, '28?

Neha, Vivek this side. You are right, till first 9 months, we could add 250 brownfield beds.

There are some beds in pipeline for Noida. That will further add 60 beds maybe probably in this current financial year.

Next year, we can target around 400+ beds in the brownfield, which majorly contributed by FMRI, because expansion is almost ready. We are planning to commission by Jan by April.

Understood. Again, sorry to harp on this doctor point, given that we have two other large hospitals that will be coming very close to where FMRI is, is the doctor team fully equipped for this additional 200 bed that we will add, or is that something we need to spruce up some specialty and you could see more doctor hiring for that?

No, no, doctor hiring is something which is a ongoing process and that keeps happening. The current physicians only will be able to utilize this capacity very effectively because occupancy rates of this hospital have been typically high around it has been operating at 80% occupancy level.

We are pretty confident that we have the clinical whereabouts and we have a very stable clinical team.

All right. I have a couple of more questions, but I'll get back in the queue.

Thank you.

Thanks for the opportunity. First few questions on the O&M agreement with Gleneagles.

Can you call out the O&M fees for this quarter? How has been the performance of Gleneagles for last 9 months?

Also, where do you stand currently on the inclusion of Mumbai Hospital in the O&M agreement?

Yeah. We are in the integration phase for O&M.

As this has been started this quarter only. We have earned 5 crore as a O&M fees in the current quarter.

The revenue for this quarter for the excluding Bombay is 172 crore, and EBITDA is almost 3% after absorbing 3% fees to us. That means this will be around 6%.

And 9 months,

as I said, 9 months in the initial stage. Sorry.

What would have been the growth for 9 months for Gleneagles? Revenue growth?

9 months, growth is actually negative for the unit we are looking at. It is almost 4% negative.

There are a lot of disturbance there. There clinician attrition, management team has also been changed.

All those action has been taken. I think we will start seeing the result probably from the next financial year onward.

That's helpful. Second follow-up question on the recent acquisition in Bangalore.

Can you tell us when do you plan to commercialize the adjacent land additional beds? Is it something one can look at the next 18 months, or it's a plan for beyond '28, FY '28?

It will be like a sort of brownfield expansion like we do in our facility, which typically takes 24 to 30 months' time. Bangalore is a slightly difficult location and that's why I'm saying 30 months' time, because approvals generally take more time.

We will start the work immediately on that.

It's something beyond FY '28 one should look at it?

Yes. In the meantime, we will operationalize and bring operational efficiency in the existing beds.

Thanks. I have a few more questions.

I'll get back in the queue.

Thank you. Thank you for the opportunity.

Sir, my question is related to since we are experiencing in the aggressive expansion in the NCR region. To maintain our clinical talent in the region, are we seeing any higher MGs for these marquee hospitals or doctors?

Or there any revised revenue share over the last 12 months?

I will say this is a ongoing process, as Dr. Raghuvanshi mentioned.

This pull and push always remain, and we need to correct sometime, the remuneration and take out of the doctors. That will be more than compensated by the revenue growth.

As company is in the growth phase. Little bit increase may not be affecting our margin that much.

Okay. Sir, my next question is related to the Manesar facility.

If you could throw some color on the revenue, occupancy trends and all.

Manesar is start hitting 15 crore per month revenue, and EBITDA side, it has already started contributing positive EBITDA. That way Manesar is good story for us, and I think here onward, it will start contributing more.

We have already started the work for onco block, and that will further add to the profitability of this unit.

Sir, the EBITDA margin is in the single digit or if you could throw some on the EBITDA contribution terms of percentage-wise? Where does this facility fall?

No, it is very

very minimal. As I said, it is just break-even.

Okay.

It has just started 1 year back.

Sir, my last question is, are we operating any facility above 80, 85%, and we are still evaluating the opportunity for the brownfield expansion?

Sometime our unit hit 80%, like Shalimar Bagh is one example, which very often hits 80% occupancy. We have plan for expansion.

We have got all the approval now, and we will start work for the Shalimar Bagh immediately.

Thank you. Thank you.

That's all from my side, sir.

Good morning, gentlemen. Thanks for opportunity, and congrats on a great numbers.

Sir, my question was regarding we see many new players are entering via asset-light or PE-backed model. How we are prepared?

How does Fortis differentiate itself? Is it in a clinical depth or doctor's ecosystem?

How Fortis differentiate itself?

Yes, sir. I think one of the major differentiation is in terms of the kind of infrastructure we are able to provide, and there's a legacy of the institution, and there is an environment which is very conducive for clinicians to be able to practice effectively.

That's what probably makes us attractive, and we have lot of involvement of physicians in clinical governance and the broad policy making as well. That makes them feel included, and that's what makes it attractive for them to be a part of us.

Sir, my second question was regarding our international patient revenue, which is growing steadily. How scalable is this segment, and what investments is required to meaningfully grow in double digit from here?

Yes. The percentage of revenue, this has been stable at about 8, 9% and somewhere as total revenue percentage.

It has remained in that level, and it is likely to remain in that level because the international traffic is subject to so many other geopolitical situations which are continuously evolving right now. I think one cannot really bank on that.

What we are doing is that we are focusing on newer markets, specially the East Africa and also a little bit on to the Middle East and Central Asia. Those are the geographies which we are focusing on.

We are doing direct marketing there and opening some information centers in these geographies to increase this business.

Thank you, sir. Very helpful.

Best of luck, sir. Thank you very much.

Thank you for taking my question. My first question is with respect to Gleneagles.

I think we highlighted the 5 crore number we booked, but is that the full quarter's number or we were only able to book a part of it? If you can clarify on that one?

It is almost full quarter, Karan, because we have started this in July somewhere, mid-July. It is almost full.

Got it. It will be included in our ARPOB number, as in this will help improve our ARPOB numbers as well, right, just from a calculation standpoint?

Yes, yes, you're right.

Got it. For Gleneagles, I think we've highlighted some of the challenges, but can you elaborate more on the challenges we are facing at Gleneagles at individual hospitals and what are we trying to tackle those challenges going forward?

I will say there are specific challenge for each facilities, and it is not common for all. There are hospital but all the hospital looking like have good potential.

For example, Chennai facility, they are a lot of potential. There is a expansion plan, but I think execution is the problem.

Last year was totally disturbed year, and I think, as I said, next year onward, it will start showing result. Similarly, Hyderabad, there are two facility, and one is Lakdikapul, and another is LB Nagar.

LB Nagar is also there a lot of potential. We are putting cancer facility there.

Lakdikapul is having a space constraint, and we are trying to tackle that problem separately. As regard Bangalore, they are two facility, Kengeri and one small facility.

I think Kengeri is doing quite okay, but that other small hospital is a lot of work need to be done.

Got it. The same management team which operates the broader Fortis hospitals or which looks after the broader hospitals will be taking care of this, or we have hired any regional or some second layer of management which will look after this to fix all the issues at Gleneagles?

This essentially falls into our larger structure. Of course, we will have to strengthen it at the regional level, as you said.

We have made some changes in some of the leaderships at hospital levels. At the same time, we have appointed one or two people on the regional level as well.

The Bangalore cluster, for example, reports to the Bangalore cluster head who looks after the other Fortis hospitals. Similarly, we have positioned everything into our common structure of Fortis.

Got it. Last question is with respect to FY '27 guidance.

Now that we are almost close to end of FY '26 and we've pretty much meet or beat our guidance. Any qualitative color?

Do you think 20% kind of a top-line growth is possible for FY '27? Can margins improve, say, 150 basis points more, or any color around that will be helpful?

I will say you have seen that the company is in the growth trajectory, and it is also showing improvement in the margin. We feel there is still scope for margin improvement, especially with the brownfield expansion.

We have discussed one of the question on the next year brownfield expansion, and that brownfield is coming in one of our premier facility, FMRI. We expect you will continue to see the growth trajectory what we are seeing in the current financial year at least for 2 years.

Any number or range you can throw, if possible?

It will be very difficult to give a specific number. You can understand.

Thank you.

Thank you for the opportunity. Sir, just want to understand, as far the hospital business is concerned, if you can breakdown what is the growth in existing units, and how much has been contributed from the new units?

Thank you.

The acquisition which we have done, the Jalandhar and this Greater Noida, that has contributed around 4% of the revenue growth. Balance is all from the existing units.

15% is the

existing units.

Right. Understood.

How the margin trajectory look like for the existing unit? Overall margins have been expanded, let's say, around 170 basis points, but in the existing unit, how the margins have panned out?

Existing unit also so major benefit is coming from the existing unit for the margin expansion. It is majorly from the existing unit, because Greater Noida is the new unit, it is hardly contributing to EBITDA.

Actually, it is dragging the margin a little bit. Jalandhar, of course, is 25%+ EBITDA margin.

Is it fair to assume that overall margin expansion in the existing unit is much better than 170 bps?

I have already told about Jalandhar. Jalandhar is start contributing as per our flagship hospitals.

Greater Noida is on the improvement trajectory.

Understood. Sir, one question on institutional patient.

Have you started seeing impact of better pricing in ECHS, CGHS, etc.? How you see that trend in coming quarters?

We have started seeing the positive result from the CGHS particularly. ECHS, the circular is new, and there is still some doubts or which need to be cleared, and team is working with the authorities to get it cleared.

Till now, the number is quite positive.

Understood. Sir, one question on debt.

Right now after the People Tree acquisition the debt is close to around 3,000 crores, close to 1.5x of EBITDA. Now, how to look at the company's ability to grow further inorganically, right?

Are you flexible enough to take more debt, let's say, can go to 2.5, 3x of EBITDA, or is now onwards you need to mainly depend on internal whatever, for example, greenfield or brownfield plans that are in place? Thank you.

Yeah. The debt EBITDA number is not that alarming.

We have still room to take some more debt for our growth aspiration. Having said that, you might be aware that open offer thing is now settled, and IHH in the public forum has expressed their willingness to increase their stake in the company.

In all probability, there will be equity infusion by IHH, and that will be used for either debt reduction or for growth opportunity.

Thanks. That's from my side.

Hi. You have reported a 14.3% increase in OBDs.

I want to know what is the source of this growth? Is it coming from existing hospitals or new bed addition?

Yeah. This is mixture of both, because when we say occupied bed increase, it is increase of bed by in Jalandhar as well as Greater Noida, because earlier these hospital were not there, and little bit increase in the Adayu also.

Rest of the thing is in our existing facilities.

Which of the existing facilities did you report this increase in?

Almost all the facilities have shown good ramp-up, Shalimar Bagh, FMRI. All our flagship hospital have shown good traction, except I will say BG Road, which is still struggling.

We are working on how to improve the occupancy level of BG Road. I will particularly like to mention about Mulund, because earlier we were having Mulund and BG Road in the same category.

Mulund has start operating at 65%+ occupancy level, which is quite encouraging. I think the next we have to improve the occupancy level for the BG Road.

Okay. Thank you.

Hi. Congratulations for a good set of numbers.

My questions are two. One is on ARPOB.

Our ARPOB is currently 2.65 crores. I want to understand what is our target ARPOB maybe 1, 2 years down the line?

Are we expecting any increase in it, or are we expecting it to remain flat going forward? The second question is on the distribution of our revenue across different EBITDA margin buckets that we have.

I have observed over a period of time that some hospitals are consistently under the less than 10 margin percent range. Are there any actions that we are planning there either in terms of improvement or in terms of having them out of the system?

Thank you.

ARPOB increase we are expecting around 4 to 5% ARPOB increase going forward also. This year we are trending around this level.

I want to clarify that ARPOB increase should not be confused with price increase. So, 4.5% ARPOB increase, 2, 2.5% is only price increase, and balance is because of the case mix, and majorly coming from the high-end work we are doing, especially in the onco business.

Where, apart from the IP business, there a lot of daycare business come, and as a result of which, the revenue goes up. At the same time, bed remain constant, and this result into the ARPOB increase.

We are expecting around 4 to 5% ARPOB increase going forward for next 2 years. As regard distribution of EBITDA for the low EBITDA margin unit, I will say all these units are not very big unit except Jaipur and this Manesar.

Manesar we have discussed, it is a newer unit. I expect this unit to move up in the EBITDA margin ladder.

As well as in Jaipur also, we are considering other plan for expansion, and with that, we feel that this unit should also move up in the EBITDA margin trajectory. Other unit are very small and these unit are having their own challenges, and very difficult to correct those challenges.

Thank you, sir, for the details. Just a follow-up question.

As you said, Jaipur is facing challenges and it is very difficult to correct those challenges. I understand Manesar has a potential to move up the ladder, but Jaipur has been in that bucket for a very long time.

Why are we planning an expansion in an hospital where there are challenges to, and historically, we haven't been able to move it also? Is it because you believe that once scale comes, the margins would improve, or is there something else that you're trying to do there?

I will say it is a question of strengthening the clinical program. Okay.

Jaipur is missing onco business very much. That has resulted into the margins dip.

Along with onco business, there a lot of business come to the other specialty also. It has space, and it has all the things which can absorb one onco block there in Jaipur.

We were having the plan for earlier also, but we have put on hold because of the challenge Jaipur has faced last year and so. Now Jaipur has come back to the original plan, and we will evaluate again that plan.

By when we will have onco installed in Jaipur, if you have any timelines in mind?

This type of specialty takes some time. Generally, it is 18 to 24 months' time.

In the next year budget, we were planning to put something for Jaipur.

Understood, sir. Thank you so much.

Just one last question on the ARPOB. You mentioned that half of it comes from price and half of it comes from product mix.

Going forward also, we are expecting a similar trend that half of it comes from price and half of it comes from product mix?

Absolutely.

Right. Thank you so much for your time.

Hi, sir. Sir, just want to check that capital is very much needed for our growth.

Do we have any sense on the timeline, what could be the potential investment from IHH can come in?

As they have just completed the open offer. There is a pooling period.

Till then, they cannot go ahead with the further equity infusion. I think that pooling period end by May, and this is their board-level discussion, then our board-level discussion on the equity need.

As I said, currently we are in a very comfortable position. From the management side, we have expressed that we want to create sufficient room in our balance sheet for future expansion.

We feel we are in ideal position looking at current market dynamic to reap maximum benefit from this current market. We will like to take that advantage.

I think in a four 3 to 6 months' time, we will be having more clarity about the exact timing.

Got it, sir. I assume it will be the preference or warrant kind of a thing, right, given IHH wants to increase the stake, and it's not going to be any other further dilution?

Because earlier there was a restriction for IHH, a sort of restriction, not restriction in real sense, for increasing their stake. With the open offer completed, that restriction is no more there.

As I said, it is a board-level decision. We have expressed our desire to have more equity in the balance sheet to create room for further growth.

I think 3 to 6 months' time, this will be done. As you are right, in our estimate also, it will be preferential allotment.

Perfect, sir. Last side, sir, I know it's again maybe a little early, but any sense that what kind of a fund you would like to have it or be comfortable with when you're looking for such kind of a raise?

Very difficult to give number. We will like to have at least 5% type of base for preferential allotment, which is allowed also as per SEBI regulation.

Again, this is our desire. This is how IHH will take it, is their decision.

Can IHH also think about doing creeping?

At least we have not heard from them during our discussion with them that they are looking for that option. They also want to grow Indian business.

Fortis is doing quite well for them, and they want to grow the business. They have openly mentioned in many investor conference that Fortis is their growth engine for India, and I think they will like to infuse fresh equity.

Got it, sir. Got it.

Cool, sir. Thank you.

That's it from my side, and congratulations on a good set of numbers.

Thank you.

Thank you. Thank you.

Hi, sir.

Good morning.

Sir, I want to visit some 9-month numbers. Can you highlight the bed count addition exact in this 9 months, and where all have you added these beds?

Bed count addition is 750 total. Out of that, as Neha earlier has asked, 500+ bed is through acquisition, and 250 is through the brownfield expansion, majorly coming from the Noida, Faridabad, and Manesar facility.

There is some more beds we are planning to open in Noida. The final finishing work is going on.

I think that will be completed by this quarter. Then we have, as I mentioned earlier, FMRI, which is our flagship hospital, we were planning to open that block in January.

It has delayed little bit because of all these environmental and other issues. We are targeting to open those beds by April this year.

Okay. Can you split the occupancy between these new additions, including the acquisition and the base business?

Because occupancy is largely flat in 9 months at around 69% in 9 months versus a similar number last year. I guess there is some drag on overall occupancy from these new additions.

What's that number if you

like? The occupancy drag is mainly coming from the Greater Noida facility, as well as from little bit from the Adayu, because Adayu we have opened only in December.

Jalandhar has start contributing in the occupancy matrix quite well. Greater Noida and Adayu are very small unit, it will not be having much impact.

50 basis point occupancy

50 basis point occupancy may have gone up if we exclude this new unit.

Of the total addition, 50 basis point is the drag, right?

Yes. I've told you which two units are dragging it.

Yeah. Got it.

If I refer to your Jan presentation of the bed count addition from FY '25 to FY '30, which gives a CAGR of around 10.7%, now FY '26 obviously is a big addition year, which kind of brings you to somewhere around 6,800 beds. The bed count addition from FY '26 to FY '30 goes down to almost 6, 6.5% as per the current plan.

My question is are we at a risk of kind of growth slowing down because the bed count addition itself will be sub-8, 9% post-FY '26 and your ARPOB expectation is 4, 5%, so that gives me to 11, 12%? Maybe the base occupancy moves up maybe a few percentage points.

Is there a growth slowdown and you might have to revisit your M&A strategy a bit more aggressively?

That is one thing which we are now targeting very aggressively, and we have done couple of acquisition in the last quarter. There are couple of others which are in pipeline.

We can't disclose the details as of today. You are right.

The growth will be coming from the three three bucket. One is the brownfield expansion.

Apart from whatever disclosed earlier, we have identified certain more, which will be coming in the next year investor presentation. Then we will also be having this acquisition thing.

Then there is some greenfield project also we are looking at.

Sir, sorry to be a bit cynical about this, every top corporates in this country is looking for bed expansion. Does that leave the current valuation environment conducive enough for you to keep doing M&A?

Because the Bangalore one seems slightly on the higher side if I look at on a EV per bed basis and with capex also needed for the further expansion there. Just some broad thoughts, are the valuations conducive enough?

This is a good acquisition. I give you math.

The location is fantastic, okay, this Bangalore one. There is a potential to reach up to 300 beds.

If you do 300-bed greenfield expansion in that locality, it will minimum cost you 1,000 crores, okay, with all the specialty which we are planning. This acquisition will be costing us 800.

In the metro, in the heart of the city with 300-bedded capacity, I don't think so it is expensive acquisition. I think little bit risk we have to take.

Having said that, Fortis has now established itself in the cluster where they are present, and we are quite confident we can handle any competition.

Understood, sir. This is helpful.

Thank you.

Sorry about that. Okay.

You mentioned there are a few M&A in the pipeline. From a priority perspective, what markets would you be interested in for potential M&A given our cluster-based approach?

That's the first one. Second one, for the 400-bed addition that we have outlined for the next 2 years, what would be the rough capex?

The brownfield expansion for the next year mainly is coming from this FMRI, major portion is coming from FMRI, and little bit increase in the Manesar thing. For which almost entire capex has already been incurred.

Little bit medical equipment we have to acquire, there is no meaningful capex for the brownfield expansion for the bed which are coming up. Of course, the new project which we are starting like Mohali, Shalimar Bagh, these two units which we have taken, those expansion we will be starting, there will be additional capex.

That we will able to tell you once the plan is finalized. What was the next question, Neha, from you?

I was just asking, you mentioned there's a few M&A in the pipeline that you're considering. Given we have this cluster-based approach, what are the markets that Fortis is looking at from a priority perspective to add assets?

We are looking at the acquisition opportunity in the existing cluster in itself. We want to strengthen and deepen our presence in the existing cluster.

We feel we have a very strong brand equity in whichever cluster we are there, and we want to further strengthen our position in those clusters.

This would include Hyderabad as well, now with the Gleneagles O&M that we have?

Hyderabad is now a sort of new cluster for us. We are slightly mindful for Hyderabad because of the intense competition there, but it is not ruled out.

From the cluster approach, Hyderabad is definitely there.

All right, got it. Thank you so much.

Hello?

Sorry about that. My question was on the CGHS and ECHS rate hikes which have come in.

Have you been able to quantify what kind of benefit we can get on an annualized basis say, in FY '27?

It is positive impact, Madhav, and it is not that meaningful in this quarter. As I said, if you have gone through that circular for CGHS, there is a super-specialty hospital category for which the registration has not yet been opened.

All those thing will be finalized maybe by next year. Similarly, ECHS also, there a lot of confusion about the drug pricing and things like that, and there a lot of clarity team is asking.

I think let us wait for some time. This much I can tell you that there will be positive impact.

Got it. Sir, my second question, I think you mentioned we've identified some more brownfield expansion potential for Fortis.

Could you give some more clarity in terms of which units are these where we've identified more brownfield expansion, and over what period of time these could come in for us?

We we continuously, look for brownfield expansion opportunities if there is any. Like last year last quarter, we have taken approval from the board for opening a onco block in Faridabad unit.

Similarly, these two units which we have taken, Jalandhar as well as TMI, there is a scope for further expansion. There is adjacent land parcel we have taken for for expansion only.

Thirdly, this Greater Noida also, there is a potential to go up to 250 to 300 beds. Currently, it is operating at 150 beds.

We have just taken over in a quarter. We are stabilizing the things.

All those thing will be coming. Plus, there is some opportunity in the existing units.

We are finalizing the things. I don't want to name it because there is some approval and other related issue may be coming.

Understood. That's helpful.

Okay. Thank you so much, sir.

Hello. Thanks for taking my question.

My question is if we are leveraging AI for improving operational efficiencies? That is my first question.

Second question is with respect to recent budget announcement, right, government has mentioned to create distinct medical hubs. Is there any work which you are doing as part of NatHealth or any other body to work with the government, and if you can share some details around that?

Thank you. That's my questions.

AI is a new theme, and healthcare, there are a lot of use cases for AI, and we are also working on some of the use cases. We are taking help of our parent company, IHH.

They are slightly more advanced in AI. We are taking help from them.

I think you will see much more application of AI, at least in our healthcare network. As regard engagement with the government, it is a ongoing process, and we keep engage with the government and continue to work with them to provide quality healthcare to the masses.

My question was more specific with respect to medical tourism coming from Europe and US on medical visa obtained. Government has mentioned that there will be 25 hubs during this budget.

If you can share more details around that.

I will say currently the country is not equipped to handle patient from those geography because they have other options also.

You want to—?

Yeah.

Got it. Thank you.

That's it.

Am I audible, sir?

My question was that on a consolidated level, what's the number of beds you're going to add in FY '27?

We mentioned about 430 odd beds.

Okay, 430

beds. Excluding any acquisition, if we should be able to complete.

Okay, 430 beds you will be adding. How many will be operational?

I think almost all will be operational. FMRI, we are planning to operationalize in two phases.

FMRI is 200+ bedded expansion. We will first open 100 beds.

We are quite hopeful we will be able to fill it quite fast, and then we will open the next batch of beds also. FMRI is the only question mark that 100 beds may be operationalized this year or next year depending upon the ramp-up.

Other will be operationalized fully.

Sir. Got it, sir.

That's all from my side. Thank you so much.

Thank you, Alaric. Ladies and gentlemen, thank you for your time today.

If there are further follow-up questions, data clarifications, please feel free to reach out to me or my colleague Amit. We'll be glad to help you.

Thank you, and have a good day.