Concall transcriptSep 2026
Sep 2026 · Transcript
Source: Bse
Fortis Healthcare Limited (FORTIS)
Mid CapPharma stocks · Mid cap · NSE
Fortis Healthcare Limited is an Indian healthcare services provider, operating hospitals. The company is currently navigating legal challenges related to past transactions and shareholding, with a recent court order directing a forensic audit.
Data qualityFresh enough for analysisQuote updated 19 Oct, 03:31 pm ISTDetails
Quote19 Oct, 03:31 pm IST
Base fundamentals20 Oct 2026 · screener
Latest result07 Aug, 12:38 am IST
Score20 Oct, 05:15 am IST · v4.3-runtime-valuation
Tags02 May 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · Pharma P/E 33.5 (n=187)
Technical timing lens
Trend score and candlestick chart
52Neutralfull bear SMA stack · SMA20 -11.9% / mo · RSI oversold · MACD − · near 52W low · sector +3.8pp vs Nifty 500 (3M)
Stock trend: 22
Sector RS: 98
Sector 3M: -1.8% vs Nifty 500 -5.6%
Pharma FPI tailwindFlow only
FPI equity flow was positive in both fortnights, but the sector index is below its 100-session average. View sector evidence
Technical chart
FORTISD candles · FIT view-20.6%Latest close ₹737.80 on 2026-10-19
Bar
+0.1%
RSI
27
MACD hist
-2.22
52W pos
2%
2026-10-19O ₹737.25H ₹745.15L ₹731.80C ₹737.80Vol 10.8L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
FORTISNifty PharmaNifty 500
- FORTIS
- -22.4%
- Nifty 500
- -5.6%
- Nifty Pharma
- -1.5%
- Vs Nifty 500
- -16.9 pp
Chart stats
19 Oct 2026- From 52W high
- -33.2%
- 52W range position
- 2%
- ATR (14)
- 3.2%
- Volume vs 20D
- 0.48x
- Avg traded value
- ₹174 Cr
- 20D price channel
- ₹731.8 - ₹908.8
₹1,104.3
₹731.8 - ₹1,104.3
₹23.3
Latest completed session
20-session average
36.2% annualized volatility
Research snapshot
What the evidence says now
Weak fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend is neutral, and recent execution is consistent.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · WATCHLIST36
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Average42
Revenue +17.4% · PAT +2.3% YoY
Technical
Neutral52
Price trend and sector-relative-strength timing.
Valuation
Legacy model-18.1%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence79
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Average · 42/100margin compression · Rev +17% YoY · PAT +2% YoY · +8% QoQ
Filed 06 Aug 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,545 Cr | +17.4% | +7.6% |
| EBITDA | ₹537 Cr | +9.4% | +0.9% |
| Operating margin | 21.0% | -200 bps | -200 bps |
| PAT | ₹273 Cr | +2.3% | +0.7% |
| PAT margin | 10.7% | -159 bps | -73 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 52.20
- P/B
- 5.63
- EV/EBITDA
- 22.75
- Market Cap
- 55701.00Cr
Profitability
- ROE
- 11.20%
- ROCE
- 13.40%
- ROA
- 6.76%
- Dividend Y
- 0.13%
Growth (CAGR)
- Revenue 5Y
- 18.00%
- EPS 5Y
- 64.00%
- Revenue 3Y
- 13.00%
- EPS 3Y
- 27.00%
Balance Sheet
- Debt/Equity
- 0.35
- Interest Coverage
- 6.56×
- Altman Z
- 7.71
- Book Value
- 131.00
Cash Flow
- FCF Yield
- 0.11%
- FCF Positive Y
- 10/5
- OCF
- 1601.00 Cr
- EPS TTM
- 13.88
Shareholding
- Promoter Hold
- 31.17%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 2%
Financial History
Updated 19/10/2026
Revenue
₹ CrLatest: 1,792+23.9% vs prev
Net Profit
₹ CrLatest: 230+259.4% vs prev
Return on Equity
%Latest: 2.5+250.7% vs prev
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 27. Wait for confirmation.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~13.6% over last month) — short-term momentum negative.
- RSI(14) at 27 — oversold zone; bounce conditions.
- MACD below signal but histogram contracting — bearish momentum easing.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
10
RS percentile
Stage 4 Downtrend
1M return
-16.7%
3M return
-22.4%
6M return
-20.1%
1Y return
-30.2%
RS 1D
+1
RS 20D
-27
Sector rank
#1
Industry rank
#12
Stage evidence
- Price is 18.7% below the 30-week proxy.
- The 50-DMA is below the 30-week proxy and its slope is falling -1.4%.
- Both 3-month and 6-month returns are negative.
50-DMA
price below
200-DMA
price below
Sector
leading
Industry
weakening
Relative-strength line vs Nifty 500 (base 100)
262 observations
19 Oct 2026Value 81.51+1.22%
RS vs Nifty 50082
Valuation & peers
U-Score 36 · legacy U-Score band WATCHLIST · valuation evidence and comparable companies
Valuation & peers
U-Score 36 · legacy U-Score band WATCHLIST · valuation evidence and comparable companies
WATCHLIST
Fundamental score breakdown
U band · WATCHLISTValuation0/30
Growth16/25
Quality3/20
Balance Sheet7/15
Cash Flow4/10
Piotroski
8/9 (+5)
Penalties
1
Raw sum
36
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
36/100 · legacy band WATCHLIST
Positive drivers
- Piotroski is strong at 8/9.
- Growth contributes 16/25 to the score.
- Balance sheet contributes 7/15 to the score.
Main drags
- Fair-value margin of safety is negative at -18.1%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 3/20; verify the latest quarterly trend.
Sector valuation model
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Primary lens
PE and EV/EBITDA adjusted for product mix and R&D/pipeline quality.
Secondary checks
USFDA risk, launch pipeline, margin trend, domestic vs export mix.
Main risk check
Regulatory setbacks or one-off product cycles can distort valuation.
PE
52.2
PB
5.6
EV/EBITDA
22.8
ROE
11.2%
ROCE
13.4%
FCF Yield
0.1%
Debt/Equity
0.3
MoS
-18.1%
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 20 Oct 2026
v4.3-runtime-valuation
Final score
36
Previous: 36
Legacy U-Score band
WATCHLIST
Previous: WATCHLIST
Margin of safety
-18.1%
Previous: -18.1%
Score history
12 stored score snapshots. Latest stored move: +0 points.
20 Oct 2026
v4.3-runtime-valuation
36
36
36
36
36
36
36
36
36
36
36
36
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹202.27
-264.8% MoS
Growth-justified P/E
45.0
Growth-justified Value
₹624.6
-18.1% MoS
PEG
1.06
Comparable companies
Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
ASTERDM
Small
Aster DM Healthcare Limited
Healthcare Services
match 161
32
161.0
11.3%
-141%
WATCHLIST
MEDANTA
Large
Global Health Limited
Healthcare Services
match 157
45
60.1
15.2%
-33%
WATCHLIST
NH
Small
Narayana Hrudayalaya Ltd.
Healthcare Services
match 157
49
40.8
20.5%
+3%
FAIR VALUE
KIMS
Large
Krishna Institute of Medical Sciences Limited
Healthcare Services
match 156
21
140.0
11.3%
-1130%
OVERVALUED
AGARWALEYE
Micro
Dr. Agarwal's Health Care Limited
Healthcare Services
match 154
30
99.3
6.0%
-122%
OVERVALUED
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis under stressReviewed 2026-10-19T08:11:47.352Z
Management commentary snapshot
Delhi High Court orders forensic audit into Fortis's past transactions, including IHH's investment, creating a new legal overhang.
The Delhi High Court's order for a forensic audit into past transactions, including IHH's primary share issuance, creates a significant legal overhang. While management asserts no operational impact and full compliance, the 6-month audit timeline and potential for further litigation prolong uncertainty, diverting management focus and potentially impacting brand perception.
Growth engines
Brownfield Expansion
Management stated that brownfield expansion plans will continue as they are mainly driven by internal accruals.
M&A Activity
The company is actively continuing to pursue M&A opportunities, with IHH having no impediment in investing for major M&A.
IHH Capital Infusion
IHH is happy to put capital into Fortis should the need arise, within the purview of the law, for growth needs.
Capacity and execution
Bed Expansion
Management stated that plans related to bed expansion will continue to go as it is.
Tailwinds
IHH Backing and Commitment
IHH is fully backing Fortis and views it as their growth engine to grow their India platform.
MTO Completion
The MTO (Mandatory Tender Offer) was completed last year with SEBI's blessing, removing a previous impediment.
Headwinds
Delhi High Court Forensic Audit Order
The Delhi High Court has directed the appointment of a forensic auditor with a 6-month timeline for the report.
Ongoing Legal Proceedings
The company is involved in ongoing legal proceedings initiated by Daiichi Sankyo, leading to legal expenses.
Management Distraction
The legal issues create a 'distraction' for management, requiring them to work harder and engage more with stakeholders.
Risk radar
Adverse Audit Findings
The forensic audit's findings will be presented to the court, with potential outcomes currently unknown, though management expects a favorable outcome.
Prolonged Legal Uncertainty
The audit process and subsequent court actions could prolong the legal uncertainty beyond the initial 6-month report timeline.
Reputational Impact
Management acknowledges that 'perception is always important' and public news about the organization requires communication to employees and patients.
Legal Expenses
The company incurred approximately INR 25 crores in legal expenses last year, and similar amounts are budgeted for the current year due to ongoing legal battles.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare QOQ
This conference call primarily addressed legal developments and did not present financial or operational results requiring a period-over-period comparison. The 'QOQ' is a placeholder as the schema requires a value, but it is not applicable here.
Management forward view
Compliance and Confidence
Management believes Fortis has been in complete compliance with the law at all times and does not foresee any significant adverse results from the audit.
Operational Insulation
Hospital operations are completely insulated from the legal and shareholding issues, with teams focused on patient experience and clinical services.
Cooperation and Review
The company will fully abide by the court's directions in cooperating with the forensic exercise, while legal teams review options for next steps.
IHH's Unchanged Commitment
IHH's commitment to increase its stake to 50%+ and infuse capital for Fortis's growth remains unchanged by the court order.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Forensic Audit Report Submission | Order sets 6 months for report submission after information requisition. | The content and implications of the forensic auditor's report to the Delhi High Court. |
| Legal Team's Decision | Legal teams are reviewing the judgment and consulting senior lawyers. | Any announcement regarding challenging parts of the High Court order in a higher forum within the next 5-10 days. |
| IHH Stake Increase | IHH committed to taking its stake up to 50%+ | Any concrete steps or timelines for IHH to increase its shareholding in Fortis. |
| Japan Litigation Outcome | Hearing next week for IHH's legal front in Japan against Daiichi Sankyo. | The outcome of the Japan court ruling and its potential impact on the overall legal situation. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
79Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 88th percentile of the scored universe and 83rd percentile within Pharma. No major sub-score weakness stands out.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 20 Oct 2026
management-trust-v1
113 docs text-extracted · 41 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
88th percentile
overall median 67 · Pharma: 83rd pctile, median 70 · Mid: 67th pctile, median 76
Evidence depth
Financial-only
113 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Can support position sizing if valuation and trend also agree.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
78
strong · holding, pledge, alignment
Cash flow
77
strong · profit to cash conversion
Balance sheet
89
strong · leverage and solvency
Discipline
68
acceptable · capital discipline
Results
87
strong · quarterly consistency
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.1%.
- ▸10 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Fortis Healthcare Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
AnnouncementSep 2026
Sep 2026 · Announcement Under Regulation 30 Of SEBI (LODR), Regulations, 2015 About Filing Of Special Leave Petition ('SLP') Before The Hon'Ble Supreme Court Of India 16 Sep - Fortis filed an SLP on September 16, 2026 against Delhi High Court order in Daiichi Sankyo case.
Source: Bse
AnnouncementSep 2026
Sep 2026 · Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 15 Sep - Fortis schedules investor meets on 21-22 September 2026 in Mumbai with BNP Paribas and J.P. Morgan.
Source: Bse
AnnouncementSep 2026
Sep 2026 · Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 9 Sep - Revised investor/analyst non-deal roadshow with IHH and Fortis on 14-15 September 2026 in London.
Source: Bse
Announcement
Announcement / Press Release Filed By IHH Healthcare Berhad ('IHH') 29 Sep - IHH says Supreme Court disposed Fortis SLP on Sept. 25; plans 51% stake and 10,000 beds by 2031.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Press Release / Media Release 16 Sep - Fortis signed 29-year agreements for a 400+ bed Delhi hospital and a ₹567 crore loan.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 15 Sep
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 9 Sep
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 9 Sep
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 7 Aug
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 18 Jul
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 9 Jul
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.