Fortis Healthcare Ltd (NSE: FORTIS) Q1 2026 Earnings Call dated Aug. 07, 2025
Corporate Participants:
Unidentified Speaker
Anurag Kalra — Senior Vice President, Investor Relations
Ashutosh Raghuvanshi — Managing Director and Chief Executive Officer
Anand K. — Managing Director and Chief Executive Officer, Agilus Diagnostics Limited
Vivek Kumar Goyal — Chief Financial Officer
Analysts:
Unidentified Participant
Amey Chalke — Analyst
Neha Manpuria — Analyst
Shyam Srinivasan — Analyst
Amit Goela — Analyst
Nitin Agarwal — Analyst
Bino Pathiparampil — Analyst
Saion Mukherjee — Analyst
Lavanya Tottala — Analyst
Nancy Yadav — Analyst
Harsh Bhatia — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Forte’s Healthcare Ltd. Q1FY26 earnings conference call. As a reminder, all participants lined will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference has been recorded.
I now hand over the conference to Mr. Anurab Karla, Senior Vice President. Ladies and gentlemen, good day and welcome to Pottease Healthcare Limited Q1FY26 earnings conference call. As a reminder all participants line will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during this conference call please signal an operator by pressing star than zero on your touchstone phone. Please note that this conference has been recorded. I now hand over the conference to Mr. Anurag Karla Senior Vice President Investor Relations at Forties Healthcare Limited. Thank you. And over to you sir.
Anurag Kalra — Senior Vice President, Investor Relations
Thank you Paree. A very good morning and good afternoon. Ladies and gentlemen and thank you for. Taking the time to join us on our quarter one FY26 earnings call. The call is being led by our. CEO and Managing Director Dr. Ashutosh Raghavanshi. We have Mr. Vivek Goyal, our Chief. Financial Officer from Edulist. Mr. Anand joins us as a CEO. And Mr. Akshay who the CFO Edgelis is also here with us. We will begin with some opening comments on the quarter gone by by Dr. Aguavanshi Post which Anand will take you. Through his highlights of the diagnostics business. And then we shall open the floor for question and answers. Over to Dr. Raghavanshi.
Ashutosh Raghuvanshi — Managing Director and Chief Executive Officer
Thank you Anurag. Good morning everyone and thank you for taking the time to join us on our Q1 financial year 26 earnings call today. Before I take you through the financials, let me share some key business highlights and demonstrate the strength of our business going forward. As part of our inorganic growth strategy. The company recently through its wholly owned subsidiary consummated the acquisition of Sriman Super Specialty Hospital in Jalandhar, Punjab which added 228 beds to its network. This transaction further strengthens our presence in Punjab from approximately 800 beds to over 1000 beds.
The acquisition also provides us with the opportunity to add another 225 beds by expanding the existing building and utilizing the adjacent landscape parcel, taking the total to over 450 beds in future. In July 2025 the company entered into an operations and maintenance Services agreement with Gleneagles India. Under the agreement, Fortis will manage the operations of approximately 700 beds across five hospitals and a clinic within the Gleneagle India network. Fortis is entitled to receive a monthly service fee at the rate of 3% of the net revenue. This development marks a significant expansion of Fortis Healthcare’s operational footprint and the expanded scale enhances our ability to deliver integrated, high quality healthcare services across more geographies.
The combined strength of both the networks will help us leverage synergies and embrace efficiencies. With these additions, the company now operates 33 healthcare facilities comprising over 5,700 beds across 11 states. Coming to the financial performance, I would like to highlight that we have witnessed a healthy start to the financial year 2026. Our hospital business continues to perform well both in terms of revenue and margins. On the diagnostic front, we have seen an improvement in revenue growth and margins continue to trend upwards. We reported a consolidated top line figure of INR21.67 crores, a growth of 16.6% over the quarter one of financial year 25.
Noticeably, our hospital business revenue have grown 18.6% to INR18 38 while Q1 financial year 25 diagnostic business net revenue have grown by 6.3% to INR 329 crore versus INR 309 crore in financial year 25. The hospital business revenue accounts for 85% of our consolidated revenue. Our consolidated operating EBITDA increased 43.2% to INR 491 crore, delivering a margin of 22.6% versus 18.4% in Q1 of financial year 25. The hospital business reported an operating EBITDA of INR 406 which translates into a margin of 22.1% compared to 18.5 in Q1 of financial year25. Our consolidated reported profit after tax before exceptional items for the quarter increased 46.2% to INR254 crores.
On the balance sheet front, the Company’s net Debt stands at INR18.69 crore with a net debt to EBITDA of 0.92x as on June 30, 2025 as against 0.22x on June 30, 2024. The increase in debt was primarily due to the fund raised to part finance the acquisition of 31.5% PE stake in Agiles Diagnostics by the company and acquisition of Fortis brand and trademarks. On the hospital business, our RPOB increased by 10.2% the increase reaching to INR 2.65 crore per annum compared to INR 2.41 crore per annum in financial year 25. The growth in RPOP was driven by an improved specialty mix with oncology growing 28% year on year and contributing 16.4% to the revenues up from 15.1%.
The other factors contributing to ARCOR growth included increasing share of complex cases as reflected by 75% year on year increase in robotic surgeries and also an improved payer mix with the share of institutional business and at 20.3% compared to 20.9% in the same period last year our Occupancy improved to 69% compared to 67% in Q1 of 25. This translated into occupied beds increase by 7.8% to 2,928 beds compared to 2,715 beds in Q1 of 25. We are on track to add capacity of approximately 900 beds in the current financial year including those at our recently acquired hospital in Jalandhar.
We expect to operationalize approximately 50% of these beds in the current financial year. In 11 of our facilities we have reported operating EBITDA above 20% during the first quarter of financial year 26. This 11 facilities together contributed 75% of the hospital revenues in comparison to financial year 25. We had 10 of our facilities with operating EBITDA margin above 20% contributing 73% to the hospital revenue. Several of our key hospitals such as Mohali, Noida, Anandpur and Faridabad witnessed margin expansion compared to both corresponding and trailing quarters. In addition, many of our key facilities such as Shalimar Bagh, FMRI, FEHI, Jaipur and Faridabad registered revenue growth in excess of 20% compared to the corresponding previous period.
Revenue from international business group 21% compared to quarter one of 25 and reached INR 154 crore. The contribution of international business revenue stood at approximately 8% in quarter one of financial year 26 on similar line as quarter one of financial year 25. Focus on digital continues to remain core to our strategy. We have successfully implemented the inpatient modules of EMR at Fortis 15, the second such implementation after Fortis Manesar. This enhances the real time access to patient data for clinicians. Revenue from clinic digital channel via website, mobile application and digital Campaigns witnessed a 16.8% year on year.
Growth in Q1. Digital revenues contributed to 29.5% of the overall hospital revenues versus 29.9 in quarter one of financial year 25. The company further strengthens its medical talent with onboarding of specialists in the area of oncology, cardiac sciences, obstetrics and gynecology and renal sciences. We also augmented our medical infrastructure by installing second Da Vinci robots at our hospitals Mohali and BG Road. In the diagnostic business, Ross revenue grew 7.4% to INR 369 crore compared to INR 344 crore in Q1 of financial year 25. Operating EBITDA margin basis gross revenue stood at 23% versus 16.1 in Q1 of 25.
Excluding one offs, the operating EBITDA margin stood at 18.7% in Q1 of financial year 25. As a part of our ongoing network expansion strategy, the total number of new Customer touchpoints reached 4261 as of June 30, 2025. The preventive portfolio revenues in Agilisk revenue grew 8.4% in Q1 of Financial 26 and contributed 12% to the operating revenues. We have witnessed a steady recovery in both revenues and operating EBITDA margins. This is reflective of the brand building initiatives undertaken over the last few quarters. We expect this growth momentum to continue going forward with a considerable network presence, balanced B2C B2B mix and increased focus on product mix.
I’m confident about Agiles potential to scale up further both in terms of revenue and margins. With this I will conclude my comments. I believe our hospital and diagnostic businesses are well positioned to maintain their positive trajectory leveraging the strength of our balance sheet. We will continue to explore and evaluate growth opportunities that align with our cluster strategy and offer promising synergies.
Thank you and I will hand over to Mr. Anand for his comments now.
Anand K. — Managing Director and Chief Executive Officer, Agilus Diagnostics Limited
Thank you Dr. Agonshi. Good morning everyone and thank you for joining us today. On behalf of Agilis Diagnostics, I welcome you to our Q1FY26 conference call. Agilus Diagnostics reported a gross revenue of INR 368.8 crores in the Q1 of FY26 reflecting a 7.54% growth compared to INR 343.5 crores in Q1 of FY25 and 348.5 crores in Q4 of FY25, a growth of 5.8% compared to the trailing quarter. Operating EBITDA for the quarter stood at INR 84.7 crores up from INR 55.4 crores in Q1 of FY25 with margins improving to 23% from 16.1% in the last year in Q4 of FY25.
Operating EBITDA was INR 62.6 crores with a margin of 18%. During Q1 of FY26, Agilent conducted 10.1 million tests compared to 9.57 million tests in Q1 of FY25 and 9.59 million tests in Q4 of FY25. We added 10 labs and 160 plus new customer touch points during this quarter reflecting our continued focus on strengthening presence and accessibility across the geographies. The B2C to B2B mix stood at 51.49in Q1 of FY26 compared to 52.48in Q1 of FY25. From a product standpoint, revenue contributions for Q1 stood at 54% from routine tests, 34% from specialized tests and 12% from our wellness portfolio.
On the geography front, revenues were driven by 31% from North, 31% from South, 20% from the West, 13% from the east and 4% from our international markets. We have also made significant enhancements to our digital platforms this quarter to elevate the customer experience, including improvised digital processes that streamline internal operations and the launch of an in house feedback management system to capture NPS feedback. We have been focusing on next generation diagnostics and it has helped our genomics portfolio to grow by about 17% compared to Q1 of FY25. We have further enriched our test portfolio with advanced offerings to support personalized diagnostics and patient care.
We have launched around 30 tests in this quarter including tests in oncology and prenatal care. Some of the important tests that we have launched are Digitrack bundle for monitoring NPM1IDH1 mutations, a critical tool in hematological malignancy management the Comprehensive Drug Assay Panel which is designed for allergy testing which can provide detailed insights for precise allergy profiling. These new additions showcase our commitment to expanding cutting edge diagnostic capabilities, driving precision medicine and improving patient outcomes.
Thank you very much and over to you Anurag.
Anurag Kalra — Senior Vice President, Investor Relations
Thank you Anand. Ladies and gentlemen, we shall now open. The floor for question answers. May I please request the moderator for this?
Questions and Answers:
operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue attends.
The first question is from the Line of Amit Galge from JM Financial. Please go ahead.
Amey Chalke
Yeah, thank you so much for taking my question. And Congress was managing on good numbers. So the first question I have on the hospital performance, particularly the five hospitals, fmri, Mohali, BG Road, Poland and Jaipur have seen a sharp uptick on the sequential numbers. Is it possible to highlight the reason for the same? And particularly in Jaipur and BG Road, what would be the occupancy right now? Thanks.
Vivek Kumar Goyal
Yeah, so hi, this is Vivek. So you ask about Jaikur Pehi and.
Amey Chalke
BG Road, fmri, Mohali, BG Road have seen a good sequential uptick in the revenues and as well as. And Mulund as well. If you can provide some reason for the same and also if you can provide the occupancy for Jaipur and BG.
Vivek Kumar Goyal
Yeah. So Jaipur is operating around 6765 occupancy now. And it has revived last year. It was having some challenges we have discussed in the earlier call. So it has come out from that and is now on the path of recovery. It has already achieved, you know the around double digit EBITDA margin also. So that is on Jaipur as regard FMRI it is doing quite well. FMRI, EBITDA. Sorry, I’m talking about the 20 bats we have added and we able to fill them quickly. And the occupancy level of FMRI is 80% level. BG Road, although you know the occupancy side it is slightly struggling.
It is at around 56, 57% but they able to do some quality work. And as a result of that the EBITDA margin are quite healthy. So any, any other unit you. You may you want to understand Mulund again you know the. The occupancy for the first quarter was not that good. It is below 60%. However EBITDA margin is about 20%. So Malone. But it is recovering quite well and we are quite hopeful both BG Road and Mulun will start showing good occupancy number.
Amey Chalke
And on your profitability matrix you have shown one unit has moved up into 25% bracket. Is it possible to highlight which is that unit.
Vivek Kumar Goyal
25% bucket you are saying? Yeah. So Ludhiana has moved up in 20 to. It is now about 20% and there are two units who have moved above 25 also FMRI and Anandpur.
Amey Chalke
Sure. So and the second question I have on the diagnostic side, the full margins this quarter we have reported very healthy margins. So you expect the your full year guidance of around 22% margins for the diagnostic could be easily achieved. And.
Anand K.
Yes, our margins as we have seen it will be in the range of about 22 to 23% is what we are expecting for the whole year as well.
Amey Chalke
So going ahead you might expect some normalization of the margins in the upcoming quarters.
Anand K.
Be mixed. So usually the second quarter is. Is a good quarter for us and as you know, there will be some slight dip in the third quarter and then the fourth quarter will again normalize. So on an average we expect that the overall margins to be around in the range of 22 to 23%.
Amey Chalke
Sure. And the consolidated margins, considering the hospitals are Also at around 22%, you expect the consolidated margins to improve significantly over last one year. And if you have any guidance for this.
Vivek Kumar Goyal
So we are sticking to our guidance which we have provided in the beginning of the year. 2% margin improvement. We are excited with the first quarter number and we’ll see how, you know, the rest of the year will follow.
Amey Chalke
Sure, sure. Thank you so much. I will join my.
operator
Thank you. The next question is from the line of Neha Manpuria from Bank of America. Please go ahead.
Neha Manpuria
Thanks for taking my question, sir. First, on the landmark ONM contract that you announced, what is the game plan here? Because a few of the, sorry the few of the Glenidos facility are not in our core cluster, you know, like Chennai and this does not seem to include the Mumbai facility. So you know, is that also at some point going to get included to the ONAM contract? Any color here?
Ashutosh Raghuvanshi
Yes. So Neha, for the start we have excluded the Bombay facility because that is a separate entity amongst the Gleneagle network and that would be considered separately. We would certainly explore the possibility of including that in the current arrangement.
Neha Manpuria
Understood. And what about the other facilities? Because I think Glenivers also has facilities in Hyderabad and Chennai which you know, technically aren’t potential core markets given the exit of Chennai now. So you know, from an all in perspective, how does lend is the, you know, the owner contract that we assigned fit into the Fortis network?
Ashutosh Raghuvanshi
Yeah. So it forms a new cluster for us. We definitely have no presence currently in the Fortis network in, in these markets. But we are going to double down on these markets and, and create further opportunities we will explore. We do have a Gleneagle facility in Chennai which does very high end clinical work, has got fabulous clinical talent. So we are going to build on the existing base of good clinicians we have available in this network and these hospitals have been there around for long time. So we will build further on that and with the combined strength of Fortis and Gleneagles, we will be able to support them to perform better. And at the same time we will get a lot of synergies both on the clinical front and supply chain and other areas as well.
Neha Manpuria
Understood. And at the moment, given the service fees as a percentage of revenue, we are not capturing any part of improvement in performance that you will see from a EBITDA perspective. Because what I understand is Glenn Eagle margins are, you know, significantly lower versus where you know, for hospital is. So do you see that changing as you improve profitability, you know, or is there any way we are capturing the upside that Fortis will be able to bring about, you know, in the clinical level, the improvement in profitability?
Ashutosh Raghuvanshi
Yes. So some of the facilities have underperformed but the objective of this whole exercise is to get the economy scaled and get the synergies around the operations as well as supply chain, etc. And improve those profitability margins. However, for current, the arrangement is based only on a top line fee for Fortis. So that is the current arrangement.
Neha Manpuria
Understood. My second question is on the hospital business, you might know you’re sticking to your guidance of the 200 basis points margin expansion, but given how strong first quarter has been, second quarter usually tends to be stronger and that, you know, we’re adding a lot of our Brown Sea capacity now, you know, could the margin surprise positively or what’s keeping us at that 200 basis points margin expansion given the Brown Sea technically should have higher ebitda.
Ashutosh Raghuvanshi
Yeah, so you are right that you know, the first quarter which typically is subdued has been better. This is of course a result of, you know, our case mix change over a period of time and the new facilities which we had added and the new modalities which we had added over the last last couple of years. So I think that trend will continue. So we are maintaining our margin but definitely the momentum is strong and is expected to remain that way.
Neha Manpuria
And my last question on diagnostics, you know, given our present in west and east is lower, you know, when it’s as a percentage of the given the presentation, is this hope for Agiles to look at inorganic opportunities to improve performance or our focus is largely to grow the diagnostic business organically by adding more labs and touch points.
Anand K.
Currently we are looking at opportunities on a case to case basis based on, you know, the strategic fit and you know, what kind of value we can get from that kind of an opportunity. But we are open to all geographies. It’s not that we are only specifically looking at Certain geographies, especially in our focus geographies, we are looking at acquisitions that can help us build scale in that region. But it’s not that we are not open to any opportunity in a particular location. So we are not going after any specific geography.
operator
Thank you. The next question is from the line of Shyam Srinivasan from Gold Goldman Sachs. Please go ahead.
Shyam Srinivasan
Yeah, good morning. Thank you for taking my question. Just back again on the Gleneagles O and M and if you look at the public disclosure from IHH in terms of their overall India business margins and if I were to back out yours, Gleneagles, that whatever. I know I’m not talking only the five hospitals but the overall including the Bombay Mumbai one, very low margins. Doctor. Right. So you know, what are we trying to bring now in terms of operation and maintenance that is going to help improve this? Are these you mentioned about high end specialty and all.
But at 3 and a half or 4% margins something is missing. Right. So what are the things that you need to bring on the table and what is the ulterior motive? Right. Is it going to be eventually merged with us over time? Right. In that case the assets, at least at the starting point of margin seem to be pretty weak. So just want to understand what the end game is on the Gleneville facilities.
Ashutosh Raghuvanshi
Yeah. So Shyam, these facilities have a good potential. They are located well in the micro markets they are in. And we believe that the full potential of these hospitals has not yet been realized. And that is a mix of lot of things. One of the things which advantage which we get in this kind of alliance is to get synergies in terms of supply chain and other operational metrics. So that clearly will be beneficial to improve the profitability profile of these hospitals. And that is the idea for giving the responsibility to manage this to Fortis. And at the same time, you know, in the future we will take things as they come.
However, having said that, IHS has publicly stated multiple times that Fortis is their main vehicle of growth in India and India is a focus market for them. So definitely, you know, all possible options will be on table at the right time.
Shyam Srinivasan
Just expressing a concern here doctor. If you are given bad assets and we overpay for that, I’m just saying from a valuation perspective it’s something that I hope from a Fortis perspective those things are taken care of. So it’s just wanted to mention that up front.
Ashutosh Raghuvanshi
Yeah, no, absolutely. That is Quotis has maintained a very disciplined approach when it comes to acquisitions and we will continue to be cautious on that. So you can be rest assured that whatever in future happens will be done in in a very transparent manner. Arm’s length as well. Of course.
Shyam Srinivasan
Yeah. Thank you. Just going on to my second question. We’re getting 3 percentage net revenue starting July which is like 2030 crores. I think I’m just doing for full year. And is that already in our guidance? So did we when we guided for fiscal 26. Is that. I know you didn’t announce it at the quarter end, but how should we look at the margin guidance? They should go higher now. Right. Versus what it was originally.
Vivek Kumar Goyal
Yeah. So in that guidance we have not considered this lineage. Of course. And whatever the earning will be because it will be part of the year. So that that much it will be added up because as Dr. Gohansia mentioned in the for the earlier question, we will be accounting only, you know, that 3% of the net revenue. And there will be a little bit that goes.
Shyam Srinivasan
Yeah. That goes directly to ebitda, right?
Vivek Kumar Goyal
Yes. Yes. To that extent the EBITDA margin will work.
Shyam Srinivasan
So. Okay, sorry. I’m asking so what is our current guidance? And then plus if I add 100bps is what it will end up. Right. I’m just. So what is our 22 to 23 for our hospital?
Vivek Kumar Goyal
Because if you see the revenue, you might be having some number.
Shyam Srinivasan
700 crores and 3% is 20 to 25 crores. I’m just making
Vivek Kumar Goyal
for the full year. And if you do percentage it will be something around 0.2.3%.
Shyam Srinivasan
Understood. Okay, great. Last question is. In the diagnostic business we’ve seen a turnaround at least from a margin standpoint. But I’m on growth again. There is a difference between gross revenue growth and net revenues. Maybe the gross to net ratio has changed slightly. And the other observation I had was when I look at volume growth and. ASP increase like test realization or even. Patient realization, it is higher than our revenue growth. So is there something I’m missing? Thank you.
Anand K.
The volume growth is roughly around 5% and the average revenue per patient growth is about 4%. So totally that’s about 9% is what will come. But because of
Anurag Kalra
the way we look. At it, while the revenue growth is 9%, the way we calculate margins is. That there’s an element of other income also. So to make it like to like. Basis EBITDA margins include revenue and other income and that is the base.
Shyam Srinivasan
Andhra. I’m just talking revenue growth. I’m not looking at EBITDA yet. Revenue growth is 6% net revenue growth.
Anand K.
No, no. The operating revenue growth is 9% which is 5% volume and 4% value. Whereas what you see as gross revenue here it includes other income as well.
Vivek Kumar Goyal
So some. If I can clarify this 9% versus earlier mentioned 7.6 in the last year financial there is certain 1 of income which was booked. So if we take impact of that out then you know the revenue growth, what Anand is Now mentioning is 9.3%. So actually operationally the revenue has grown by 9.3%. If we taken out the impact of that 1 of expenses which we income which we have booked in the last quarter.
Shyam Srinivasan
Got it. No, this is helpful. This explains lastly any one offs in any of your margins either in hospital or diagnostics for the quarter.
Vivek Kumar Goyal
No, nothing. Nothing.
Shyam Srinivasan
Thank you. Thank you. All the best.
Anand K.
Thank you.
operator
Thank you. The next question is from the line of Amit Goela from Rare Enterprises. Please go ahead.
Amit Goela
Yeah. Hi. Thank you. So good morning. Fantastic results. Congratulations. So one question I wanted to ask you. So you said that you are expecting addition of 900 beds this year. So can we assume that you will at least have 500 based on your current occupancy of 65. 65 to 70% you will be having at least 500 to 550 paying beds next year and which can add a revenue of about 1500 crores based on your current hardcore.
Vivek Kumar Goyal
Yeah. Mr. Gola, if I can answer this question. Yes. Hi. Hi sir. So out of 900 this 250 batteries for FMRI unit which we will be completing by year end only. You know we December, January sometime around that time. So no major revenue we are expecting from that. However for Noida Facility 150 and you know little bit capacity we are adding at other locations. Those will be operating at a decent occupancy level and there will. There is another say 200 bed we are expecting to open for Manesar facility which as you know is a new facility.
So there will be you know ramp up will be as per your new facility.
Amit Goela
So. No, I’m saying for next year. So I’m saying for next full year definitely we can get 600 bits additional revenue.
Vivek Kumar Goyal
Yes, yes, yes, yes. 100. Because all these expenses. Yeah. All the expansion is coming at Brownfield. So I think ramp up will be quite fast.
Amit Goela
Yeah. So then at least we can get here based on your current RPO we can see a revenue addition of at least 1500 crores here. Talking next year. 26, 27.
Vivek Kumar Goyal
Oh yeah. Yeah. I. I think so. He will be getting around that.
Amit Goela
Okay. Okay, thanks. Thank you Vivek. And all the very best to all of you like. Thank you.
Ashutosh Raghuvanshi
Thank you.
Amit Goela
Thank you sir. Thank you so much.
operator
Thank you. The next question is from the line of Nitin Agarwal from Dam Capital. Please go ahead.
Nitin Agarwal
Thanks. And sir, congratulations for a pretty strong performance. Dr. Ravishi, just if you were to look at the last few quarters, you’ve had a pretty remarkable improvement in both the revenue and the operating profitability for the hospital business. While you’ve been talking about various measures you’ve been taking. If you can just probably take up, just sort of summarize a few of the three or four main things which have worked for, begin to fall in place for the business over the last four or five quarters and where do you still see opportunities for, you know, and which are the major levers for growth barring the, you know, the bad additions from here on? You know, when you look at the business over the next two years, two, three year perspective.
Ashutosh Raghuvanshi
Yeah. I think there have been multiple factors which have led to this consistently good performance. One of the factors is that the investment which was played in clinical manpower as well as in the infrastructure in last three, four years that has started yielding results. That is one of the major drivers and that also has resulted in the case mix change. So we across our network today have more than 14 robots and these, all these robots have doing very large. The growth has been 75% from last year to this year. So that kind of high end work is growing.
The second is that oncology, which we started investing about six years back is yielding results and is growing at almost 27, 28% CAGR. So these kind of cases mix change which is happening is resulting in the increased RFOP levels and at the same time we are working parallelly on the operational efficiencies and that is also helping to some extent. But I think we still have some more ground to cover and there are certain areas which we are working on at the moment.
Nitin Agarwal
Doctor, on the current network, is there an opportunity for us to, I mean, I don’t know if we try to, I don’t recall checking this number. Has there been a meaningful improvement in our alos? And do you see opportunities to further shrink the alos in some of our busy hospitals?
Ashutosh Raghuvanshi
Yeah, so the busy hospitals, our alos we have definitely had some improvement, but it is not dramatic. But we have seen some minor improvement in some of these hospitals where the occupation occupancy levels are above 75, 80%. But overall I think it has been pretty stable going forward. We definitely remain focused on that. And as I was saying earlier that robotics and these kind of procedures are becoming higher in number. At the same time, the daycare segment is growing very fast. So that will all help us to reduce the a loss further.
Nitin Agarwal
And second one on the Jerandan acquisition, post this acquisition, we have now a largest presence in Punjab. So I mean, how do you look at this region now from what kind of opportunities for growth do you see if you take Punjab as a cluster now for yourself?
Ashutosh Raghuvanshi
So Punjab, you know, we have a very dominant presence. We are, we’re very far ahead of any other competition. Together all these beds makes about 1,000 beds. And many of the units are performing. Amritsar and Mohali specifically are doing very well. We have further expansion planned in Mohali, as you might be aware. And at the same time we are planning expansion in Amritsar as well. Ludhiana is also doing all right and Jalandhar is doing facility which we have acquired has got good performance in last few quarters. So we expect that to improve further. And this cluster we look at with great interest because this has been the origin of the group and we have such a edge in terms of branding over there and that is what we want to build on further.
But currently we are not planning anything further than the current hospitals and the brownfield expansions which we will have in them. The brownfield expansion, we will have about 450 beds in Mohali, we will have about 250 beds in Jalandhar further added and about 180 beds in Amritsar. We are going to add further. So, so this is the plan for the Punjab region at the moment.
Nitin Agarwal
And last one, on the pair mix any, you know, on the skin patients, I mean, how do you do you see that the payer mix changing in any meaningful way as we go, as we go along?
Vivek Kumar Goyal
So not really. We have seen some improvement in the first quarter whereby, you know, our CPA and international business has really gone up and government business has also gone up. But it is not, it has not gone up to that extent. So that way, you know, payer mix has improved slightly. But with our expansion program and the geographical presence in some of the regions, our ability to reduce this is very low. But the improvement will be gradual. It will not be very dramatic.
Nitin Agarwal
Okay, thank you so much.
operator
Thank you. The next question is from the line of Binopatiparam bill from Ilara Capital.
Bino Pathiparampil
Hi, good morning again. Congrats for the great numbers. Most questions have been answered just on your capacity. So your presentation talked about more than 50 operational beds. But what would be the total capacity. Beds.
Vivek Kumar Goyal
You have voice by breaking. If your question is 5700 operational bed.
Bino Pathiparampil
Yeah,
Anurag Kalra
so. So we know out of these 5,700. Including the Gleneagles O and M that we just executed, we have about 300 open. The rest would be those P and L beds that you’re talking about.
operator
So I think the participant has got disconnected. Can we move to the next question?
Anurag Kalra
Yes, please.
operator
The next question is from the line of Sahini Mukherjee from Nomura. Can you please go ahead?
Saion Mukherjee
Yeah, thanks. This is Shahin here from Nomura. Congratulations on a great set of numbers you delivered. Sir. I was, you know, in response to an earlier question you mentioned about, you know, one of the things which you have worked on in terms of investments and case mix you mentioned about oncology which I think is somewhere around mid teen contribution. Can you also share on robotic surgery, what’s percentage either in terms of revenues or number of surgeries that you do and what’s the scope for these two ratios to increase over the next say 3, 4 years of you having something in mind in the medium term?
Ashutosh Raghuvanshi
Yeah, so oncology Contribution is approximately 17, 18% at the moment. But that is pure oncology and there are some oncology which gets identified as other specialties because cancers can be anywhere. So our estimate is that approximately about 19 to 20% revenue is coming from oncology as far as robotic surgeries are concerned. We don’t track that revenue separately at the moment, but we have seen a 75% year on year change in terms of the number of cases, procedures we have performed. That is the kind of growth we are expecting. And we expect that growth to continue because we are adding more robots in our network.
Some of the hospitals we have already got the second system in place and some of the hospitals which did not have a system earlier, we are in the process of installing robotic machines as well. So I expect that growth will happen in that maybe not 75% next year, but at least 50% next year year as well.
Saion Mukherjee
Okay, so your up growth can sort of be in high single digit at least for some time. Would that be something to look, you know, look forward to?
Vivek Kumar Goyal
Yeah, so. So the RPAP growth is as always, I was telling in earlier calls also, you know, this growth is mainly coming from the daycare OPD and those, those type of things and robotic surgeries because there, you know, consumable is high. The price increase in it is only 1.3%. So it is very difficult to predict, you know, how much more we can do or what type of daycare business we will be getting or opt business will be getting. But we maintain our guidance that RPAP growth should be in the. In the normal course it should be around 5, 6%.
Saion Mukherjee
Okay. Okay, understood. My second question is you know, on the Malisa facility. So if you can share some light in terms of how much has been there, how has been the ramp up and you know, whether it’s EBITDA break even, it’s making some profit or any, any indication you can provide.
Vivek Kumar Goyal
Yeah, so ramp up is quite good and it is better than our expectations. And. And it is picking up quite well in terms of revenue. It is, it has start generating revenue of 11 crore plus per month. Okay. And EBITDA side, it is still on the negative side because the lot of hiring and clinical talent we are adding and that the, you know, the actual benefit of that may be coming in the forthcoming quarters. So I am expecting if we able to achieve the venue of 2 crore more per month which we are expecting in next couple of months, this unit should be break even on beta level.
Saion Mukherjee
Okay. Okay, understood. That’s helpful. Can I ask one more question on diagnostics?
Ashutosh Raghuvanshi
Sure.
Saion Mukherjee
Okay, thanks. So this is one question on diagnostics. You know, we are seeing some stability in the business now. You know, in terms of your mix, whether we look at wellness contribution, B2C. B2B we are at a particular level. I mean should we see any meaningful change in these ratios, something which we are pursuing. And also on the, you know, if you can throw some light on the network itself, firstly the expansion plan that you have and is there any franchisee model involved when it comes to these collection centers, how you manage it.
Anand K.
Thanks Sahin. So the product revenue mix, as you know Wellness currently contributes about 12% of our revenue. And it is one of the quite fast growing segments for us now. And we have been seeing good traction on health checkup packages which has been taken up by general population as well across all our units. So that we see that it will definitely keep growing when it comes to B2C and B2B mix. Yes, at this point of time our mix is at about 51:49. So we expect it to be around the same over the period of next one year or so.
Then probably there will be further improvement in B2C. It all depends on which segment grows faster. So as we expand further, as we improve our network and our network productivity also improves, the B2C component will keep going. We are also going to be adding SRL brand back to us in the sense that now we have ownership of the SRL brand and that will help us to further, you know, strengthen our presence that, you know, earlier we were not able to provide that opportunity of having Agilest has been the new name for srl. So we have not been able to communicate effectively.
So we will be doing that process in the coming months by which also we expect that the B2C component will further strengthen.
Saion Mukherjee
So I didn’t get this. So this. Can you just explain the SRL thing? So you have made, made the brand change, so now you are going to use the SRL brand back if you can just explain what it means.
Anand K.
In fact, we had SRL brand before and we converted it to Agiles, but we were not using SRL for this process earlier due to certain legal requirements. Currently we have got the ownership of the brand and that is the reason we are going ahead.
Ashutosh Raghuvanshi
So Shyam, if I can explain this a little further. The change which we had to do from SRL to EDNS was a little abrupt and at that time the board, the court directed us not to use SRL in any form, even to identify that this business was previously called SRL Limited. So we were constrained in communicating effectively to people that this is the legacy of this business which continues as a new brand. So it was not kind of a very ideal, kind of a brand change situation and that impacted our business negatively. However, now we have acquired this brand and now we have the ability to communicate effectively that SRL is now Agile.
So we expect that that communication will also further help to strengthen our brand.
Saion Mukherjee
Okay. Okay, understood sir. Thank you and all the best. Thanks.
operator
Thank you. The next question is from the line of Lavanya Toutala from ubs. Please go ahead.
Lavanya Tottala
Hi. Hi sir. Thank you for the opportunity. So one question. So how the business has been trending in July, like in terms of October and see any sense how the momentum has been in July.
Vivek Kumar Goyal
So we are trending well, we can’t obviously spell out the numbers because it is price sensitive. So we are trending quite well as per our plan.
Lavanya Tottala
Okay, got that. So just on this diagnostic, one clarification, so SRL will be used only for this communication that it is replanted to Agiles, but we are not planning for dual branding or something. It’s going to be Agiles but just communicating that it was before srl, is that right? Understanding
Ashutosh Raghuvanshi
that’s correct.
Lavanya Tottala
Okay, got that. Thank you. Thank you so much.
operator
Thank you. The next question is from the line of Pranav Jawla from Ambed Capital. Please go ahead.
Unidentified Participant
Yeah, hi, this is Prashant here. A couple of questions, one on the diagnostic side, more of a clarification. So when you talk about margins of 22 to 23%, that’s on the gross revenues basis, right?
Vivek Kumar Goyal
Diagnostic. Diagnostic. That’s on the. Yes, it’s on the net revenue basis.
Unidentified Participant
Okay. So you for this year your margin should be that 20 to 20 range on net revenue.
Anand K.
Yeah.
Unidentified Participant
And second, one question on the hospital side, the escorts Delhi Hospital, which margin bracket would it now feature?
Vivek Kumar Goyal
Has moved up to about 15 margin. So it is around. Yeah,
Unidentified Participant
in that way. All right.
Vivek Kumar Goyal
And it’s consistently performing at that level. So. And we identified certain more liver where you know, we can improve it further.
Unidentified Participant
Great. And one last question from my side again back on the diagnostic side. So your revenue growth seems to have stabilized at a slightly higher level than you’ve been growing in the last few years. So where should we see this? You know, finally, you know, on a normalized basis capitalizing, would it be high single digit or would you go into lower double digit range? How should we think about this now?
Anand K.
So I think in the next few quarters we’ll be in the high single digit to about 10% kind of a growth in the next few quarters. But you know, as we move forward in the next, you know, six to eight quarters, we will be moving into the early, you know, early double digit numbers.
Unidentified Participant
All right, thank you. That’s it.
operator
Thank you. The next question is from the line of Nancy Yadav from Arigro Advisors. Please go ahead.
Nancy Yadav
Hi sir. Thank you for the opportunity. Most of my questions have been answered already. I just wanted to ask the India. Adjustment number and if possible a breakup of the number for hospital versus diagnostics.
Vivek Kumar Goyal
Yeah. So there is not much impact and we are not tracking that way because now it is all in as per IFRS India. So there is no much, not much impact. That much I can tell you at console hospital business it is very negligible. Diagnostic is still there will be little bit but it is not much.
Nancy Yadav
Sorry.
Vivek Kumar Goyal
And Ra will able to provide you separately if you want that number. Absolute number.
Nancy Yadav
Okay, sure, sir. Thank you.
operator
Thank you. The next question is from the line of Ankush Mahajan from Sacktum Wealth. Please go ahead.
Unidentified Participant
Thanks for the opportunity. So this time the international customers that growth is quite good. Would you throw some more light? More light. And how could we attend for the next three quarters for the international customers? And what are the means you could office that these customers are coming? That’s one part. Second sir, this is related to robotic machines. So how many robotic machines we have and this year how many we are expected to bring new robotic machines and what kind of capex we are doing on the robotic machines.
Ashutosh Raghuvanshi
So we have approximately 15 robotic machines across our network right now and we are in the process of getting another four this year. This is regarding the robotic procedures. We have seen a growth of about 75% as I said earlier and as far as the international patients is concerned the Overall contribution is about 8,8% for overall revenue and it’s likely to increase a little bit but in absolute terms it is likely to increase but as a contribution it is likely to stay in that level. So we do get patients for oncology and other areas like that.
Cardiac and oncology is the main and neuro as well. These three departments get a lot of patients.
Unidentified Participant
So what kind of capex for we are doing for these four robotic machines?
Vivek Kumar Goyal
Yeah, so these robotic machines generally cost us around 12 crore per machine. I am talking the venture robots and for ortho robot it cost us around 5 crore.
Unidentified Participant
So last one from my side that this oncology is doing very well as mentioned in the earlier comments, growing with the 2027, 28% of growth how could be the trend over the next three years in the oncology segment?
Ashutosh Raghuvanshi
Yes, so we expect that kind of growth will continue for another few years because we are adding oncology setups to some other hospitals where it is not there at the moment. So obviously that growth is a momentum is likely to continue.
Unidentified Participant
That’s from my side. Thank you sir.
operator
Thank you. The next question is from the line of Harsh Bhatia from Bandhan Mutual Fund. Please go ahead.
Harsh Bhatia
Yes, thank you.
Ashutosh Raghuvanshi
Yes.
Harsh Bhatia
Thank you. Good afternoon. Just two quick clarifications. One, could you help us with the Noida and Sardabad occupancy as of the first quarter FY26.
Ashutosh Raghuvanshi
Yes.
Vivek Kumar Goyal
Yeah. So Noida is 76% occupancy and Faridabad is above 80% occupancy.
Harsh Bhatia
And Moida 76% is after the 60 bed addition.
Vivek Kumar Goyal
Yes.
Ashutosh Raghuvanshi
Yes.
Harsh Bhatia
Okay. And just one clarification. I’m just trying to bridge the gap between this almost 300 basis points of hospital margin improvement on a year on year basis. If I look at the last year first quarter of FY25 probably hospitals had certain 40 to 50 bits of one could say one offs in terms of some provisions. Probably surgical mix was higher. So your margins were impacted to that extent. So excluding all of that, if I just work with the 300 bits of margin improvement. And you mentioned that there are no one offs in the current hospital margin.
So I understand that Dudhiana is something that has moved up in the margin metrics FMR and Anandpur has also moved up in the margin metrics. Is there anything else that is sort of helping you move up the curve in terms of the margins or broadly? These are the three or four drivers that are driving majority of margin improvement.
Vivek Kumar Goyal
So at network level almost all the hospital are doing doing quite well. Some of the underperforming unit has also start performing. Like I mentioned about Jaipur. There is also very good improvement in the FE in terms of margins and overall performance. And then you know whatever capacity we able to add, we able to ramp up as per our expectation which I have told that it is brownfield.
Anand K.
So.
Vivek Kumar Goyal
So that is so. So if you see the occupancy has gone up, it is stretching around 40 70% at the network level. So that that helps a lot in the margin improvement. Apart from what I have said earlier.
Harsh Bhatia
Would it be fair to say as you look for the 526 perspectives. If I look at Faridabad SMR Edition Noida addition, whatever inflammatory types you are adding and I’m also counting the minimal addition we did at FMRI from first quarter itself that implemented best price is attracting a very high specialty mixed patient pool. One would say from the beginning itself again because different these are brown suite bifi muscle this question.
Vivek Kumar Goyal
Yeah, so one is these as I mentioned these are brownfield. So the ramp up is not issue. And plus you know we are adding facilities and clinical talent at all our facilities and plus we have invested in the in the technology also. And that is AL is also helping us in doing some quality work and which the overall impact is in the margin improvement.
Harsh Bhatia
Sure sir. Thank you.
operator
Thank you. Ladies and gentlemen, that was the last question for today. I now hand over the conference to management for closing comments.
Anurag Kalra
Ladies and gentlemen, thank you very much. For taking the time on the call. Please do feel free to reach out. To us if you have any further queries, clarifications. Thank you and have a good day.
operator
Thank you. On behalf of Fortis Healthcare Ltd. Concludes this conference. Thank you for joining us and you may now disconnect your lines.