Fortis Healthcare shares have 33% upside potential on strong earnings visibility: Citi

Shares of Fortis Healthcare Ltd. are expected to be in focus on Friday, January 23, after global brokerage firm Citi initiated coverage on the stock.

Citi has commenced coverage with a 'Buy' rating and a price target of ₹1,120, which implies an upside potential of nearly 33% from the stock's closing levels on Thursday, January 22.

The brokerage's positive view is anchored in strong earnings visibility, with hospital EBITDA projected to grow at a 23% CAGR over FY26-28.

Citi expects this growth to be driven by the ramp-up of new bed capacity and margin expansion across Fortis' existing hospital network.

It also pointed to the company's solid execution track record and a well-structured expansion strategy, adding that steadily improving return on capital employed (RoCE) could support further valuation upside.

FORTIS POLL	Q3FY26	Q3FY25
REVENUE	2251.95	1928	17%
EBITDA	503.45	374.9	34%
MARGINS	22.4%	19.4%	15%
PROFIT	245.6	254.3	-3%

Fortis Healthcare's Q3 performance shows healthy topline and operating growth, compared to the year-ago period, even as net profit dipped marginally.

Revenue for the December quarter rose 17% year-on-year to ₹2,251.95 crore from ₹1,928 crore in Q3FY25. Profit fell 3% year-on-year to ₹245.6 crore, compared with ₹254.3 crore in the corresponding quarter last year.

EBITDA climbed 34% to ₹503.45 crore from ₹374.9 crore, while EBITDA margins expanded to 22.4% in Q3FY26 from 19.4% a year earlier.

Of the 17 analysts tracking Fortis Healthcare, 13 have a 'Buy' rating, while four others have a 'Hold' rating on the counter.

Shares of Fortis Healthcare closed 0.10% higher on Thursday at ₹845. The stock is down over 6% so far in 2026.