Fortis Healthcare: Capex, Expansion and M&A Plans Remain Intact as IHH Backs Growth Strategy

Fortis Healthcare Limited (NSE: FORTIS, BSE: 532843) said its growth strategy remains intact, with planned capex, brownfield expansion, bed additions, and M&A initiatives continuing despite the ongoing legal developments around the company.

The comments were made by Fortis management and IHH Healthcare during the company’s September 4, 2026 investor and analyst conference call.

Capex Plans Continue

Fortis management said the recent developments do not change or restrict the company’s planned capital expenditure programme.

The company intends to continue investing in its existing hospital network, with brownfield expansion and additional beds remaining key components of its growth strategy.

Management indicated that a significant part of the expansion programme is expected to be supported through internal accruals, reducing dependence on external funding for routine growth investments.

Brownfield Expansion and Bed Addition

Fortis continues to focus on expanding capacity at its existing hospitals.

The company’s management reiterated that its brownfield expansion plans remain on track, with additional beds forming an important part of the capacity expansion strategy.

The focus on brownfield projects allows Fortis to leverage its existing hospital infrastructure, brand, clinical capabilities and catchment areas while adding capacity.

M&A Pipeline Remains Active

Management also said Fortis continues to actively evaluate M&A opportunities.

According to the company, the current situation does not constrain its ability to pursue attractive healthcare assets.

Fortis said it has been evaluating opportunities for several months and intends to continue pursuing suitable acquisitions in the future.

This indicates that inorganic growth remains an important part of the company’s longer-term expansion strategy.

IHH Ready to Support Growth Capital

IHH Healthcare reiterated its strong commitment to Fortis and said it remains prepared to provide additional capital if required for the company’s growth.

IHH management said Fortis is expected to remain its growth engine for expanding its healthcare platform in India.

The group also reiterated its intention to increase its holding in Fortis to more than 50% over the next few years, subject to applicable regulations.

Gleneagles-Fortis Integration Remains a Possibility

IHH also reiterated that it continues to consider the potential integration of Gleneagles and Fortis at an appropriate time.

The potential combination could form part of IHH’s broader strategy to strengthen and scale its healthcare presence in India.

Management indicated that the current developments have not changed this longer-term strategic direction.

Management: Operations and Growth Plans Are Insulated

Fortis Managing Director and CEO Dr. Ashutosh Raghuvanshi said the company’s operational plans remain largely insulated from the ongoing external developments.

He said the company has an established operational and leadership structure that allows management teams to remain focused on hospital performance, patient care and growth.

Management also highlighted that Fortis has continued to improve its operational performance over the past several years while dealing with various external challenges.

Competitive Intensity Increasing

Management acknowledged that competition in the Indian hospital sector is increasing, particularly in key markets.

Fortis therefore intends to continue investing in its platform and strengthening its competitive position.

The company believes that expanding capacity, improving hospital operations, and selectively pursuing M&A will be important to maintain growth momentum.

Future Strategy: Asset Expansion + M&A

Fortis’s current strategy can broadly be divided into three areas:

• Brownfield expansion: Increase capacity at existing hospitals.
• Internal growth: Use internal accruals to fund a significant portion of expansion.
• M&A: Continue evaluating attractive healthcare assets and acquisition opportunities.

IHH’s willingness to provide additional capital gives Fortis an additional potential funding source for larger growth opportunities.

Key Management Takeaways

• Capex plans remain intact.
• Brownfield hospital expansion will continue.
• Bed addition remains a key growth initiative.
• Internal accruals are expected to support the company’s expansion programme.
• Fortis continues to evaluate M&A opportunities.
• IHH remains willing to provide growth capital if required.
• IHH continues to target increasing its Fortis stake to above 50%.
• Potential Gleneagles-Fortis integration remains under consideration.
• Management remains focused on operational improvement and patient services.
• Fortis intends to strengthen its position despite increasing competition in the healthcare sector.

Investor View

The key takeaway from the management commentary is that Fortis Healthcare is not changing its underlying growth strategy.

The company continues to pursue capacity expansion and M&A, while IHH remains supportive of Fortis’s long-term growth ambitions.

For investors, the important factors to monitor will be the pace of bed additions, execution of brownfield projects, capital expenditure, acquisition announcements, and IHH’s eventual increase in its stake.

Disclaimer

This article is based on management commentary and company disclosures by Fortis Healthcare Limited. It is intended for informational and educational purposes only and should not be considered investment advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult a qualified financial adviser before making investment decisions.