Fortis to acquire People Tree Hospital in Bangalore; Check the current total bed capacity

SYNOPSIS: Fortis Healthcare will acquire People Tree Hospital in Bengaluru for Rs. 430 crore, with plans to expand capacity beyond 300 beds and invest Rs. 410 crore to strengthen clinical infrastructure.

During Monday’s trading session, shares of one of India’s leading healthcare delivery companies surged nearly 2 percent on NSE, after the company announced plans for a total investment of Rs. 840 crores for 300+ beds in Bengaluru.

At 10:41 a.m., shares of Fortis Healthcare Limited were trading in green at Rs. 908.85 on NSE, up by more than 2 percent, compared to its previous closing price of Rs. 890.65, with a market cap of Rs. 68,614 crores. The stock has delivered positive returns of around 34 percent in one year, but has fallen by more than 1 percent in the last six months.

What’s the News:

According to the latest regulatory filings with the stock exchanges, Fortis Healthcare Limited has entered into a definitive agreement to acquire People Tree Hospital, Yeshwanthpur (PTHY), a 125-bed multi-specialty facility in Bengaluru, by way of a 100 percent acquisition of TMI Healthcare Private Limited, the entity that owns and operates the hospital. The acquisition will be carried out by International Hospital Limited (IHL), a wholly owned subsidiary of Fortis Healthcare.

As part of the composite transaction, IHL will also acquire the hospital building along with the underlying land of PTHY from the promoters of TMI Healthcare and an adjacent land parcel from an independent third party, for a cumulative transaction value of Rs. 430 crores (including debt residing with TMI Healthcare). The transaction shall be subject to customary closing adjustments as outlined in the agreements.

PTHY is accredited by the National Accreditation Board for Hospitals & Healthcare Providers (NABH), with clinical offerings such as Cardiac Sciences, Orthopaedics, Neuro Sciences, Renal Sciences and Gastroenterology.

The acquisition also includes an adjacent land parcel of around 0.8 acres, which provides Fortis with the potential to expand bed capacity to over 300 beds. To support this growth, Fortis plans for an additional investment of Rs. 410 crores over the next three years toward expanding bed capacity, upgrading medical equipment, and strengthening clinical programs, including the introduction of Radiation Oncology services. 

With the hospital having generated revenue of around Rs. 74 crore in FY25, Fortis believes there is meaningful scope to improve utilisation, enhance operating performance, and drive profitability, alongside executing the planned expansion initiatives.

The transaction is expected to be completed by the end of January 2026, subject to the fulfilment of customary conditions precedent specified in the definitive agreements.

Financials & More:

Fortis Healthcare reported a significant growth in its revenue from operations, showing a year-on-year increase of more than 17 percent from Rs. 1,988 crores in Q2 FY25 to Rs. 2,331 crores in Q2 FY26.

Similarly, its net profit during the same period increased from Rs. 193 crores to Rs. 329 crores, representing a rise of over 70 percent YoY. Fortis Healthcare Limited, a leading integrated healthcare delivery service provider, is primarily engaged in the business of healthcare services. It also manages and operates a network of multi-specialty hospitals and diagnostic centres, via its subsidiaries, associates and joint ventures.

Currently, the company operates 33 healthcare facilities (including JVs and O&M facilities) across 11 states, and its network comprises ~5,800 operational beds (including O&M beds) and over 400 diagnostics labs. 

Written by Shivani Singh

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