Fortis Healthcare Ltd has received tax demand orders aggregating to ₹214 million (₹21.4 crore) from the Income Tax Department. The development raises concerns over potential financial implications for the hospital chain, even as the company continues to report strong operational performance. Investors are closely watching for clarifications and next steps.
Fortis Healthcare Ltd, one of India’s leading hospital networks, announced that it has received tax demand orders totaling ₹214 million.
The orders, issued by the Income Tax Department, add regulatory pressure on the company at a time when it has been reporting steady growth in revenues and profitability.
Key Highlights
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Tax Demand: The Income Tax Department has raised demands aggregating to ₹214 million against Fortis Healthcare Ltd.
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Context: The company has previously faced similar tax notices, including a demand of ₹89.53 crore earlier this year, which was later rectified and nullified.
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Financial Position: Despite regulatory challenges, Fortis reported consolidated revenues of ₹1,928 crore in Q3 FY25, up 14.8% year-on-year.
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Investor Sentiment: The latest demand may weigh on short-term sentiment, though past rectifications suggest potential for resolution.
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Next Steps: Fortis is expected to contest or seek clarification on the orders, with investors awaiting official updates.
The tax demand underscores ongoing compliance challenges for healthcare companies, even as Fortis continues to strengthen its hospital and diagnostics businesses.
Sources: Fortis Healthcare Investor Release, Univest, ETHealthworld