Synopsis:
IHH Healthcare finally resolved its long-running dispute with Daiichi Sankyo over Fortis control, clearing SEBI’s approval and enabling a full open offer closure in November 2025.
A leading healthcare company known for robust financial performance and strong promoter backing is making headlines after reporting a 70% year-on-year profit growth in the latest quarter. In this new we will explores the company’s recent financial results, market movement, and the impact of a major stake acquisition that could shape its future trajectory.
Fortis Healthcare Limited‘s stock, with a market capitalisation of Rs. 73,147 crores, fell to Rs. 949.60, hitting a low of up to 3.78 percent from its previous closing price of Rs. 986.90. Furthermore, the stock over the past year has given a return of 50 percent.
Update on The Dispute
The dispute between IHH Healthcare Berhad (Malaysia) and Daiichi Sankyo (Japan) originated from the 2008 sale of Ranbaxy Laboratories by Fortis founders Malvinder and Shivinder Singh to Daiichi for $4.6 billion. In 2016, an international arbitration tribunal in Singapore ruled that the Singhs had concealed critical regulatory issues (FDA import alerts, data falsification) about Ranbaxy, defrauding Daiichi. The tribunal awarded Daiichi $500+ million in damages, upheld by Indian and Singapore courts.
To recover this, Daiichi attached the Singhs’ assets, including their 31.1% stake in Fortis Healthcare, which was under lien and later auctioned via RBL Bank’s enforcement of a Rs. 3,500 crore loan default in 2018. When IHH stepped in as a white knight in July 2018 with a Rs. 4,000 crore preferential investment to acquire control of Fortis (via subsidiary Northern TK Venture), Daiichi vehemently opposed, claiming IHH’s deal would dilute or bypass its claim on the attached Fortis shares. Daiichi filed multiple cases in Delhi High Court and approached SEBI, alleging that IHH’s open offer and reclassification as promoter violated takeover norms and undermined its recovery rights.
This triggered a 7-year legal stalemate, delaying IHH’s full control. SEBI only cleared the open offer in October 2025 after Daiichi’s claims were resolved through a separate settlement framework with the Singhs and RBL Bank. The open offers closed on November 10, 2025, with IHH finally increasing its indirect stake to 31.17% in Fortis and 62.73% in Fortis Malar, ending the saga.
Q2 Financial Highlights
Revenue for Q2FY26 rose to Rs. 2,331 crore, an increase of 17.2% year-on-year from Rs. 1,988 crore in Q2FY25 and 7.6% quarter-on-quarter from Rs. 2,167 crore in Q1FY26. The strong sequential and annual growth reflects healthy volume and pricing gains.
Net profit surged to Rs. 329 crore in Q2FY26, marking a 70.5% YoY jump from Rs. 193 crore and a 23.2% QoQ growth from Rs. 267 crore. Over the past three years, profit has grown at a CAGR of 31%, while sales and ROE have posted CAGRs of 11% and 9%, highlighting sustained improvement in margins and return ratios.
Written Fazal Ul Vahab C H
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