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Informist, Saturday, Aug. 8, 2026

 

By Narayana Krishna

 

HYDERABAD – Improved occupancy in the hospitals business and steady growth in the pharmacy and clinics segments are likely to help Chennai-based Apollo Hospitals Enterprise Ltd. report healthy earnings growth for the June quarter. Capacity addition in existing hospitals and cost control measures in the digital health platform Apollo 24/7 are also expected to support margin expansion, analysts said.

 

Apollo Hospitals operates its pharmacy business through its subsidiary Apollo HealthCo Ltd., while clinics and diagnostics services are run under Apollo Health and Lifestyle Ltd. Growth in the average revenue per patient and rising occupancy levels are expected to drive the hospitals segment while traction in offline pharmacy distribution and omnichannel initiatives is likely to support Apollo HealthCo's performance.

 

Apollo Hospitals is expected to report a consolidated net profit of about INR 5.6 billion for the June quarter, up 29% on year and 5% on quarter, according to the average of estimates from nine brokerages. Net sales are seen rising 18% on year and 4% on quarter to nearly INR 69 billion.

 

The highest estimate for net profit is INR 6.1 billion from Kotak Securities Ltd. and the lowest is INR 5.3 billion from Elara Securities (India) Pvt. Ltd. For net sales, the highest estimate is INR 69.4 billion from HDFC Securities Ltd., and the lowest is nearly INR 68.0 billion from Elara Securities.
 

Analysts expect the hospitals segment to report an on-year sales growth in the range of 16% to 19%, supported by steady occupancy, increase in average revenue per patient, and new bed additions. While the healthcare industry follows the average revenue per occupied bed as a key growth metric, Apollo Hospitals follows the average-revenue-per-patient model.

 

The company's key subsidiary Apollo HealthCo is likely to report growth of around 17% to 20%, driven by strong performance in pharmacy distribution and omnichannel businesses. Apollo Health and Lifestyle, which operates the Apollo Clinics and diagnostics services business, is expected to post on year growth of about 12% to 14%.

 

HEALTHY MARGINS

Apollo Hospitals' consolidated margins for June quarter are expected to improve over the year, aided by better profitability in Apollo HealthCo and Apollo Health and Lifestyle, along with a reduction in spending on its digital platform Apollo 24/7.

 

Growth in gross merchandise value of the digital platform and a sequential decline in operating expenses for the quarter are also expected to support profitability. However, operating costs related to new hospital additions and higher losses from newly commissioned hospitals are likely to limit the hospital segment's margin expansion on a sequential basis, according to analysts.

 

Apollo Hospitals' consolidated earnings before interest, tax, depreciation, and amortisation for the June quarter are expected at INR 10.4 billion, according to the average of nine estimates, up little over 22% on year and 3% on quarter. The EBITDA estimates ranged from INR 10.3 billion by Elara Securities to INR 10.6 billion by ICICI Securities Ltd.

 

Estimates for EBITDA margin range from 14.9% by Motilal Oswal Financial Services Ltd. to 15.4% by ICICI Securities. The EBITDA margin for the year-ago quarter was 14.6%.

 

Apollo Hospitals will announce its June-quarter earnings Wednesday.

 

Market participants will watch out for details on occupancy levels across hospital clusters, ramp-up of new hospitals, improvement in Apollo HealthCo's profitability, progress towards breakeven in Apollo 24/7, and growth in gross merchandise value of the digital platform.

 

The stock has risen nearly 11% since the announcement of its June quarter earnings on May 20. On Friday, the company shares ended at INR 8,945 on the National Stock Exchange, down 0.33% from their previous close.

 

Of the 11 research reports on the company available with Informist, eight have a "buy" or equivalent recommendation on the stock with an average target price of INR 9,655, while three have a "hold" or equivalent call on the stock with a price target of INR 8,341.

      

Following are the Apr-Jun earnings estimates for Apollo Hospitals Enterprise Ltd. from seven brokerage firms in the descending order by the estimate of net profit, in INR billion:

 

Brokerages	Net Sales	Net Profit	EBITDA
Kotak Securities Ltd.	68.67	6.13	10.32
ICICI Securities Ltd.	68.97	5.68	10.62
Bank of America global research	69.36	5.59	10.51
Motilal Oswal Financial Services Ltd.	69.17	5.53	10.31
Nuvama Wealth Management Ltd.	69.29	5.53	10.46
JM Financial Institutional Securities Pvt. Ltd.	69.26	5.51	10.51
HDFC Securities Ltd.	69.42	5.51	10.45
SMIFS Ltd.	68.35	5.41	10.43
Elara Securities (India) Pvt. Ltd.	67.97	5.29	10.27
Average	68.94	5.58	10.43

 

End

 

Edited by Shubhayan Bhattacharya

 

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