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Informist, Tuesday, May 19, 2026

By Gunjan Rajput

NEW DELHI - Apollo Hospitals Enterprise Ltd. is expected to post a strong rise in its net profit and revenue for the March quarter, driven by healthy performance in its hospital business and pharmacy segment, according to analysts.

 

The Chennai-headquartered company is expected to report a net profit of INR 4.75 billion, up 22% on year, for the quarter, according to an average of estimates from nine brokerages. However, sequentially, the net profit is likely to decline 9%. The highest estimate for the bottom line is INR 5.29 billion from Equirus Securities Pvt. Ltd. and the lowest is INR 4.50 billion from Elara Securities (India) Pvt. Ltd. Equirus Securities said there will be strong growth in the hospital business though margins could moderate because of losses in new facilities. The pharmacy business is also expected to see continued scaling up in the reporting quarter. 

 

Apollo Hospitals is expected to report revenue of INR 64.52 billion for the reporting quarter, up 15% on year and largely flat sequentially, according to the average of estimates. The highest estimate for the top line is INR 66.83 billion from Kotak Securities Ltd. and the lowest is INR 63.80 billion from JM Financial Institutional Securities Pvt. Ltd.

The revenue growth is expected to be driven by the hospital business, supported by bed additions, ramping up of new facilities, and higher revenue per patient, according to Kotak Securities.

The hospital business is set to grow by 12-21% on year for the reporting quarter, according to the brokerages. This growth is supported by bed additions and higher average revenue per patient. Average revenue per occupied bed is expected to have grown in the high single digit on year, according to Nuvama Wealth Management Ltd.

 

The pharmacy distribution business is likely to grow in the range of 17-19% on year for the March quarter. The digital health platform subsidiary Apollo HealthCo Ltd. is also likely to boost growth, driven by strong offline sales and continued scaling up in Apollo 24/7, with an improvement in digital losses. "HealthCo's performance is likely to be driven by strong gross merchandise value growth along with easing earnings before interest, tax, depreciation, and amortisation losses in Apollo 24/7," said SMIFS Ltd. 

 

The company's EBITDA is pegged at INR 9.38 billion, up nearly 22% on year, according to the average of estimates. The highest estimate for the EBITDA is INR 9.80 billion from Nuvama and the lowest is INR 9.11 billion from SMIFS.

"EBITDA is projected to increase 18% YoY (year-on-year) but decline 6% QoQ (quarter-on-quarter), primarily due to losses from newly commissioned hospitals impacting the hospital segment," according to SMIFS. "Consequently, EBITDA margins are expected to expand by 41 basis points YoY (year-on-year) but contract by 72 basis points QoQ (quarter-on-quarter) to 14.2%."

However, on a sequential basis, EBITDA margins may come under pressure due to losses from newly commissioned hospitals and continued investment in Apollo 24/7. 

 

In April 2026, Apollo Hospitals Enterprise acquired 755,744 equity shares in its subsidiary Apollo Health and Lifestyle Ltd. for INR 186.9 million. Following this, Apollo Hospital's shareholding in the company increased to 100%. Key factors to watch in the March quarter earnings are the cost trajectory of Apollo 24/7, updates on capital expenditure, and how fast the pharmacy business has been scaled up.

 

For the financial year 2025-26 (Apr-Mar), the company is expected to report a consolidated net profit in the range of INR 18.95 billion and INR 19.03 billion. The highest estimate for net profit is from Prabhudas Lilladher Pvt. Ltd. while the lowest is from Motilal Oswal Financial Services Ltd. The company's revenue for FY26 is expected to be in the range of INR 250.05 billion to INR 250.74 billion. The highest and lowest estimates for revenue are once again by the same respective brokerages.

 

Apollo Hospitals will declare its March quarter results Wednesday. Tuesday, the stock closed at INR 8,026 on the National Stock Exchange, largely flat from Monday's close. The shares are up over 6% since the company reported its December quarter results. 

 

Of the 11 brokerage reports on the company available with Informist, nine have a "buy" recommendation on the stock with an average target price of INR 8,995, nearly 12% higher than the current market price. The remaining two have a "hold" call with an average target price of INR 7,685.

 

The following are the March quarter earnings estimates, in INR billion, for Apollo Hospitals Enterprise from nine brokerages in descending order of the net profit estimate:
 

Brokerage	Net Sales	Net Profit	EBITDA
Equirus Securities Pvt. Ltd.	64.32	5.29	9.60
Prabhudas Lilladher Pvt. Ltd.	64.51	4.91	9.68
Nuvama Wealth Management Ltd.	64.81	4.82	9.80
ICICI Securities Ltd.	63.86	4.74	9.16
SMIFS Ltd.	64.24	4.68	9.11
Motilal Oswal Financial Services Ltd.	63.82	4.68	9.19
JM Financial Institutional Securities Pvt. Ltd.	63.80	4.58	9.30
Kotak Securities Ltd.	66.83	4.57	9.24
Elara Securities (India) Pvt. Ltd.	64.50	4.50	9.30
Average	64.52	4.75	9.38

End

 

Edited by Rajeev Pai

 

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