Apollo Hospitals Shares Surge to Record High on Solid Q1 Earnings

Shares of Apollo Hospitals Enterprise soared nearly 7% to an all-time high of ₹7,719 on August 13, as investors welcomed the company’s strong June quarter results and its expansion plans.

For the June quarter, the healthcare services giant reported a 42% year-on-year rise in consolidated net profit to ₹433 crore, supported by broad-based growth across its hospital, diagnostics, and digital health businesses. Revenue grew 15% to ₹5,842 crore, while Ebitda rose 26% to ₹852 crore, aided by margin gains and operational efficiencies.

Chairman Dr Prathap C Reddy credited the results to Apollo’s integrated care model and investments in digital platforms and infrastructure. “Our three growth engines—Healthcare Services, Retail Health & Diagnostics, and Digital & Pharma Distribution, have all contributed meaningfully,” he said in an exchange filing.

Apollo’s flagship hospital segment posted an 11% growth in, driven by a 3% rise in inpatient volumes and an 11% increase in average revenue per patient. Margins improved by 89 basis points, though overall occupancy fell by 300 basis points to 65%. HealthCo revenues rose 19%, with margins expanding by 41 basis points and the division turning profitable for the first time.

On the digital front, Apollo 24/7 achieved a quarterly gross merchandise value (GMV) of over ₹682 crore, sustaining the platform's momentum and signalling the continuing strong demand for tele-consultations, lab and pharmacy deliveries.

Looking ahead, Apollo plans to add more than 4,300 beds over the next five years, with a capital outlay of ₹7,600 crore, including expansions in Bengaluru and Hyderabad.

International patients are expected to contribute 7% of revenue, returning to earlier levels. Apollo also plans to open four hospitals in the third and fourth quarters of FY26, adding 500 beds. Managing Director Suneeta Reddy told CNBC-TV18 the company is positioned for growth in both brownfield and greenfield projects.

Brokerage opinions were mixed. Nomura maintained a ‘neutral’ rating with a target price of ₹6,856, citing in-line revenue but stronger-than-expected Ebitda. Citi Research kept its ‘buy’ rating with a target of ₹8,260, pointing to margin gains in both HealthCo and Hospitals.