Apollo Hospitals Enterprise Ltd. share price target

Apollo Hospitals’ (Apollo) hospital biz grew slower at ~9% YoY in Q2FY26, though in line with our expectations. On a high base, occupancy declined to 69% in Q2 while lower international patients and few medical admissions also had an impact.

Apollo Hospitals Enterprises (APHS) delivered largely in-line revenue for the quarter. It delivered better-than expected EBITDA/PAT, led by improved profitability in the hospitals/Healthco business.

Q2FY26 Results- well-rounded growth with continued margin expansion- Revenues grew ~13% YoY to 6303 crore, driven by growth across segments. EBITDA grew 15% to 941 crore and EBITDA Margins improved 34 bps to 14.9%, driven by improved profitability at AHLL (Diagnostic and Retail Healthcare) and Healthcare Services (Hospitals). Healthcare services division (Hospitals) revenues grew 9% YoY to 3169 crore on the back of growth in Inpatient Volume (up 2%) and 7% increase in Price & case...

Apollo Hospitals Enterprise (APHS) reported consolidated EBITDA of Rs8.5bn (up 26% YoY), was 6% above our estimates. Adjusted for 24x7 losses and ESOPs cost (~Rs1.2bn), EBITDA was Rs9.7bn, up 18% YoY. The recent stake sale in HealthCo to Advent and merger with Keimed are a positive step and will lead to an integrated pharmacy distribution business complemented by the fastgrowing omni-channel digital health business. Scale-up in Apollo HealthCo has been on track with likely breakeven in EBITDA of digital business over the next 3-4 quarters. The management guidance of Rs20bn EBITDA of the merged entity by FY28 provides comfort. Further, mgmt. has also announced the...

to ensure non-compete and synergy alignment between AHEL and NewCo, with clear role demarcation - AHEL to focus on core healthcare and NewCo on pharmacy & digital. The demerger was on expected lines and is aimed to unlock value by creating a focused, high-growth platform in the pharmacy and digital healthcare space, which is more consumer centric in nature. The stake sale in HealthCo to Advent and merger with Keimed are a positive step and will lead to an integrated pharmacy distribution business. Scale-up in...

The proposal to demerge the pharmacy business—including offline pharmacy, online and telehealth operations, and Kiemed—into NewCo bodes well for longterm value creation across both the healthcare services (hospital/clinics business) and pharmacy businesses.

Under HealthCo, offline pharmacy revenue grew 16.6% YoY to Rs. 2,084cr as store count rose to 6,626 (vs 6,360 in Q3FY25) and strong private-label sales. Online pharmacy sales grew 22.3% YoY to Rs. 292cr. Apollo got a boost as daily active...

Apollo Hospitals Enterprise (APHS) reported consolidated EBITDA of Rs7.7bn (up 20% YoY), was in line with our estimates. Adjusted for 24x7 losses and ESOPs cost (~Rs1.6bn), EBITDA was Rs9.3bn, up 18% YoY. The recent stake sale in HealthCo to Advent and merger with Keimed are a positive step and will lead to an integrated pharmacy distribution business complemented by the fastgrowing omni-channel digital health business. Scale-up in Apollo HealthCo has been on track with likely breakeven in EBITDA of digital business over the next...

Apollo Hospitals Enterprises (APHS) posted marginally better-than-expected revenue (4% beat), while EBITDA was in line for the quarter. The lower tax rate led to better-than-expected earnings for the quarter.

APHS has chalked out plans to add 2,860 beds over the next three years in its current base of 7,942 operating beds. Also, the occupancy remains high at 68-69%, boosting margins of the hospital business as well.

Apollo Hospital and Enterprise (AHEL) delivered better-than-expected 2QFY25 on account of improved occupancy and reduced operating costs at Healthco.

Apollo Hospitals’ (Apollo) Q1FY25 revenue and EBITDA were in-line with our estimates. Apollo is aiming for a 100bps improvement in its hospital margins driven by a 7% YoY increase.

Apollo Hospitals (APHS) delivered in-line 1QFY25 performance. The hospital business was largely driven by higher volume of in-patients/out-patients.