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Apollo Hospitals Enterprise Limited captured market attention with a strong financial performance for the quarter ended June 30, 2025, reporting a 42% year-on-year jump in consolidated net profit to ₹433 crore. The results beat analyst estimates and highlight robust growth across its core hospital services, diagnostics, and digital health segments. Supported by margin improvement and strategic investments, Apollo continues to strengthen its leadership position in India’s healthcare sector.
Key Highlights of Q1 FY26 Financial Performance:
Consolidated net profit surged 42% from ₹305 crore in Q1 FY25 to ₹433 crore, outperforming the consensus estimate of around ₹377 crore.
Revenue grew 15% year-on-year to ₹5,842 crore, driven by healthy volumes and a rising average revenue per patient across divisions.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 26% to ₹852 crore, resulting in an expanded EBITDA margin of 14.6%, up 130 basis points.
The core healthcare services segment contributed ₹2,935 crore in revenue (up 11%), with an EBITDA of ₹718 crore and a margin of 24.5%.
Digital health and pharmacy arm, Apollo HealthCo, posted 19% revenue growth to ₹2,472 crore and swung to a profit of ₹57 crore from a loss a year earlier.
Apollo Health and Lifestyle Limited recorded a 19% revenue increase and improved its loss position.
Operational and Business Developments:
Hospital occupancy stood at 65%, slightly down from 68% a year ago, but inpatient volumes rose 3% with a 9% increase in average revenue per patient.
Apollo 24/7, the company’s digital platform for teleconsultations, diagnostics, and pharmacy deliveries, saw gross merchandise value rise 23% to ₹682 crore.
The total number of pharmacy stores increased by 116 during the quarter, reaching 6,742 outlets.
Apollo completed 6,000 pediatric cardiac surgeries at its children’s hospitals, showcasing clinical excellence.
The board approved acquiring the remaining 50% stake in Apollo Gleneagles PET-CT Private Limited, making it a wholly owned subsidiary to improve integration and operational efficiency.
Strategic Initiatives and Forward-Looking Guidance:
Apollo announced plans to invest ₹7,600 crore over the next five years to add over 4,300 hospital beds, including expansions in Bengaluru and Hyderabad to meet rising healthcare demand.
New digital health initiatives launched include Apollo Zen, an AI-powered preventive health program, and OraLife, an early oral cancer detection platform.
The company reaffirmed its guidance for double-digit revenue growth for the fiscal year 2026.
Apollo Healthtech Ltd., comprising the digital health and pharmacy business, is being demerged to unlock value and focus capital allocation.
Management Commentary:
Chairman Dr. Prathap C Reddy attributed the strong quarterly results to Apollo’s integrated healthcare model leveraging hospitals, retail health, diagnostics, and digital distribution for comprehensive care delivery. He highlighted that all three growth engines meaningfully contributed to earnings, underscoring operational resilience and strategic foresight amid evolving healthcare needs.
Market and Investor Response:
Shares of Apollo Hospitals remained in focus following the earnings release, reflecting investor confidence in sustainable growth prospects and margin expansion. The company’s diversified business lines, cutting-edge clinical services, and innovative digital health platforms position it strongly for long-term value creation in the rapidly expanding Indian healthcare market.
In summary, Apollo Hospitals Enterprise Limited’s Q1 FY26 results demonstrate robust profitability with a 42% net profit increase, backed by healthy revenue growth and operational efficiencies across its healthcare and digital businesses. Strategic expansions and digital innovation initiatives further solidify Apollo’s commitment to transforming healthcare delivery in India.
Source: Apollo Hospitals Enterprise Limited official disclosures, Moneycontrol, CNBC-TV18, NDTV Profit, Economic Times, Upstox, Business Standard,
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