Apollo Hospitals Accelerating hospital growth with digital breakeven and healthco listing on horizon

Research evidence excerpt

Apollo Hospitals Accelerating hospital growth with digital breakeven and healthco listing on horizon

J P M O R G A N Asia Pacific Equity Research

22 May 2026

Apollo Hospitals Overweight

APLH.NS, APHS IN

Accelerating hospital growth with digital breakeven and Price (21 May 26):Rs8,308.50

healthco listing on horizon ▲Price Target (Mar-27):Rs9,900.00 Prior (Mar-27):Rs9,800.00

We reiterate OW on Apollo Hospitals supported by: 1) 17%/16% revenue/

EBITDA CAGR in the core hospital business over the next two years driven by Pharmaceuticals & Healthcare

Serviceshealthy ARPP growth and bed expansion; 2) digital health business nearing cash

breakeven, reducing the earnings drag; and 3) HealthCo demerger and eventual Bansi Desai, CFA AC

listing (estimated Q4FY27) as a meaningful value-unlocking catalyst. (91 22) 6157 3581

bansi.desai@jpmorgan.com

Importantly, we expect better recognition of the value in Apollo’s hospital

business, which is scaling at a healthy pace while delivering ~16% post-tax ROCE Amlan Jyoti Das

(91 22) 6157 3574

in FY26 (incl CWIP), higher than most listed peers, highlighting value-accretive amlan.das@jpmchase.com

expansion. At current levels, the stock implies ~27/23x EV/EBITDA for the J.P. Morgan India Private Limited, J.P. Morgan

hospital segment, a ~5-10% discount to the sector average, which we view as Tower, Santacruz(E), Mumbai - 400098, SEBI Registration: INH000001873, (91-22) 6157-3000.

unwarranted given Apollo’s scale, growth visibility and return profile. Our Mar-27

PT is Rs9,900 (refer tables 4-8 for key forecasts and SOTP).

Style Exposure

• Broad-based beat on revenues and EBITDA: 4Q revenues at Rs66.1bn

(+18% YoY) were led by hospitals (+16% YoY), offline pharmacy (+21%

YoY), and AHLL (+24% YoY), while digital health (+13% YoY) was softer.