Apollo Hospital: Checking all boxes on hospital growth, margins & 24/7 loss reduction

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Apollo Hospital: Checking all boxes on hospital growth, margins & 24/7 loss reduction

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Apollo Hospital

Checking all boxes on hospital growth,

margins & 24/7 loss reduction

Reiterate Rating: BUY | PO: 9,200 INR | Price: 8,309 INR

Strong qtr both for hospitals & 24/7 21 May 2026

Apollo Hospitals reported a strong qtr with EBITDA at Rs10.1Bn (5-6% beat) with key Equity

positives being -a) ~13% revenue growth in existing hospitals; b) established hospital

margin expansion to 25.5% (vs FY26 margin at 24.4%) supported by operating leverage;

Key Changesand c) Continued progress towards lower digital losses (Rs164mn in 4Q vs Rs292mn in

3Q). Even as the focus shift on the ramp-up of new beds over FY27-28, we believe the (Rs) Previous Current

strong momentum in existing hospitals & value unlocking of Healthco by the end of the Price Obj. 9,000.00 9,200.00

year should support earnings growth with new hospital losses peaking in FY27. Reiterate 2027E EPS 175.30 179.68

Buy with revised PO Rs9200 (vs. Rs9000 previously with est change in Ex 9) with upside 2028E EPS 237.09 246.57

from re-rating of HealthCo post demerger (integrated retail vs. healthcare services). 2029E EPS NA 291.69

Downside from new hospital losses factored in Neha Manpuria >>

Research Analyst

Apollo commissioned 4 hospitals in the last 2 qtrs, which along with two more hospitals BofAS India

will mean higher new hospital losses in 1HFY27. The company has guided for Rs1.5bn +91 22 6632 8307

losses from new hospital (Rs400Mn in 4Q) with staggered commissioning over neha.manpuria@bofa.com

18months & scope to offset this with existing hospital margin expansion from 25.5% in Charul Agrawal >> Research Analyst

4QFY26. There was confidence in new hospital break-even in FY28 aided by set-up for BofAS India