Apollo Hospitals (APLH.BO): Accelerating Growth, Healthy Returns and Re-Rating Potential

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Apollo Hospitals (APLH.BO): Accelerating Growth, Healthy Returns and Re-Rating Potential

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21 Jul 2026 12:58:25 ET │ 23 pages

Apollo Hospitals (APLH.BO)

Accelerating Growth, Healthy Returns and Re-Rating Potential

CITI'S TAKE

Apollo’s hospitals business is entering an accelerated growth phase, with

EBITDA expected to grow at ~18% CAGR over FY26–29E versus ~14% in

FY24–26, driven by better utilization of newly hired specialists, recovery in Buy

Bangladesh patient inflows, and a strong expansion pipeline. New hospitals Price (21 Jul 26 15:30) Rs8,917.75

are expected to drive a sharper earnings inflection from FY28E, while

Target price Rs10,770.00hospitals ROCE could approach 30% by FY29E. Meanwhile, HealthCo is

transitioning into a value creator, supported by narrowing digital losses, Expected share price return 20.8%

continued pharmacy growth, and synergies from Keimed. However, Apollo’s Expected dividend yield 0.3%

hospitals business continues to trade at a discount to peers, leaving scope

Expected total return 21.1%for further valuation re-rating. We maintain our preference order in

hospitals: Apollo> Max> Fortis. Please see our Jan’26 note. Market Cap Rs1,282,236M

US$13,594M

Growth acceleration in hospitals business — Apollo’s hospitals business is

entering a stronger growth phase, supported by robust expansion plans and

improving performance at mature hospitals. We forecast 18% EBITDA CAGR over

FY26–29E (vs. ~14% over FY24–26), driven by recovering Bangladesh volumes, Price Performance

higher doctor productivity from recently hired specialists, and meaningful

(RIC: APLH.BO, BB: APHS IN)contributions from new hospitals from FY28E onward. This growth is expected to be

achieved while maintaining healthy margins and sector-leading returns.