The PAT rose to Rs 477 crore from Rs 377 crore in the year-ago period, driven by strong growth across its hospital, diagnostics, and digital health verticals.
Consolidated revenue for the quarter grew 13% YoY to Rs 6,304 crore, supported by higher patient volumes and improved margins in both the hospital and retail healthcare segments. The hospital business, or Healthcare Services (HCS) segment, posted a 9% YoY revenue increase to Rs 3,169 crore, with occupancy levels improving to 69%. EBITDA from this segment rose 8% YoY to Rs 781 crore, while PAT rose 13% to Rs 410 crore.
The Apollo Health and Lifestyle Ltd (AHLL) segment, which includes clinics and diagnostics, reported a 17% rise in revenue to Rs 474 crore, with EBITDA improving 21% to Rs 50 crore.
Meanwhile, Apollo HealthCo, which operates the digital health platform Apollo 24|7 and pharma distribution business, delivered a 17% YoY rise in revenue to Rs 2,661 crore, supported by 26% growth in online pharmacy and 18% in offline sales.
The unit reported an EBITDA of Rs 110 crore, and its gross merchandise value (GMV) reached Rs 723 crore.Following the results, global brokerage firm Morgan Stanley reiterated its “Overweight” rating on Apollo Hospitals and maintained a target price of Rs 5,058.The brokerage highlighted the company’s consistent double-digit growth across business segments and noted that the Q2 PAT was slightly above estimates by 2%.
Morgan Stanley cited margin expansion and improving profitability of the digital health platform Apollo 24|7 as key positives. It also emphasized the strong fundamentals of Apollo’s core healthcare services, with a return on capital employed (ROCE) of 30.3% and an improvement in average length of stay (ALOS) to 3.14 days.
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