Revenue for Q3FY26 came in at Rs 6,477 crore, registering growth of 17% from Rs 5,527 crore in the year ago quarter. EBITDA increased to Rs 965 crore from Rs 762 crore in Q3FY25, after accounting for Apollo 24/7 costs of Rs 124 crore during the quarter.
The healthcare services business reported revenue of Rs 3,183 crore, up 14% YoY from Rs 2,785 crore, while EBITDA rose 18% to Rs 790 crore. Margins improved to 24.8%, and profit after tax from the segment increased 21% to Rs 422 crore, supported by higher occupancy levels, better case mix and cost efficiencies.
Apollo Health and Lifestyle posted revenue growth of 20% YoY to Rs 467 crore, with EBITDA rising 39% to Rs 48 crore and margins expanding to 10.2%. The segment reported a net loss of Rs 6 crore, narrowing from Rs 8 crore in the corresponding quarter last year.
Apollo HealthCo delivered a strong profitability improvement, with revenue rising 20% YoY to Rs 2,827 crore. EBITDA more than doubled to Rs 128 crore from Rs 57 crore, while margins improved to 4.5%. Profit after tax for the segment increased to Rs 87 crore from Rs 32 crore in Q3FY25.
Chairman Prathap C Reddy highlighted sustained investments in advanced clinical capability, including robotic joint replacement surgeries at Apollo OMR and expansion of the stroke care network in Chennai with nine advanced stroke labs. The company also said it will work with policymakers and state partners to strengthen international patient pathways, expand high acuity capacity and improve coordination across the care continuum.
Should you buy, sell or hold?
Citi has maintained its Buy rating on Apollo Hospitals with a target price of Rs 9,600, noting that the company’s Q3 EBITDA beat was driven primarily by strong performance in the hospitals business, where margins expanded by around 60 bps YoY. The brokerage highlighted that healthcare services revenue grew about 15% YoY, supported by improving ARPOB trends, while pharmacy losses narrowed sharply and the diagnostics segment remained strong. Citi also pointed out that the stock is currently trading below its historical averages and continues to be its preferred pick in the India hospitals space.Apollo Hospitals shares have risen 15% in the last 1 year.
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