Company Update : Apollo Hospitals Enterprise Ltd by Motilal Oswal Financial Services Ltd
Improved hospital performance leads to a beat on earnings
* Apollo Hospitals (APHS)’s 2QFY26 revenue grew 13% YoY to INR63.0b (our est: INR61.4b).
* Healthcare services revenue grew 9% YoY to INR31.7b, driven by growth in both inpatient volume (+2%) and price & case mix (+7%). Healthco revenue grew 17% YoY to INR26.6b. AHLL revenue grew 17% YoY to 4.7b, primarily driven by growth in diagnostics.
* EBITDA margin expanded by 30bp YoY to 14.9% (our est: 14.5%). EBITDA grew 15.4% YoY to INR9.4b (our est: INR8.9b).
* Adj. PAT grew 26% YoY to INR4.8b (our est: INR4.4b).
* Revenue/EBITDA/PAT grew 14%/20%/33% YoY to INR121.5b/INR17.9b/ INR9.1b in 1HFY26.
Other Key Highlights:
Hospital
* Hospital EBITDA grew 8% YoY to INR7.8b for 2QFY26.
* Occupancy for 2QFY26 is 69% vs 73% in 2QFY25.
* Average revenue per inpatient increased 9% YoY to INR173,318 in 2QFY25. Inpatient ALOS dipped 6.3% to 3.1 days in 2QFY26.
* Outpatient/inpatient volume increased by 5.1%/1.9% YoY in 2QFY26.
HealthCo
* Healthco achieved a superior EBITDA of INR1,100m for 2QFY26 vs INR520m in 2QFY25. EBITDA margins stood at 4.1% in 2QFY26.
* Platform GMV grew 16% YoY to INR7.2b.
* About 186 new stores opened in 2QFY26, taking the total to 6,928 stores.
* Average run rate increased by 10.4% YoY to 74K/day orders across pharma and diagnostics consultations (including IP/OP referrals) in 2QFY26.
AHLL
* EBITDA grew by 21% YoY in 2QFY26 to INR500m.
* Revenue/EBITDA of primary care grew by 14%/1% YoY to INR1,242/206m in 2QFY26.
* Revenue of specialty care grew 4% YoY to INR1,884m in 2QFY26, while EBITDA remained stable YoY at INR208m.
* Revenue/EBITDA of diagnostics grew by 36%/22% to INR1,827/220m in 2QFY26
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