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Robust growth in revenue; EBITDA/PAT exceed estimates

• Apollo Hospitals’ (APHS) 1QFY26 revenue grew 15% YoY to INR58.4b (est. INR57.3b).
• Healthcare services revenue grew 11% YoY to INR29.4b. HealthCo revenue rose 18.7% YoY to INR24.7b. AHLL revenue grew 18.8% YoY to INR4.4b.
• EBITDA margin expanded by 130bp YoY to 14.6% (our est. 13.6%) due to lower employee costs and other expenses (22bp/117bp YoY as % sales), offset by an increase in RM costs (26bp YoY as % sales).
• EBITDA grew 26.2% YoY to INR8.5b (surpassing our estimate of INR7.8b).
• Adj. PAT grew 41.8% YoY to INR4.3b (our est: INR3.8b). Hospital segment highlights:
• Hospital EBITDA grew 15% YoY to INR7.2b and EBITDA margin expanded 90bp YoY to 24.5%.
• Average revenue per patient rose 9% YoY to INR172,282.
• Occupancy stood at 65% vs. 68% in 1QFY25.
• ALOS decreased by 6% to 3.1 days.

HealthCo performance snapshot:

• HealthCo reported EBITDA of INR940m vs. INR230m in 1QFY25. EBITDA margins stood at 3.8%.
• Platform GMV grew 23% YoY to INR6.8b. ? A total of 6,742 operating stores as of 1QFY26.

AHLL segment highlight:

• Revenue/EBITDA grew by 19%/31% YoY to INR4.4b/INR400m.
• Revenue of primary care increased by 17% YoY to INR1.1b.
• Revenue of specialty care rose 9% YoY to INR1.9b.
• Network collection centers increased by 65 centers YoY to 2173 centers.

Other highlights

• APHS is on track to add 4370 beds through acquisitions and brownfield and greenfield expansions over the next 3-4 years in India.

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