Apollo Hospitals has posted impressive earnings for the second quarter of the fiscal year, leading to a significant surge in its stock price.
Shares of Apollo Hospitals Enterprise climbed more than 6 percent, hitting a record high of Rs 7,433.65 on November 7, as investors reacted positively to the company’s strong performance in the July-September period.
As of 09:19 AM, the stock was trading at Rs 7,405 on the National Stock Exchange (NSE).
The healthcare giant exceeded market expectations with a remarkable 59 percent increase in consolidated net profit, which rose to Rs 395.7 crore, compared to Rs 248.8 crore in the same quarter of the previous year.
The company also saw its revenue grow by more than 15 percent, reaching Rs 5,589.3 crore, up from Rs 4,846.9 crore in the year-ago period. Both profit and revenue figures outpaced the estimates of Rs 361 crore and Rs 5,518 crore, respectively, highlighting Apollo’s robust performance across key financial metrics.
This stellar growth was driven by mid-teens growth across all segments of Apollo’s business, reflecting increased demand for its healthcare services.
Notably, Apollo HealthCo, the company’s digital health and pharmacy vertical, which operates the 'Apollo 24/7' platform and offers online consultations, turned profitable this quarter.
The segment reported a profit of Rs 38.9 crore, a significant turnaround from the loss it posted in the same period last year, further bolstering the company’s overall margins.
Apollo’s flagship hospitals also contributed to the positive performance, with improved occupancy rates. The occupancy level for its hospitals business rose to 73 percent in Q2, up from 68 percent a year earlier, driven by a strong increase in patient volumes.
This, coupled with better performance across other business segments, helped the company expand its EBITDA margin to 14.16 percent, up from 12.9 percent in the same quarter of the previous fiscal year.
In addition to its strong financial results, Apollo Hospitals outlined significant expansion plans to strengthen its healthcare footprint. The company announced two major projects, including a definitive agreement to build and operate a 500-bed hospital in Mumbai, Maharashtra.
Furthermore, Apollo plans to expand its Lucknow facility, increasing its capacity from 300 to 500 beds, leveraging a recently acquired 1.2-acre plot.
These expansions are part of Apollo's broader strategy to add over 3,500 beds across 11 locations in India over the next four years, underscoring the company’s commitment to growth and enhancing healthcare accessibility across the country.
