Apollo Hospitals PAT up 26% in Q2; eyes HealthCo breakeven within 2 qtrs

Strong revenue growth and specialty performance boost Apollo Hospitals' Q2 earnings, even as HealthCo narrows losses by half and targets breakeven in the next two quarters

Leading hospital chain Apollo Hospitals Enterprises Ltd (Ahel) has posted consolidated net profits of ₹477 crore during the second quarter this financial year, up 26 per cent from ₹379 crore during the same period last financial year.

 

This was driven mainly by a rise in revenue of 13 per cent from ₹5,589 crore in Q2FY25 to ₹6,304 crore last quarter.

 

The company said its HealthCo business was expected to achieve a breakeven in the next two quarters.

 

The chain’s earnings before interest, tax, depreciation, and amortisation (Ebitda) were ₹941 crore during the period as against ₹816 crore in Q2FY25.

 

It saw diluted earnings per share of ₹33.19 per share in Q2 FY26.

 

Apollo Hospitals had 8,050 operating beds in its network, and the occupancy rate for hospitals was 69 per cent during the quarter versus 73 per cent in the same period in the previous year.

 

“On the three lines of business, we have done well. Last year, we had a higher incidence of seasonal medical admission, leading to a high base, whereas medical admission was low in Q2FY26. This low growth in medical admission was partly offset by a 14 per cent increase in revenue from CONGO Specialties (cardiac, oncology, neurosciences, gastroenterology, and orthopaedics),” said Krishnan Akhileswaran, group chief financial officer.

 

The reduction in patients from Bangladesh had an impact of 1 per cent on health care revenue in Q2FY26.

 

Akhileswaran said average revenue per inpatient admission during the quarter was ₹1.73 lakh compared to ₹1.6 lakh last year.

 

“This signifies that we are doing quite a bit of high-complexity work. The impact of Bangladesh was around ₹25 crore during the current quarter. We are seeing some increase in patients from Bangladesh. We are looking at Iraq, West Asia, and Africa too. Once Gurugram starts, growth will happen,” he added.

 

The company is looking to operate and manage a hospital in Iraq. “Despite a dip in inflows from Bangladesh, we have witnessed a 1.5 per cent increase in the number of overseas patients,” he added.

 

The consolidated revenue of the health care service division increased 9 per cent to ₹3,169 crore in Q2FY26 compared to ₹2,903 crore in Q2FY25.

 

Ebitda was at ₹781 crore in Q2FY26 compared to ₹722 crore in Q2 FY25.

 

Ebitda was higher by 8 per cent year-on-year. Apollo Health and Lifestyle’s gross revenue was seen at ₹474 crore, up 17 per cent versus last year.

 

Its diagnostics revenue stood at ₹183 crore and Spectra at ₹73 crore.

 

Akhileswaran added in the HealthCo business it managed to bring down Ebitda losses from ₹80 crore in the same quarter last year to ₹40 crore now.

 

“We hope to bring it to breakeven in the next two quarters,” he said. Its revenues in offline pharmacy distribution were seen at ₹2,335 crore in Q2FY26, while revenues from the digital platform were at ₹326 crore.

 

Overall HealthCo revenues were at ₹2,661 crore, representing 17 per cent year-on-year growth.