Apollo Hospitals to gain from hospital growth, digital business breakeven

Apollo anticipates a 140 basis points hit to operating profit margins in FY26 due to new hospitals

Results of India’s largest listed healthcare company, Apollo Hospitals, for the fourth quarter of 2024-25 (Q4FY25) were a mixed bag. Revenues for the mainstay hospitals business were impacted by lower patient inflows from Bangladesh while occupancy levels too were lower on a sequential basis.

 

Given the expansion in bed capacity going ahead, margins are expected to come down, prompting some brokerages to cut their earnings estimates. Despite the pressure on profitability, most analysts are positive on the stock, given strong hospital sales growth going ahead, breakeven in the digital healthcare business (Healthco), and expansion as well as margin gains in