Hospital stocks: Apollo, Aster DM, HCG, Fortis, Max rally up to 6%

Apollo Hospitals Enterprise has surged 6 per cent to ₹7,640 after the company's hospitals business maintained a strong profitability in Q3FY26.

Hospital stocks price today

 

Shares of the companies engaged in hospital business rallied up to 6 per cent on the BSE in Wednesday’s intra-day trade in an otherwise tepid market.

 

Aster DM Healthcare, HealthCare Global Enterprises (HCG), Fortis Healthcare, Narayana Hrudayalaya, Max Healthcare Institute, Apollo Hospitals Enterprise, Krishna Institute of Medical Sciences (KIMS) and Yatharth Hospital & Trauma Care Services were up in the range of 3 per cent to 6 per cent. In comparison, the BSE Sensex was down 0.11 per cent at 84,180 at 01:20 PM.

 

Why did hospital stocks rally on Wednesday?

 

Among individual stocks, Apollo Hospitals Enterprise surged 6 per cent to ₹7,640 after the company’s hospitals business maintained strong profitability with optimum case mix and payor mix. 

 

 

In the December 2025 quarter (Q3FY26), the company’s revenue grew 17 per cent year-on-year (YoY) to ₹6,477 crore, driven by growth across segments. Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 27 per cent to ₹965 crore and EBITDA margins improved 112 bps to 14.9 per cent, driven by improved profitability at AHLL (Diagnostic and Retail Healthcare) and Healthcare Services (Hospitals). Consolidated profit after tax grew 35 per cent YoY at ₹502.3 crore.

 

The company has embarked upon a massive capex plan to add 4,444 beds across India with a spend of over ₹8,200 crore (₹2,800 crore already incurred) in the next 4 years across India. Structurally, cost reduction drives, expansion of complex procedures and profitability of new hospitals remain key management focus areas, ICICI Securities said in a note. 

 

Meanwhile, Max Healthcare Institute maintains a positive multi-year outlook, underpinned by 6–7 per cent average revenue per occupied bed (ARPOB) growth in mature hospitals and a sustained network occupancy target of 80 per cent. This trajectory is reinforced by an aggressive expansion plan, on track to add ~1,500 beds in FY26, including the recently commissioned 160-bed expansion at Max Mohali and phased commissioning at Nanavati Max (Mumbai) and Max Smart (Saket). 

 

The management expects a meaningful long-term tailwind from the recent Central Government Healthcare Scheme (CGHS) rate revision, translating into a revenue uplift of ₹140 crore. Given the largely fixed cost base, 85–90 per cent of this incremental revenue is expected to flow through to EBITDA. While partial benefits should accrue in the near term, the full impact—particularly from the newly introduced “super-speciality hospital” category, which carries a 15 per cent higher tariff—should materialise from FY27 onwards. Concurrently, the company remains focused on scaling high-margin oncology services and international patient volumes, which should further support margin normalisation and earnings compounding over the medium term, analysts at Axis Securities said.  

 

Meanwhile, the Union Budget provides an important tailwind to India’s aspiration to become a global destination for healthcare. The proposal to support states in establishing five regional medical hubs through public–private partnership is a strategic step towards building a high-quality, well-coordinated Medical Value Travel ecosystem.

 

These Medical Hubs will function as integrated healthcare complexes combining medical, educational and research facilities. This should benefit hospitals like Narayana Hrudayalaya, Apollo Hospitals, etc. having a significant portion of the revenues from the international patients, believe analysts.  ===========================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.