Apollo Hospitals Q3 Profit Jumps 35%, Declares Rs 10 Dividend

Introduction

Apollo Hospitals Enterprise Ltd. announced a robust financial performance for the third quarter ending December 31, 2025, surpassing market expectations. The healthcare major reported a 35% year-on-year (YoY) increase in its consolidated net profit, which stood at Rs 502 crore. This growth was supported by a strong showing across its core healthcare services, pharmacy distribution, and digital health platforms. The company's board also declared an interim dividend of Rs 10 per share for the financial year 2026, signaling confidence in its sustained operational strength and financial health.

Stellar Financial Performance in Q3

In Q3 FY26, Apollo Hospitals' consolidated revenue from operations grew by 17% YoY to Rs 6,477 crore, up from Rs 5,527 crore in the corresponding quarter of the previous year. This performance exceeded analyst estimates, reflecting higher patient volumes and an improved payer mix. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a significant 27% increase to Rs 965 crore. This was achieved even after absorbing costs of Rs 124 crore related to its digital platform, Apollo 24/7. Consequently, the operating margin expanded to 14.9% from 13.8% a year ago, underscoring improved cost efficiencies across the network.

Segment-Wise Breakdown

The growth was broad-based, with all major business segments contributing positively to the top and bottom lines.

Healthcare Services Leads the Charge

The core hospitals business registered a 14% YoY revenue growth, reaching Rs 3,183 crore. EBITDA for this segment rose 18% to Rs 790 crore, with a strong margin of 24.8%. The profit after tax from hospitals increased by 21% to Rs 422 crore, aided by an overall occupancy rate of 67% across its 8,072 operating beds. The performance was consistent across various regional clusters, indicating widespread demand and operational efficiency.

Apollo HealthCo's Profitability Soars

This vertical, which includes the pharmacy distribution and digital health platforms, delivered a standout performance. Revenue increased by 20% YoY to Rs 2,827 crore. More notably, its EBITDA more than doubled to Rs 128 crore from Rs 57 crore in Q3 FY25, with margins improving to 4.5%. The segment's profit after tax surged to Rs 87 crore, a substantial rise from Rs 32 crore a year earlier. The pharmacy network expanded with the addition of 185 new stores, bringing the total to 7,113.

Apollo Health and Lifestyle Narrows Losses

Housing the company's clinics and diagnostics formats, this segment also reported healthy growth. Revenue was up 20% YoY to Rs 467 crore. EBITDA jumped 39% to Rs 48 crore, leading to an improved margin of 10.2%. The segment's net loss narrowed to Rs 6 crore from Rs 8 crore in the previous year, indicating a clear path towards profitability driven by better scale and operating leverage.

Key Financial Highlights (Q3 FY26 vs Q3 FY25)

Shareholder Returns and Dividend Announcement

Reflecting its strong financial position, the Board of Directors declared an interim dividend of Rs 10 per equity share for the financial year 2025-26. The company has fixed February 16, 2026, as the record date for determining shareholder eligibility. The dividend payment will be completed on or before February 27, 2026.

Management Commentary and Clinical Excellence

Dr. Prathap C. Reddy, Chairman of Apollo Hospitals, stated that the quarter's results reflect the "fundamental strength and clinical depth" of Apollo's integrated healthcare model. He highlighted significant progress in advanced clinical capabilities, including the completion of 150 robotic joint replacement surgeries in 150 days at its OMR facility and the expansion of its stroke care network in Chennai. The company also continues to build on its leadership in organ transplants, performing an average of five solid organ transplants daily.

Strategic Expansion and Future Outlook

Apollo Hospitals is actively pursuing its capacity expansion strategy. The company recently launched the first phase of a 250-bed quaternary care hospital in Pune, which will eventually expand to 400 beds. Looking ahead, the management anticipates continued double-digit revenue growth for the full financial year, supported by new hospital openings planned in Patna and Jaipur. The company also aims to strengthen its international patient services and deepen partnerships to enhance community health initiatives.

Market Reaction

Ahead of the earnings announcement on February 10, 2026, the shares of Apollo Hospitals Enterprise Ltd. closed marginally higher at Rs 7,216 on the National Stock Exchange. The strong results, which beat street estimates on multiple fronts, are likely to be viewed positively by the market.

Conclusion

Apollo Hospitals' third-quarter performance demonstrates robust operational execution and financial discipline. The significant profit growth, driven by strong performance across all its business verticals, highlights the success of its integrated healthcare delivery model. With a clear strategy for capacity expansion and continued investment in clinical excellence and digital health, the company is well-positioned for sustained growth.