Apollo Hospitals Q3 Profit Soars 35% to Rs 502 Crore, Dividend Declared

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.

Consolidated Financial Highlights

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 reflects 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.

Shareholder Returns: 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. This represents 200% of the face value of Rs 5 per share. 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, to all eligible equity shareholders.

Segment-Wise Performance Breakdown

The growth was broad-based, with all major business segments contributing positively to the quarter's success.

Healthcare Services: 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.

Apollo HealthCo: 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 (AHLL): 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.

Q3 FY26 Performance Summary

Strategic Expansion and Clinical Advancements

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. This new facility integrates advanced technologies like surgical robotics and precision oncology.

Chairman Dr. Prathap C. Reddy commented that the quarter reflects the “fundamental strength and clinical depth” of Apollo’s integrated care model. He highlighted progress in high-complexity specialties, including completing 150 robotic joint replacements at Apollo OMR and expanding the stroke care network in Chennai. The company also continues its leadership in transplants, performing an average of five solid organ transplants daily.

Year-to-Date Financials and Market Reaction

For the nine months ending December 31, 2025, Apollo's consolidated revenue grew 15% to Rs 18,623 crore, while net profit increased by 34% to Rs 1,412 crore, underscoring sustained operating leverage. 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.