Apollo Hospitals Q3 Profit Soars 35% to Rs 502 Crore

Introduction

Apollo Hospitals Enterprise Ltd announced a robust financial performance for the third quarter ending December 31, 2025, significantly 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 impressive growth was supported by a strong showing across its core healthcare services, pharmacy distribution, and digital health platforms. In a sign of confidence in its sustained operational strength, the company's board also declared an interim dividend of Rs 10 per share for the financial year 2026.

Stellar Financial Performance in Q3

In Q3 FY26, Apollo Hospitals' consolidated revenue from operations grew by a healthy 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.

Broad-Based Segmental Growth

The growth was comprehensive, with all major business segments contributing positively to the top and bottom lines. The company's integrated healthcare model demonstrated its resilience and ability to capture value across the patient care continuum. Each vertical showed strong double-digit revenue growth, indicating solid execution and market demand.

Healthcare Services Division

The core hospitals business registered a 14% YoY revenue growth, reaching Rs 3,183 crore for the quarter. EBITDA for this segment rose 18% to Rs 790 crore, maintaining a strong margin of 24.8%. The profit after tax from hospital services increased by 21% to Rs 422 crore, aided by a healthy overall occupancy rate of 67% across its facilities. This performance was attributed to a better case mix, higher surgical volumes, and strong performance across all regional clusters.

Apollo HealthCo's Standout Quarter

The Apollo HealthCo vertical, which includes the pharmacy distribution and digital health platforms, delivered a standout performance. Its 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 continued its expansion with the addition of 185 new stores during the quarter, bringing the total to 7,113 outlets nationwide.

Apollo Health and Lifestyle (AHLL)

Housing the company's clinics and diagnostics formats, the AHLL 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 significantly 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.

Management Commentary and Strategic Vision

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.

Capacity Expansion and Future Outlook

Apollo Hospitals is actively pursuing its capacity expansion strategy to meet growing healthcare demand. The company recently launched the first phase of a 250-bed quaternary care hospital in Pune, which is planned to eventually expand to 400 beds. This new facility integrates advanced surgical robotics, precision oncology, and comprehensive critical care. 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.

Shareholder Returns

Reflecting the strong financial results and a positive outlook, the Board of Directors declared an interim dividend of Rs 10 per share for the financial year 2025-26. The record date for the dividend payment has been fixed as February 16, 2026. This move signals the management's confidence in the company's ability to generate sustainable cash flows and reward its shareholders.

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 in the Indian healthcare sector.