Apollo Hospitals share price rises 6% to 1-year high as Q2 results beat Street expectations

Stock Market Today: Apollo Hospitals Enterprise share price gained more than 6% to its one-year high in the morning trade on Thursday, November 7. The rise can be attributed to Apollo Hospital's better-than-expected operational performance in the second quarter of financial year 2025 (Q2 FY25).

Apollo Hospitals Enterprise share price opened at ₹7,260 on the BSE on Thursday, over 4% higher than its previous close. Apollo Hospitals Enterprise share price gained further to intraday highs of ₹7,435.40, scaling its highest level in a year or 52 weeks, marking gains of more than 6%.

Q2 performance

Apollo Hospitals reported a 15% year-on-year rise in its consolidated revenue to ₹5,589 crore in Q2 FY25. Meanwhile, EBITDA (earnings before interest tax depreciation and amortisation) grew 30% YoY to ₹816 crores. The strong growth in operating profits coupled with a slightly lower tax rate resulted in a net profit growth of 63% YoY to ₹379 crore.

Apollo Enterprise's EBITDA margins came in at 14.6%, slightly higher than 13.3% reported in the previous quarter and 12.9% in the year-ago quarter. Notably, the margins were highest in the last five quarters at least.

Operational performance beat estimates

The operational performance reported by Apollo Hospitals was better than analysts' estimates.

Motilal Oswal Financial Services said that EBITDA margin expanded by 160bp YoY to 14.6% against their estimates of 14.1% due to lower to lower employee and other expenses. The net profit of ₹379 crore was also better than the brokerage's estimates of ₹361 crore.

Healthcare service performance remained strong in Q2, with revenues growing 14% YoY. The segment's EBITDA margins remained firm at 24.8%, helping the net profit of the segment grow 16% YoY.

The average revenues per operating bed (ARPOB) also grew by 3% YoY to ₹59,011 in the September quarter. Effectively, the volume of patients treated grew 8% YoY for Q2 FY25 and occupancy for Q2 FY25 was 73% vs 68% YoY.

Expansions

Apollo Hospitals has entered into a definitive agreement to build and operate a 500-bed hospital in Worli, Mumbai.

Apollo is also expanding its existing hospital facility in Lucknow to 500 beds from the present 300 beds by adding another 200 beds, to be developed on their recent acquisition of a 1.2-acre land.

With these two additions, Apollo Hospitals now has plans to add over 3,512 total beds (2877 census beds) over the next four years across 11 locations in India.

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