Shares of Apollo Hospitals rose over 7% to reach an all-time high of Rs 7,483 on the NSE, following the company’s impressive Q2FY25 earnings report. The healthcare giant posted a 63% year-on-year increase in net profit, reaching Rs 379 crore, driven by strong performance in its hospital business.
Net Profit and EBITDA Growth
Apollo Hospitals reported a net profit of Rs 379 crore for Q2FY25, compared to Rs 233 crore in the same quarter last year. The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) also saw a robust 30% year-on-year increase, amounting to Rs 816 crore during the quarter.
Strong Performance in Healthcare Services Business
The healthcare services segment, primarily driven by Apollo’s hospital business, saw revenue grow 14% year-on-year, reaching Rs 2,903 crore in Q2FY25.
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The segment’s EBITDA margins stood at 24.9%, reflecting efficient operations and strong demand for hospital services.
Improvement in Hospital Occupancy and Patient Flow
The overall occupancy rate for Apollo Hospitals increased to 73% in Q2FY25, up from 68% in the same period last year. This growth was fueled by a significant rise in patient flows, with inpatient (IP) volumes increasing by 8.3% and outpatient (OP) new registrations rising by 10%.
Expansion in Network and Services
Apollo Hospitals now operates 9,423 beds across its network, showcasing the company’s extensive reach. Additionally, the diagnostics and retail healthcare business grew 14% year-on-year, generating Rs 404 crore in Q2FY25.
Growth in Digital Healthcare and Pharmacy Platform
Apollo HealthCo, the company’s digital healthcare and omni-channel pharmacy platform, saw a 17% year-on-year growth, with revenues touching Rs 2,282 crore in Q2FY25, further diversifying the company’s revenue streams.
JP Morgan on Apollo Hospitals
JP Morgan maintained an “overweight” rating on Apollo Hospitals with a target price of Rs 7,200. The brokerage described the company’s Q2 results as broadly in-line with expectations, highlighting continued strength in hospital occupancy.
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JP Morgan noted healthy revenue growth across all segments, driven by robust increases in inpatient (IP) and outpatient (OP) volumes.
The report also pointed to improved EBITDA margins for the hospital business, along with a strong uptick in margins for Apollo Health and Lifestyle (AHLL),
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