Apollo Hospitals shares surge 6% on 63% YoY jump in Q2 profit

Shares of Apollo Hospitals surged 6% to their all-time high of Rs 7,396.30 on the BSE after the company reported a 63% year-on-year (YoY) jump in net profit to Rs 379 crore in Q2FY25, led by its hospital business.
The company reported a net profit of Rs 233 crore in the corresponding quarter of the previous year.

The earnings before interest, tax, depreciation and amortization (EBITDA), EBITDA rose 30% YoY to Rs.816 crore in Q2FY25.


The healthcare services business (hospital business) revenue grew 14% YoY to Rs 2,903 crore in Q2FY25. The EBITDA margins for the healthcare services business stood at 24.9%.

The overall occupancy for hospitals was at 73% vs 68% in the same period in the previous year, aided by a strong increase in patient flows across hospitals with inpatient (IP) volume increasing by 8.3% and outpatient (OP) new registrations by 10%.

Apollo Hospitals had 9,423 operating beds across the network.

Diagnostics and retail healthcare business grew 14% YoY to Rs.404 crore in Q2FY25.

Apollo HealthCo - the digital healthcare and omni-channel pharmacy platform grew 17% YoY to 2,282 crore in Q2FY25.

Post the Q2 results, global brokerage firm JP Morgan has maintained an Overweight rating on the stock with a target price of Rs 7,200

“Q2 results were broadly in line, and occupancy strength continued. Healthy revenue growth was seen across segments. Strong occupancy was driven by healthy growth in IP/OP volumes. Hospital EBITDA margins improved, and a strong uptick in AHLL margins was seen,” said JP Morgan in its note.

The shares of Apollo Hospitals have increased by nearly 35% in the last one year while gaining 21.3% in the current year so far. In the last 6 months, the stock gained 15%.

The stock closed flat on Wednesday at Rs 6,969 on the BSE.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)