Apollo Hospitals reports strong growth with revised target price of 7764

Apollo Hospitals Enterprise, which operates the largest network of hospitals in India with 73 centers and over 6,000 pharmacies, reported a consolidated revenue increase of 15.6% year-on-year to Rs 5,628 crore for Q2 FY25.

The growth was fueled by a 13.8% rise in healthcare services revenue, primarily from insured patients and cash-paying patients, which together constitute 83% of the hospital's inpatient revenue. The company's digital health and pharmacy distribution revenue also saw a significant boost, climbing 17.3% year-on-year to Rs 2,282 crore, with daily orders increasing from 62,000 in Q2 FY24 to 76,000 in Q2 FY25. Offline pharmacy distribution generated Rs 2,014 crore, while the digital platform contributed Rs 268 crore.

Additionally, retail health and diagnostics revenue grew by 14.0% year-on-year to Rs 404 crore, driven by increased foot traffic. EBITDA surged 31.4% year-on-year to Rs 854 crore, with margins improving by 190 basis points to 15.2%, attributed to a higher topline and reduced employee costs as a percentage of revenue.

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