Apollo Hospitals shares in focus as brokerages hike target prices post strong Q1FY26 results
ADVERTISEMENT The healthcare major reported a consolidated net profit of Rs 433 crore for the quarter ended June 30, 2025, marking a 42% year-on-year increase from Rs 305 crore in the same period last year. On a sequential basis, PAT was up 11% from Rs 390 crore in Q4FY25.
Revenue from operations in Q1FY26 rose 15% year-on-year to Rs 5,842 crore compared to Rs 5,086 crore in Q1FY25. Sequentially, revenue grew 4.5% from Rs 5,592 crore in the March quarter. The robust performance was supported by growth across segments, improved specialty mix, and operational efficiency gains.
Nuvama has raised its target price for Apollo Hospitals to Rs 9,010 from Rs 8,635, maintaining a 'Buy' rating.The brokerage noted strong performance from HealthCo and said sustained execution remains key. It expects hospital growth from H2FY26 through phased bed expansion, higher international patient inflows, and an improved specialty mix. Nuvama also highlighted potential value unlocking from the Keimed merger, front-end restructuring, and a possible listing within 18 months. HealthCo's valuation multiple was raised to 26x from 22x, and FY26E/FY27E EBITDA estimates were increased by 2% and 4%, respectively.
ADVERTISEMENT Motilal Oswal also raised its target price to Rs 9,010 from Rs 8,720 while maintaining a 'Buy' rating. Unlock 500+ Stock Recos on App The firm cited broad-based growth with EBITDA and PAT beating estimates on cost optimisation and noted that profitability was boosted by lower operating expenses. It highlighted a 14% year-on-year rise in surgical revenues on the back of strong CONGO therapy momentum. HealthCo is on track for cash EBITDA breakeven (excluding ESOP) by Q2FY26/Q3FY26. The brokerage expects 15%, 21%, and 28% CAGR in revenue, EBITDA, and PAT, respectively, over FY25–FY27 and has raised its FY26/FY27 earnings estimates by 7%.
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Avendus has increased its target price for Apollo Hospitals to Rs 8,765 from Rs 8,515, reiterating a 'Buy' call.
ADVERTISEMENT The brokerage has advanced the breakeven timeline for the online business EBITDA to FY27 from FY28 earlier. It projects ex-Keimed revenue CAGR at 17% in FY25–FY27, with EBITDA expected at Rs 510 crore and Rs 770 crore for FY26 and FY27, respectively. Offline pharmacy revenue CAGR is also projected at 17%, while existing units' EBITDA CAGR is estimated at 16% in the same period. Avendus factors in the AHCo–Keimed merger in April 2026 and the APL front-end acquisition in April 2027. It expects healthcare services EBITDA CAGR of 14% and AHLL at 22% over FY25–FY27. FY26/FY27 EBITDA estimates have been raised by 4% each, driven by higher AHCo EBITDA, partly offset by new hospital losses.
Also read: Zerodha's Nithin Kamath on how a boring, invisible Sebi step brought windfall gains for retail investors
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