Synopsis:
Apollo Hospitals posted Q1 FY26 revenue of Rs. 5,842 crore (+15 percent YoY), profit Rs. 441 crore (+40 percent YoY), announced pharmacy demerger, major bed expansion, and targets Rs. 25,000 crore revenue by Q4 FY27.

During Wednesday’s trading session, shares of the world’s largest integrated healthcare platform and India’s largest omni-channel healthcare platform surged nearly 7 percent to a record high of Rs. 7,717 on BSE, after reporting financial results for Q1 FY26 and FY27 revenue and EBITDA margin guidance.

At 11:07 a.m., the shares of Apollo Hospitals Enterprise Limited were trading in the green at Rs. 7,681.05 on BSE, up by around 6 percent, as against its previous closing price of Rs. 7,236.6, with a market cap of Rs. 1.1 lakh crores. The stock has delivered positive returns of around 17 percent in the last one year, and has gained by over 6 percent in the last one month.

What’s the News

Apollo Hospitals Enterprise Limited (AHEL) announced the financial results for Q1 FY26 on Tuesday after market hours, according to the latest regulatory filings on the stock exchanges.

For Q1 FY26, Apollo Hospitals reported a consolidated revenue from operations of Rs. 5,842 crores, up by around 4 percent QoQ from Rs. 5,592 crores in Q4 FY25 and 15 percent from Rs. 5,086 crores recorded in Q1 FY25.

Net profit for the quarter stood at Rs. 441 crores, marking a rise of around 6 percent QoQ from Rs. 414 crores in Q4 FY25, as well as a year-on-year increase of about 40 percent from Rs. 316 crores in Q1 FY25.

During the quarter, AHEL announced the de-merger of its Omni Channel Pharmacy and Digital Health business into a new entity, Apollo Healthtech Ltd., aimed at unlocking value for existing shareholders. This strategic restructuring is designed to enable focused capital allocation and sharper growth plans, with dedicated management teams overseeing hospital operations and the omnichannel healthcare ecosystem.

The company also announced expansion plans in Bengaluru, adding 700 beds in two phases, which will take the total bed capacity in the city to 1,500 beds. Overall, AHEL remains on track to add nearly 4,370 beds with an investment of around Rs. 7,600 crores, through acquisitions, brownfield and greenfield expansion over the next 3-4 years. The first phase, involving 2,000 beds, is already in progress.

Looking ahead, AHEL anticipates continued double-digit revenue growth for FY26, supported by new hospital openings in Patna and Jaipur in Q3 FY26, sustained digital innovation, and expanding partnerships with state governments to strengthen community-based health initiatives.

The company has set a target to achieve Rs. 25,000 crore in run-rate annualised revenue by Q4 FY27, alongside a 7 percent EBITDA margin and gross merchandise value (GMV) of around Rs. 28,000 crore.

In its digital business, AHEL aims to achieve EBITDA breakeven within the next four quarters. The proposed integration of operations is expected to enhance high-margin realisation through supply chain efficiencies and to accelerate growth in the private-label segment, driving further margin expansion.

Apollo Hospitals Enterprise Limited is mainly engaged in enhancing the quality of life of patients by providing comprehensive, high-quality hospital services on a cost-effective basis and providing/selling high-quality pharma and wellness products. The principal activities of the company include the operation of multidisciplinary private hospitals, clinics, and pharmacies.

Written by Shivani Singh

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