06-Nov-2026 08:08:36
JPM on Apollo Hosp ; OW. TP Rs 10700
2Q revenue and EBITDA grew 23% and 29% YoY (10% and 11% QoQ), with revenue 2% ahead of consensus. Hospital demand was strong (occupancy +400bps to 73%, IP volumes +14%, ARPP +8%), but margins fell 60bps YoY to 24% as new-unit losses and pre-operative costs offset improvement at established hospitals (25.8%, +60bps YoY) Hyderabad Financial District unit has broken even (~3 months), & management expects remaining three greenfield units to break even by year-end. HealthCo’s demerger remains on track for 4QFY27 (subject to approvals), but annualised EBITDA margin target is now 6% vs 6.5–7% earlier due to higher staffing and one-time integration costs. Digital health achieved cash breakeven in 2Q, with management guiding to more visible margin improvement starting to play out in two quarters
APOLLO HOSPITALS ENTER. L