Apollo Hospitals Expands Metro Presence, Shares Decline Over 6.5% Despite Strong Q3 Growth

Apollo Hospitals is expanding its metro presence with five new hospitals, adding over 1,400 beds in FY26, while also strengthening its telemedicine and retail healthcare services. Despite reporting a strong 51% YoY net profit growth in Q3FY25, its shares declined over 6.5% due to profit booking. The company declared an interim dividend of ₹9 per share and continues strategic partnerships for AI-driven healthcare advancements.

CONTENTS:

• Apollo Hospitals Expands Metro Presence with Five New Facilities, Strengthens Telemedicine and Retail Healthcare
• Apollo Hospitals Shares Decline Over 6.5% Following Profit Booking After Q3 Results

Apollo Hospitals Expands Metro Presence with Five New Facilities, Strengthens Telemedicine and Retail Healthcare

Apollo Hospitals Enterprise is set to expand its presence in metro cities during FY26 with the addition of five new hospitals, contributing over 1,400 beds. The expansion includes a 500-bed facility in Gurugram, a new hospital in Hyderabad, a women-focused cancer center in Delhi, and additional facilities in Kolkata and Pune.

Krishnan Akhileswaran, Group CFO of Apollo Hospitals, stated that these additions would reinforce the company’s strong footprint in key metropolitan areas. Over the next three to four years, Apollo aims to add a total of 3,512 beds across 11 locations.

In addition to physical expansion, Apollo is strengthening its telemedicine services in three key areas: retail consultations via the Apollo 24/7 platform, partnerships with government hospitals, and corporate collaborations with public sector undertakings (PSUs). The company is also expanding its tele-health presence internationally, having signed a deal with Indonesia’s Mayapada Healthcare Group for tele-ICU and tele-radiology services.

Regarding cancer care, Apollo does not operate standalone cancer units beyond its proton therapy center in Chennai. Instead, it integrates oncology treatment across its hospitals, as a significant portion of cancer care is shifting to outpatient services. The company is open to exploring public-private partnership (PPP) models for cancer daycare centers if viable opportunities emerge.

Beyond hospital services, Apollo is focusing on non-hospital revenue streams, particularly diagnostics and retail healthcare. Apollo Health and Lifestyle Limited (AHLL), which oversees these businesses, reported a 15% revenue growth in Q3, with EBITDA improving by 18-22%. The company has been optimizing its business by phasing out underperforming franchisees and enhancing operational efficiency, with a target of increasing retail healthcare EBITDA from 9% to 15% next year.

As of December 31, 2024, Apollo Hospitals had a total of 7,996 beds across its network, excluding managed and AHLL beds.

Apollo Hospitals Shares Decline Over 6.5% Following Profit Booking After Q3 Results

Shares of Apollo Hospitals fell by over 6.5% on February 11, as investors engaged in profit booking despite the company reporting a strong 51% year-on-year (YoY) increase in net profit for Q3FY25. During intraday trading, the stock was priced at ₹6,344.20 per share on the BSE, marking a 6.23% decline.

For the December quarter of FY25, Apollo Hospitals’ consolidated net profit surged 51.8% YoY to ₹372.3 crore, compared to ₹245.3 crore in the same period last fiscal year. Revenue from operations also witnessed a 13.9% YoY rise, reaching ₹5,526.9 crore, up from ₹4,850.6 crore in Q3FY24.

The company is progressing with its plan to expand its healthcare infrastructure, targeting the addition of 3,512 beds across 11 locations over the next three to four years, beginning FY26.

Apollo Hospitals’ earnings before interest, tax, depreciation, and amortization (EBITDA) rose 24.1% YoY to ₹761.5 crore in Q3FY25, up from ₹613.7 crore a year earlier. This resulted in an EBITDA margin expansion of 110 basis points (bps), reaching 13.8% in Q3FY25, compared to 12.7% in the previous year.

Chairman Prathap C. Reddy highlighted that the company’s strong performance reflects its mission to provide quality healthcare across India, from Mumbai to Varanasi and Chennai to Gurugram. He also noted Apollo’s strategic partnership with Microsoft, which is driving AI-driven healthcare advancements in disease progression and genomics. Additionally, Apollo’s collaboration with the University of Leicester aims to equip future healthcare professionals with advanced skills.

Apollo Hospitals’ board has declared an interim dividend of ₹9 per share (180% of the face value of ₹5 per share) for the financial year ending March 31, 2025. The record date for the dividend payment has been set for February 15, 2025.

As one of Asia’s leading integrated healthcare providers, Apollo has a strong presence across the medical ecosystem, encompassing hospitals, pharmacies, primary care and diagnostic clinics, and various retail healthcare models.