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Apollo Hospitals Q4FY26 Results- well-rounded growth with continued margin expansion

ICICIdirect Research 22 May 2026 DISCLAIMER

Revenues grew ~18% YoY to ₹ 6605 crore, driven by growth across segments. EBITDA grew 31% to ₹ 1011 crore and EBITDA Margins improved 154 bps to 15.3%.
(Hospitals) revenues grew 16% YoY to ₹ 3268 crore on the back of: 7% growth in Inpatient Volume,  4% increase in Price and 5% increase in better case mix. EBITDA growth was at 14% and EBITDA margins stood at 23.9%.
The company has embarked upon a massive capex plan to add 3415 beds across India with a spend of over ₹ 8200 crore (₹ 3200 crore already incurred) in the next 4 years across India.
Apollo HealthCo (Digital Healthcare and Omni-channel Pharmacy platform) grew ~20% YoY to ₹ 2848 crore, driven by 21% growth in Offline Pharmacy distribution to ₹ 2518 crore, and ~13% growth in Online Pharmacy Distribution & Apollo 24X7 to ₹ 330 crore.
Retail Business revenues stood at ₹ 490 crore, up ~24% YoY driven by primary care(up 13%) and specialty care(up 11%), and EBITDA margins stood at 15.3%.
Apollo is looking to sell their stake in Mother & Child and Fertility Businesses to Cloudnine hospitals valuing the entity at ₹ 1,550 Crores retaining 9.9% ownership in the combined entity with the latter. We expect the cash generated will help in the bed capacity expansion plans of Apollo Hospitals.
On the HealthCo (Digital Healthcare and Omni-channel Pharmacy platform)  front, besides improving financials, proposed integration of promoters-owned Keimed Private Limited and a subsequent value unlocking via listing, would be the key exercise to watch for. 
Our Target price for Apollo Hospitals on SoTP basis is ₹9660

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