Apollo Hospitals shares dip 4% to 6-month low despite in-line performance in Q3. Here’s why

Shares of Apollo Hospitals declined 4.5% in intraday trade on Tuesday, February 11, hitting a six-month low of ₹6,460 apiece despite the company’s December quarter results meeting analysts’ estimates. The fall in the stock comes amid profit booking by investors. 

For Q3 FY25, Apollo Hospitals reported a 14% year-on-year (YoY) growth in revenue, reaching ₹5,527 crore. The Healthcare Services (HCS) segment contributed ₹2,785 crore, reflecting a 13% YoY increase, while Apollo Health & Lifestyle Limited (AHLL) posted ₹390 crore in revenue, up 15% YoY.

Apollo HealthCo, which includes pharmacy distribution and digital health services, recorded revenue of ₹2,352 crore, also growing by 15% YoY. The gross merchandise value (GMV) of Apollo 24/7 stood at ₹760 crore.

Consolidated EBITDA for the quarter grew 24% YoY to ₹762 crore. The HCS segment reported an EBITDA of ₹671 crore, marking a 14% YoY increase, while AHLL’s EBITDA rose 32% YoY to ₹34 crore. Apollo HealthCo recorded an EBITDA of ₹57 crore.

Its consolidated profit after tax (PAT) surged 52% YoY to ₹372 crore, compared to ₹245 crore in Q3 FY24. As of December 31, 2024, Apollo Hospitals had 7,996 operating beds across the network (excluding AHLL & managed beds). The overall occupancy for hospitals was at 68% vs. 66% in the same period in the previous year, aided by a strong increase in patient flows across hospitals, as per the company’s Q3 earnings report. 

“The results reflect our growth story that underlines our purpose of healing India and touching more than a billion lives. From Mumbai to Varanasi and Chennai to Gurugram, we are committed to ensuring that quality healthcare is not a privilege but a fundamental right for all,” Apollo Hospitals Enterprise Chairman Prathap C Reddy said.

The company board declared an interim dividend of ₹9 per share (180% of the face value of ₹5 each) for the financial year ending March 31, 2025. The board has fixed the record date as February 15, 2025, for the purpose of payment of the interim dividend. 

The company, in its earnings filing, said that it is on track to add 3,512 beds over a period of 3 to 4 years, beginning FY26. The company further stated that it achieved a milestone in cardiac care, completing over 1000 robotic cardiac surgeries across Bangalore & Chennai.

Meanwhile, the company partnered with Microsoft to advance healthcare through AI and digital innovation, focusing on disease progression and genomics.

Hospital stocks in red

Most hospital stocks traded with cuts today. While Apollo Hospitals cracked 4.5%, shares of Max Healthcare were down 3%. Yatharth Hospital, Narayana Hrudyalaya and Rainbow Children’s Medicare dipped 3-4% each.

Investor sentiment weakened following the Adani Group’s announcement of a ₹6,000 crore investment to establish two affordable healthcare campuses in Mumbai and Ahmedabad.

Stock price history

After a one-way rally between June 2022 and December 2024, resulting in a 100% gain, Apollo Hospitals stock faced some selling pressure in the following months, leading to a 10% decline in less than two months.

For long-term investors, the stock has delivered substantial returns, rising 417% over the last seven years. It ended CY24 with a gain of 28%.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.