Apollo Hospitals Enterprise (APHS IN) – Q2FY26 Result Update – Growth momentum to continue across segments – BUY
Published on 10 Nov 2025
Apollo Hospitals Enterprise (APHS) reported consolidated EBITDA of Rs9.4bn (up 15% YoY), was largely 7in line with our estimates. Adjusted for 24x7 losses and ESOPs cost (~Rs1.26bn), EBITDA was Rs10.7bn, up 12% YoY. The stake sale in HealthCo to Advent and merger with Keimed are positive moves toward an integrated pharmacy and digital health platform, with Apollo HealthCo scaling up well and its digital business on track for EBITDA breakeven in the next 2–3 quarters. The management guidance of Rs17.5bn EBITDA of the merged entity by FY27 provides comfort. Further, mgmt. has also announced the demerger of its Omnichannel Pharmacy business, 24*7, and telehealth business into a newly listed entity (NewCo) with an aim to unlock value by creating a focused, high-growth platform in the pharmacy and digital healthcare space, which is more consumer centric in nature. Overall, we estimate 26% EBITDA CAGR over FY25-28E. We maintain ‘BUY’ rating with TP of Rs9.300/share. We ascribe 30x EV/EBITDA multiple to hospital and offline pharmacy and assign 1x sales to the 24/7.
