Apollo Hospitals Enterprise (APHS IN) – Q3FY26 Result Update – Strong show in hospital segment – BUY
Published on 12 Feb 2026
Apollo Hospitals Enterprise (APHS) reported consolidated EBITDA of Rs9.7bn (up 27% YoY), which was 3% above our estimates. Adjusted for 24x7 losses and ESOPs cost (~Rs1.24bn), EBITDA was Rs11bn, up 21% 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 quarters. The management guidance of Rs17.5bn EBITDA of the merged entity by Q4FY27 (exit run-rate) provides comfort. Further, mgmt. has also announced the demerger of its Omnichannel Pharmacy business, 24*7, and telehealth business into a newly listed entity 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 25% EBITDA CAGR over FY26-28E. We maintain ‘BUY’ rating with revised TP of Rs9.000/share as we roll forward. We ascribe 25x EV/EBITDA multiple to hospital and offline pharmacy and 20x to AHLL.
