Apollo Hospitals Enterprise (APHS IN) – Q1FY27 Result Update – Strong show in hospital segment – BUY
Published on 14 Aug 2026
Apollo Hospitals Enterprise (APHS) reported consolidated EBITDA of INR10.9bn; improved 28% YoY, which was 4% above our estimates. Adjusted for 24x7 losses and ESOPs cost (~INR910mn), EBITDA was at Rs11.8bn, up 22% 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 coming quarters. The management guidance of INR16.5-17.5bn 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 INR10,000/share. We ascribe 27x EV/EBITDA multiple to hospital, 25x to offline pharmacy and 20x to AHLL.
