Apollo Hospitals Enterprise (APHS IN) – Q2FY27 Result Update – Strong show across segments – BUY
Published on 06 Nov 2026
Apollo Hospitals Enterprise (APHS)’ consolidated EBITDA improved 29% YoY to INR 11.9bn; in line with our estimates. Adjusted for 24x7 losses and ESOPs cost (~INR910mn), EBITDA was at INR 12.8bn, 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 digital business achieving cash breakeven in Q2FY27. The management revised guidance of INR 15bn (earlier INR16.5-17.5bn) EBITDA of the merged entity by Q4FY27 (exit run-rate). 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. Our FY28E and FY29E EBITDA stands marginally increased by ~1-2%. Overall, we estimate 24% EBITDA CAGR over FY26-29E. We maintain ‘BUY’ rating with revised TP of INR10,500/share. We ascribe 25x EV/EBITDA multiple to hospital and offline pharmacy and 20x to AHLL on Sept FY28E.
