Apollo Hospitals shares gain as Q4 profit jumps 54%; should you buy, sell, or hold?

Apollo Hospitals reported a strong financial performance for Q4 FY25, with net profit rising to Rs 389.7 crore, up from Rs 253.8 crore in the same period last year.

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26 Aug, 2025 12:21

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Shares of healthcare and diagnostics player Apollo Hospitals Enterprise Ltd rose on Monday, June 2, after posting a strong earnings show for the quarter ended March 31, 2025.

The firm reported a 54 percent year-on-year rise in consolidated net profit for the fourth quarter of FY25, driven by robust growth across its healthcare services, diagnostics, and digital health platforms. The company also announced a major expansion plan and a final dividend of ₹10 per share.

Net profit for Q4FY25 stood at Rs 389.7 crore, up from Rs 253.8 crore in the same quarter last year. Revenue rose 13 percent YoY to Rs 5,592.3 crore, while EBITDA grew 20 percent to Rs 769.9 crore, with margins improving despite continued investments in Apollo 24/7.

Apollo announced a rs 8,000 crore investment plan to add over 4,300 beds across India over the next 4 years, including a 700-bed expansion in Bengaluru. The company aims to commission new hospitals in Pune, Kolkata, Hyderabad, and Delhi NCR beginning FY26.

At 9.20 am, shares of the firm were quoting Rs 7,025 on the NSE, higher by 2 percent.

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Should you buy, sell, or hold Apollo Hospitals shares?

Nuvama Institutional Equities said, "Apollo Hospitals is poised to deliver ~16 percent hospital sales growth (FY25–27E) driven by bed additions (~20 percent in FY26) and low teens growth in existing hospitals.

While margins may compress in near term, management has identified cost control measures to minimise the impact." As a result, the brokerage retained its 'buy' rating with an unchanged target price of Rs 8,200.

Motilal Oswal said, "Apollo Hospitals Enterprises posted marginally better-than-expected revenue (4 percent beat), while EBITDA was in-line for the quarter. The lower tax rate led to better-than-expected earnings for the quarter." The broking house reiterated its 'buy' call, with a price target of Rs 8,050 per share, indicating a 17 percent upside.

Furthermore, the brokerage expects a 23 percent CAGR in PAT over FY25-27. This would mainly be driven by the addition of beds in the healthcare services segment coupled with improvement in productivity at existing facilities and a revival in revenue growth and profitability in the diagnostic segment.

The Q4FY25 revenue was in line with Nomura's expectation, while EBITDA came in 5 percent ahead of its estimate, supported by higher-than-estimated EBITDA margin in the Healthcare services segment. The brokerage maintained its 'neutral' rating, with a price target of Rs 6,856 per share.

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