Explained: Why Apollo Hospitals share price jumped 6% today
In Q2FY25, Apollo Hospitals reported a 63% year-on-year (YoY) increase in net profit, reaching Rs 379 crore, mainly driven by growth in its hospital business. This is up from Rs 233 crore in the same quarter last year.
by Koustav Das · India TodayIn Short
- Apollo Hospitals shares jump 6% after strong Q2FY25 results
- Q2 net profit up 63% year-on-year
- EBITDA grows 30% YoY, reaching Rs 816 crore in Q2
Shares of Apollo Hospitals surged by over 6% in early trading on Thursday, reaching Rs 7,393.75 on the Bombay Stock Exchange (BSE) after the company reported impressive second-quarter results for the financial year.
In Q2FY25, Apollo Hospitals reported a 63% year-on-year (YoY) increase in net profit, reaching Rs 379 crore, mainly driven by growth in its hospital business. This is up from Rs 233 crore in the same quarter last year.
EBITDA also saw a strong performance, increasing 30% YoY to Rs 816 crore. The healthcare services division, which encompasses the hospital business, posted a 14% YoY revenue growth, reaching Rs 2,903 crore. EBITDA margins for this segment stood at 24.9%.
The overall occupancy rate for hospitals improved to 73% from 68% during the same period last year, supported by a notable rise in patient volumes. Inpatient (IP) volumes grew by 8.3%, while outpatient (OP) new registrations rose by 10%. Apollo Hospitals currently operates 9,423 beds across its network.
Revenue from its diagnostics and retail healthcare business rose by 14% YoY to Rs 404 crore, while Apollo HealthCo, the digital healthcare and omni-channel pharmacy platform, saw a 17% YoY increase, reaching Rs 2,282 crore in Q2FY25.
Following the results, JP Morgan maintained an Overweight rating on the stock, with a target price of Rs 7,200. The brokerage noted that the results were in line with expectations, citing healthy revenue growth across segments, strong occupancy rates, improved hospital EBITDA margins, and a positive uptick in Apollo Health & Lifestyle (AHLL) margins.
Over the past year, Apollo Hospitals’ shares have gained nearly 35%, including a 21.3% rise in 2024 alone. The stock has appreciated by 15% in the last six months.