Apollo Hospitals Enterprise vs Artemis Medicare Services Q3 FY26

AP

Apollo Hospitals Enterprise

Q3 FY26 · Healthcare

Apollo Hospitals delivered a strong Q3 FY26 with consolidated revenue of INR 6,477 crore (+17% YoY) and PAT of INR 502 crore (+35% YoY), driven by double-digit growth across all verticals. Healthcare services revenue grew 14% to INR 3,183 crore, supported by 5% volume growth, 5% pricing, and 4% case mix improvement. Apollo Healthco revenue rose 20% to INR 2,827 crore, with digital losses narrowing to INR 67 crore. AHLL EBITDA grew 39% to INR 48 crore. Management guided for INR 150 crore in new hospital startup costs next year, partially offset by 100 bps margin expansion in existing hospitals. The digital business cash EBITDA breakeven is delayed by one quarter to Q1 FY27 due to insurance revenue recognition changes. Risk: new bed ramp-up may pressure near-term margins if occupancy lags.

Guidance read

New bed additions of ~1,500 over next two years: Approximately 1,500 new beds will be added across four new hospitals, with ~50% operationalized in FY27 and balance in early FY28. Startup losses of INR 150 crore in FY27: Management expects total startup losses of INR 150 crore from new hospitals in FY27, with potential quarterly peaks of INR 50 crore. Digital business cash EBITDA breakeven delayed to Q1 FY27: Cash EBITDA breakeven for Apollo 24/7 pushed out by one quarter to Q1 FY27 due to insurance revenue recognition changes. Existing hospital margin expansion of 100 bps in FY27: Management expects 100 bps margin improvement in existing hospitals next year through asset utilization and cost optimization.

Risk read

Key risks include New hospital ramp-up delays and cost overruns — Gurugram hospital delayed by 2-3 months due to environmental clearance issues; startup losses could exceed INR 150 crore if occupancy ramps slower than expected.; Insurance contract renegotiation delays — Some insurance contract renewals have been pushed out, potentially impacting revenue mix and ARPP growth in certain markets.; Digital business revenue recognition changes — Changes in GST and insurance commission recognition caused a INR 7 crore revenue deferral in Q3, delaying cash EBITDA breakeven by one quarter.; Talent poaching risk in competitive market — Recent poaching of a star oncologist by a peer highlights retention risk, though management believes Apollo's brand and platform mitigate this..

Promise ledger

Of 3 tracked promises, management 0 met, 0 close, 3 missed.

Artemis Medicare delivered a solid Q3 FY26 with consolidated revenue of INR 272 Cr (+17.2% YoY) and PAT of INR 22 Cr (+7.9% YoY). EBITDA margin improved to 19.1%, driven by higher patient volumes, complex procedures, and a 34.9% surge in international patient revenue (now 34% of total). Occupancy at the flagship Gurugram facility stood at 62%, with ARPB rising 10% to INR 84,100. Management guided for occupancy to reach 68-70% by year-end, which should drive margin expansion as fixed costs are absorbed. The company announced a INR 700 Cr fundraise via QIP/preferential issue to fund aggressive capacity expansion from ~750 beds today to 2,100-2,300 beds by 2029, including the Raipur (300 beds, operational from April-May 2026) and South Delhi (650+ beds, operational by 2029) projects. Key risk: execution delays in new projects or inability to ramp up occupancy as expected could pressure near-term margins.

Guidance read

Occupancy to reach 68-70% by end of FY26: Management expects occupancy at Gurugram facility to improve from 62% to 68-70% by March 2026, driven by higher patient volumes. Raipur hospital operational from April-May 2026: The 300-bed Raipur facility is on track to begin operations in April-May 2026, with initial ARPB of INR 30,000-35,000. South Delhi hospital to be operational by 2029: The 650+ bed South Delhi hospital is expected to start operations in 2029, with construction beginning in Q1 FY27. Fundraise of INR 700 Cr via QIP/preferential issue: Board approved raising INR 700 Cr to fund new projects and organic expansion, with details to be shared by June 2026.

Risk read

Key risks include Execution delays in new projects — Raipur facility delayed by one month due to equipment installation; further delays could impact revenue ramp-up.; Dilution from fundraise — INR 700 Cr QIP may lead to significant equity dilution, though management expects promoter to maintain majority.; Subdued performance of cardiac care and daffodil centers — Cardiac care and daffodil segments underperform due to unfavorable payer mix; turnaround may take time.; Margin pressure from elevated employee costs — Employee costs rose due to new towers and pre-operative costs for Raipur; margins may remain under pressure until occupancy improves..

Promise ledger

Scorecard data is being built as historical quarters are processed.