Apollo Hospitals and Max Healthcare reported robust June quarter results, driven by increased patient volumes, strategic expansions, and improved operational margins, signalling positive momentum in India’s healthcare sector.
Apollo Hospitals and Max Healthcare delivered a stronger-than-expected June quarter, with both hospital operators benefiting from firmer patient volumes and improved realisations. Apollo extended its run of year-on-year revenue growth in hospitals for a fourth straight quarter, while Max rebounded after two muted quarters, according to Business Standard.
Apollo’s scale and mix drove the sharper result. The company posted 21% growth in consolidated sales, with hospitals revenue up 22% and established hospitals, those operating for at least five years, rising 18%. Growth was supported by 11% volume growth in acute therapies, a 4% increase in pricing and a 3% improvement in case and payer mix. Insurance and self-pay together contributed most of the revenue and grew 25% and 16%, respectively, from a year earlier.
Operating performance was equally firm. Apollo’s occupancy improved by 500 basis points to 65%, average revenue per patient rose 8% to just under ₹186,600 and average length of stay edged up to 3.14 days from 3.09 days. The company’s operating margin expanded 92 basis points to 15.5%, helped by a steep reduction in digital losses at HealthCo, which houses pharmacy and digital operations including Apollo 24/7. Apollo said it expects hospital revenue growth of 18% to 20% in FY27, while analysts cited by Business Standard said the planned pharmacy demerger could unlock further value.
Max Healthcare also posted a solid quarter. Revenue rose 15.3% as higher volumes, better pricing and 630 bed additions over the past year offset pressure from oncology drugs after regulatory changes affecting high-value cancer medicines. Occupancy held at a strong 75% even as bed capacity expanded 13% year on year. Operating profit grew 15%, though margins were flat year on year and narrowed sequentially to 24.6% because of brownfield expansion and the Kalinga Hospital acquisition.
The outlook remains constructive for both groups, but for different reasons. Apollo’s appeal lies in its combination of hospital growth and the impending separation of its pharmacy and digital business, which analysts say could crystallise value. Max, meanwhile, is leaning on a large capacity expansion plan, with about 2,800 beds expected to be added over the next two years at a cost of ₹6,100 crore. Brokerage analysts quoted by Business Standard said rising occupancy and better returns from newer assets could improve operating leverage over time.
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