Apollo's Q1 profit rose 38.41% as operating margin widened
Revenue grew 20.56% year on year, with expenses rising more slowly; other income contributed 7.79% of pre-tax profit.
Filed 12 Aug 2026, 19:52 IST · after market close · Apollo Hospitals Enterprise Ltd (APOLLOHOSP)
Key takeaways
- Consolidated net profit rose +38.41% year on year to Rs 610.4 cr, ahead of revenue growth of +20.56%.
- Operating margin widened 0.93 percentage points year on year as expenses grew +19.26%, slower than revenue, but other income still contributed 7.79% of pre-tax profit.
- Apollo's 15.51% operating margin was 7.44 percentage points below the 22.95% median for 65 reported healthcare peers.
Price around the results
Revenue growth translated into faster profit growth
Consolidated revenue rose +20.56% year on year and +6.63% sequentially, while operating profit grew faster at +28.20% year on year and +8.02% sequentially. This lifted net profit growth to +38.41% year on year and +10.72% sequentially, with EPS at Rs 40.39. The results were filed after market close.
Lower cost growth supported the margin increase
Year-on-year expense growth of +19.26% lagged revenue growth of +20.56%, widening operating margin by 0.93 percentage points. Sequentially, revenue grew +6.63% against expense growth of +6.38%, adding 0.20 percentage points to margin. The tax rate fell 0.73 percentage points year on year and was unchanged sequentially, while interest expense rose +11.17% year on year.
Margin is up from last year but remains below peers
Operating margin has risen from 13.76% in Q4FY25 to 15.51% in Q1FY27, despite a small dip to 14.90% in Q3FY26. Among 65 healthcare peers that have reported, Apollo's margin was 7.44 percentage points below the 22.95% median and ranked 11th from the bottom. Other income accounted for 7.79% of pre-tax profit, so part of the earnings increase came outside operations.
Apollo highlighted new hospitals and digital initiatives
Management said Apollo commissioned five new hospitals with approximately 1,000 census beds. The presentation lists expansion plans of 715 census beds across four Hyderabad projects, 775 census beds in Karnataka and 2,071 census beds in the Northern Region. Management also said Apollo 24|7 is developing a unified digital-to-hospital patient journey, while AI-based X-ray and RVG analysis has been implemented across its dental network.
Past result-day reactions have been mixed
The stock rose after five of the last eight results and fell after three, with a median absolute move of 2.85%. The six most recent recorded reactions ranged from -6.57% to +7.90%, indicating a mixed and sometimes sizeable response pattern; there is no post-result move to assess for this quarter yet.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,044 cr | ₹6,606 cr | +6.63% | +20.56% |
| Other income | ₹62 cr | ₹54 cr | +15.19% | +15.61% |
| Expenses | ₹5,951 cr | ₹5,595 cr | +6.38% | +19.26% |
| Operating profit | ₹1,092 cr | ₹1,011 cr | +8.02% | +28.20% |
| Operating margin (%) | 15.51% | 15.31% | — | — |
| Interest | ₹120 cr | ₹119 cr | +1.09% | +11.17% |
| Depreciation | ₹235 cr | ₹224 cr | +4.77% | +9.50% |
| Profit before tax | ₹799 cr | ₹722 cr | +10.71% | +37.09% |
| Tax | ₹188 cr | ₹170 cr | +10.69% | +32.96% |
| Net profit | ₹610 cr | ₹551 cr | +10.72% | +38.41% |
| EPS (₹) | ₹40.39 | ₹36.82 | +9.70% | +34.19% |
Operating margin of 15.51% compares with a Healthcare sector median of 22.95% across 65 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- Apollo commissioned five new hospitals with approximately 1,000 census beds.
- The Hyderabad expansion plan comprises 715 total census beds across four projects.
- The Karnataka expansion plan comprises 775 total census beds and 635 operating beds.
- The Northern Region expansion plan comprises 2,071 total census beds and 1,658 operating beds.
New initiatives
- Apollo signed an MoU with ePlane to explore electric air ambulances and medical delivery drones for India's emergency healthcare network.
- AI-based X-ray and RVG analysis was implemented across Apollo's entire dental network.
- Apollo initiated a Bangalore pilot with a device partner for diabetic patients' foot-health assessment.
- Apollo 24|7 is developing a unified digital-to-hospital patient journey.
- Predictive analytics is being used for earlier identification and referral of advanced-care patients.
Problems & risks
- Apollo HealthCo closed a non-profitable corporate partner, which is excluded from its reported revenue growth comparison.
What to watch
- Whether operating margin holds above 15.51% after its increase from 13.76% in Q4FY25.
- Whether expenses continue to grow more slowly than revenue, following +19.26% expense growth versus +20.56% revenue growth year on year.
- Whether other income remains near 7.79% of pre-tax profit, given its contribution to reported earnings quality.