Apollo Hospitals' margin expands as revenue growth outpaces costs
Consolidated net profit rose 33.50% year on year, but a higher tax rate limited sequential profit growth to 8.04%.
Filed 04 Nov 2026, 17:49 IST · after market close · Apollo Hospitals Enterprise Ltd (APOLLOHOSP)
Key takeaways
- Revenue grew 20.80% year on year while expenses rose 19.80%, lifting operating margin by 0.71 percentage points.
- Net profit increased 33.50% year on year to Rs 659.5 cr, though the tax rate rose 0.33 percentage points.
- Apollo Hospitals' 15.64% operating margin was 5.76 percentage points below the 21.40% median for 69 reported healthcare peers.
Price around the results
Revenue growth stayed ahead of costs
Consolidated revenue rose 20.80% year on year and 8.11% sequentially, while expenses grew 19.80% and 7.94%, respectively. The narrower cost growth supported a 26.53% year-on-year increase in operating profit and a 9.04% sequential increase.
Tax absorbed part of the profit growth
Operating margin expanded 0.71 percentage points year on year and 0.13 percentage points sequentially, extending the improvement seen over the past three quarters. Sequential profit before tax grew 13.08%, but net profit rose 8.04% as the tax rate increased 3.52 percentage points to 27.11%. Other income contributed 6.28% of profit before tax and declined 7.05% year on year, so the profit increase was not driven by a rise in this line.
Margin trend improves, but remains below peers
Operating margin has risen for three consecutive quarters, from 14.90% in Q3FY26 to 15.64% in Q2FY27. Even after that improvement, Apollo Hospitals was 5.76 percentage points below the 21.40% healthcare-peer median; its margin ranked 16th from the bottom among 69 reported peers.
Results were filed after market close
The consolidated results were filed after market close, so there is no current market reaction to assess. Across eight prior result reactions, the stock rose five times and fell three times, with a median absolute move of 2.85%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,615 cr | ₹7,044 cr | +8.11% | +20.80% |
| Other income | ₹57 cr | ₹62 cr | -8.84% | -7.05% |
| Expenses | ₹6,424 cr | ₹5,951 cr | +7.94% | +19.80% |
| Operating profit | ₹1,191 cr | ₹1,092 cr | +9.04% | +26.53% |
| Operating margin (%) | 15.64% | 15.51% | — | — |
| Interest | ₹114 cr | ₹120 cr | -5.32% | +4.01% |
| Depreciation | ₹230 cr | ₹235 cr | -2.08% | +5.69% |
| Profit before tax | ₹903 cr | ₹799 cr | +13.08% | +33.88% |
| Tax | ₹245 cr | ₹188 cr | +29.99% | +35.53% |
| Net profit | ₹660 cr | ₹610 cr | +8.04% | +33.50% |
| EPS (₹) | ₹43.82 | ₹40.39 | +8.49% | +32.03% |
Operating margin of 15.64% compares with a Healthcare sector median of 21.40% across 69 peers that have reported Q2FY27.
What to watch
- Whether operating margin continues to build from 15.64%.
- Whether expense growth remains below revenue growth of 20.80% year on year.
- Whether the tax rate moves back toward 23.59%, its Q1FY27 level.