Apollo Hospitals Posts Strong Profit Growth as Margins Expand
Revenue rose 20.6% year-on-year, while profit jumped 38.4%, driven by a steady improvement in net profit margin.
Apollo Hospitals reported robust Q1 FY27 results, with profit growing significantly faster than revenue. The company's net profit margin expanded to 8.7%, continuing a multi-quarter uptrend.
Apollo Hospitals Enterprise has kicked off the new fiscal year with impressive momentum, reporting double-digit growth in both revenue and profit for the June 2026 quarter. The healthcare leader's profit surged well ahead of its top line, a clear sign of improving operational efficiency and profitability.
The company's revenue for Q1 FY27 reached ₹7,043.5 crore, a 20.6% increase compared to the same quarter last year. Profit after tax grew even faster, rising 38.4% year-on-year to ₹610.4 crore. This performance was supported by a net profit margin of 8.7%, which expanded by 120 basis points from the 7.5% margin in Q1 FY26. Sequentially, the results also showed healthy progress, with revenue up 6.6% and profit up 10.7% from the March 2026 quarter.
A look at the last five quarters reveals a consistent upward trajectory for Apollo Hospitals.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 7,043.5YoY +21% | 6,605.5 | 5,842.1 |
| Profit (₹ Cr) | 610.4YoY +38% | 551.3 | 441.0 |
| Net Profit Margin | 8.7%YoY +16% | 8.3% | 7.5% |
This steady climb in revenue, profit, and margin quarter after quarter underscores the strength of the underlying business model. The trailing twelve-month (TTM) net profit margin stands at 8.2%, slightly below the latest quarter's high, indicating the potential for further improvement.
Key Points
- The stock has delivered strong long-term returns, with a three-year absolute return of 85% (22.8% CAGR).
- The company maintains a robust balance sheet with a high return on equity of 23.54% and a moderate debt-to-equity ratio of 0.62.
- Despite the strong earnings growth, the stock trades at a price-to-earnings (P/E) ratio of 55.0, which is at an 18.7% discount to the broader healthcare industry average.
The latest results set a high benchmark for the year, with the focus now on whether Apollo Hospitals can sustain this pace of margin expansion alongside its top-line growth.
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· APOLLOHOSP
(BSE)
ISIN: INE437A01024
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