Apollo Hospitals share price rallies 5% on strong Q3 results. Should you buy, sell or hold?

Apollo Hospitals share price jumped over 5% to ₹7,580 apiece in Wednesday's trading session, after the company reported strong numbers in the December quarter (Q3) of FY26.

Apollo Hospitals shares opened at ₹7,410 in the early morning session on Wednesday, as compared to the previous close of ₹7,219 on Tuesday.

Apollo Hospitals Q3 results 2026

Apollo Hospitals, on Tuesday, announced its financial results for the quarter ending on December 31, 2025. The company delivered a robust performance for the third quarter, reporting a 35% year-on-year (YoY) rise in consolidated net profit to ₹502 crore.

Revenue for Q3FY26 stood at ₹6,477 crore, marking a 17% increase from ₹5,527 crore in the same quarter last year. EBITDA climbed to ₹965 crore from ₹762 crore in Q3FY25, after factoring in Apollo 24/7 expenses of ₹124 crore during the quarter.

The healthcare services segment recorded revenue of ₹3,183 crore, up 14% YoY from ₹2,785 crore, while EBITDA grew 18% to ₹790 crore. Margins improved to 24.8%, and profit after tax for the segment rose 21% to ₹422 crore, driven by higher occupancy, a better case mix, and improved cost efficiencies.

Meanwhile, its subsidiary Apollo Health and Lifestyle reported a 20% YoY increase in revenue to ₹467 crore. EBITDA jumped 39% to ₹48 crore, with margins expanding to 10.2%. The segment posted a net loss of ₹6 crore, narrowing from ₹8 crore in the year-ago period.

“Q3FY26 reflects the fundamental strength and clinical depth of Apollo’s integrated care model. Across our network, teams are consistently delivering strong outcomes through disciplined execution in patient safety, quality, and experience. This quarter, sustained investments in advanced clinical capability translated into meaningful progress across key specialties from Apollo OMR completing 150 robotic joint replacement surgeries in its first 150 days, to the expansion of our stroke care network in Chennai with nine advanced stroke labs, strengthening rapid access care and outcomes,” said Prathap C Reddy, Chairman, Apollo Hospitals Enterprise.

Apollo Hospitals also declared an interim dividend of ₹10 per share for the financial year 2026.

“Apollo Hospitals’ Q3FY26 performance reinforces its strength as a long-term healthcare compounder, supported by broad-based growth, improving profitability, and a robust balance sheet. The company's margins indicate disciplined cost control. The core Hospitals segment continues to be the primary value driver, delivering 14% revenue growth with a healthy 24.8% EBITDA margin, 67% occupancy, and 11% growth in average revenue per inpatient, highlighting rising case complexity and pricing power. A strong ROCE of 29.5% underscores capital efficiency in a traditionally capital-intensive industry,” said Seema Srivastava, senior equity research analyst (fundamentals), SMC Global Securities Limited.

Apollo HealthCo is emerging as a scalable profit engine, with significant improvement in EBITDA and margins driven by pharmacy expansion and digital platform growth, adding long-term optionality, she added.

Apollo Hospitals share price: Should you buy, sell or hold?

Srivasatava further said that Apollo Hospitals' share price looks well-positioned and can be a good buy for the long term.

“With continued focus on high-end clinical capabilities, digital integration, and capacity additions, Apollo appears well-positioned to benefit from India’s rising healthcare demand over the next decade, making it structurally attractive for long-term investors,” she said.

Global brokerage firm Citi, as quoted by CNBC TV18, has maintained a ‘buy’ rating on Apollo Hospitals stock with a price target of ₹9,600 per share.

The brokerage noted that the growth was primarily driven by the hospitals segment, which recorded a 15% YoY rise in revenue despite the addition of greenfield capacities.

Citi further said that the stock’s valuations remain appealing, as it is currently trading below its historical average.

Meanwhile, on the technical outlook, Anshul Jain, Head of Research at Lakshmishree, said that after correcting 17% over 13 weeks, the stock has reclaimed the 50% retracement of the entire decline, placed near 7,365, signalling a clear shift in short-term structure.

“Price acceptance above this midpoint reflects strong demand absorption and improving momentum across timeframes. Volumes on the recovery have expanded, suggesting participation rather than a weak bounce. The structure now favours a full retracement of the prior fall, opening room toward the 8,000 to 8,100 zone. Moving averages are beginning to realign upward, reinforcing the bullish case. Any dip back toward the 7,400 zone should be viewed as a buy-on-decline opportunity with defined risk. Failure to hold above 7,365 would weaken the thesis, but current price action suggests strength rather than exhaustion. Risk–reward remains skewed positively for continuation,” Jain said.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.