!Apollo Hospitals Outshines Max Healthcare on Revenue Growth and Margin Performance in Q1

!Apollo Hospitals and !Max Healthcare surpassed June-quarter estimates, but Apollo emerged stronger on hospital revenue growth, operating performance and stock returns. India’s two leading listed hospital chains by market capitalisation, Apollo Hospitals and Max Healthcare, delivered better-than-expected performances in the June quarter. While Max Healthcare staged a recovery in revenue growth after two consecutive quarters of subdued performance, Apollo continued to report healthy year-on-year growth in its hospitals business for the fourth straight quarter. Both companies recorded operating results ahead of market expectations, although Apollo delivered a stronger showing across key operating parameters. Looking ahead, Apollo could benefit from the proposed demerger of its pharmacy business, which may help unlock additional value. For Max Healthcare, improving occupancy levels and greater operating efficiencies could support growth in the coming quarters. The stock performance also favours Apollo. Shares of Apollo Hospitals have gained around 10 per cent over the past year, whereas Max Healthcare has declined about 17.5 per cent during the same period. The Nifty 50 has remained largely flat. Apollo’s consolidated revenue was driven by robust growth in its hospitals segment, with overall sales rising 21 per cent year-on-year. Revenue from the hospitals business increased 22 per cent, while mature hospitals operating for more than five years recorded 18 per cent growth. The hospitals business benefited from an 11 per cent increase in acute-care volumes, a 4 per cent improvement in pricing and a 3 per cent favourable movement in case and payer mix. Insurance and self-pay patients remained the key contributors to revenue, with income from these segments increasing 25 per cent and 16 per cent, respectively, from the year-ago period. Investment in securities market are subject to market risks. Read all the related documents carefully before investing,