Indian Hospital Chains Q2 FY26 Outlook & Performance Trends (

APOLLOHOSP

,

MAXHEALTH

)

Steady growth amid seasonal softness, margin dynamics, and expansion momentum 🔹 Sector-Wide Growth Expectations - Hospital chains are projected to post 13–16% YoY revenue growth in Q2 FY26, despite seasonal weakness. - Lower infection rates (e.g., dengue, malaria) and regional disruptions like Punjab floods impacted patient volumes. - Sequential revenue growth of 9% is expected, supported by new hospital additions and seasonal uptick. 🔹 Volume & Profitability Trends - Excluding seasonal infections, patient volume growth remained healthy across networks. - EBITDA for hospitals is forecast to grow 13% YoY, with Kotak and HDFC analysts citing stable ARPOB and improved case mix. -

likely to see margin expansion due to reduced spending on Apollo 24/7. - Aster DM may face margin pressure due to slower growth in Kerala; Max Healthcare impacted by integration of low-margin acquisitions. 🔹 Apollo’s Multi-Vertical Growth - Apollo’s hospital business expected to grow 8% YoY. - Omnichannel pharmacy and retail segments projected to grow in double digits. - Apollo Health & Lifestyle Ltd (primary care, diagnostics) expected to grow 14% YoY. - HealthCo sales forecast to rise 15% YoY, driven by offline pharmacy distribution. 🔹 Diagnostics Segment Outlook - Diagnostics firms expected to grow 15% YoY, led by higher test volumes and inorganic expansion. - Organic growth pegged at 12% YoY; margins may be impacted by network expansion and M&A costs. 🔹 Expansion Plans & Strategic Focus - Chains like Apollo, , and are executing previously announced expansion strategies. - Analysts are closely watching ARPOB trends and management commentary for future margin visibility. - Despite seasonal headwinds, hospital chains are showing resilience through diversified growth levers, strategic expansions, and steady operational metrics. - Margin performance will vary across players, influenced by regional dynamics, cost structures, and portfolio mix.