Are Apollo Hospitals Enterprise Ltd. latest results good or bad?

Apollo Hospitals Enterprise Ltd. has reported its financial results for the third quarter of FY26, showcasing a solid operational performance despite some recent adjustments in its evaluation. The company achieved consolidated net sales of ₹6,303.50 crores, reflecting a year-on-year growth of 12.78% and a sequential increase of 7.90% from the previous quarter. This marks the seventh consecutive quarter of year-on-year revenue growth exceeding 12%, indicating strong demand for healthcare services and effective pricing power across its hospital network. The consolidated net profit reached ₹477.20 crores, representing a significant year-on-year growth of 25.98% and a sequential increase of 10.26%. This growth in profitability is attributed to higher patient volumes and improved operational efficiency, as evidenced by the operating margin, which expanded to 14.93%, up from 14.58% in the previous quarter and 14.59% year-on-year. Return on equity (ROE) improved to 18.39%, the highest in recent periods, reflecting enhanced capital efficiency and profitability. The company also demonstrated strong cash flow generation capabilities, with operating cash flow for FY25 amounting to ₹2,136 crores, indicating a healthy conversion of profits into cash. However, the latest quarter's performance showed a slight moderation in growth rates compared to the previous quarter, with net sales and net profit growth rates declining from 7.90% and 10.26% respectively. This trend may warrant attention as the company navigates its operational landscape. Overall, Apollo Hospitals maintains its leadership position in the healthcare sector, supported by robust institutional investor confidence, with 65.27% of equity held by institutional investors. The company continues to invest in capacity expansion and infrastructure, positioning itself to capitalize on the growing demand for healthcare services in India.