Apollo Hospitals shares take a hit despite solid Q3 FY25 results
Shares of Apollo Hospitals Enterprises fell 4.5% intraday on February 11, 2025, hitting a six-month low of ₹6,460, even though the company reported a strong Q3 FY25 performance. Some reports indicate the fall extended to 7% intraday, touching a low of ₹6,285 on the BSE.
Also read: LIC Share Price Falls After Q3 Results – Buy, Hold, or Sell?
But why did Apollo Hospitals’ stock decline when the company posted solid earnings? The answer lies in profit booking, market sentiment, and competition from new healthcare players.
Let’s break it down.
Q3 FY25 earnings snapshot
Apollo Hospitals reported strong revenue growth and improved profitability, yet investors chose to book profits, triggering the decline in share price. Below is a quick snapshot of key financials:
| Metric | Q3 FY25 | Q3 FY24 | YoY Growth |
| Revenue from operations | ₹5,527 crore | ₹4,851 crore | +13.9% |
| EBITDA | ₹762 crore | ₹613.7 crore | +24.1% |
| EBITDA margin | 13.8% | 12.7% | +110 bps |
| Consolidated Profit After Tax (PAT) | ₹372.3 crore | ₹245.3 crore | +51.8% |
| Healthcare Services (HCS) revenue | ₹2,785 crore | – | +13% |
| Apollo HealthCo revenue | ₹2,352 crore | – | +15% |
| Apollo Health & Lifestyle (AHLL) revenue | ₹390 crore | – | +15% |
Why did Apollo Hospitals shares fall?
Despite these strong financials, Apollo Hospitals’ stock price declined for three key reasons:
1. Profit booking after a strong rally
- The stock had doubled between June 2022 and December 2024, delivering 100% returns.
- Investors took this opportunity to cash out, leading to a 10% drop in less than two months.
2. Weak market sentiment in the healthcare sector
- Adani Group’s ₹6,000 crore investment in two affordable healthcare campuses in Mumbai and Ahmedabad spooked investors.
- Other hospital stocks, including Max Healthcare (-3%), Narayana Hrudyalaya (-4%), and Rainbow Children’s Medicare (-3%), also traded lower.
3. Lack of immediate triggers for further upside
- Apollo Hospitals’ long-term expansion plans (adding 3,512 beds over 3-4 years starting FY26) are positive but will take time to reflect in stock performance.
- Investors likely expected higher guidance or aggressive expansion in digital health or international markets.
Apollo Hospitals’ dividend announcement
To reward shareholders, Apollo Hospitals declared an interim dividend of ₹9 per share (180% of the face value of ₹5 each) for FY25.
- Record date: February 15, 2025
- Payment date: On or before February 28, 2025
This announcement, however, did not prevent the stock from declining, as investors focused more on short-term selling pressure.
You may also read: NCC Stock Drops 14% to 11-Month Low After Disappointing Q3 Results
Expansion plans and future outlook
Apollo Hospitals remains bullish on long-term growth, with major expansion and innovation initiatives in place:
1. Bed capacity expansion
- Plans to add 3,512 beds across 11 locations over the next 3-4 years, beginning FY26.
2. AI and digital healthcare transformation
- Strategic partnership with Microsoft to advance AI-driven healthcare, disease progression, and genomics.
- Collaboration with the University of Leicester to upskill medical professionals.
3. Medical innovation and robotic surgeries
- Milestone achieved: Over 1,000 robotic cardiac surgeries across Bangalore & Chennai.
- Launch of South Asia’s first ZAP-X brain tumour treatment technology.
These initiatives indicate sustained long-term growth, even though the stock may face short-term pressure.
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Stock price history and performance
| Stock Performance | % Change |
| Last 1 year | -4% |
| Last 6 months | -3% |
| Calendar Year 2025 (YTD) | -14% |
| From 52-week high (₹7,545.10 – Nov 2024) | -15% |
| From 52-week low (₹5,690.80 – June 2024) | +12% |
| Last 7 years | +417% |
While short-term performance is negative, long-term investors have gained significantly.
Should you invest in Apollo Hospitals shares?
Bull case: Why Apollo Hospitals could be a good buy
✅ Strong earnings growth (14% revenue growth, 52% PAT growth)
✅ Leadership in healthcare services & digital health (Apollo 24/7)
✅ Expanding bed capacity (3,512 beds over 3-4 years)
✅ AI-driven innovation & global expansion (Microsoft, Leicester University)
✅ Dividend-paying stock
Bear case: Why the stock might stay under pressure
❌ Short-term profit booking could continue
❌ Competition from new players like Adani Group
❌ Stock already up 417% in 7 years – growth may slow down
❌ Market sentiment on hospital stocks weak
If you’re a long-term investor, the recent dip could be a buying opportunity. However, short-term traders should be cautious as selling pressure might persist.
Final thoughts
Apollo Hospitals’ stock decline, despite a strong Q3 FY25 performance, highlights how market sentiment and investor behaviour can sometimes overshadow solid fundamentals.
While profit booking is the primary reason for the dip, long-term investors may see this as an opportunity to enter a fundamentally strong healthcare company that is expanding aggressively in AI, digital health, and medical innovation.
