Brokerage firm Motilal Oswal has initiated coverage on Apollo Hospitals with a 'Buy' rating and a 12-month target of Rs 10,160. This assessment follows the company's strong Q1 FY27 performance, where revenue grew by over 20%. Investors are now focusing on the company’s digital platform turnaround and its ambitious hospital expansion plans.
Motilal Oswal has started tracking Apollo Hospitals Enterprises with a 'Buy' recommendation, assigning a 12-month target price of Rs 10,160. This move follows the hospital chain's recent financial results for the first quarter of fiscal year 2027, which showed strong growth and improved profitability.
During the quarter ending in mid-2026, Apollo Hospitals reported consolidated revenue of Rs 7,044 crore, marking a 20.6% increase compared to the same period last year. Profitability also improved, with the company reporting a consolidated EBITDA of Rs 1,092 crore, up 28.2% from the previous year. The brokerage noted that this strong performance was supported by healthy patient volumes in the hospital segment and better operational management.
A key focus area for investors has been the company’s digital health platform, Apollo 24/7. The company made significant progress in reducing losses from this segment, with cash losses dropping to Rs 9.7 crore in the first quarter of FY27, compared to Rs 48.7 crore in the same quarter the previous year. This reduction in losses has been a major contributor to the company’s overall profit growth, signaling that the digital business is becoming more sustainable.
Despite the positive results, investors should remain aware of the company’s long-term expansion goals. Apollo Hospitals has outlined a plan to reach approximately 14,000 beds by the fiscal year 2031. This strategy requires significant money spent on expansion, which can impact the company’s financial flexibility and cash flow in the coming years. Additionally, operating expenses grew by 26.7% during the quarter, which was higher than revenue growth, showing that maintaining profitability while expanding remains a challenge.
On the back of these results and the new coverage, the stock saw positive movement, rising approximately 3% on August 14, 2026. The brokerage’s target price is based on a sum-of-the-parts analysis, which separately values the hospital business, the pharmacy operations, and the digital platform.
Moving forward, the primary monitorables for investors will be the execution of the aggressive hospital expansion plan and the ability of the company to keep reducing losses at its digital platform. Watching whether the operating expenses stabilize as the new capacity is added will also be important for evaluating future profit margins.