Apollo Hospitals share price drops 7% despite strong Q3; here’s why

Shares of Apollo Hospitals Enterprise witnessed a sharp correction on Tuesday, falling up to 7% intraday as investors resorted to profit booking after the company released its December quarter earnings. The healthcare stock has been under stress for four sessions and lost nearly 10% during this period.

Earlier today, the Apollo Hospitals share price opened higher at ₹6,830, up nearly 1% from its previous closing level of ₹6,766 on the BSE. The large-cap stock, however, failed to hold early gains and tumbled 7.1% to hit a six-month low of ₹6,285. The stock dropped as much as 8% from its day’s high levels.

At the time of reporting, Apollo Hospitals shares were down 5.8% at ₹6,373, with a market capitalisation of ₹91,548 crore. The healthcare stock is down 15% from its 52-week high of ₹7,545.10 touched on November 8, 2024, while it has risen 12% from its 52-week low of ₹5,690.80 hit on June 4. 2024.

In the past one year, the stock price of Apollo Hospitals has fallen 4%, while it has lost nearly 3% in the past six months and over 14% in calendar year 2025.

Apollo Hospitals touched its six-month low today even after it reported decent earnings in third quarter ended December 31, 2024.

The Chennai-based company posted a consolidated profit of ₹372.3 crore in Q3FY25, up 51.8% year-on-year (YoY) from ₹245.3 crore in the corresponding quarter of the previous fiscal. Revenue from operations climbed 13.9% YoY to ₹5,526.9 crore as compared to ₹4,850.6 crore in Q3FY24. At the operating level, Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) climbed 24.1% YoY to ₹761.5 crore and margin expanded by110 basis points (bps) to 13.8% during the quarter under review.

Apollo's Board of Directors also declared an interim dividend of ₹9 for FY25. It has fixed the record date as February 15 for the purpose of payment of interim dividend that will be paid on or before February 28, 2025. 

As of December 31, 2024, Apollo Hospitals had 7,996 operating beds across the network (excluding AHLL & managed beds). The overall occupancy for hospitals was at 68% versus 66% in the corresponding period in the previous year, aided by a strong increase in patient flows across hospitals. Going forward, the company plans to add 3,512 beds across 11 locations over the next three to four years beginning FY26, said Dr Prathap C Reddy, Chairman, Apollo Hospitals Enterprise.

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