The July-September quarter (Q2FY26) results of Indian healthcare companies are expected to be strong, with revenue likely to grow in the high teens year-on-year (YoY), supported by favourable industry tailwinds, expansion in operational bed capacity, and a steady recovery in international patient inflows, according to brokerage firm Choice Equity Broking.
The brokerage firm highlighted that the ARPOB (average revenue per occupied bed) of healthcare companies under its coverage may see a moderate YoY growth. However, EBITDA may outpace revenue growth across its coverage universe, underscoring continued improvement in operating leverage.
Aggressive capacity expansion and rising global demand are key factors indicating that the sector is poised for long-term growth. Moreover, rising demand for specialised treatment, such as oncology and high-end surgeries, is driving higher ARPOB and sustained revenue growth, the brokerage firm said.
Healthcare stocks to buy
Apollo Hospitals | Target price: ₹9,000
Choice Equity Broking anticipates a 14.1% YoY revenue growth for Apollo Hospitals, supported by a stronger case mix in high-end specialities, rising inpatient footfalls, and improved occupancy rates.
“Continued growth in retail and digital health segments is likely, driven by store network expansion and enhanced pharmacy offering,” said the brokerage firm.
Investors will focus on the outlook for the demerger of the pharmacy business and its impact on the company’s EBITDA margin.
Fortis Healthcare | Target price: ₹1,000
Choice Equity Broking expects Fortis Healthcare’s revenue to grow by 16.8% YoY, led by an increased contribution from core specialities and better occupancy levels.
EBITDA may rise sharply by 21.9% YoY, while PAT is expected to grow by 29.9%, said the brokerage firm.
“EBITDA margin guidance, profitability status at Gleneagles and possible M&A deal will be in focus,” said the brokerage firm.
Jeena Sikho Lifecare | Target price: ₹900
Choice Equity Broking anticipates Jeena Sikho Lifecare’s revenue to grow by about 10.2%, supported by rising patient volumes, the launch of new hospitals and expansion through Ayurveda colleges. EBITDA may increase by approximately 10.6% quarter-on-quarter.
The performance of OTC businesses and Ayurveda colleges, as well as growth in ARPOB and EBITDA margin guidance, will be in focus, said the brokerage firm.
Narayana Hrudayalaya | Target price: ₹2,110
Q2 revenue of Narayana Hrudayalaya may grow by 13.9% YoY, driven by higher ARPOB and the ramp-up of its new Cayman facility, said Choice Broking. EBITDA is expected to rise by 20%, while PAT is projected to increase by 12.1%.
“Comments on the performance of the new Cayman facility in terms of revenue and margin, insurance business expansion into new geographies and potential near-term plan for overseas expansion will be in focus,” said Choice Broking.
Yatharth Hospital | Target price: ₹850
Choice Broking expects Yatharth Hospital to deliver strong revenue growth of 33.8% YoY due to an increased focus on high-end specialities and a continued strategy to reduce reliance on government business. EBITDA may rise 34.4% YoY, with a stable margin of around 25%.
“Share from key specialities, especially oncology, growth in ARPOB and expansion plans, will be in focus,” said Choice Broking.