Hospital Chains Set for Stable Q3 Despite Challenges

Indian hospitals are likely to witness steady year-on-year (y-o-y) earnings growth in Q3FY25, even as sequential performance may be impacted owing to seasonality.

- Abhinaba Saha

Investors can expect hospitals to fare better than diagnostics companies.

Increasing levels of private life insurance coverage kept footfalls buoyant, leading to strong y-o-y EBITDA growth for companies such as Apollo Hospitals Enterprise Ltd and Fortis Healthcare Ltd in the third quarter.

"Overall, we expect an EBITDA growth of 16% y-o-y [(-)6% quarter-on-quarter (q-o-q)] for our hospital coverage, with an EBITDA margin improvement of 10 basis points (bps) y-o-y [(-)70bps q-o-q] in Q3FY25," said Kotak Institutional Equities analysts.