New Delhi [India], January 8 : Listed healthcare companies are expected to deliver strong growth in the third quarter of FY26, supported by robust performance across hospitals, diagnostics and pharmacy segments, highlighted a report by Nuvama.
According to the report, the overall healthcare coverage is projected to see EBITDA expansion of around 22 per cent year-on-year in Q3FY26, driven primarily by a similar 22 per cent growth in hospitals and diagnostics.
Despite Q3 being a seasonally soft quarter for hospitals, the sector is expected to maintain healthy growth momentum on the back of structural drivers.
It stated "We expect Q3FY26E EBITDA of our healthcare coverage to expand approx. 22 per cent YoY propelled by approx. 22 per cent growth in hospitals and diagnostics".
The diagnostics segment is likely to clock 13 per cent organic revenue growth during the quarter, accompanied by margin expansion of nearly 107 basis points on a year-on-year basis. Overall, diagnostics revenue and profit after tax (PAT) are estimated to grow 17 per cent and 25 per cent YoY, respectively.
While organic growth will remain the key contributor, a portion of the expansion will also come from acquisitions.
The report noted that Q3 performance in diagnostics may exceed earlier expectations due to a pickup in specialty and allergy testing, a low base effect and favourable festival timing.
On the hospital side, the report acknowledged that Q3 typically remains seasonally weak. However, major hospital operators under Nuvama's coverage are still expected to report solid revenue growth.
Overall, hospitals covered in the report are expected to deliver revenue growth of nearly 15 per cent YoY in Q3FY26, while EBITDA is likely to grow at a faster pace of around 22 per cent YoY.
The improvement in profitability is largely attributed to better operating leverage.
In the pharmacy segment, Apollo Pharmacy is expected to sustain strong momentum with revenue growth of around 17 per cent YoY. Meanwhile, Medplus is likely to post approximately 15 per cent YoY growth, driven by increased traction in the non-pharma segment.
The report reiterated that while seasonal factors may moderate quarter-on-quarter trends, the underlying growth drivers for the healthcare sector remain intact.
Expansion in hospital capacity, steady improvement in diagnostics demand and diversification in pharmacy revenues are expected to support consistent earnings growth.
Overall, Nuvama expects Q3FY26 to be a strong quarter for listed healthcare companies, with broad-based growth across sub-segments and sustained improvement in margins, reinforcing a positive outlook for the sector.
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