Healthcare services companies are positioned for another healthy quarter, with hospital chains expected to benefit from strong patient footfalls, improving case mix and fresh capacity additions in the April-June period. According to ICICI Securities, the brokerage estimates its hospital coverage universe will report 22.1 percent year-on-year revenue growth and 23.4 percent EBITDA growth in Q1FY27. Rising test volumes and network expansion will provide additional momentum to diagnostic players, with analysts forecasting continued steady performance across the sector.
Apollo Hospitals is likely to emerge as one of the strongest performers, with ICICI Securities expecting 18 percent revenue growth aided by healthy hospital occupancy, new bed additions and continued momentum in pharmacy and digital healthcare subsidiary HealthCo. HDFC Securities projects 19 percent revenue growth for Apollo, citing steady occupancy and ARPP growth alongside new bed additions. Fortis Healthcare hospital business is expected to post nearly 19 percent revenue growth, supported by bed capacity expansion and occupancy ramp-up. However, Max Healthcare may face muted growth at 10 percent due to a slowdown in Delhi, while Global Health's Medanta chain is expected to report nearly 13 percent revenue growth despite losses from the newly launched Noida facility.
Diagnostic chains are expected to deliver another quarter of double-digit growth, with ICICI Securities forecasting 14.3 percent revenue growth and 18.7 percent EBITDA growth for its diagnostic coverage universe. The growth is driven by healthy test and patient volume growth, supported by test mix improvement and network expansion. Dr Lal PathLabs is likely to report 11-14 percent revenue growth, while Metropolis Healthcare is expected to be a standout performer with around 16 percent revenue growth driven by higher patient volumes and better realisation. Thyrocare and Vijaya Diagnostics are also expected to clock high-teen growth rates.
According to EY's Healthcare Newsletter: Q4FY26 and FY26 Update, hospitals are increasingly benefiting from higher patient volumes and a richer treatment mix, unlike earlier phases when pricing drove growth. Apollo and Max Healthcare reported 16 percent revenue growth in FY26, while Fortis, KIMS and Medanta also posted double-digit growth. Hospitals are treating more patients requiring specialised procedures in areas such as oncology, cardiology, neurosciences and organ transplants, which typically generate significantly higher average revenue per occupied bed than routine medical care. Aster DM Healthcare reported that cardiology and oncology together contributed nearly a quarter of its revenue after recording growth of 25 percent and 23 percent respectively during the year.
Despite short-term pressure on profits, hospital chains are aggressively expanding capacity with significant bed additions planned. Apollo plans to add around 3,400 beds between FY27 and FY30, while Medanta expects to add about 2,700 beds over the next three to four years. Fortis plans another 1,800 beds, and the combined Aster DM and Quality Care platform intends to add roughly 4,445 beds. Most leading chains reported occupancies ranging between 60 percent and 75 percent during FY26, with Max Healthcare maintaining occupancy at around 76 percent, Apollo at 67 percent, Fortis at 68 percent, and Medanta at 62 percent. However, newly commissioned facilities typically reduce profitability during initial years due to pre-opening losses.
