New Delhi

Listed healthcare companies are likely to report robust earnings growth in the third quarter of FY26, supported by strong performance across hospitals, diagnostics and pharmacy businesses, according to a report by brokerage firm Nuvama.

The report projects an around 22 per cent year-on-year expansion in EBITDA for the healthcare sector during Q3FY26, led by comparable growth in hospitals and diagnostics. Despite the quarter being seasonally weaker for hospitals, structural growth drivers are expected to sustain healthy momentum.

Diagnostics companies are anticipated to record organic revenue growth of about 13 per cent during the quarter, along with margin expansion of nearly 107 basis points year-on-year. Overall, the segment’s revenue and profit after tax are estimated to rise by 17 per cent and 25 per cent, respectively. While organic growth will remain the primary driver, acquisitions are also expected to contribute.

The report noted that diagnostic companies may outperform earlier expectations due to increased demand for specialty and allergy tests, a favourable base effect and supportive festival timing.

On the hospital front, while Q3 is typically a softer period, major players under Nuvama’s coverage are still expected to deliver solid results. Hospital revenues are projected to grow by nearly 15 per cent year-on-year, while EBITDA growth is likely to be stronger at around 22 per cent, aided by improved operating leverage.

In the pharmacy segment, Apollo Pharmacy is expected to maintain strong growth momentum with revenue rising about 17 per cent year-on-year. Medplus is projected to post around 15 per cent growth, driven largely by increased contribution from non-pharma categories.

READ MORE: Nawabzada Mohammad Asif Ali shows the humble side of royalty

The report highlighted that although seasonal factors may affect quarter-on-quarter performance, the long-term growth outlook for the healthcare sector remains positive. Expansion in hospital capacity, steady improvement in diagnostics demand and diversification of pharmacy revenues are expected to support sustained earnings growth in the coming quarters.