Macquarie Warns: Apollo, Max Health Face Further Earnings Downgrades

• Macquarie reiterated 'Underperform' ratings for Apollo Hospitals and Max Healthcare.
• Apollo Hospitals' price target raised to ₹6,230; Max Healthcare's target set at ₹825, the lowest on Street.
• Both stocks underperformed Nifty 50 by 14% in 2025, with further earnings downgrades expected in 2026.
• Aggressive capacity expansion by 8 listed hospital chains (6,000+ beds by FY27) cited as a key concern.
• EBITDA drag from new hospitals is not adequately reflected in current consensus estimates, posing downside risks.

Why It Matters: Macquarie's bearish outlook on Apollo and Max Health stocks due to aggressive expansion and potential earnings downgrades.