Apollo shares fell 7% on Wednesday, Max 6%, Fortis 7%, as the Supreme Court spotlighted drug pricing—several hospitals saw their valuations tumble after the court’s observation.
The court questioned the 10‑fold markup on drugs, noting that 82% of drugs are outside pricing orders and that the 2,700‑₹ wholesale price is billed at 27,000 ₹ to patients.
Jefferies flags a 2‑5% EBITDA hit if price caps are applied to consumables and oncology drugs, which account for 15‑20% of revenue. They see the current dip as a buying window, citing past regulatory overhangs that led to consolidation.
HSBC, meanwhile, warns that pricing control risk is a headline concern but the on‑ground impact remains uncertain, especially since the current discussions focus on government channels only.
The next hearing is slated for Oct. 12; investors should track policy moves closely before the next earnings release to gauge how the regulatory environment will shape hospital margins.