Analyst Concall
Apollo Hospitals says demerged co to see 22-23% YoY sales growth
This story was originally published at 13:51 IST on 1 July 2025
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--Apollo Hosp:Demerged co aims INR 250-bln revenue, 7?ITDA margin by FY27
--Apollo Hosp: No plans to demerge arm Apollo Health & Lifestyle Ltd
--Apollo Hosp: Demerged co to appoint new CEO for pvt label business
--Apollo Hosp: To revamp private label products, add more new pdts
--Apollo Hosp: Expect breakeven of Apollo 24/7 digital platform in FY26
--Apollo Hosp: Demerged co to see 22-23% YoY revenue growth in next few yrs
--CONTEXT: Comments by Apollo Hospitals' management in a conference call
By Narayana Krishna and Sunil Raghu
HYDERABAD/AHMEDABAD - Demerged entity Apollo Healthtech Ltd is expected to see 22-23% year-on-year revenue growth for the next few years, driven by omni-channel pharmacy distribution business, the management of Apollo Hospitals Enterprise Ltd. told analysts in a conference call Tuesday.
On Monday, the board of Apollo Hospitals Enterprise Ltd. had approved a scheme of arrangement that would demerge its omni channel pharmacy business held by Apollo HealthCo Ltd and the digital healthcare platform business Apollo 24/7, and merge Keimed Pvt Ltd. into the new company – Apollo Healthtech Ltd. The equity shareholders of Apollo Hospitals will receive 195.2 shares of Apollo Healthtech for every 100 shares held by them. Apollo Healthtech is currently a wholly-owned subsidiary of Apollo Hospitals and as per the scheme of arrangement, it will seek listing of its equity shares on stock exchanges within 18-21 months.
The management said Apollo Healthtech aims to earn INR 250 billion in revenue and an earnings before interest, tax, depreciation and amortisation margin of 7% by 2026-27 (Apr-Mar). The company expects its digital platform Apollo 24/7 to achieve breakeven by the end of FY26. It also plans to bring in a new chief executive officer for the private label business under Apollo Healthtech, and revamp the entire product portfolio. Private label products contribute nearly 15% to the company's total retail sales.
Apollo Hospitals' management said it has no plans to demerge its diagnostics and clinics business arm Apollo Health and Lifestyle Ltd. The company said cash flows from the hospitals business would be used for hosptial expansion and growth. As on Mar, 31, the cash reserves of the hospital business stood at around INR 12 billion.
At 1335 IST, shares of Apollo Hospitals Enterprise were at INR 7463 on the National Stock Exchange, up 3.1%. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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