Analyst Concall
Apollo Hospitals sees hospital ops revenue growing 13-14%
This story was originally published at 16:29 IST on 13 August 2025
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--Apollo Hosp: Rationalising operating costs on Apollo 24/7 platform
--CONTEXT: Comments by Apollo Hospitals mgmt in post-earnings analyst call
--Apollo Hosp: Led by expansion, revenue from hospital operations to improve
--Apollo Hosp: Eyeing 25% margin in hospital business
--Apollo Hosp: Eyeing 13-14% revenue growth in hospital business
--Apollo Hosp: See occupancy at hospitals improving Q2 onwards
--Apollo Hosp: Focused on Africa, West Asia for international patients
--Apollo Hosp: Iraq started contributing to international patients revenue
--Apollo Hosp: Saw slight recovery in patient volume from Bangladesh
By Narayana Krishna and Arya S. Biju
HYDERABAD/MUMBAI - Apollo Hospitals Enterprise Ltd. expects revenue from the hospital business to grow 13-14% in the coming quarters, led by addition of new beds, opening of new hospitals, and improved occupancy at its existing hospitals, the company management said in a post-earnings conference call.
The company's revenue from hospital business grew 11% on year in the June quarter to INR 29.74 billion. Occupancy at hospitals during the quarter declined to 65% from 68% a year ago due to fall in international patients.
The Chennai-based healthcare services provider said existing hospitals have enough headroom to drive growth and improve margins. The management expects earnings before interest, tax, depreciation, and amortisation margin of its hospitals business to improve to 25.0% in coming quarters from 24.5% in the June quarters.
The company is working on entering newer geographies, including Malaysia, Brunei, and the Philippines, to attract international patients. It is already present in the markets of Africa and West Asia and has started seeing patient footfall from Iraq, the management said. Though there was a slight improvement in patient flow from Bangladesh, it is insignificant compared to the earlier numbers, the management said.
On Tuesday, the company reported a consolidated net profit of INR 4.33 billion for the June quarter, up nearly 42% on year and 11% on the quarter. Revenue for the quarter rose 15% on year and 4.5% on quarter to INR 58.42 billion. Both the metrics beat analysts' estimates.
Apollo Hospitals has revised the reporting format of its hospital business, replacing the average revenue per occupied bed metric with average revenue per patient from the current quarter. The management said the earlier measure did not accurately capture revenue growth.
The demerger of its subsidiary, Apollo HealthCo Ltd., is progressing as planned, with the combined entity maintaining its revenue guidance of INR 250 billion and an EBITDA margin of 7%.
In the digital platform business, Apollo 24/7, the company is cutting operating costs by lowering marketing spend and customer acquisition expenses. Margins in this segment improved to 15.4% from 12.0% in the previous quarter, helped by renegotiated rates with service providers. Revenue from Apollo 24/7 is expected to grow 20-25% in the coming quarters.
In its pharmacy business, Apollo Hospitals plans to add 600 new stores in FY26, having already added 120 stores in the June quarter. Shares of the company closed at INR 7,808.50 on the National Stock Exchange, up nearly 8% from Tuesday. End
Edited by Ashish Shirke
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