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Informist, Wednesday, Feb. 11, 2026

 

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--Apollo Hosp: Hope to sustain 30-32% gross merchandise value growth FY26
--Apollo Hospitals: See no challenges to meet INR 250-bln sales aim by FY27
--Apollo Hospitals: Insurance ops revenue delayed by a quarter on GST change
--CONTEXT: Comments by Apollo Hospitals mgmt in post-earnings analyst call
--Apollo Hospitals: Expect to operationalise Gurugram facility by Jul-Sept
--Apollo Hospitals: To start Hyderabad, Bengaluru, Kolkata ops in Q1FY27

 

By Sunil Raghu and Arya S. Biju

 

AHMEDABAD/MUMBAI - Apollo Hospitals Enterprise Ltd. is confident of achieving growth in its core hospitals business with an aim to reach INR 250 billion in revenue by 2026-27 (Apr-Mar), as four new hospitals and expansion projects are expected to commence operations by the June quarter, the company's management said in a post-earnings investor call on Wednesday.

Chennai-based Apollo Hospitals Tuesday reported a consolidated net profit of INR 5.02 billion for the December quarter, up 35% on year and over 5% on quarter. Analysts had projected the company to report a bottom line of INR 4.69 billion. Its consolidated top line grew by a little over 17% on year and by around 3% sequentially to INR 64.77 billion.

 

The company's pharmacy and digital health operations arm, Apollo HealthCo Ltd., which operates an offline and online pharmacy distribution and retail business, expects operations to turn profitable soon. Being the holding company of its digital platform Apollo 24/7 application, the growth is expected to be aided by e-pharmacy, diagnostic services, hospital services, and insurance. Though pharmacy currently leads the business of this platform, insurance is expected to lead the overall revenues going forward.

 

Apollo Hospitals reported a 14% growth in its healthcare services segment revenue for the December quarter, led mainly by the hospital business, to INR 31.83 billion. There was a 11% on-year improvement in average revenue per patient to INR 180,917, while the bed occupancy stood at 67%. However, the company management identified its insurance business to be a laggard in the wake of goods and services tax changes brought in by the government. "In September, given the GST change, which happened in the health insurance industry, there has been a big mismatch between the business that we do and the collection that we do. That has impacted our revenue a little bit. So in the sense that revenue recognition is getting deferred over the next 12 months for the money that I'm collecting," the management said.

 

Apollo Hospitals is commissioning four new hospitals, one each in Hyderabad, Kolkata, Bengaluru, and Gurugram, strengthening its presence in key metropolitan markets. Of these, operations of the first three hospitals are expected to start by the June quarter, and Gurugram hospital would be operational in the September quarter. The company is also ramping up recently commissioned Pune Hospital, adding 1,500 beds, the management said. "We expect to operationalize roughly half of this capacity in the upcoming fiscal year, with the balance coming online early FY28," they added.

 

The management said that besides new hospitals, the existing ones still have room to contribute to overall growth. As of Dec. 31, Apollo Hospitals had 76 hospitals in its network, with an operational bed capacity of 9,561.

 

The company said it may see an earnings before interest, tax, depreciation, and amortisation loss of INR 1.5 billion in FY27 because of the commencement of new hospitals. It is, however, hopeful of sustaining 30-32% gross merchandise value growth in FY26. Gross merchandise value is the total amount of sales a company makes over a specified period of time, typically quarterly or yearly. It is calculated before accrued expenses as advertising or marketing costs, delivery costs, discounts, and returns are deducted.

 

On Wednesday, shares of Apollo Hospitals ended 4% higher at INR 7,507 on the National Stock Exchange.   End

 

Edited by Ashish Shirke

 

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