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Informist, Thursday, May 21, 2026

By Gunjan Rajput and Rajesh Gajra

MUMBAI/NEW DELHI – Apollo Hospitals Enterprise Ltd. expects its hospitals business to deliver mid-teen revenue growth in the financial year 2026-27 (Apr-Mar), supported by a ramp-up in new facilities, improving occupancy and higher contribution from complex specialities, the company's management told analysts in a post-earnings conference call Thursday.

The company said healthcare services margins are expected to improve by at least 100 basis points in FY27, while losses from new hospitals are likely to remain around INR 1.5 billion during the year. Management said most of these losses would accrue in the March quarter of FY27 as recently commissioned facilities become fully operational. 

Apollo Hospitals Enterprise reported consolidated net profit of INR 5.29 billion for the March quarter on revenue of INR 66.06 billion.  

Apollo Hospitals said it operationalised four new hospitals during FY26. The management said around 1,400 beds across its new hospitals pipeline will be operationalised in phases, with 185 beds already commissioned and another 500-600 beds expected to become operational over the next 12-18 months. The company added that the entire 1,400-bed expansion pipeline is expected to be fully operationalised by FY28. 

"In total, these additions are approximately 1,400 operating beds, all in key metro markets. This will position us strongly as we move into FY27 and later, representing nearly 25% capacity additions in these markets," the management said. 

For Apollo digital pharmacy business HealthCo, the company has given guidance for the earnings before interest, tax, depreciation, and amortisation margins of 6.5-7.0% on a pro-forma basis by the fourth quarter of FY27. Management said improving private-label contribution in offline pharmacy, operating leverage in digital business and lower losses at Apollo 24/7 would support profitability in this business.  

The management also said Apollo 24/7 continued to invest in its technological assets, encompassing the use of artificial intelligence capabilities. "AI (artificial intelligence) tools in the customer call centres help us to improve productivity and reduce our expenses," a top official said.

Apollo Hospitals also said it is seeing positive traction in physical hospital appointments driven through its digital platform, Apollo 24/7. It also said offline pharmacy margins could eventually stabilise at 8-9% as private-label contributions stays high as in recent quarters. On diagnostics, management said strong growth was driven by higher lab utilisation, increasing business-to-business and integration with Apollo Hospitals' broader healthcare ecosystem. The company added that it intends to accelerate investments in primary care and diagnostics following the announced merger of its Cradle and fertility business with Cloudnine.

To an analyst's question on tepid volume growth in the hospitals business in Tamil Nadu, Apollo Hospitals' management said the Chennai region continues to offer 6-7% headroom in growth through additional capacity utilisation across hospitals. The management added that it expects to focus on improving average revenue per patient and case mix, supported by investments in high-end clinicians and advanced technologies. A top official said the company has been "quite fortunate" in onboarding insurance partners across newly launched hospitals. 

Thursday, shares of the company ended at INR 8,308.50 on the National Stock Exchange, up over 2%. End

Edited by Akul Nishant Akhoury

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