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Apollo Hospitals revenues grew ~20% YoY to ₹ 7043.5 crore

ICICIdirect Research 13 Aug 2026 DISCLAIMER

News: Apollo Hospitals revenues grew ~20% YoY to ₹ 7043.5 crore, driven by growth across segments. EBITDA grew 28.2% to ₹ 1092 crore and EBITDA Margins improved 92 bps to 15.5%, driven by improved profitability at AHLL (Diagnostic and Retail Healthcare) and HealthCo (Pharmacy). Healthcare services division (Hospitals) revenues grew ~21% YoY to ₹ 3567 crore on the back of growth in Inpatient Volume (up 13%) and rest was a mix of Price & increase of case mix. EBITDA growth was at 20% and EBITDA margins stood at 24.2%. Apollo HealthCo (Digital Healthcare and Omni-channel Pharmacy platform) grew ~20% YoY to ₹ 2977 crore, driven by 22% growth in Offline Pharmacy distribution to ₹ 2629 crore, and ~13% growth in Online Pharmacy Distribution & Apollo 24X7 to ₹ 348 crore. AHLL revenues stood at ₹ 499 crore, up ~15% YoY primarily driven by 31% YoY growth in Diagnostics, and EBITDA margins stood at 12%.

View: The hospitals business has maintained strong profitability with optimum case mix and payor mix. The company has embarked upon a massive capex plan to add 4330+ beds across India with a spend of over ₹ 11150 crore (₹ 3650 crore already incurred) in the next 4-5 years across India. Structurally, cost reduction drives, expanding of complex procedures and profitability of new hospitals remain key management focus areas. Apollo HealthCo post 24x7 and ESOP charges have already turned EBITDA positive few quarters ago. On the HealthCo front, besides improving financials, proposed integration of promoters-owned Keimed Private Limited and a subsequent value unlocking via listing, would be the key exercise to watch for.

Impact: Positive

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