Apollo Hospitals (APOLLOHOSP) Q1 24/25 earnings summary

Executive summary

• Consolidated revenue grew 15% year-on-year to INR 50,856 million in Q1 FY25, with EBITDA up 33% to INR 6,751 million and PAT up 83% to INR 3,051 million.

• All business segments, including Healthcare Services, Diagnostics & Retail Health, and Digital Health & Pharmacy Distribution, reported double-digit revenue growth.

• Achieved significant clinical milestones, such as India's first Robotic Cytoreductive Surgery and the world's first eyebrow keyhole brain tumor removal.

• Expansion plans include new hospitals and capacity increases across multiple regions, with major investments in digital health and pharmacy distribution.

• Strategic merger of Apollo HealthCo with Keimed and equity infusion from Advent International to create a leading integrated pharmacy distribution business.

Financial highlights

• Healthcare Services revenue rose 15% year-on-year to INR 26,373 million, with EBITDA margin stable at 23.6%.

• Apollo HealthCo revenue up 15% to INR 20,821 million; EBITDA margin at 8.3% (excluding 24/7 operating cost).

• AHLL (Diagnostics & Retail Health) revenue increased 15% to INR 3,661 million; EBITDA margin improved to 8.4%.

• Consolidated EBITDA grew 33% to INR 6,751 million; PAT surged 83% to INR 3,051 million.

• Net debt at INR 14,565 million, with gross debt of INR 31,449 million and cash & equivalents of INR 16,884 million.

Outlook and guidance

• Combined HealthCo and Keimed entity targets consolidated Year 3 revenues of ~INR 250 billion by FY27 at 7-8% EBITDA margin.

• Expansion plans include 2,860 new beds across greenfield, brownfield, and acquisition projects, with major launches expected in FY26 and beyond.

• Digital health platform expected to drive further growth, leveraging AI and omnichannel capabilities.

• On track for Apollo 24/7 digital segment breakeven in 6-7 quarters; maintaining 50% GMV growth guidance for the year.

• Offline pharmacy store additions to ramp up, targeting 500-550 new stores in FY25.